Skoda Finance and Voluntary Termination

davrostavros

Im looking for a little bit of advice if anyone has done this before and any other opinions.

I am 36 months into a 42 month PCP agreement on a Skoda Rapid. Skoda finance have told me that I would not have to pay anything if I return the car now. I know that it will go onto my credit file but wouldnt hit my credit rating.

Pros for keeping:

• Newer car
• Fixed
  • amount at £150/mo
  • Wouldnt have to pay out for a replacement (till January
  )
• Replaceemnt car would be older and therefore would be more likely to break down or need repairs
• I would struggle to find money for a replacement car

Cons:

• 3 year warranty will be up so any repairs will have to be paid by me
• MPG isnt anywhere near as good as I would have thought for the car, sitting at just over 30mpg from a 1.2TSI over the course of my ownership.
• If I keep paying till the end of the deal then thats £1000 that I wont see again, could get a
  • replacement car for that
• Very unlikely that I would be able to buy the car at the end of the deal without taking out an HP agreement which I am not willing to do

Help me, going round in my head waaaay too much but I only realised when writing the post that I will be out of warranty in a month so the being covered for repairs isnt a reason to have the car....decisions decisions

bengalknights

You could just take out a extended 6 month 3rd party warranty and keep it for the 6 months then do what you want with it

davrostavros

I'm pretty sure that I'm not going I keep the car, I won't be able to afford the balloon payment so would need to get something else then anyway

Clive_Woody

Very low mpg as I get around that from my 2.0 TSI Octavia vRS - either you are a very "enthusiastic" driver or the 1.2 TSI is a bit of a rubbish engine for economy.

If you cannot afford the balloon payment would you not consider another PCP deal when your contract is up? Not sure if Skoda would agree to this if you end the current deal early though as I've heard some dealers will not offer a new PCP deal when you do a VT.

System

davrostavros wrote: »

[*]Replaceemnt car would be older and therefore would be more likely to break down or need repairs

Based on what? My Mondeo I bought at 2 years old is now 7 years old with 121,000 miles on the clock. Other than regular servicing the only repair has been two suspension bushes and an exhaust bracked, total in all £230. My previous Mondeo was a similar story and I sold that at 165,000 miles and all that needed in that time was a rear exhaust silencer, a brake caliper, a plastic pipe, some suspension bushes and an alternator.

The car sales people have got people like you well and truly caught hook line and sinker by making you believe you have to have a new car every 3 years because if you don't you'll have whacking great repair bills and god forbid, it will have to have a MOT!!!! Lets put you straight. Say your car cost £16,000. Depreciation in the first two years is likely to be over half of that. Just how unlucky do you think you'd have to be to spend over £8000 in two years repairing an older car? Probably so unlucky that every time you stepped out the house you got hit by lightning. The facts are that for a well serviced car annual repair bills aren't even going to be 1/20th of that.

davrostavros

Never had a car this long and not going to go down the new car route (barring a lottery win). Just seemed a good idea at the time.

Question really is do I VT now or wait till the end of the deal in January?

System

Do you have the money to buy a replacement, even if its a cheapie? If so VT and buy what you have cash for. If not then options are to finance another cheaper car if you can get a reasonable rate, possibly 0% on new purchase credit card and start paying it down, or continue to the end of a PCP and see if you can save up enough money for a replacement in that time.

davrostavros

Think I can afford a cheapie just now so really considering a VT. Other than having more time to save it feels like I'm throwing £150 away every month.

System

Think of it doing VT and downscaling as going some way towards undoing shafting your future self.

davrostavros

Brilliant, I've head about that blog and it's awesomely sensible. Thanks, think decision has been made.