Anyone gone for 4 Year PCP?

[Thornster]

Adding the PP really is a no brainer! 

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.

[p3asa]

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.

[monkeyhanger]

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.

[drisser]

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 !

[monkeyhanger]

Adding the PP really is a no brainer! 

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.

[Thornster]

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)?

[Thornster]

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).