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Model specific boards => Golf mk7 => Topic started by: jivemonkey on 18 January 2014, 11:28
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With these cars costing as much as they do, it's a fair amount of money for anyone, so would be very interested to see a roundup of how people these days are funding it. I am thinking that company cars and PCP will reign supreme..but let's see!
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Bought outright with my Dad's cash, he's charging me 2.9% interest, same as he'd get leaving his money in an ISA, i'm overpaying to get the balance down faster too. I'll be made redundant in either 8 or 15 months, so i'll be paying off the remaining balance with a small part of my lumper.
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PCP for me. I'm a big fan of the scheme as I like to change my cars and think that PCP gives me the flexibility but also gives me a bit more security than leasing. I really like this GTD though, could see me keeping it, but I know that in 3 years time the new car tech and engines will be turning my head.
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PCP for me. I'm a big fan of the scheme as I like to change my cars and think that PCP gives me the flexibility but also gives me a bit more security than leasing. I really like this GTD though, could see me keeping it, but I know that in 3 years time the new car tech and engines will be turning my head.
I could see myself going the way of new TT or Scirocco in 3 years - new tech already announced - the instrument cluster on the new TT is apparently all digital screen (not enough on it's own to sway me).
Maybe by then they will have put ACT onto the 1.8TSI or 2.0TSI units. If they did that, the only thing that would keep me on TDIs would be a twin scroll turbo with minimal extra thirst. I always consult the finance figures, if only to see the GFV and estimate a true p/x value when I next chop it in.
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For me is 7 grand for my old gti,£277 a month for 36 months on a discounted 28 grand car, but will have a big balloon payment at the end so will be chopping in for a new one.
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I'll decide how I pay for mine when it arrives, but it won't be a PCP as they seem very expensive.
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Paid with a cashback credit card to net almost £500 in cashback & paid off with cash when the bill came in
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Hi guys reading this thread I guess I'm quite lucky
I've got on order (due 2 weeks) 3dr Gti night blue manual
It's a lease via my employer, who pay the lease co (typically the one who's provided the lowest quote) 3 years up front.
The difference between that and my allowance results in my salary deduction of £145 pm included full maintenance, inc items that wear out, road fund licence, fully comp insurance for 3 people.
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If I can recall correctly I put down £18,500 in cash and the balance was a £10,000 loan paid at just over £300 per month for three years. I just don't like the thought of a PCP where you never get to a point where you own the car unless you pay a huge amount at the end although I can see its appeal.
P.s @ MH loving the look of the new TT interior. The digital display looks brilliant. I've seen a video of it and ive seen some renderings of what the car may look like. Think it's going to be very tempting in a few years provided they don't price it much higher than the mk2
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Paid with a cashback credit card to net almost £500 in cashback & paid off with cash when the bill came in
My dealership has a £2k limit on credit card purchases, so never an option for me.
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Paid with a cashback credit card to net almost £500 in cashback & paid off with cash when the bill came in
My dealership has a £2k limit on credit card purchases, so never an option for me.
Same for me, but 3k. Not picked mine up yet but will be cash if I cant wangle it on credit card.
I wanted to avoid all finance as new mortgage coming up.
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If I can recall correctly I put down £18,500 in cash and the balance was a £10,000 loan paid at just over £300 per month for three years. I just don't like the thought of a PCP where you never get to a point where you own the car unless you pay a huge amount at the end although I can see its aappeal
Surely a PCP is the same as what yove done? Just the other way around? You've paid your big lump and financed the rest. I've still got my big lump to pay. Difference being for me I have a GFV were I to trade it in?
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What would other be? :undecided: stealing it
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If I can recall correctly I put down £18,500 in cash and the balance was a £10,000 loan paid at just over £300 per month for three years. I just don't like the thought of a PCP where you never get to a point where you own the car unless you pay a huge amount at the end although I can see its aappeal
Surely a PCP is the same as what yove done? Just the other way around? You've paid your big lump and financed the rest. I've still got my big lump to pay. Difference being for me I have a GFV were I to trade it in?
