Bye-bye GTi hello R

[blueheaduk]

BMW looks good - have to agree there. The A45 also looks great and haven't seen many of those on the roads either.

[Mr Savage]

BMW looks good - have to agree there. The A45 also looks great and haven't seen many of those on the roads either.

The Mercedes A45 AMG is hugely overpriced that's why. Spec one up and it easily hits the 50K mark. You can get a Nissan GTR for the same money!

[monkeyhanger]

The new TT looks pretty much the same as the MK2 from most angles, the only wow thing on there is the digital screen display replacing the dials etc. It has gone up in price a lot - you "only" get GTI PP output for more than R/S3 money. The offputting thing for the M235i is that it will cost you a lot more per month - residuals are way down on the R/S3 on a % basis. The A-class as a whole feels very cheap inside, and the A45 is supposed to be no exception, with almost no standard equipment - you'll be up to £42k getting it specced like an R (albeit with better seats). The R is really missing some special sports seats. The Cupra 280PS is probably going to be the most fun, but with a shocking 40.5% retained RRP after 3 years, it'll be pretty expensive on PCP without a huge deposit. I suppose there's no getting away from the fact that all these cars are relatively expensive, but the R looks a great proposition if you are doing PCP and are prepared to give it back after 3 years if the GFVs leave no equity, from a monthly costs poiint of view.

[Mr Savage]

Certainly is. But to all those who are looking into chopping their GTI in for an R. This is how I understand it as simply as possible and i'm sure Monkeyhanger will correct me if i'm wrong.

Based on a PCP;

Exchanging your GTI for an R after 1 year will pretty much break even as far as equity is concerned. This means your'll hand your GTI back. Lose all the money you've paid so far on the car including your deposit and handing the car back will pay off the outstanding debt.

Exchanging your GTI for an R after 2 years and you should have a small amount of positive equity. Probably around £2,000 which you can put down on the deposit for the R.

Exchanging your GTI for an R after 3 years and you should be in a pretty good position. Your car hasn't plummeted too much in value and you should definitely be in equity and will likely have between £3-5,000 worth of Equity to put down as a deposit for the R.

As you see the longer you own the car the less of a hit your'll generally take on it. This is based on a 3 year contract with a healthy deposit to begin with. I can't imagine 4 years being that much different to 3 as far as equity is concerned as the market value should balance out and depreciation should slow down at this point.

As tempting as it is to follow suit and swap my GTI for the R early like others have it makes a lot of economical sense to hold out another couple of years until the end of my 3 year term is over and more of the car is paid off which will allow me a healthy deposit on the R400 on release.

[CraigW]

Certainly is. But to all those who are looking into chopping their GTI in for an R. This is how I understand it as simply as possible and i'm sure Monkeyhanger will correct me if i'm wrong.

Based on a PCP;

Exchanging your GTI for an R after 1 year will pretty much break even as far as equity is concerned. This means your'll hand your GTI back. Lose all the money you've paid so far on the car including your deposit and handing the car back will pay off the outstanding debt.

Exchanging your GTI for an R after 2 years and you should have a small amount of positive equity. Probably around £2,000 which you can put down on the deposit for the R.

Exchanging your GTI for an R after 3 years and you should be in a pretty good position. Your car hasn't plummeted too much in value and you should definitely be in equity and will likely have between £3-5,000 worth of Equity to put down as a deposit for the R.

As you see the longer you own the car the less of a hit your'll generally take on it. This is based on a 3 year contract with a healthy deposit to begin with. I can't imagine 4 years being that much different to 3 as far as equity is concerned as the market value should balance out and depreciation should slow down at this point.

As tempting as it is to follow suit and swap my GTI for the R early like others have it makes a lot of economical sense to hold out another couple of years until the end of my 3 year term is over and more of the car is paid off which will allow me a healthy deposit on the R400 on release.

Exactly my thoughts, only difference being I went down the route of HP rather than PCP

[virginVWman]

http://www.thecarexpert.co.uk/car-finance-pcp-explained/

I have never had a car on pcp always hp. But rather confused as to how you would reveive any cash back after handing the car back to the finance company before your contract terminates. I thought a pcp was effectivly leasing the car. I read through this link and cant see anything re cash back at then end or handing back early nor was anything like this mentioned to me by the dealer. As surely the dealership arent going to underestimate the future value as only then could I see having cash back a possibility.
 

[Mr Savage]

http://www.thecarexpert.co.uk/car-finance-pcp-explained/

I have never had a car on pcp always hp. But rather confused as to how you would reveive any cash back after handing the car back to the finance company before your contract terminates. I thought a pcp was effectivly leasing the car. I read through this link and cant see anything re cash back at then end or handing back early nor was anything like this mentioned to me by the dealer. As surely the dealership arent going to underestimate the future value as only then could I see having cash back a possibility.

Taken directly from the link you posted.

"The finance company will set this future value quite low, as it is their loss if the value drops below what you owe on the car at the end of the agreement.  The idea is that the car should be worth a bit more than what is owed at the end of the agreement."

"If your car is worth more than the GMFV, then any of that extra (called equity) is yours to use as deposit towards your next car.  Say you are offered £12,000 for your car, but your GMFV is £10,000.  The dealer will pay £10,000 to settle your finance and the remaining £2,000 is yours to put towards your new car.  This is the most common way to settle your PCP, and it is why dealers and manufacturers love it."

If you hand back your car early the same process happens. Your car is valued and the amount left owing on the car is taken into consideration.

After 2 years if you still owe £20,000 on your agreement but your car has a market value of £21,000 then you would have £1000 worth of positive equity. You would give them your car back early which will remove the £20,000 you owe and then VW would give you £1000 to use as a full or part deposit against the R.

[p3asa]

Maybe the GTI is different but I found when I came to the end of my Mk6 PCP and went round various garages, when they put the details of my car in to their system, all of them more or less came back with only £1000 equity going to the new car.

Its almost as if they look and see your GFV and offer £1000 over it regardless.

One salesman said it was only really geared towards getting you a small deposit of £££ to put towards the new car but that was probably BS. Although he did only offer me £600 equity!!

The other thing you could always do is sell the car privately and anything over the GFV you make is yours to put down as a deposit.

[gjf]

Having done a few PCP's they are carefully designed to protect the company so they never lose, there will always be some equity but don't expect it to be more than about £1500 - £2000 max on a car like the golf GTI / R. Best to sell privately and settle the agreement.

[Jammy1]

I don't think there is a contractual 'GMFV' as far as I'm aware.  It's just an 'optional final payment' on VW Solutions contracts.  The dealer will just appraise your car and offer what they think it is worth.  They aren't obliged to offer you the full 'optional final payment', and nothing is 'guaranteed'  Granted the schemes are normally designed so you have a little equity to put down as a 5% deposit.  They want you to keep coming back and buying another vehicle after all