Genie Posted August 8, 2015 Share Posted August 8, 2015 You'll need a big deposit to bring a £32 grand car down to £300 a month. I put 3 grand down against my A3 and I got it for £22k (I think) and it's only £300 a month £14,000 over 3 years and then hand it back. Ouch, these deals are popular I know but I just don't see it at all. All the time knowing it's not really your car. 1 Link to comment Share on other sites More sharing options...
Stevo985 Posted August 8, 2015 VT Supporter Share Posted August 8, 2015 (edited) You'll need a big deposit to bring a £32 grand car down to £300 a month. I put 3 grand down against my A3 and I got it for £22k (I think) and it's only £300 a month £14,000 over 3 years and then hand it back. Ouch, these deals are popular I know but I just don't see it at all. All the time knowing it's not really your car. You don't just hand it back though and that's it. You get the equity to put towards a new car. Or you can buy the car for a fixed fee if you want to own it (and sell it yourself I guess if you want the money). More likely though is after 2 years they get you back in to exchange the car for a new one. My previous car cost me 9 grand. I had it over 4 years. That's what I could afford. After that time I owned the car and it was worth around 1500-2000. That went towards a new car. With PCP it's the same. At the end of the deal yes you can give the car back, but you get the equity to put towards the new car, which for me will probably be worth the same amount as that car I owned when I bought it outright. If you really want the car then you can buy it outright for a fixed fee, then sell it yourself and keep any extra money. So for me it's exactly the same as when I bought a car outright. I pay a monthly fee to have a car to drive around in. The difference is I "owned" the car at the end of the last deal. But the amount it was worth was about the same as the equity I'll have when my PCP deal runs out. The difference is under my current deal I get to drive a brand new car, it costs me far less to maintain it, and I can change it after 2 years (or less) if I feel like it. Normal second hand car, I had a car worth 1500 at the end of it to go towards a new car. PCP I have equity worth 1500 (ish) to put towards a new car. What's the difference really? Edited August 8, 2015 by Stevo985 3 Link to comment Share on other sites More sharing options...
omariqy Posted August 8, 2015 Share Posted August 8, 2015 Can you really build that much equity in the car? Link to comment Share on other sites More sharing options...
Genie Posted August 8, 2015 Share Posted August 8, 2015 What's the difference really? For me, I like to know what I have is mine. A 2 year old A3 for about £14k must still be worth 50% after the 3 years are up. Personally I'd much rather spend my money that way, knowing I've got a good £7k asset at the end and all the time it's mine. As I said, people do like these kind of payment deals and you see lots of young people driving brand new cars but for me I don't want to spend that kind of money renting a car (and getting a small percentage back at the end). Link to comment Share on other sites More sharing options...
Nabby Posted August 8, 2015 Share Posted August 8, 2015 My car 2 Link to comment Share on other sites More sharing options...
BOF Posted August 8, 2015 Moderator Share Posted August 8, 2015 I do like the new Ford range. And with the Fiesta it's always about that chassis. (Nice to be talking cars again and not poxy finance ) Link to comment Share on other sites More sharing options...
Vive_La_Villa Posted August 8, 2015 Share Posted August 8, 2015 (edited) You'll need a big deposit to bring a £32 grand car down to £300 a month. I put 3 grand down against my A3 and I got it for £22k (I think) and it's only £300 a month£14,000 over 3 years and then hand it back. Ouch, these deals are popular I know but I just don't see it at all. All the time knowing it's not really your car.You don't just hand it back though and that's it. You get the equity to put towards a new car. Or you can buy the car for a fixed fee if you want to own it (and sell it yourself I guess if you want the money). More likely though is after 2 years they get you back in to exchange the car for a new one. My previous car cost me 9 grand. I had it over 4 years. That's what I could afford. After that time I owned the car and it was worth around 1500-2000. That went towards a new car. With PCP it's the same. At the end of the deal yes you can give the car back, but you get the equity to put towards the new car, which for me will probably be worth the same amount as that car I owned when I bought it outright. If you really want the car then you can buy it outright for a fixed fee, then sell it yourself and keep any extra money. So for me it's exactly the same as when I bought a car outright. I pay a monthly fee to have a car to drive around in. The difference is I "owned" the car at the end of the last deal. But the amount it was worth was about the same as the equity I'll have when my PCP deal runs out. The difference is under my current deal I get to drive a brand new car, it costs me far less to maintain it, and I can change it after 2 years (or less) if I feel like it. Normal second hand car, I had a car worth 1500 at the end of it to go towards a new car. PCP I have equity worth 1500 (ish) to put towards a new car. What's the difference really? This makes so much sense. I bought my car for 11K in 2007 and I feel obliged to drive it in to the ground. It's given me so much stress though. Edited August 8, 2015 by Vive_La_Villa Link to comment Share on other sites More sharing options...
