Few questions with getting a new car on PCP

Heisenberg87_2

I have always paid out for a car and the past 4 year's it's been nothing but trouble, cam belt going, head gasket blowing etc.. and I am now looking at getting a brand new car on PCP. I'm really not fussed about not owing the car, I just want the piece of mind of that I'm never go got need to worry about big car repairs, failing MOT's etc... I want to get the new Citroen Cactus and have been given the following offer from the dealer.

Total on the road cost: £18,705.00
Deposit: £3,400 (£1000 from me, £1000 from Citroen, £1400 part EX)
Total Intrest: £1,710.16
APR: 4.9%

This come out at £260 per month and a final purchase of £7,689.00.

The question I have is what happens at the end of the contract. I just want to get a new car every 3 years but need to know do I need to put down deposits every 3 year's. If anyone can give me any advice that would be great...

Herzlos

I believe if the value is more than the final purchase fee, the difference becomes your deposit on the next one.

Cornucopia

Heisenberg87 wrote: »

The question I have is what happens at the end of the contract. I just want to get a new car every 3 years but need to know do I need to put down deposits every 3 year's. If anyone can give me any advice that would be great...

PCPs are a bit "smoke & mirrors" in that respect. Obviously, the MGFV is the minimum value of your car, underwritten by the Finance Company. However, what we all really want is a lump sum available at the end to fund the deposit for a new car. Dealers usually say that the scheme is designed to incorporate that.

In this respect, a Lease is actually clearer: you owe nothing and they owe you nothing at the end of the deal.

BTW your quote from your Dealer isn't great. They were quoting "from" £169 per month on a new Cactus only a couple of months ago.

I've just bought a Renault Captur on a 4-year PCP and am paying £156 per month. (I believe this deal has ended now, but this is the sort of figure that is possible when the figures and the interest rate work out).

This also includes a £500 voucher towards another new Renault, which is kind of getting towards people's expectations in terms of what happens at the end of the deal.

ETA: obviously the thing about getting these figures nice & low is not just the money itself, but also because it reflects the cost of ownership over the contract period.

In your example, your quote equates to a cost of £12760 over 3 years, potentially 30p per mile, just in finance and depreciation.

Heisenberg87_2

Cornucopia wrote: »

PCPs are a bit "smoke & mirrors" in that respect. Obviously, the MGFV is the minimum value of your car, underwritten by the Finance Company. However, what we all really want is a lump sum available at the end to fund the deposit for a new car. Dealers usually say that the scheme is designed to incorporate that.

In this respect, a Lease is actually clearer: you owe nothing and they owe you nothing at the end of the deal.

BTW your quote from your Dealer isn't great. They were quoting "from" £169 per month on a new Cactus only a couple of months ago.

I've just bought a Renault Captur on a 4-year PCP and am paying £156 per month. (I believe this deal has ended now, but this is the sort of figure that is possible when the figures and the interest rate work out).

This also includes a £500 voucher towards another new Renault, which is kind of getting towards people's expectations.

I think the £169 form what I see back then was with a deposit of at least £5000 which I cannot do. If you could find where that was it would give me some ammo to re negotiate.

Cornucopia

I'd start by having a look at the Citroen website...

http://info.citroen.co.uk/new-cars/car-range/citroen-c4-cactus/offers/?&_ga=1.222412763.1513163236.1430991717#sticky

WhatCar also have a Leasing summary site...

http://www.whatcar.com/car-leasing/deals/citroen/c4-cactus/?type=personal

It seems like the £169 price may be for a 2-year deal, with 6 payments as the deposit. i.e. £1014 deposit then 23 x £169.

This gives a cost for 2 years of £4901, which is much lower than your dealer quote.

Heisenberg87_2

Cornucopia wrote: »

I'd start by having a look at the Citroen website...

http://info.citroen.co.uk/new-cars/car-range/citroen-c4-cactus/offers/?&_ga=1.222412763.1513163236.1430991717#sticky

WhatCar also have a Leasing summary site...

http://www.whatcar.com/car-leasing/deals/citroen/c4-cactus/?type=personal

It seems like the £169 price may be for a 2-year deal, with 6 payments as the deposit. i.e. £1014 deposit then 23 x £169.

This gives a cost for 2 years of £4901, which is much lower than your dealer quote.

What would be better 2 year or 3 year? Also how does it work with car buyer as the top deals don't have local branches?

Cornucopia

I work it out as the 2-year deal being marginally cheaper pro rata than the 3-year one.

e.g.

2 year: 6+23 @ £165 = £4785 (or £2392 per year)

3 year: 6+35 @ £196 = £8036 (or £2678 per year)

As with discounts generally, I've always found the best approach to be to find some reasonable deals on the Web (or in the old days, the back of What Car) and then take them to your dealer and invite them to match.

They may not be able to get to exactly the same price, but at least you will be able to cost-in the value of hassle-free Part-ex and local Main dealer service.

In this case, I would expect them to be able to offer all the deals on the Citroen website without question. When I spoke to them about the £169 per month, they were quite happy to offer that price, and take my old Citroen in Part-ex, giving me a cheque for the difference in the old car price and the Lease deposit. I didn't go that way in the end because I preferred the look of the Captur, and it was slightly cheaper.

loskie

Lease.
Your PCP quote looks costly and they suck you in to buying one new car after another.
It may be more cost effective to lease. 2 years rather than 3 as said above. In year 3 you are more likely to have to pay out for repairs and servicing and tyres.
Simpsons skoda had some good personal leases.
http://www.simpsonsskoda.co.uk/new-car-offers/


In fact this one looks pretty good:
http://www.simpsonsskoda.co.uk/new-car-offers/yet-pch-may/