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Model specific boards => Golf mk7 => Topic started by: AAddict on 08 July 2013, 23:01
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Wondering if anyone has gone for the option of a 4 year PCP instead of the more usual 3 year? Was the payment higher/lower/same? Same APR etc?
Lets not turn this into a "Other finance is cheaper than VW" or "I only pay cash for my cars" thread :wink:
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Wondering if anyone has gone for the option of a 4 year PCP instead of the more usual 3 year? Was the payment higher/lower/same? Same APR etc?
Lets not turn this into a "Other finance is cheaper than VW" or "I only pay cash for my cars" thread :wink:
The monthly payment will be a little lower, but the APR rate will be the same and therefore you'll be paying more interest (assuming you are staying with VW finance). With VW finance they always make a canny wedge on the interest because the only capital reducing on your repayments is the depreciation. There aren't many loans out there where 3 years into a loan you still owe 55% of what is borrowed (GFV) and are therefore paying interest on over half the initial amount borrowed even at the end of year 3. High residual values on a Golf are a big money maker for VW finance.
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Yeah I went for the 4 year PCP @ 6.2%, monthly repayment was around £50 less, but GFV was only £10k (partly because of the discount I managed to get off list price).
Not an issue though as I haven't kept a car for more than 18 months so I just wanted monthly repayment as low as possible.
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Yeah I went for the 4 year PCP @ 6.2%, monthly repayment was around £50 less, but GFV was only £10k (partly because of the discount I managed to get off list price).
Not an issue though as I haven't kept a car for more than 18 months so I just wanted monthly repayment as low as possible.
GFV is not related to any discount you may have secured (rather a percentage of the cars list price at a point in time, dependant only on mileage), but it will drop for the additional 12 months of depreciation (36 vs 48) and is obviously mileage dependant.
The finance will be less, but don't forget to factor in potential increased running costs (dependant on your mileage profile) such as another set of tyres / rear tyres, another Service, extended warranty, MOT etc... when looking at the total monthly saving.
The monthly saving for me is around £20...but this would pay for the Performance Pack...
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Yes I thought the same as well, but I did various quotes based on the same options & mileage with different dealers and they were all different GFV, so the only variable is discount...
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Yes I thought the same as well, but I did various quotes based on the same options & mileage with different dealers and they were all different GFV, so the only variable is discount...
I suppose they might have used the discount price rather than the list price, but this would make no sense logically so very strange if they have done. This was always for an identical car same spec and everything right?
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I'm tempted to enquire about it over 4 years just to bring the monthly figure down.
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I'm tempted to enquire about it over 4 years just to bring the monthly figure down.
Me too, but then after 3 years I know I'll be certainly ready for a new car so I think I'll stay on 3 years.
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I'm tempted to enquire about it over 4 years just to bring the monthly figure down.
Me too, but then after 3 years I know I'll be certainly ready for a new car so I think I'll stay on 3 years.
Yeah that is definitely a point!
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Yeah options were always the same. I work in finance so am pretty cute with stuff like this.
It does make sense from VW's point of view if you think about it...take 2 scenarios;
1. List price £27000, discount given - nil, GFV - £13000, so the balance to finance is £14000 @ 6.2%
2. List price £27000, discount given - £3000, GFV - £13000, so balance to finance is £11000 @ 6.2%
Effectively they are losing out on 6.2% interest for £3000 because of discount given.
However, if GFV is lowered based on list price less discount given, they can finance a larger amount therefore making more money.
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Don't forget you're still paying the 6.2% finance on the deferred amount too
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Yeah options were always the same. I work in finance so am pretty cute with stuff like this.
It does make sense from VW's point of view if you think about it...take 2 scenarios;
1. List price £27000, discount given - nil, GFV - £13000, so the balance to finance is £14000 @ 6.2%
2. List price £27000, discount given - £3000, GFV - £13000, so balance to finance is £11000 @ 6.2%
Effectively they are losing out on 6.2% interest for £3000 because of discount given.
However, if GFV is lowered based on list price less discount given, they can finance a larger amount therefore making more money.
As per Neil_MK post above this wouldn't make any difference, as you will be paying 6.2% on the entire balance, including the GFV sum, so increasing or lowering the GFV doesn't really benifit the dealer in that regard.
Also i thought the GFV was dictated by VW finance (not the specific dealer), so it would be the same irrespective of the dealer used...
Have you got written quotes for the different GFVs (from VW Finance)?
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Also i thought the GFV was dictated by VW finance (not the specific dealer), so it would be the same irrespective of the dealer used...
This is correct, or at least it was when I ordered mine - the GFV was fixed by VW Finance and it couldn't be adjusted by the dealer (I could see his screen).
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I have overpayed before, seeing my GFV figure drop as a result. I'm used to paying out £410 a month for my car and if the finance comes in at £300 a month with £2500 down and £14400 GFV then I overpay by £110 a month and have less to pay at the end (or greater collateral against the next one). The GFV drops not because the car will be worth less but because I will owe less on it. The true non-overpaying GFV quoted is a representation of the actual 3 year old value (albeit a cautious/worst case scenario one). GFV for base GTI is 51%, base GTD is 56%, actual true p/x values at 3 years old (if nothing untoward happens to the used car market in the meantime) is likely to be more, like 55% for a GTI and 60% for a GTD. Of course the GFV as a % will suffer the more toys you add on, seing as they hardly hold any value at all. A base 5 door manual GTD with £14400 GFV (56% retained) or a GTD with £3k of extras with a GFV of £14800 (51% retained).
In either case, GFV should not reduce just because you got a discount, that would mean that any discount you get is meaningless. Make sure your GFV is worked out on the list price and not the price you bought it.
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I have overpayed before, seeing my GFV figure drop as a result. I'm used to paying out £410 a month for my car and if the finance comes in at £300 a month with £2500 down and £14400 GFV then I overpay by £110 a month and have less to pay at the end (or greater collateral against the next one). The GFV drops not because the car will be worth less but because I will owe less on it. The true non-overpaying GFV quoted is a representation of the actual 3 year old value (albeit a cautious/worst case scenario one). GFV for base GTI is 51%, base GTD is 56%, actual true p/x values at 3 years old (if nothing untoward happens to the used car market in the meantime) is likely to be more, like 55% for a GTI and 60% for a GTD. Of course the GFV as a % will suffer the more toys you add on, seing as they hardly hold any value at all. A base 5 door manual GTD with £14400 GFV (56% retained) or a GTD with £3k of extras with a GFV of £14800 (51% retained).
In either case, GFV should not reduce just because you got a discount, that would mean that any discount you get is meaningless. Make sure your GFV is worked out on the list price and not the price you bought it.
Although the options won't see you a return, say, if you return the car to VW to then move onto your next car, its worth considering that a loaded car if you sell it privately to pay off the final balloon payment may return you more and therefore you will have more deposit for your next vehicle. That's if you can be bothered to sell it privately of course!
Incidentally, I sold my mk 5 GTI privately and it was a good couple of thousand pounds more than the dealer would give me in excess of the GFV, and therefore gave me a bigger deposit for my mk 6.
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Although the options won't see you a return, say, if you return the car to VW to then move onto your next car, its worth considering that a loaded car if you sell it privately to pay off the final balloon payment may return you more and therefore you will have more deposit for your next vehicle. That's if you can be bothered to sell it privately of course!
Incidentally, I sold my mk 5 GTI privately and it was a good couple of thousand pounds more than the dealer would give me in excess of the GFV, and therefore gave me a bigger deposit for my mk 6.
It is a lot of hassle selling a car privately in excess of £10k. People start to think of that as a lot of money for a car and generally look for the reassurance of a dealership rather than a private sale and access to finance etc.
If you can get a private sale then that's great, but all too often you put a car up for sale that’s maybe worth £15k and every month have to reduce it as it’s depreciating by about £250 a month (ssen it happen a lot on the Scirocco forums when people are changing cars.
Avoiding the hassle of potentially being without a car for months or not getting rid of it before the new one arrives can’t be underestimated either.
I was offered £15500 for my Scirocco as p/x at the end of March, I’d probably struggle to get that privately now and would have no chance of achieving it in a private sale come September.
A comprehensive list of extras does help the private sale go a bit smoother but either way it’s a lot of hassle compared to getting a good p/x
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There's no way I will keep the car for 4 years so the GFV is essentially irrelevant, outside of paying a few pounds per month more maybe either way.
I just found it strange that the GFV varied between dealers, obviously no one else has experienced this and I do have written quotes.
When I sign up for the finance, ill query whether list or list less discount was used.
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I agree 100% on selling cars privately over £10k as well, not many people have cash readily available to that extent.
I will have to sell the Mk6 GTD privately, the dealer offers were between £10250 & £11500 and a good example is still going for around £14-£15k so not willing to lose that much.
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As I see it, taking out a 4 year PCP and therefore reducing the monthly payments will mean that you are not paying the debt off as quickly. If for what ever reason you need to get out of the car after 2 years into a 4 year deal, you may not have paid off enough money to come out with any meaningful equity.
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It's a difficult one.
On one hand I know I'll be looking at other cars (Golf R) in three years, but on the other I remember thinking I'd have happily kept my Mk4 25th Anniversary GTI for another year at the time (if it hadn't done 111,000 miles).
I'm already know I'm going to love the GTI after 7 years of diesels (please don't take offence GTD'ers), and think I'll be seriously looking at the GTI Edition 40 in 2017!
I'm now wondering if I need to factor in the likely summer 2017 release of the GTI Edition 40 into my PCP term (i.e. 42 to 48 months)!
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I'm now wondering if I need to factor in the likely summer release of the GTI Edition 40 into my PCP term!
Totally! Next year will see the R &/or the Ed40 - therefore I'm thinking keep the PCP to 3 years but after 2 years I'll be looking to do a deal to get an R - but keep the monthly payments around the same.... :drool:
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I'm now wondering if I need to factor in the likely summer release of the GTI Edition 40 into my PCP term!
Totally! Next year will see the R &/or the Ed40 - therefore I'm thinking keep the PCP to 3 years but after 2 years I'll be looking to do a deal to get an R - but keep the monthly payments around the same.... :drool:
ED40 isn't due until 2017. Or very very late 2016 (+delivery time of 6 months based on current experience :rolleyes:). But yeah, if I love the mk7 as much as I think I will I will be tempted to jump to an ED40 after 4 years given the right deal. :evil:
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ED40 isn't due until 2017. Or very very late 2016 (+delivery time of 6 months based on current experience :rolleyes:). But yeah, if I love the mk7 as much as I think I will I will be tempted to jump to an ED40 after 4 years given the right deal. :evil:
Ah, ok so Golf R out 2015 and Ed40 2017? In that case I'm penciling myself in for an R in 2016 - that should be a year after its been out and therefore maybe they'll be able to make it in less than 6 months.... :rolleyes:.....plus the wait won't be as bad as I'll still be in the GTI!
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ED40 isn't due until 2017. Or very very late 2016 (+delivery time of 6 months based on current experience :rolleyes:). But yeah, if I love the mk7 as much as I think I will I will be tempted to jump to an ED40 after 4 years given the right deal. :evil:
Ah, ok so Golf R out 2015 and Ed40 2017? In that case I'm penciling myself in for an R in 2016 - that should be a year after its been out and therefore maybe they'll be able to make it in less than 6 months.... :rolleyes:.....plus the wait won't be as bad as I'll still be in the GTI!
Well to be fair I'm just going off when the ED30 and ED35 came out. ED35 was late 2011 and the ED30 was late 2006, is that right? I didn't buy either so I'm unsure how fast you could get one. I'm guessing you could be sat in an ED40 maybe April 2017...
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You're probably right - I've never had an Ed version! To be honest, they don't interest me as I will want something different by that stage and that means FWD so the R ticks that box. Or maybe a 4 series as RWD :drool:
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You're probably right - I've never had an Ed version! To be honest, they don't interest me as I will want something different by that stage and that means FWD so the R ticks that box. Or maybe a 4 series as RWD :drool:
FWD or 4WD :wink:
Who knows - maybe they'll do something a bit different with the ED40 (like an R 'light' with 4WD), or it'll be the same as usual - a GTI with all the bells & whistles (preferably on a limited run and uniquley numbered).
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The GTD might be the first car I keep more than 2 years in a long time, depends whether there's something I want more around the corner.
I loved my MK5 Golf GT Sport TDI170 for all of 2 weeks when a bus clattered it. Thanks to a piss-poor repair and constant remedial work, ownership of that car was soured until I got rid of it for a Scirocco 140TDI (because I didn't like the looks of the MK6 Golf and the 170TDI CR engine wasn't out yet. As soon as the 170 was out, I wanted one, but waited until the 140 Scirocco was 2 years old. The new GTD blows the Scirocco away in all but looks and i'm drawn to the practicality too.
If a new MQB Scirocco comes out as fully loaded as the GTD and with the 184PS engine, I could be tempted back (maybe), but otherwise, short of going for a new generation Audi TT (depending on what it looks like) if wor lass eventually learns to drive and can drive the "practical" car, I could see me keeping the GTD for 4 years.
4 years PCP though? I would always aim to pay the same monthly payment equivalent to a 5 year outright loan, that way you should always have some equity from year 2 and onwards.
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Just to note some people's comments on why finance quotes varied..
If you are ordering a car with Perf pack, be sure the dealer selects that model, it is classified as a separate model, not the base gti with 900 options added. This won't increase the GFV but the 230ps golf with PP has a GFV £800 higher than the base car so monthly payment is lower.
I had 2 quotes and me dealer admitted he made this mistake of not selecting the 230 ps model on their system.
Just a heads up :smiley:
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Just to note some people's comments on why finance quotes varied..
If you are ordering a car with Perf pack, be sure the dealer selects that model, it is classified as a separate model, not the base gti with 900 options added. This won't increase the GFV but the 230ps golf with PP has a GFV £800 higher than the base car so monthly payment is lower.
I had 2 quotes and me dealer admitted he made this mistake of not selecting the 230 ps model on their system.
Just a heads up :smiley:
£800 "retained" value on a £980 perfomance pack (resulting in lower monthly payments)? If you're in for a GTI it seems daft not to get PP with those figures, especially if financing via solutions and seemingly little or no insurance penalty for taking it.
Will there be a rush of amended GTI orders?
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Adding the PP really is a no brainer! :lipsrsealed:
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Adding the PP really is a no brainer! :lipsrsealed:
It would be if it added £800 to the GFV...but I'm sure it doesn't!
It adds £300 according to my dealer, which seems about right.
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I have overpayed before, seeing my GFV figure drop as a result. I'm used to paying out £410 a month for my car and if the finance comes in at £300 a month with £2500 down and £14400 GFV then I overpay by £110 a month and have less to pay at the end (or greater collateral against the next one). The GFV drops not because the car will be worth less but because I will owe less on it. The true non-overpaying GFV quoted is a representation of the actual 3 year old value (albeit a cautious/worst case scenario one). GFV for base GTI is 51%, base GTD is 56%, actual true p/x values at 3 years old (if nothing untoward happens to the used car market in the meantime) is likely to be more, like 55% for a GTI and 60% for a GTD. Of course the GFV as a % will suffer the more toys you add on, seing as they hardly hold any value at all. A base 5 door manual GTD with £14400 GFV (56% retained) or a GTD with £3k of extras with a GFV of £14800 (51% retained).
In either case, GFV should not reduce just because you got a discount, that would mean that any discount you get is meaningless. Make sure your GFV is worked out on the list price and not the price you bought it.
You would probably be better putting the difference into a separate account and building your money that way as once the dealers get a settlement figure from their system, I've found they always offer just over this for a trade in.
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You would probably be better putting the difference into a separate account and building your money that way as once the dealers get a settlement figure from their system, I've found they always offer just over this for a trade in.
I've never been offered just over GFV for a car i've overpayed on (and reduced my GFV/final payment in the process), but could see some dealers trying it on. Always go into a dealership knowing what your car is worth. I would generally be chasing Glass' at minimum or a standard terms repayment GFV+10% (always worth looking at standard quote for this figure before going with an overpayment).
As always though, there are some variables. If you're going for a car that is cheaper than yours was at new (maybe going for a Honda Civic etc) you'll get less for it than going to a VW dealer. I was offered a grand more than VW at an Audi dealership against an Audi A3 (which was never an option, the new A3 doesn't have access to certain engines yet). If you're not going to get ripped off by the dealer I would always consider overpaying to reduce my interest burden if i'm in a position to do so.
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Thornster
unless something changed in the last week it definately does - i specced the same car with 2 dealers, 1 used the correct 230 PS model and the other the 220 PS but added the PP as another option so the overall price was the same
The GFV for the 230 PS was around £800 higher after 3 years.. but maybe they changed it now !
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Adding the PP really is a no brainer! :lipsrsealed:
It would be if it added £800 to the GFV...but I'm sure it doesn't!
It adds £300 according to my dealer, which seems about right.
Get a quote with and without it and look at both the GFV and the monthly payment. For my GTD, the 5 door car costs £655 more than the 3 door, and adding it will enhance the GFV by £400, yet it costs only £10 a month more on solutions than a 3 door model. So £360 extra spent to enhance the GFV by £400 - they're effectively paying you £40 to take a 5 door model if you change every 3 years.
For some options you have to look at the balance between repayments and GFV to determine the true cost of it.
There won't be many options like this, but if PP is one of those things (like 5 doors) where it enhances GFV by £800 and only ups the monthly payments by £20-£25 then it is nigh-on a "free" option.
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If it does raise the GFV by £800 then you'd only be repaying £180 of the capital (assume no discount), but interest on the entire sume of £980; this would indeed be a no brainer, as the total cost (36 month VW finance) wouldn't be around £10 a month.
Perhaps we need to start a GFV thread for various mileage profiles (GTI/DSG/PP/3dr/5dr/term/miles/GFV)?
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For anyone who's still interested (or anyone yet to order) I have two VW Finance quotes in front of me, both for 36 months / 15,000 miles per year / same spec car (see my sig).
GFV for PP version is £12,554, GFV for non PP version is £12,303 (£251 increase to the GFV due to the PP).