tsimutv Posted August 9, 2015 Share Posted August 9, 2015 I own a 1993 bmw 318is coupe. Fantastic condition, minor cosmetics needed. Real head turner as its an M3 spec with 17"alpina alloys. Sounds lovely and drives great. My aim is to spend a bit of cash to get it to showroom quality, should be a nice little project Link to comment Share on other sites More sharing options...
benireduk Posted August 9, 2015 Share Posted August 9, 2015 Next trick is set your millage, If you're gonna chop and change it every 2/3 years for a new one then set it at 5k miles per year. (lower the milage cheaper it works out) Millage charges only come in to play if you walk away after the term of the agreement and have exceeded the allowance. You could return it with 105k as long as you take out a new model at the end! Can I just say that the above is complete and utter tripe. PCP is a great product and gives you the most amount of flexibility. But regardless of which car/finance house/website you go through, every PCP deal is based on a residual value which is based on length of the agreement and MILEAGE. So you take an agreement out doing a total of 5k per year and end up doing 25k per year, there's going to be a massive shortfall when you come to trade it in and guess who's paying? You will be royally shafting yourself Yes I do work for a main dealer and have seen it happen before. You're better off signing up to a realistic mileage as the RV's are set below market value to encourage people to trade up early anyway. That way everybody wins. Customer gets a newer car more often and the dealer sells more cars Link to comment Share on other sites More sharing options...
Stevo985 Posted August 9, 2015 VT Supporter Share Posted August 9, 2015 (edited) What's the difference really? For me, I like to know what I have is mine. A 2 year old A3 for about £14k must still be worth 50% after the 3 years are up. Personally I'd much rather spend my money that way, knowing I've got a good £7k asset at the end and all the time it's mine. As I said, people do like these kind of payment deals and you see lots of young people driving brand new cars but for me I don't want to spend that kind of money renting a car (and getting a small percentage back at the end). £14k over 3 years will cost you at least £400 a month. The car is yours under a PCP deal. You just have to pay some more at the end if you want to keep it. You can buy the car outright at the end of the deal using a loan if you want to keep the car beyond that time. So you're still getting the second hand A3 that you suggested in your scenario, the difference is you owned it for 3 years when it was brand new. Your alternative is to cash in against a new car, which again could be a different second hand car from the dealer if you wanted some variety. Can you really build that much equity in the car? If you use it to get a new car from the same dealer then yes. Probably less if you want to go elsewhere. Edited August 9, 2015 by Stevo985 Link to comment Share on other sites More sharing options...
Kingman Posted August 9, 2015 Share Posted August 9, 2015 Next trick is set your millage, If you're gonna chop and change it every 2/3 years for a new one then set it at 5k miles per year. (lower the milage cheaper it works out) Millage charges only come in to play if you walk away after the term of the agreement and have exceeded the allowance. You could return it with 105k as long as you take out a new model at the end! Can I just say that the above is complete and utter tripe. PCP is a great product and gives you the most amount of flexibility. But regardless of which car/finance house/website you go through, every PCP deal is based on a residual value which is based on length of the agreement and MILEAGE. So you take an agreement out doing a total of 5k per year and end up doing 25k per year, there's going to be a massive shortfall when you come to trade it in and guess who's paying? You will be royally shafting yourself Yes I do work for a main dealer and have seen it happen before. You're better off signing up to a realistic mileage as the RV's are set below market value to encourage people to trade up early anyway. That way everybody wins. Customer gets a newer car more often and the dealer sells more cars Are you for real, If I take out a deal on 5k miles and return it with 10k or I take out a deal on 10k miles and return it with 10k then the residual is exactly the same value but I've lowered my initial monthly payments by setting at 5k miles. Anyway what I stated is correct, Excess Millage charges only come in to play if you walk away after the term of the agreement and have exceeded the allowance! Ever thought of double glazing? Link to comment Share on other sites More sharing options...
Vive_La_Villa Posted August 9, 2015 Share Posted August 9, 2015 That must be in the small print right? Link to comment Share on other sites More sharing options...
benireduk Posted August 10, 2015 Share Posted August 10, 2015 Next trick is set your millage, If you're gonna chop and change it every 2/3 years for a new one then set it at 5k miles per year. (lower the milage cheaper it works out) Millage charges only come in to play if you walk away after the term of the agreement and have exceeded the allowance. You could return it with 105k as long as you take out a new model at the end! Can I just say that the above is complete and utter tripe. PCP is a great product and gives you the most amount of flexibility. But regardless of which car/finance house/website you go through, every PCP deal is based on a residual value which is based on length of the agreement and MILEAGE. So you take an agreement out doing a total of 5k per year and end up doing 25k per year, there's going to be a massive shortfall when you come to trade it in and guess who's paying? You will be royally shafting yourself Yes I do work for a main dealer and have seen it happen before. You're better off signing up to a realistic mileage as the RV's are set below market value to encourage people to trade up early anyway. That way everybody wins. Customer gets a newer car more often and the dealer sells more cars Are you for real, If I take out a deal on 5k miles and return it with 10k or I take out a deal on 10k miles and return it with 10k then the residual is exactly the same value but I've lowered my initial monthly payments by setting at 5k miles. Anyway what I stated is correct, Excess Millage charges only come in to play if you walk away after the term of the agreement and have exceeded the allowance! Ever thought of double glazing? That's not what you said in your initial post. It's simple. Would you pay the same price for a car that has done 100k miles as one which has done 10k? Of course you wouldn't. You are right that excess mileage only comes into play if you return the car, but if you think dealers are making enough profit to bridge a difference of 90k miles on a part ex you are sadly mistaken. And 10 years in the trade, think I might just be doing something right. I'll leave the double glazing to you thanks [emoji3] Link to comment Share on other sites More sharing options...
Kingman Posted August 10, 2015 Share Posted August 10, 2015 TBH I Didn't think i needed to state the obvious that any vehicle with high mileage will conflict with depreciation value. However that was not the point i was trying to make anyway. It was about excess mileage charges being voided as long as you renew your deal. I could tell you that, you will sell more Mini's than Rolls Royce's, But you might tell me you will sell more big bananas than little bananas. :-) Link to comment Share on other sites More sharing options...
chrisp65 Posted August 10, 2015 Share Posted August 10, 2015 so anyway, what do you drive? well, this evening, if it stops raining I'm going to have a go on one of these for an hour 1 Link to comment Share on other sites More sharing options...
omariqy Posted August 10, 2015 Share Posted August 10, 2015 It seems you can only get deals for Mercedes based on 10k miles anyway. Found this on the used car section. It's only £3k ish cheaper than the brand new version with the same spec. How much haggling can you do on used cars? http://used.mercedes-benz.co.uk/used/2015/mercedes-benz/c250-blueefficiency/2015-mercedes-benz-c250-blueefficiency-chelmsford-for-sale-ef15fau Link to comment Share on other sites More sharing options...
tsimutv Posted August 10, 2015 Share Posted August 10, 2015 Hi, how do i upload a picture? Link to comment Share on other sites More sharing options...
Nabby Posted August 11, 2015 Share Posted August 11, 2015 I do like the new Ford range. And with the Fiesta it's always about that chassis. (Nice to be talking cars again and not poxy finance ) Yes its got a great chassis really can throw the thing around the corners.I used to have an Astra SRi 08 plate and now i have the Fiesta I relize how awful that was at cornering. I have it on pcp or I would go for the monotune pack or revo upgrade has makes a big differance. Recently went on a vauxhall vxr day where you get to take the vxr range round a track.New astra alot better and the new Corsa is nice too , nice aound to engine ane handles well.Interior an imporvement too. Link to comment Share on other sites More sharing options...
Marka Ragnos Posted August 11, 2015 VT Supporter Share Posted August 11, 2015 2015 Forester with a giant cargo box atop decorated to look like a shark. Link to comment Share on other sites More sharing options...
V01 Posted August 11, 2015 Share Posted August 11, 2015 A car. Surprised? Link to comment Share on other sites More sharing options...
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