I just don't want the burden of having to pay a substantial lump sum at the end of the agreement and I was in a position to be able to put down a fair bit of cash at the outset so chose to go down that route. You could argue that if I had the lump sum just now then I could have went down the PCP route and paid the cash at the end of the deal but the cash ain't earning any great interest and I would rather just pay it now.
I understand that you can trade the car in at the end rather than pay the GFV but then you almost become trapped in a PCP merry go round. Plus if for some reason the value of the car is less than the GFV (not likely but you never know) then your not going to have any deposit to put down on the next car.
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If I can recall correctly I put down £18,500 in cash and the balance was a £10,000 loan paid at just over £300 per month for three years. I just don't like the thought of a PCP where you never get to a point where you own the car unless you pay a huge amount at the end although I can see its aappeal
Surely a PCP is the same as what yove done? Just the other way around? You've paid your big lump and financed the rest. I've still got my big lump to pay. Difference being for me I have a GFV were I to trade it in?
I just don't want the burden of having to pay a substantial lump sum at the end of the agreement and I was in a position to be able to put down a fair bit of cash at the outset so chose to go down that route. You could argue that if I had the lump sum just now then I could have went down the PCP route and paid the cash at the end of the deal but the cash ain't earning any great interest and I would rather just pay it now.
I understand that you can trade the car in at the end rather than pay the GFV but then you almost become trapped in a PCP merry go round. Plus if for some reason the value of the car is less than the GFV (not likely but you never know) then your not going to have any deposit to put down on the next car.
Fair enough mate, didn't want to come across as saying you should of gone PCP. I think whatever finance option people pick its down to them. I do think PCP is for someone who doesn't really want to keep a car, as I think its a lot easier to move on rather than buy out.
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No problem Kyle :smiley:. I tend to keep my cars for 3 to 4 years. I just prefer owning the car outright at the end and then being in a position to trade in or sell it privately with no strings attached
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You're never going to have your GTI/GTD worth less than GFV unless something catastrophic happens financially with the car market or you've heavily abused/neglected it in the time you had it.
VW are still by far a private sales car company and don't dabble heavily with fleet sales, which helps residuals, unlike Vauxhall, Ford etc who see their cars dumped on the auction market wholesale when the fleets and rental companies have finished with them.
Even if you aren't financing through solutions, it is handy to know what the GFV is for the expected mileage, had you financed that way. It's a worst case scenario value for a car in good average condition, you can add a grand to your GFV on a GTD/GTD for real value at 3 years old/average mileage if it has been looked after, they like to make you think you have some equity in the car when you go back for your next car - it encourages brand loyalty and repeat business for another new car, rather than holding onto the one you've got.
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You're never going to have your GTI/GTD worth less than GFV unless something catastrophic happens financially with the car market or you've heavily abused/neglected it in the time you had it.
As I was always told nothing is certain in life apart from death and paying taxes. Cheery thought first thing on a Monday morning :grin:
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VW are still by far a private sales car company and don't dabble heavily with fleet sales, which helps residuals, unlike Vauxhall, Ford etc who see their cars dumped on the auction market wholesale when the fleets and rental companies have finished with them.
Really? Where do you think they get their nearly new, Approved Used stock from? The actions are full of them. Granted, not many GTI/D etc, but 1000's of mainstream models.
My Passat TDI DSG Sport was over £10k cheaper than new price when it was just over a year old. Now there's depreciation for you.
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Dubber: Passats are the most likely choice for a repmobile, certainly not a VW I would but new as it's depreciation is a lot worse than your average Golf. In either case, the VW action at the auctions for ex-fleet are small potatoes next to the swathes of Focuses, Mondeos, Astras and Insignias.
Most nearly new (very nearly new) VW stock comes from the demos that all dealerships are obliged to dabble heavily in.
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You are correct to an extent MH, but there are many year old Polo's and Golf's that are ex rental cars. ERAC UK LTD on the log book is one in particular to look out for.
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PCP for me. Although I agree with the others in that if you prefer to own the car outright at the end, it's not the best solution having to pay the balloon payment (even though with strong residuals, you've a fair chance of selling privately for higher than the GFV)...
