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Model specific boards => Golf mk7 => Topic started by: vw spur on 13 February 2018, 18:54
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I'm just approaching 2 years into a 4 year PCP agreement on a Golf GTD & the other day I got a VIP invitation (I know I know) to a "special" sales event at the dealer I used to get the GTD from. Recent additions to the family, a baby & a dog, mean that I could do with something bigger & have been looking at a used Touareg as a possible next car.
Now the thing is am I likely to get shafted on the GTD come trade in price?? I'm not interested in going ahead if I owed money on top to clear the finance on the GTD, I've seen a Touareg which I could be interested in at 27k, would it be realistic to get it for 25-25.5k?? Also the used APR rate at 10.9 could make it a non starter, is that negotiable at all?
I've got someone from the dealer phoning me tomorrow & am just hoping I could have some info before I talk to him
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According to CAP, based on average mileage, yours currently books between £14k and £16.4k depending on condition. What is your GMFV figure?
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Start by getting valuations on your car, then you need the settlement figure on your car to see if you have equity, that will depend on how much deposit you paid, if it was minimal then there is a good chance you'll be in negative. Trying to get a discount on used can be a challenge but you may find a deal is out there if the dealer has a good margin in the car, you won't know until you ask. The apr is taking the micky, a bank loan would be cheaper or try a third party such as Oracle, or if you have a Halifax account they offer a car buying scheme, the dealer may reduce the rate if they think they have competition.
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According to CAP, based on average mileage, yours currently books between £14k and £16.2k depending on condition. What is your GMFV figure?
£11.300 if I remember correctly
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Start by getting valuations on your car, then you need the settlement figure on your car to see if you have equity, that will depend on how much deposit you paid, if it was minimal then there is a good chance you'll be in negative. Trying to get a discount on used can be a challenge but you may find a deal is out there if the dealer has a good margin in the car, you won't know until you ask. The apr is taking the micky, a bank loan would be cheaper or try a third party such as Oracle, or if you have a Halifax account they offer a car buying scheme, the dealer may reduce the rate if they think they have competition.
I paid a 5k deposit, its my first PCP & the general opinion I found after was PCP works best with the minimum deposit put into the deal, so hopefully my 5k will have something left in it.
I've never had much luck in getting much luck of a 2nd hand car, I always try though, can only say no I suppose.
I was looking at the halifax car loan option last night, I don't have a bank account with them but I do have my mortgage with them, not sure if that would help as I noticed it did say current account required.
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Putting in a higher deposit means less chance of negative equity if you have to get out early, and you pay less interest, so nothing wrong with putting in £5k. Your GFV has little bearing at the moment so you need a settlement figure, you may be able to get an automated figure if you give them a ring tonight, I can't remember if that's something VWFS offer? If not a phone call tomorrow will tell you, you'll get a call from the supplying dealer as it rings a bell at their end :) I got £500 of my Golf, not great but it was the cheapest in the country so knew it was well priced, how does the price of Touareg compare to other up for sale?
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Yes VWFS is an automated service to get your settlement figure.
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Putting in a higher deposit means less chance of negative equity if you have to get out early, and you pay less interest, so nothing wrong with putting in £5k. Your GFV has little bearing at the moment so you need a settlement figure, you may be able to get an automated figure if you give them a ring tonight, I can't remember if that's something VWFS offer? If not a phone call tomorrow will tell you, you'll get a call from the supplying dealer as it rings a bell at their end :) I got £500 of my Golf, not great but it was the cheapest in the country so knew it was well priced, how does the price of Touareg compare to other up for sale?
I tried to get an online figure but can't find my agreement email with the agreement number on so I'll give them a call tomorrow.
It's the supplying dealer who are runnning the so called VIP event but the Touareg I've seen was at a VW dealer in Westbury and it doesn't seem badly priced, it's actually at £25,495 so if I got it down to 25k I'd be happy as didn't really want to pay more than that, just need to see if the figures stack up.
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Been trying to sort my settlement figure on line all morning but for some reason it won't process. Postman come a while ago & there's a letter from VWFS with a statement in it, currently I owe £18,636 which I assume is including interest, a rough estimate of the interest is about £1500 I think so I'm guessing a settlement figure of around £17k, which I think would leave some negative equity, so as it stands I'm gonna stay with the GTD for a while longer.
As for the call I've been waiting for from the supplying dealer, I'm still waiting which isn't really a surprise, they said they'd phone at 10am this morning.
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Normally on the settlement letters from VW Finance, it will say something like:
Agreement Balance £00,000.00
Interest Saving £0,000.00
Arrears £0.00
Total Amount Payable £00,000.00
So the bottom figure is what you actually will owe them if you want to settle early (and inclusive of any interest rebates).
