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Buying a new car on PCP

craig159753
craig159753 Posts: 8 Forumite
edited 25 May 2015 at 7:33AM in Motoring
Hi, I'm totally new to this forum and to buying a car, and wanted some advice.

So i spoke with a respected trader today and got some details and numbers from them. However to me, it seems a good deal. But i would rather a second opinion (a wiser more experienced opinion :) )

The car in question is the new 2015 Vauxhall Corsa 1.4 (Petrol) Limited Edition model.

List Price: £14,350 (Carwow price)
Dealer Price: £12,095
Deposit: £2000
Dealer Contribution: NA
Contract length: 3 Years
35 Monthly Repayments: £156.76
Mileage per Annum: 15,000 (9p charge a mile after)
Colour: White
Final Guaranteed Value: £5914

Additionally they throw in road tax for a year and £25 fuel so seems good to me.

After the 3 years I can start a new PCP, give the car back and use any equity on a new PCP or car, or pay the final payment off.

So I worked out, after 3 years I would have paid back (inc. my deposit) a total of £7486.60 before the FGV. Now adding on the FGV figure the total would be £13400.60. Of course the interest is higher than most but that is one of the cons with PCP.

My only concern is the value of the car after three years and if i would have any equity. I'm hoping in three years the car is worth about £7000 therefore either helping me on my next car, or if i wish to pay the car off I could make a small profit selling it privately.

Any feedback on this would be great :)
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Comments

  • ToriP
    ToriP Posts: 168 Forumite
    Sixth Anniversary 100 Posts Combo Breaker
    How much are three year old versions of your car going for now?
  • Looking on auto trader they seem to be going for £7500
  • ToriP
    ToriP Posts: 168 Forumite
    Sixth Anniversary 100 Posts Combo Breaker
    So the GFV is a minimum. If you do less mileage than you have put down for, there may be a little more 'equity' in the vehicle if you want to jump into another PCP in 3 years.

    The VW dealer I spoke to said the values they use are based on BCA lists.

    I think PCP is meant to work better for cars that hold their values well.

    Is there a dealer contribution? VW put in £1250
    What is the car wow/Drivethedeal price? Don't pay list price
  • rs65
    rs65 Posts: 5,682 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper Combo Breaker
    There is a deal from a very large dealer for £159 deposit and £159 x 36.

    5000 miles a year though.
  • craig159753
    craig159753 Posts: 8 Forumite
    edited 25 May 2015 at 7:34AM
    Hi. The dealer Contribution is 0, i think this is because the list price is in fact £14,350 so they are selling at a discount at £12,095. I can't seem to load the drivethedeal website. Car wow lists it for £14,350.

    Do you think it is worth asking for then to contribute some money?
  • gilbert_and_sullivan
    gilbert_and_sullivan Posts: 3,238 Forumite
    edited 25 May 2015 at 8:36AM
    Have you thought about leasing instead.

    LINGS cars don't offer Corsa on her website (brilliant by the way, no sorry meant bonkers) , though i have no doubt she would be happy to quote you, but a 1.6 Astra there would cost you approx £8432 (please check my figures if at all interested) over a 4 year lease, with an initial deposit of 3 monthly payments of £209, road tax they pay for duration, you pay for servicing, when finished hand it back and walk away.

    Thats for 10k a year, for 15k a year miles its £224 a month, otherwise same deal.

    Just a thought.
  • Cornucopia
    Cornucopia Posts: 16,324 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 25 May 2015 at 8:52AM
    £159 per month is (for me) getting to the sort of level it needs to be to make new car buying a relatively sensible approach compared to nearly new. (It's never going to compete with banger-nomics on price, but there are other advantages).

    The point is that payments+deposit = total maximum cost for the contract period. Which is a useful figure, and the FGV is a potentially useful protection. Having said that the FGV is often set low, and you pay both capital & interest on the difference between a genuine future value and the lower guaranteed one.

    On that basis, your Corsa is going to cost you just over £2500 per year, or just under 17p per mile (before fuel). Hopefully you will see some equity in the car at the end of that.

    You should be able to use those figures to compare with other options.

    BTW, 0% finance is available on the Corsa, so you may want to compare that.

    There also seems to be a pop-up voucher on the Vauxhall website for an extra £200 off (it just popped-up as I clicked from page to page).
  • Yeah I did see the car was at 0% finance however the car is then £2000 more expensive so the 0% doesn't have the same appeal. I will try to haggle them a bit with some contribution. This is my first Car. Because until now I have been driving my partners car.
  • Leasing isn't for me as I don't see the appeal in effectively renting with no chance of owning it. Thank you for your comment though
  • Cornucopia
    Cornucopia Posts: 16,324 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 25 May 2015 at 9:14AM
    Leasing isn't for me as I don't see the appeal in effectively renting with no chance of owning it. Thank you for your comment though

    Leasing and PCP are effectively same thing - Leasing aimed more at business users, and PCPs aimed more at private buyers.

    A Lease is what you get after you take out the complication of the FGV - the FGV for a Lease is whatever the car is worth at the end of 3 years, to return £0 equity. (Therefore it represents the best possible price that you should be aiming for with a PCP).

    For comparison, a 3-dr 1.4 SRi with Metallic Paint is showing at £152.05pm over 36 months/15000miles pa with a deposit of £456. This is a saving of about £1500 over your original deal, all of it "up front".
    Yeah I did see the car was at 0% finance however the car is then £2000 more expensive so the 0% doesn't have the same appeal.
    You should be able to get close to the discount price, with 0% finance. (The dealer might be paying a small contribution towards the true cost of the 0%, but it will be closer to £400 than £2000 - certainly less than the cost to you of paying 6.9% APR, which is relatively high).
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