Buying on PCP

[JB GTI]

Arrange a bank loan etc at a much lower APR take out the PCP and exercise your right to withdraw. I picked up my car on a Friday and rang VW finance on Monday and only paid 3 days interest @£3.30 a day and transferred the money that day. Finance contribution and free servicing offer were unaffected and still honoured by VW.  If I remember correctly though, you only get 14 days to withdraw from the finance agreement..

You will of course p*ss the poor sales person off as they won't get commission on the finance as think it has to be in place for at least a few months before been settled for them to get paid!

That’s exactly what I thought however, it was the salesman who suggested it 😁

[neepy7.5]

It sounds like you have enough money now and incoming that PCP might not really be for you. Why not use the deposit to buy outright with a bank loan with lower APR to cover the difference? When your windfall comes your way you can then pay off the bank loan right away with no penalties.

Also think carefully if that new car smell is worth the extra cash. Depending on what you're coming from, a nearly new from a dealer would save you a fair amount of money for very little difference in car. From my experience buying a 16 plate GTI PP this year, the whole thing felt exactly the same (actually, better) as when I bought a new TDI 4 years ago - but with far less waiting around.

The issue I found when deciding between new and nearly new is that you could actually pick up a brand new car for cheaper as it'll include the £1500 deposit contribution and further discounts through sites like Carwow and DTD. Depends if you want to wait 4-6 months or not. Also if you're going down the PCP route then APR is usually better on a new compared to used.

[trueblue_ips]

It sounds like you have enough money now and incoming that PCP might not really be for you. Why not use the deposit to buy outright with a bank loan with lower APR to cover the difference? When your windfall comes your way you can then pay off the bank loan right away with no penalties.

Also think carefully if that new car smell is worth the extra cash. Depending on what you're coming from, a nearly new from a dealer would save you a fair amount of money for very little difference in car. From my experience buying a 16 plate GTI PP this year, the whole thing felt exactly the same (actually, better) as when I bought a new TDI 4 years ago - but with far less waiting around.

I think that is the right Finance option for my circumstances, thanks.

My only concern about buying nearly new is getting one with all the options I want: sunroof, Dcc, keyless, reversing camera. Nobody seems to spec the Dcc which I don't understand. And of course in the colour I want which is white.

[Jim_mk7.5]

It sounds like you have enough money now and incoming that PCP might not really be for you. Why not use the deposit to buy outright with a bank loan with lower APR to cover the difference? When your windfall comes your way you can then pay off the bank loan right away with no penalties.

Also think carefully if that new car smell is worth the extra cash. Depending on what you're coming from, a nearly new from a dealer would save you a fair amount of money for very little difference in car. From my experience buying a 16 plate GTI PP this year, the whole thing felt exactly the same (actually, better) as when I bought a new TDI 4 years ago - but with far less waiting around.

 Nobody seems to spec the Dcc which I don't understand. And of course in the colour I want which is white.

Because the GTI rides so well on the standard set up (18s) that there's no real need for DCC!

[trueblue_ips]

The issue I found when deciding between new and nearly new is that you could actually pick up a brand new car for cheaper as it'll include the £1500 deposit contribution and further discounts through sites like Carwow and DTD. Depends if you want to wait 4-6 months or not. Also if you're going down the PCP route then APR is usually better on a new compared to used.

This is exactly what I have found. I got quotes through carwow and a brand new car with all the options I want is actually cheaper than an 18 plate low mileage used car without the options!
Given the residuals, I've found that cars have to be about 2 years old before sufficient depreciation kicks in to make them the better option cost wise. If I buy used middle of next year instead of waiting six months for delivery of a new car, I can get the facelift 7.5 for enough less money that it becomes attractive.
Buying very nearly new though seems to make no sense.

[trueblue_ips]

The issue I found when deciding between new and nearly new is that you could actually pick up a brand new car for cheaper as it'll include the £1500 deposit contribution and further discounts through sites like Carwow and DTD. Depends if you want to wait 4-6 months or not. Also if you're going down the PCP route then APR is usually better on a new compared to used.

This is exactly what I have found. I got quotes through carwow and a brand new car with all the options I want is actually cheaper than an 18 plate low mileage used car without the options!
Given the residuals, I've found that cars have to be about 2 years old before sufficient depreciation kicks in to make them the better option cost wise. If I buy used middle of next year instead of waiting six months for delivery of a new car, I can get the facelift 7.5 for enough less money that it becomes attractive.
Buying very nearly new though seems to make no sense.

PS Which sort of goes back to the balloon value payment and whether the Finance company gives you equity. VW Finance are saying the balloon payment is less than 50% of the car 's cost after just 18 months with 5K miles a year. That's a pretty low guaranteed minimum value.

[golfhappy]

Arrange a bank loan etc at a much lower APR take out the PCP and exercise your right to withdraw. I picked up my car on a Friday and rang VW finance on Monday and only paid 3 days interest @£3.30 a day and transferred the money that day. Finance contribution and free servicing offer were unaffected and still honoured by VW.  If I remember correctly though, you only get 14 days to withdraw from the finance agreement..

I think, well know i filled the electronic agreement in last night.....PCP was mentioned...TBH couldn't read the bloody thing. i'm going to pay off in full l'll ring VW finance. Did score they've given an extra £500 towards the deposit so its 2k towards it now

[rjwojcik]

Arrange a bank loan etc at a much lower APR take out the PCP and exercise your right to withdraw. I picked up my car on a Friday and rang VW finance on Monday and only paid 3 days interest @£3.30 a day and transferred the money that day. Finance contribution and free servicing offer were unaffected and still honoured by VW.  If I remember correctly though, you only get 14 days to withdraw from the finance agreement..

I think, well know i filled the electronic agreement in last night.....PCP was mentioned...TBH couldn't read the bloody thing. i'm going to pay off in full l'll ring VW finance. Did score they've given an extra £500 towards the deposit so its 2k towards it now

Is that with DTD or someone else?  DTD still showing £1,500 deposit contribution.

[golfhappy]

I'll have to ask, all he said on a recorded message VW have increased the contribution on that model to 2k. bearing in mind this is a golf R-line i'm talking about. OK its not an R or GTI! i went for fuel economy, saying that tho i've just moved on my XR2  and bought another treat instead 

[evo1986]

Yes the DC on 1.5 tsi 150ps cars has gone up by £500 and the flat rate has only gone up by 0.01%