Think I've decided to put off getting into a petrol for a while yet too. As it is, with Diesel values tumbling, I'll keep it for the remaining year and see where I stand. Of course I can always just had it back to VWFS at the end of the PCP and leave them with any negative equity :grin:
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Normally on the settlement letters from VW Finance, it will say something like:
Agreement Balance £00,000.00
Interest Saving £0,000.00
Arrears £0.00
Total Amount Payable £00,000.00
So the bottom figure is what you actually will owe them if you want to settle early (and inclusive of any interest rebates).
It's just a yearly statement I've received in the post, not a proper settlement figure, had aggro getting that online for some reason.
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Two years in with a £5k deposit would usually mean some equity, but I guess it's down to it being a demon diesel. I imagine there will be a lot of voluntary terminations happening in the next few years, I'm guessing it's a bit early for you?
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Two years in with a £5k deposit would usually mean some equity, but I guess it's down to it being a demon diesel. I imagine there will be a lot of voluntary terminations happening in the next few years, I'm guessing it's a bit early for you?
I'm not quite 2 years in yet, 1st payment was may 2016, at a guess I'm at a break even situation right now, I put 5k in as a deposit as I hoped I'd have a bit of equity to use towards another car, if it doesn't pan out that way I think I'll be leasing from now on. I could have saved 3.5k & and had a standard spec gtd for cheaper on a lease, expensive lesson I suppose.
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Should be easy to see where you are as the finance agreement should show the total interest payable. From that you can work out the remaining unpaid interest and factor in the cap value. Alternatively, one phone call can do all of that for you. I'm guessing a main dealer can access the same if you want to trade in... As they will need to settle the finance direct won't they?
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Two years into a four year PCP won't have the OP in any equity even with 5k deposit. In the first year your only really paying off interest. It's not until about year three that you'll have any equity and I'm speaking from experience here as that's what I did with my mk7 gtd.
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My car previous to the Golf, I put in £7500 and got back just under £5k when I sold it after 11 months. You pay a bit more interest at the beginning but not loads. I've never put in more than 15% deposit, always sell after one year and have only had negative equity once, that was on a Mini.
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So I’ve had a settlement figure of £17,251, so looks like I’d still have some negative equity to clear if the previous reply of trade in prices are accurate, even if I was offered the top end price of £16.400 is still have £800 to clear, would anyone have any idea if I’ll have any equity in the car in another 12 months??
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Regretfully, I very much doubt that any of us diesel drivers are going to have any equity at all in the coming months / years, such is the plummeting value of the cars at present. I had a couple of trade in prices on mine back in December (only 7 weeks ago, and both were within a hundred pounds or so of each other), and have had 3 valuations in the last week (just testing the water). Best case scenario, the car has lost £1350 of it's value in that time (worst case nearly £2k) !!!
I think it's something we just have to accept until it's realized that the witch hunt on diesel passenger vehicles (certainly Euro6 models) was and is totally unjustified. I've just decided to really enjoy the car until it's time to part with it and see then what it's worth, and if it's less in part ex than the balloon payment, VWFS just will get the keys handed back to them and I'll walk away.
Who remembers the time only a few short years ago, when buying a VW diesel guaranteed some of the best residuals in the market !
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Early 2014 I bought a new GTD and put in £5k deposit. Chose the GTD as felt at the time it would be a much stronger performer in residuals than the petrol cars. Our mileage is low, sold the car last Oct with only 28k miles. Car was totally immaculate with nice extras of satnav and leather.
Even with what I considered a large deposit it was going to be in negative equity if I traded in. Looked at selling through a prestige used dealer I know on a sale or return basis but all that would have done would have got me the settlement figure so really no point. Advertised it privately at a relatively high price justified by the spec, condition and mileage and found a buyer. Came out about £900 above my settlement so it was worth doing but very disappointing given I expected the car to have retained decent equity.
Dieselgate and the corresponding witch hunt really have taken their toll on values. And this time I have leased on a GTI and delighted. Will however in two years be handing them back an immaculate GTI which will seem a little odd.
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BTW the other thing our OP could do is voluntary termination... you could drop out after 50% of the money is paid... go google it.
Of course that leaves you with nothing, but if the end of the 4 years you've got nothing and you want to change now, just blow it as soon as you can.
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BTW the other thing our OP could do is voluntary termination... you could drop out after 50% of the money is paid... go google it.
Of course that leaves you with nothing, but if the end of the 4 years you've got nothing and you want to change now, just blow it as soon as you can.
The 50% paid figure includes the GMFV though, so if you're in a position to VT on a PCP then it's typically because you either put in a large deposit or are pretty much at the end of your agreement anyway.
E.g. £30k car, GMFV £15k, £5k deposit, £10k across a PCP. The 50% figure is when £15k (ignoring any interest for simplicity) is paid, so that would be at the end of the agreement anyway.