I will be changing the car every 3 years, and I also am quite happy knowing that I'll never own the car (it's a depreciating asset after all) so offsetting a chunk of the value to lower the monthly payments is exactly the kind of thing I'm looking to do.
I also managed to negotiate a 12% discount from the list price so hopefully I'll be in a good position come trade in time.
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PCP for me, which is paid for by my car allowance from work.
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I would have though shotting B&W should have made it onto the Poll?
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Brought mine outright with cash as I don't have any children and so have lots of disposable income :smug:
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Brought mine outright with cash as I don't have any children and so have lots of disposable income :smug:
Brought?
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I also managed to negotiate a 12% discount from the list price so hopefully I'll be in a good position come trade in time.
The way I understand it is the GFV will be the same for someone who didn't get a discount. Your 12% will just keep your deposit and monthly payments lower.
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Brought mine outright with cash as I don't have any children and so have lots of disposable income :smug:
Brought?
apologies, was never done learnt proper with spelling.
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I also managed to negotiate a 12% discount from the list price so hopefully I'll be in a good position come trade in time.
The way I understand it is the GFV will be the same for someone who didn't get a discount. Your 12% will just keep your deposit and monthly payments lower.
Yes kind of, but there is another element... In theory (in my brain :nerd:), given I will be part exchanging after 2.5/3 yrs, the finance settlement figure should be lower than the current value of the car at any given point in time, due to the fact the financed amount at the beginning of the agreement is much less than the list price of the vehicle (GFV is calculated from list AFAIK).
This is of course, unless my thinking is completely flawed and I've misunderstood the PCP. :huh:
However if I'm right, then come trade in time I will have a much better chance of having a small amount of equity to line up the next deposit. This only works with cars that tend to have higher GFV's and hold their value pretty well (which the GTI historically does).
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Loose change I found under the sofa.
A short term low mileage PCP would possibly suit my needs better if the interest rate was low enough as I like to change cars quite frequently but as I modify my cars from factory spec (wheels and other minor reversible upgrades) and have read the small print on the paperwork I've always decided it best I fund it other ways.
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Mines a company car through salary sacrifice, which means I pay the BIK, monthly lease (slightly discounted) plus full personal insurance costs so I would probably be better off going for PCP and take the car allowance towards it. But this way if I was to move or lose job I pay nothing further.
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The Guaranteed values in my opinion on GTD are way to high and I can foresee quite a lot being handed back because they will have no equity or be in negative. Lease and contract hire companies are throwing these cars out by the dozen because GTD/GTI allocation is way more available than it used to be.
£15,000 residual on a 5 door dsg in 3 years time 10k per year........ who's going to pay £17,000 retail price for a 3 year old one when you can get a new one out the box for only £8-£9000 more?
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The Guaranteed values in my opinion on GTD are way to high and I can foresee quite a lot being handed back because they will have no equity or be in negative. Lease and contract hire companies are throwing these cars out by the dozen because GTD/GTI allocation is way more available than it used to be.
£15,000 residual on a 5 door dsg in 3 years time 10k per year........ who's going to pay £17,000 retail price for a 3 year old one when you can get a new one out the box for only £8-£9000 more?
I was quite surprised to see my 27 month old Scirocco 170TDI GT with a sticker price of £18k at my dealership after trade-in. I thought Scirocco prices had softened a lot over the last year or so. I have always thought that used VW prices are generally stupidly high (especially GTI/GTD), the main reason I buy them new. I always wondered why someone would pay 75% of RRP for almost a 2.5 year old car rather than 90% of RRP for a discounted new one.
As per your comments, it seems crazy, but those prices do seem to be the norm in my locality. £15k in part-ex/GFV on a GTD does seem to fit that model, but you're the dealer - what do 3 year old MK6 GTDs go for right now at yours? That might be a good indicator, even though the MK7 GTD is significantly better than the MK6 and the MK5 170TDI GT/GT Sport was never really a GTD in the trim/appearance department.
GFV does look great when you can get a GTD for effectively the same cost as a GT 150TDI over 3 years because of the clearly better GFV (56% vs 47%), makes me wonder who would get the GT rather than the GTD on a 3 year ownership basis.
