Recent Posts

Pages: [1] 2 3 ... 10
1
Golf mk7 / Re: Buying on PCP
« Last post by SRGTD on Today at 20:18 »
My conclusion in all this is that for me, I can get 50% of the car's price as a deposit.  Under these circumstances, I think HP may be the better option as I can get quite a bit lower APR with my bank, will actually be borrowing less with the bigger deposit (less interest) and don't have the balloon payment at the end to worry about. Then again, I lose their deposit contribution (assuming I buy new, not nearly new). I need to do my sums properly.

Car finance is more complicated than I had assumed!  :whistle:

One option to consider;

You could arrange a loan with your bank at their lower (than VW’s) APR in advance of getting the car but buy the car on VW’s PCP. As soon as you’ve got the car, phone VW Finance and tell them you want to exercise your right to withdraw from the PCP. VW should tell you the settlement amount you need to pay to clear the PCP finance and you can use your bank loan to clear this amount.

When you withdraw from the PCP arrangement, you don’t have to return the VW deposit contribution, so you’ll have the benefit of keeping the deposit contribution, and monthly payments will be to your bank to clear the bank loan.
2
Did you buy yours from a dealer Wide?
3
Golf mk7 / Re: Buying on PCP
« Last post by davyk31 on Today at 19:51 »
A bigger deposit does reduce the overall cost as you will be paying less interest. Not a massive difference but yes it's cheaper. Also it changes the profile of your loan agreement in that with a small deposit you will likely be well into negative equity for the first part of your agreement. That matters should you want out early as the lack of negative equity by your larger deposit could leave you in a position where you can get out anytime. Technically of course you will have paid more upfront so might not actually be better off but psychologically it's easier.

Also the baloon is not set by the dealer. It is set by the finance company and thus will be the same no matter which dealer you use.

4
Golf mk7 / Buying on PCP
« Last post by trueblue_ips on Today at 18:59 »
Apologies if this has been done before on here but after spending a couple of hours with VW's PCP Finance calculator I thought I would write my first thoughts down while fresh in my mind for the benefit of other posters new to PCP like me. The below contains a number of assumptions which I'm more than happy to be challenged on and a couple of questions I still have.  Hopefully others will find this summary helpful and correct any errors.

I have a decent deposit and another reasonable lump sum coming to me in 2 years time so PCP seemed perfect - breaking cost of the car down into chunks with lower monthly repayments than HP and the flexibility PCP brings at the end of term.

1) The deposit. Big or small? Which is cheaper overall?
It doesn't make any real difference to what you'll end up paying. If you make a bigger deposit, VW will shrink the monthly payment (even if you can afford to pay more), a lower deposit will increase monthly payments. Bottom line is they force you to borrow the same and pay the same amount of interest! Cunning. The only way I found to shrink the interest was to reduce the PCP term (obvious really). I would go for as high a deposit as you can afford unless you think your money can be better invested elsewhere than reducing the 5.5 (new) or 7.4 (used) APR interest otherwise due. Also, VW only let you put down up to the 30% including any deposit contribution again forcing you to borrow more than you might need.
**Question** Can you make overpayments or borrow from another source at a lower APR and pay early to reduce the interest?
You pay interest on the whole balance (including the balloon payment), not just the monthly payments as I had naively assumed.

2) The balloon payment.
So who calculates what your car is worth at the end of the term and whether you have any equity to put down on a new car? I believe the dealer maintains a book which lists their trade in price based on car's age, mileage and condition. This is what they value the car at. For VW, their balloon payment seemed low to me so I would expect to have equity of a few thousand even at trade in price.
**Question* Is this realistic? What are others experiences? Can the dealer try to hoodwink you by offering less than the car's true value or can they offer you more to entice you into rolling over into another PCP deal?
 There is always the option to sell the car privately where you'll likely get more. You can still pay off the balloon payment and keep the equity.
My conclusion in all this is that for me, I can get 50% of the car's price as a deposit.  Under these circumstances, I think HP may be the better option as I can get quite a bit lower APR with my bank, will actually be borrowing less with the bigger deposit (less interest) and don't have the balloon payment at the end to worry about. Then again, I lose their deposit contribution (assuming I buy new, not nearly new). I need to do my sums properly.

Car finance is more complicated than I had assumed!  :whistle:
5
I'm thinking of getting some for winters or all weather tyres buy cheapest is still £1100 without tyres.

Mine is like 2500£   :whistle: :whistle:
6
Get some more pics up of your black 18" Prets please :smiley:

[img=http://forumbilder.se/H8DBJ/p1000106-2mb.JPG]http://

[/URL][/img]

Best place to link pictures?!?   :angry: :angry:
7
Golf mk7 / Re: New car order delays
« Last post by watchdog on Today at 17:05 »
VW Online Chat are no longer giving out updates on orders, they say you need to contact your dealer. This is my first VW and i've been shocked by the appalling customer service from VW UK compared to Audi. It's all well having a nice myvw app if the thing actually worked but it doesn't and they admitted last week they was having problems with it.

Try this chap by email neepy.  I've found him quite helpful.

Jack Thompson
Customer Relations Advisor
Volkswagen Customer Services Centre
 
T  0800 083 3914
customerservices@volkswagen.co.uk
Internet: www.volkswagen.co.uk
8
Golf mk7 / Re: New car order delays
« Last post by neepy7.5 on Today at 15:45 »
VW Online Chat are no longer giving out updates on orders, they say you need to contact your dealer. This is my first VW and i've been shocked by the appalling customer service from VW UK compared to Audi. It's all well having a nice myvw app if the thing actually worked but it doesn't and they admitted last week they was having problems with it.
9
I'm thinking of getting some for winters or all weather tyres buy cheapest is still £1100 without tyres.
10
Get some more pics up of your black 18" Prets please :smiley:
Pages: [1] 2 3 ... 10