VWFS PCP on a Q7 - keep going 'til the end or VT now?
Discussion
Hey all,
Had my Q7 since Oct 2017 on a 3 year PCP, I'm now at the stage where I've reached 50% and can VT for no fee (barring any excess mileage and remedial work required).
But I just need some help running through this.
If I want to keep the car then obviously I have to keep paying the monthlies and the balloon payment of £30.5K due in October this year. £30.5K actually seems quite reasonable when I look up 3 year Q7's on Autotrader with a similar spec. But I don't really want to have to find 30K and would rather get a cheap runaround for a bit (so I can use the cash I'd save to pay for a decent holiday!).
I've already decided I DO NOT want to renew onto a new contract, so already that means I'll walk away at the end of this deal. So is it really worth me continuing to pay the monthly fee for another 9 months - it feels to me that all I will be doing is building up some equity to roll forward into a new deal, and I will lose that equity if I walk away in October.
So it seems like the sensible thing to do is to VT now and save myself 9 months of payments.
What's the general consensus with PCP? This is my first contract so not sure what people usually do.
Had my Q7 since Oct 2017 on a 3 year PCP, I'm now at the stage where I've reached 50% and can VT for no fee (barring any excess mileage and remedial work required).
But I just need some help running through this.
If I want to keep the car then obviously I have to keep paying the monthlies and the balloon payment of £30.5K due in October this year. £30.5K actually seems quite reasonable when I look up 3 year Q7's on Autotrader with a similar spec. But I don't really want to have to find 30K and would rather get a cheap runaround for a bit (so I can use the cash I'd save to pay for a decent holiday!).
I've already decided I DO NOT want to renew onto a new contract, so already that means I'll walk away at the end of this deal. So is it really worth me continuing to pay the monthly fee for another 9 months - it feels to me that all I will be doing is building up some equity to roll forward into a new deal, and I will lose that equity if I walk away in October.
So it seems like the sensible thing to do is to VT now and save myself 9 months of payments.
What's the general consensus with PCP? This is my first contract so not sure what people usually do.
Called up VWFS earlier, outstanding balance today is £36,146.86 - just looking on autotrader now and this seems to be about the going rate for my spec car, but I did just see one for 35K so already the prices are under pressure. I don't think I'll make anything if I try and sell it now. Not sure I can be bothered to wait until the end.
MDMA . said:
If 35k is the trade price, I think you'll only get offered high 20's. PS, do you still have the R36?
Nope, it shifted within a couple days of advertising it. The phone was ringing off the hook, one chap put a deposit down even before he saw it and turned up with cash in hand for the asking price. Turns out he had set up an alert on ebay so when I listed it he got pinged, and it was the exact spec he wanted. He'd been after one for a while. In some ways I regret selling it, but it was time to move on. I still miss it, awesome car.Yep, rarer than hens teeth. They are holding their value well. Soon to reach "appreciating classic" status I would have thought.
https://www.howmanyleft.co.uk/vehicle/volkswagen_p...
https://www.howmanyleft.co.uk/vehicle/volkswagen_p...
Reffro said:
OP - how can you have paid 50% back if you have £30k balloon payment outstanding?
Are you not aware that VT having paid back 50% is calculated against the entire amount borrowed, not just the monthly payments?
Yep I'm aware, car's price was 70K OTR.Are you not aware that VT having paid back 50% is calculated against the entire amount borrowed, not just the monthly payments?
Edited by Reffro on Friday 17th January 14:53
Have been offered 30K by two dealers in p/x, but that leaves me with a 6K shortfall as settlement figure is 36. This car is depreciating faster than a brick. It will be worth less than the balloon payment due at the end of the agreement.
Have sent off my VT to VWFS. I'm getting out whilst I can and will put the cash I save into something else.
VT has been accepted by VWFS, nothing to owe, inspection and collection by BCA due on 3rd Feb.
Not quite sure why I was able to VT so early on, my PCP was not due to end until 5th December, I did put down a big deposit but that would have just reduced the amount borrowed not necessarily changed when the 50% threshold was crossed.
So it's cost me an absolute fortune to have this car but I came into some cash had an opportunity to do it. But rather than pump more into (only to walk away at the end) it's time to be sensible and pay down the mortgage. Boo!
Not quite sure why I was able to VT so early on, my PCP was not due to end until 5th December, I did put down a big deposit but that would have just reduced the amount borrowed not necessarily changed when the 50% threshold was crossed.
So it's cost me an absolute fortune to have this car but I came into some cash had an opportunity to do it. But rather than pump more into (only to walk away at the end) it's time to be sensible and pay down the mortgage. Boo!
Hello chaps, looks like you've been having fun here!
Yes I can afford it but I just fancy doing something different with the cash. The car is complete overkill for what I use it for (school runs and a once a week 150 mile trip to see a client). So I'm going to get something a bit more sensible.
Car has about 12K of options on it, 22" wheels, black pack, virtual cockpit, loads of toys etc (the spec list is as long as my arm), so it's not an "ordinary" Q7, hence the 70K pricetag, also have to add interest into that for the finance.
I see lots of debate about the VT rights. I've got the finance agreement here, it says this:
"The total amount payable (comprising the advance payment, amount of credit, acceptance fee, interest and option to purchase fee) is £74,880.19"
Then there's some blurb about the advance payment (that's my large deposit), then it goes on to outline the monthly payments and the term and the specifies the balloon payment at the end of the 3 years, which is £30,542.25.
Now we have the termination section:
"You have a right to end this agreement. To do so, you should write to the person you make the payments to. They will then be entitled to the return of the goods and to half the total amount payable under this agreement, that is £37,440.10. If you have already paid at least this amount plus any overdue instalments and have taken reasonable care of the goods, you will not have to pay any more."
So 74,880.19 / 2 = 37,440.10 - so they are doing a very simple calculation, the VT point is 50% of the total amount payable.
I'll see if I can upload a pic then you can see what sort of beast we are talking about here...
Yes I can afford it but I just fancy doing something different with the cash. The car is complete overkill for what I use it for (school runs and a once a week 150 mile trip to see a client). So I'm going to get something a bit more sensible.
Car has about 12K of options on it, 22" wheels, black pack, virtual cockpit, loads of toys etc (the spec list is as long as my arm), so it's not an "ordinary" Q7, hence the 70K pricetag, also have to add interest into that for the finance.
I see lots of debate about the VT rights. I've got the finance agreement here, it says this:
"The total amount payable (comprising the advance payment, amount of credit, acceptance fee, interest and option to purchase fee) is £74,880.19"
Then there's some blurb about the advance payment (that's my large deposit), then it goes on to outline the monthly payments and the term and the specifies the balloon payment at the end of the 3 years, which is £30,542.25.
Now we have the termination section:
"You have a right to end this agreement. To do so, you should write to the person you make the payments to. They will then be entitled to the return of the goods and to half the total amount payable under this agreement, that is £37,440.10. If you have already paid at least this amount plus any overdue instalments and have taken reasonable care of the goods, you will not have to pay any more."
So 74,880.19 / 2 = 37,440.10 - so they are doing a very simple calculation, the VT point is 50% of the total amount payable.
I'll see if I can upload a pic then you can see what sort of beast we are talking about here...
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