PCP anyone..?

[lengster]

Best deals on a new one if I get dismayed with pursueing used mk6s.Had a quick look on vw site but nearly 500 a month with only leather added worked out at over 15k in total,think buying a 6 outright for 12 or 13k is better for me and retain 5-6k in 3 years or whenever I choose to get rid.

[stuart.cameron]

Got a quote the other day from a local dealer on a GTD....

List Price - Close to £30,000 (No discount)
Mileage - 25,000
Term - 36 months
Interest - 6.3%
Deposit - £1500

Monthly payments were around the £540 mark!

[monkeyhanger]

Got a quote the other day from a local dealer on a GTD....

List Price - Close to £30,000 (No discount)
Mileage - 25,000
Term - 36 months
Interest - 6.3%
Deposit - £1500

Monthly payments were around the £540 mark!

Well I would be looking for discount to boost your “deposit”. What was your GFV figure, considering you have £4k options there (assuming 5 doors and manual gearbox).

Were you talking 25k miles per year or 25k miles over 3 years (8300 miles per annum)? 25k miles per year would certainly hammer your GFV right down. Based purely on their excess mileage rate of 6p per mile, your GFV would be around £11770 vs £14470 for an average 10k per annum driver, and assuming no GFV enhancement for your £4k optional equipment (£1000 enhancement in lieu of that equipment is about max you could hope for – leather, pronav and DSG add about £300 each).
If you could get a £3500 discount from a broker, you’d effectively be financing £25k minus GFV, bringing your monthly payments down by £107 a month to £433. That mileage is a killer though, the difference for 25k vs 10k miles per annum is close to £100 a month.

[monsta]

The quote I got was 6.3% over 4 years at £370 per month on PCP with Performance Pack, Pan Roof and Chassis Control.

£3,500 deposit (trade in)

Got a bit of a discount, about £1300 I think.

[Thornster]

I would get some numbers back for a 48 month PCP (and take the 90k/5yr extended warranty at the same time); but the 25k mileage profile is going to lower the GFV and push up the monthly payments as detailed by monkeyhanger.

For example I took a GTI over 48 months (vs 36) with the 90k/5yr extended warranty on a 15,000 mile a year profile, and it lower my monthly PCP payments by around £50. There will be some higher maintenance costs as a result, but it still works out cheaper overall.

FYI - discounts of over 12% are available on line, but even via a local dealer I wouldn't settle for less than 8%.

[matchboy]

Just for reference, I'll be paying £400 a month over 3 years with £4,500 down based on 10k miles pa. 6.4%, with a GFV of £13,400 (I think).

The best way of going about it is to spec the car how you want it, know what you have to put down as a deposit and then what you want to pay each month.  Then work the discount into this in order to get your monthly payments to what you want to pay.

If you're doing 25k miles a year your monthly payments are going to be high, as MH has stated this is the factor that bumps up the monthly amounts and reduces the GFV significantly.

[stuart.cameron]

Got a quote the other day from a local dealer on a GTD....

List Price - Close to £30,000 (No discount)
Mileage - 25,000
Term - 36 months
Interest - 6.3%
Deposit - £1500

Monthly payments were around the £540 mark!

Well I would be looking for discount to boost your “deposit”. What was your GFV figure, considering you have £4k options there (assuming 5 doors and manual gearbox).

Were you talking 25k miles per year or 25k miles over 3 years (8300 miles per annum)? 25k miles per year would certainly hammer your GFV right down. Based purely on their excess mileage rate of 6p per mile, your GFV would be around £11770 vs £14470 for an average 10k per annum driver, and assuming no GFV enhancement for your £4k optional equipment (£1000 enhancement in lieu of that equipment is about max you could hope for – leather, pronav and DSG add about £300 each).
If you could get a £3500 discount from a broker, you’d effectively be financing £25k minus GFV, bringing your monthly payments down by £107 a month to £433. That mileage is a killer though, the difference for 25k vs 10k miles per annum is close to £100 a month.

Should of said it was a 3dr and DSG. Discovery Pro Nav, Keyless, Winter Pack, Park Assist, Carbon Grey.
25k miles per year so 75k over the 3 years. Not sure what the GFMV was didn't get into that detail as the monthly payments were too high for me! Would be willing to pay between £400 and £450 a month.

[monkeyhanger]

There are 2 things hammering your GFV and upping your monthly payments– your mileage (a 3 year old 75k miles car is worth £2700 less than a 3 year old 30k miles car), and your options.

Options are pretty much dead money down the line. Looking at yours:-

DSG = £1415 spent, retains £300 on your GFV (checked on my dads).
Discovery pro = £1700ish spent, retains about £250 on your GFV
Winter pack, park assist, keyless and metallic paint will retain £200 at most on your GFV for a £1370 spend (metallic/pearl paint enhanced mine by £40 vs Tornado Red).

So for your options (I include DSG as an option), you will lose £3735, which contributes approx. £114 a month to your payments.

If you consider that you’re getting no discount (should be looking for £3500 off a well specced model through a broker), a £3500 discount would amount to a £107 saving on your monthly payments.

Current undiscounted quote = £570pm
Broker discounted quote (with options) = £463pm
Current undiscounted quote (but forget the options) = £556

If you’re being priced out of a £570pm car you have a few options – chase a broker discount, do fewer miles (maybe buy a reliable older car for racking up the heavy/business miles) or lose the options.

If you are doing 75k miles in 3 years you need to be aware of the limitations of the standard guarantee – it is only good for 60k miles, any more than that and you’re on your own/reliant on VW goodwill if something should happen. You could get the extended 5 year/90k miles warranty, but at your mileage you won’t even see 4 years out of it.

[drisser]

I think if you are going to do that kind of high mileage you are mad to buy new on PCP, you would be better to just lease something without any ownership hassles.

Or.. Better to buy a cheap used diesel golf mk 5 tdi, hammer it and buy something else fun for the weekend ?  You have to really love a certain car to want it new and to pay £500 per month for it. 

[p3asa]

Whats to stop the OP saying he is doing 10K a year, which will bring the monthly payments down, put some of that difference away each month into an account. When he comes to change the car the xs mileage will only come into effect if he is handing the car back and walking away.
If he is trading it in or selling it privately the money he has put by would maybe cover the offset of having a higher mileage car than average and hence less of a deal.

Or is it just swings and roundabouts?