PCP Queries

Options
chammer97
chammer97 Posts: 6 Forumite
in Motoring
Hi all

I’m looking at a new Polo on PCP and have a couple of questions.

I always keep my cars for 3 years before handing back, so that’s a certain.

- When sites like CarWow give a quote, surely this is irrelevant? Isn’t it what you pay (deposit + monthly payments), rather than the total value of the car what’s it concern?

- Does the balloon payment on the car vary quote-to-quote? I’m not sure if this is something I should be negotiating, or if it’s set centrally by VW and is just a given.

- The dealer said it’s best to get a 4 year deal, even if I intend to hand the car back in year 3 due to lower monthly payments. Is this the best way to go, or is it best getting the term for the length I intend to get the car.


Many thanks for any help you can give.
«1

Comments

  • Mercdriver
    Mercdriver Posts: 3,898 Forumite
    First Anniversary Name Dropper First Post
    Options
    Personally I would keep the term and the mileage realistic to your needs. The balloon payment can vary according to term and to your proposed mileage. You might still be in negative equity at the end of year 3 of a 4 year deal.
  • BoGoF
    BoGoF Posts: 7,099 Forumite
    Name Dropper First Anniversary First Post
    Options
    Have you considered a personal lease?

    Have to ask, why the need for a new car every 3 years? You are literally throwing money away.
  • loskie
    loskie Posts: 1,761 Forumite
    First Post First Anniversary
    Options
    you will find that in the main Carwow's best quotes are those on PCP
  • E30M3
    E30M3 Posts: 73 Forumite
    First Anniversary
    Options
    you could lease instead of PCP, try https://www.nationwidevehiclecontracts.co.uk/ as a broker, watch for hot offers as you can get some bargains.
  • chammer97
    chammer97 Posts: 6 Forumite
    Options
    Thanks, but is this guaranteed final value a negotiable amount? After you’d agreed on total cost of the car, raising the GFV would decrease monthly payments further.
  • Mercdriver
    Mercdriver Posts: 3,898 Forumite
    First Anniversary Name Dropper First Post
    Options
    chammer97 wrote: »
    Thanks, but is this guaranteed final value a negotiable amount? After you’d agreed on total cost of the car, raising the GFV would decrease monthly payments further.

    I think the only way to do this is to minimise the number of miles per annum. Personally I wouldn't go down that route. Going over the number of miles allotted is expensive, and now that everyone and their uncle is VT (Voluntary Terminating) finance companies are now chasing for excess miles on VT.

    But what's the point of getting a car on PCP and hardly driving it? May as well hire from a hire company as do that.
  • neilmcl
    neilmcl Posts: 19,460 Forumite
    First Anniversary Name Dropper First Post
    Options
    chammer97 wrote: »
    Thanks, but is this guaranteed final value a negotiable amount? After you’d agreed on total cost of the car, raising the GFV would decrease monthly payments further.
    You can't increase the GFV, that is something the finance company will set, it is supposed to reflect the true trade value at the end of agreement.

    As others I fail to see why you're not considering contract hire given you have no intention of keeping the car beyond the agreed period. Also, be vary wary of car salesmen trying you to give you ways to get a "cheaper" deal, invariably the only one's benefiting will be them. You won't be able to hand the car back after 3 years from a 4 year agreement so put that out of your head.
  • Mercdriver
    Mercdriver Posts: 3,898 Forumite
    First Anniversary Name Dropper First Post
    Options
    neilmcl wrote: »
    You can't increase the GFV, that is something the finance company will set, it is supposed to reflect the true trade value at the end of agreement.

    As others I fail to see why you're not considering contract hire given you have no intention of keeping the car beyond the agreed period. Also, be vary wary of car salesmen trying you to give you ways to get a "cheaper" deal, invariably the only one's benefiting will be them. You won't be able to hand the car back after 3 years from a 4 year agreement so put that out of your head.

    No doubt they are encouraging him to trade the car in after 3 years where they can roll all the finance in. Rinse and repeat that way (the way another poster is doing in oblivion (https://forums.moneysavingexpert.com/showthread.php?t=5962931) ) and it gets very lucrative for the dealer and very expensive for the customer.
  • neilmcl
    neilmcl Posts: 19,460 Forumite
    First Anniversary Name Dropper First Post
    Options
    Mercdriver wrote: »
    No doubt they are encouraging him to trade the car in after 3 years where they can roll all the finance in. Rinse and repeat that way (the way another poster is doing in oblivion (https://forums.moneysavingexpert.com/showthread.php?t=5962931) ) and it gets very lucrative for the dealer and very expensive for the customer.
    Exactly what they'll do :)
  • chammer97
    chammer97 Posts: 6 Forumite
    Options
    I’m open to leasing, but from all of the quotes I’ve seen, PCP is working out at a lower rate.

    SEL Polo, Manual in flash red.
    Cruise control + active display.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards