PCP/lease deals

[p3asa]

Thanks for the replies guys, was in with the dealer today and I just don't think PCP is for me, he offered a 3 year personal contract hire for the following prices, based on 12k miles per year, how does it look to you's?

3+35 agreement (36 months)

GTD DSG 3dr £382
GTD Manual 3dr £355
GTD Manual 5dr £320

Why is a PCP not for you but a lease / hire is? Just curious.
Remember with a lease / hire you are tied in to that period of time. With a PCP you can trade in at any time and start again.
I don't think people really understand a PCP.

You have 3 options come the end of it:
Hand it back and walk away and if you are under the miles agreed you don't pay anything.
Buy the car outright. This will be the Guaranteed Final Value figure.
Trade it in and start again. You don't need to wait until your term is up to do this and you can trade it in against any other marque. you aren't tied to VW.

Plus for those saying its not really your car. Fair enough I get that point but in my 30 years of driving, when my car had been paid off I always traded it in and started again. So for me a PCP is no different in that way.

[Diehammer]

Thanks for the replies guys, was in with the dealer today and I just don't think PCP is for me, he offered a 3 year personal contract hire for the following prices, based on 12k miles per year, how does it look to you's?

3+35 agreement (36 months)

GTD DSG 3dr £382
GTD Manual 3dr £355
GTD Manual 5dr £320

Still at it mate, just did a quick calculation on the Manual 5dr. Its 4p a mile excess which if you take 8000 miles a year and manage to do exactly 36000 over the term it would cost you £480 in excess mileage.

With the same spec and deposit as i have it would be costing you £51 a month extra wheras it would cost you £13.71 a month excess.

You didnt tell us what you deposit and spec are and remember there has been a price increase recently as well.

[Cossieian]

Thanks for the replies guys, was in with the dealer today and I just don't think PCP is for me, he offered a 3 year personal contract hire for the following prices, based on 12k miles per year, how does it look to you's?

3+35 agreement (36 months)

GTD DSG 3dr £382
GTD Manual 3dr £355
GTD Manual 5dr £320

Why is a PCP not for you but a lease / hire is? Just curious.
Remember with a lease / hire you are tied in to that period of time. With a PCP you can trade in at any time and start again.
I don't think people really understand a PCP.

You have 3 options come the end of it:
Hand it back and walk away and if you are under the miles agreed you don't pay anything.
Buy the car outright. This will be the Guaranteed Final Value figure.
Trade it in and start again. You don't need to wait until your term is up to do this and you can trade it in against any other marque. you aren't tied to VW.

Plus for those saying its not really your car. Fair enough I get that point but in my 30 years of driving, when my car had been paid off I always traded it in and started again. So for me a PCP is no different in that way.

You hit the nail on the head mate, I maybe just don't know exactly what PCP is, or maybe the dealer didn't explain it in enough detail for my simple brain lol.
Basically the way he explained it to me was if I was to go over the milage allowance (which I 90% chance will) he couldn't guarantee me that there would be no fine (fee) to pay at the end of the contract, he said he couldn't guarantee the value if I went over the miles, but I thought that's what GFV was?? Tbh I just didn't get a good vibe about it, he wasn't selling it as a good thing to do if you know what I mean, all I want is minimal deposit and minimum payments like everyone ha ha ha

[Snooze]

Leashire was best for low deposit and low monthly payments for me. I did a 4yr deal, but can give the car back after half the term is up. Also u don't pay any interest as its all lumped on the balloon payment at the end should you choose to buy.

[Cossieian]

Leashire was best for low deposit and low monthly payments for me. I did a 4yr deal, but can give the car back after half the term is up. Also u don't pay any interest as its all lumped on the balloon payment at the end should you choose to buy.

Who was yours with mate if you don't mind me asking?
There's just so many lease companies, none of them reply to my enquiries either, that's why I'd rather deal with VW to be honest

[Millzy68]

My current Personal Lease on a GTD finishes in December so I've just signed up for a 3 door Pure White R on a 24 month deal, £1600 up front and £257 per month, limited to 5,000 miles per year but not massive penalties if I go over that amount.

[Cossieian]

My current Personal Lease on a GTD finishes in December so I've just signed up for a 3 door Pure White R on a 24 month deal, £1600 up front and £257 per month, limited to 5,000 miles per year but not massive penalties if I go over that amount.

Who with mate?

[p3asa]

You hit the nail on the head mate, I maybe just don't know exactly what PCP is, or maybe the dealer didn't explain it in enough detail for my simple brain lol.
Basically the way he explained it to me was if I was to go over the milage allowance (which I 90% chance will) he couldn't guarantee me that there would be no fine (fee) to pay at the end of the contract, he said he couldn't guarantee the value if I went over the miles, but I thought that's what GFV was?? Tbh I just didn't get a good vibe about it, he wasn't selling it as a good thing to do if you know what I mean, all I want is minimal deposit and minimum payments like everyone ha ha ha

https://www.vwfinance.co.uk/content/sites/vwbank/vwfinancecouk/en/privatecustomers/how_agreements_work/solutions_pcp.html

Sounds like he hasn't sold it properly.
The ONLY way you will pay a fine if you go over your mileage is if you hand back the car at the end of term and walk away.
So if you tell them you will only do 12,000 miles a year but do 15,000 then you pay the difference 9,000 (in total) x 6p = £540

If you trade the car in you WON'T pay any fee if you are over the mileage. However if your GFV was say £15,000 for 12,000 miles a year and you have done 15,000 miles a year, so in effect you would be 9,000 over the agreed mileage then the GFV might be lowered as obviously a higher mileage cars price would be worth less than a lower mileage car (book price).  So although you won't pay a fee you might not get as much in trade in value as you thought but that could easily be negotiated. 

If at the end of your PCP you fancy a BMW its exactly like any other car trade in. They offer you a price and you'll need the GFV in this instance £15,000 to pay off the Golf finance. So if they offer you more you will have a deposit for the new BMW.

The PCP is designed so there is a small amount of equity at the end of its term so you will trade it in and start again.

[Cossieian]

You hit the nail on the head mate, I maybe just don't know exactly what PCP is, or maybe the dealer didn't explain it in enough detail for my simple brain lol.
Basically the way he explained it to me was if I was to go over the milage allowance (which I 90% chance will) he couldn't guarantee me that there would be no fine (fee) to pay at the end of the contract, he said he couldn't guarantee the value if I went over the miles, but I thought that's what GFV was?? Tbh I just didn't get a good vibe about it, he wasn't selling it as a good thing to do if you know what I mean, all I want is minimal deposit and minimum payments like everyone ha ha ha
[/quote
https://www.vwfinance.co.uk/content/sites/vwbank/vwfinancecouk/en/privatecustomers/how_agreements_work/solutions_pcp.html

Sounds like he hasn't sold it properly.
The ONLY way you will pay a fine if you go over your mileage is if you hand back the car at the end of term and walk away.
So if you tell them you will only do 12,000 miles a year but do 15,000 then you pay the difference 9,000 (in total) x 6p = £540

If you trade the car in you WON'T pay any fee if you are over the mileage. However if your GFV was say £15,000 for 12,000 miles a year and you have done 15,000 miles a year, so in effect you would be 9,000 over the agreed mileage then the GFV might be lowered as obviously a higher mileage cars price would be worth less than a lower mileage car (book price).  So although you won't pay a fee you might not get as much in trade in value as you thought but that could easily be negotiated. 

If at the end of your PCP you fancy a BMW its exactly like any other car trade in. They offer you a price and you'll need the GFV in this instance £15,000 to pay off the Golf finance. So if they offer you more you will have a deposit for the new BMW.

The PCP is designed so there is a small amount of equity at the end of its term so you will trade it in and start again.

My wife and I just feared that come the end of our term we will have another deposit to pay for the next car ie £1k or £3k whatever it may be, and I like to change every 2 years, so laying out that much deposit every couple of years was a bit off putting, again the salesman says I might have equity for our next car and we may not, you can't predict the future (his words), and that put me off also, it was all just a bit well you take the chance and see what happens kinda thing.

It's all getting a bit head bending
https://www.vwfinance.co.uk/content/sites/vwbank/vwfinancecouk/en/privatecustomers/how_agreements_work/solutions_pcp.html

Sounds like he hasn't sold it properly.

[Cossieian]

Thanks for that mate you have explained it really well there, thanks for taking the time to explain that for me I really appreciate it

My wife and I just feared that come the end of our term we will have another deposit to pay for the next car ie £1k or £3k whatever it may be, and I like to change every 2 years, so laying out that much deposit every couple of years was a bit off putting, again the salesman says I might have equity for our next car and we may not, you can't predict the future (his words), and that put me off also, it was all just a bit well you take the chance and see what happens kinda thing.

It's all getting a bit head bending