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yes its 50% of the total amount payable - which in your example is 50% of £30k.
Obviously with interest included, but the total amount payable will be on the finance agreement and when you have paid 50% of that, including your deposit, that is it, you can VT.
So, 5k deposit on a 30k car, 25k payable (including the optional 10k final balloon payment), when you've paid 12.5k you are free to jog on, which won't be at 50% of the duration of the agreement, but probably is at two thirds or thereabouts.
Usually most who play this, bail at 2 years of a 3 year agreement.
Depending on how confident you feel, many exploit this by having super low PCP contracted mileage, do loads of miles then VT. Whilst everyone assures you that its legal and no come backs, that does feel a bit dishonest to me...
Obviously you need to work your own figures as whilst VWFS interest rates are standardized, the GFV figure seems to fluctuate all over the place. Depending on those actual figures, you might find its possible.
Remember though, you literally walk away with nothing. Zero.
Only worth doing if you are desperate to not pay for a car (ie lost your job or changed job to where you don't need a car), desperately need a different car (ooops baby) or are some sort of chancer or need a shiny new Golf :D
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yes its 50% of the total amount payable - which in your example is 50% of £30k.
Obviously with interest included, but the total amount payable will be on the finance agreement and when you have paid 50% of that, including your deposit, that is it, you can VT.
So, 5k deposit on a 30k car, 25k payable (including the optional 10k final balloon payment), when you've paid 12.5k you are free to jog on, which won't be at 50% of the duration of the agreement, but probably is at two thirds or thereabouts.
Usually most who play this, bail at 2 years of a 3 year agreement.
Depending on how confident you feel, many exploit this by having super low PCP contracted mileage, do loads of miles then VT. Whilst everyone assures you that its legal and no come backs, that does feel a bit dishonest to me...
Obviously you need to work your own figures as whilst VWFS interest rates are standardized, the GFV figure seems to fluctuate all over the place. Depending on those actual figures, you might find its possible.
Remember though, you literally walk away with nothing. Zero.
Only worth doing if you are desperate to not pay for a car (ie lost your job or changed job to where you don't need a car), desperately need a different car (ooops baby) or are some sort of chancer or need a shiny new Golf :D
Just double checked and deposit is excluded from TAP, but the GMFV isn't.
In your example, at an interest rate of 5% and with the £10k final payment, the 50% mark would be after 32 of 48 months or 26 of 36 months (or 25 + a bit if you're only paying the actual difference to 50% rather than the next month's payment). GMFV is likely to be higher than £10k, especially on a 3 year term so the number of months to reach 50% of TAP will be higher. With a £15k GMFV in the same example, it's 34 months to reach 50% over a 3 year term.
Long story short, VT can make sense on a HP agreement, it very rarely makes sense on a PCP agreement unless you literally cannot afford the monthly payments for the final few months.
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GFV is such a variable though - VWFS have famously over and undered it over time. Sometimes too high, other times not so much.
You need to check your particular figures to see if it works out for you personally.
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I worked mine out, I could exit after 33 months of a 36 month term :D
3 months is a long time when its a shiny new car waiting... and if you chuck in the excess mileage avoidance...
And more importantly, thats 3 monthly payments saved (over a grand for me) if there is zero equity looking likely - saving over a grand for the deposit on the next one, assuming that you can make do without a car for three months.
(and with three months to go, I'd already be scoping out my next Golf order anyway)
So yes, it can work out for the better, just if you assume there is zero comeback on a VT.
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Evening,
I have been following this thread with some interest.
I currently have an Audi A3 and I am in the process of looking to VT in order to get out of my PCP deal.
My motives are, my wife's opinion of my A3, the interest rate on my Audi is quite high in comparison to other PCP deals and finally i regret letting my VW go.
I called VWFS and explained to them and they gave me a figure of how much I could have to pay to clear the outstanding balance. They said the whole process takes about 4 weeks, from first call to the transporter arriving to collect the car.
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Yes of course you can terminate before fifty percent providing that you pay the fifty percent... Not sure I'd be so desperate as that though just because you don't like the car... But each to their own
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I'm nowhere near 50% & VT'ing is something I knew about & was something I'd consider, if I do end up doing that I will be heading back to a BMW for sure, if I had any equity I was going to put it toward the deposit on a Touraeg, think I'll just hold on another 12 months then VT & get a 340i Touring, I've already had a chat with a BMW dealer I previously used to buy a car & given them the details of what I'm looking for, so if the exact car I'm looking for comes up I might just bite the bullet & pay what's needed to VT the GTD
Still waiting for a call from the dealer I used to get the GTD, was supposed to call at 10am Tuesday morning.