The norm for GFV is to very slightly underestimate true value so you have "equity" for the next car, as a bit of a hook. VW will have cocked up big-time if they don't have that "hook" and you give the car back, free to pursue any other marque of car without thinking you're chucking away that usual equity.
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The difference with MK6 GTI/GTI was the fact allocation was so limited. For example we used to be able to order 1-2 per month of Mk6 GTD/GTI now if I wanted to I could order every golf we have as a GTD. Therefor there is going to be hundreds of these cars on the used car market in 2-3 years time unlike the MK6 which there is simply no where near as many.
Mental contract hire deals and insane GFV's on these cars are meaning we are selling more of these than any other golf trim. Your right why would you buy any other diesel golf, I had a customer order a GTD because once he added parking sensors to an SE 2.0 tdi 150 ps a GTD was hardly any more per month more.
All I am saying is be prepared to have no deposit going towards your next car.
Its great to allow us to get MK6 customers into Mk7's but we wont be able to get customers out of there agreements as easily.
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Will therefore GTi have better return as they will sell in far less numbers compared to the GTD's?
I heard that for every 3 GTD's only 1 GTi is sold :sad:
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The difference with MK6 GTI/GTI was the fact allocation was so limited. For example we used to be able to order 1-2 per month of Mk6 GTD/GTI now if I wanted to I could order every golf we have as a GTD. Therefor there is going to be hundreds of these cars on the used car market in 2-3 years time unlike the MK6 which there is simply no where near as many.
Mental contract hire deals and insane GFV's on these cars are meaning we are selling more of these than any other golf trim. Your right why would you buy any other diesel golf, I had a customer order a GTD because once he added parking sensors to an SE 2.0 tdi 150 ps a GTD was hardly any more per month more.
All I am saying is be prepared to have no deposit going towards your next car.
Its great to allow us to get MK6 customers into Mk7's but we wont be able to get customers out of there agreements as easily.
That'll be VWs loss. For me, the great residuals were the icing on the cake for the GTD. They seemed so tightly allocated in the beginning, when ordering in March, then my dad and mcmaddy ordering GTDs from the same dealership and the staggered wait time between all our orders. They do seem to be coming thick and fast now though.
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The norm for GFV is to very slightly underestimate true value so you have "equity" for the next car, as a bit of a hook. VW will have cocked up big-time if they don't have that "hook" and you give the car back, free to pursue any other marque of car without thinking you're chucking away that usual equity.
So how much do VW in reality underestimate the GFV by?
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Will therefore GTi have better return as they will sell in far less numbers compared to the GTD's?
I heard that for every 3 GTD's only 1 GTi is sold :sad:
Quite possibly but the road tax haters love the GTD.
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Will therefore GTi have better return as they will sell in far less numbers compared to the GTD's?
I heard that for every 3 GTD's only 1 GTi is sold :sad:
That sounds about right to me. I've seen hardly any GTI's to date but have seen several GTD's on the road. I can imagine that the R will be a very rare beast indeed
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£15,000 residual on a 5 door dsg in 3 years time 10k per year........ who's going to pay £17,000 retail price for a 3 year old one when you can get a new one out the box for only £8-£9000 more?
Someone that doesn't have an extra £8-9000 more to spend and that has an aversion to borrowing money.
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£15,000 residual on a 5 door dsg in 3 years time 10k per year........ who's going to pay £17,000 retail price for a 3 year old one when you can get a new one out the box for only £8-£9000 more?
Someone that doesn't have and extra £8-9000 more to spend and that has an aversion to borrowing money.
can't argue with that dubber :wink:
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Everybody has their budget - but depreciation plays a part for all of us! £8-9K extra is just too much for some people to stomach ....
So whilst mine is going to be a "heavily laden" car, because I managed to get 12.5% off list; hopefully it won't have quite such an impact at 24 months when I get something else!
Still going to pay cash as otherwise it appears that you're paying thousands extra (over 24 months) on top of your maintenance and depreciation! Last time I just handed over my Debit Card! :laugh: