Golf R PCP deals

[Aitchi]

Anyone taken out a PCP deal for a Golf R lately? If so how much are you paying monthly and how much deposit did u have to put down to achieve this deal?

Just been in my friends R which he's just taken delivery of and want one really badly!!! Haha

He told me he's paying £330 a month with no deposit, is this even possible?

[CraigW]

Stable vehicle contracts are doing £282 per month 6 + 23 @ 5000 miles

[p3asa]

Yeah its possible. In fact if you already have a VW you could get a 3dr manual R for £307 a month 10,000 miles over 48months with effectively no deposit.

drivethedeal have them for £25,883. Thats a saving of £5237 from VW. So if you put that figure in to the VW calculator as a deposit (configure an R up on vw.co.uk then select finance calculator)
It will come out as £330 a month. If you have a VW you'll get another £1000 off for loyalty bringing it down to £307 a month.

Remember though those figures are just the savings if bought through a broker and doesn't include you putting a physical deposit down which I would imagine you would have to.
So if you put £500 of your own money and have a vw already you could get the R for £295 a month. Which is not bad considering you have only put down £500 of your own money.

[Aitchi]

Yeah its possible. In fact if you already have a VW you could get a 3dr manual R for £307 a month 10,000 miles over 48months with effectively no deposit.

drivethedeal have them for £25,883. Thats a saving of £5237 from VW. So if you put that figure in to the VW calculator as a deposit (configure an R up on vw.co.uk then select finance calculator)
It will come out as £330 a month. If you have a VW you'll get another £1000 off for loyalty bringing it down to £307 a month.

Remember though those figures are just the savings if bought through a broker and doesn't include you putting a physical deposit down which I would imagine you would have to.
So if you put £500 of your own money and have a vw already you could get the R for £295 a month. Which is not bad considering you have only put down £500 of your own money.

I've got a 14 reg Golf Gti with 13K miles on it 2 years into my PCP deal hopefully I'll get a wee bit of equity for a deposit and could get that down further than £300! I didn't know they were so adorable!!!

[p3asa]

I've got a 14 reg Golf Gti with 13K miles on it 2 years into my PCP deal hopefully I'll get a wee bit of equity for a deposit and could get that down further than £300! I didn't know they were so adorable!!!

How many years is that over as it might not be much equity as the used prices seem to be taking a bashing because you can get new with so many incentives.
https://www.vwfinance.co.uk

[Aitchi]

2 years into a 48 month deal it but I had amassed £1000 of equity last May when a got my car service

[matchboy]

2 years into a 48 month deal it but I had amassed £1000 of equity last May when a got my car service

Prices have taken a massive hit since then, I'd be surprised if you've any equity at the moment.  Unfortunately.

[monkeyhanger]

2 years into a 48 month deal it but I had amassed £1000 of equity last May when a got my car service

Prices have taken a massive hit since then, I'd be surprised if you've any equity at the moment.  Unfortunately.

And it generally takes longer on a 4 year deal to reach the point of equity as you're paying less capital off per month. Prior to the big drops in p/x prices caused by VW's incentives and emissions scandal fallout previous VWs on a 3 year PX saw me in positive equity at around 2 years, likely 3 years before you reach equity on a 4 year deal without a colossal deposit.
*
Assuming 12% deposit (either by discount or money paid) on a £30k R (back in May 2014) and £15.5k* GFV you've got £10900 + interest to pay over 4 years. Chances are you'll have cleared around 15% of that £10900 in year 1 (£1635), the car would've had to be worth £24765 in p/x at 1 year old for you to not be in negative equity on it.

Right now on your 2 year old example, you're probably looking at the car being worth £20k in p/x and you actually owing £22040 (on the assumptions above).

Unless you had close to the full allowable 30% deposit (financing 70% of the RRP from money down and discount) you will be in  negative equity.

*Assuming you've got a 4 year GFV of around £15500 (i'm taking an educated guess based on the old GFV of £18500 at 3 years) you're likely to be handing the keys back with zero equity, unless the R's used prices strengthen a lot if/when the VW CO2 scandal blows over.

[Aitchi]

2 years into a 48 month deal it but I had amassed £1000 of equity last May when a got my car service

Prices have taken a massive hit since then, I'd be surprised if you've any equity at the moment.  Unfortunately.

And it generally takes longer on a 4 year deal to reach the point of equity as you're paying less capital off per month. Prior to the big drops in p/x prices caused by VW's incentives and emissions scandal fallout previous VWs on a 3 year PX saw me in positive equity at around 2 years, likely 3 years before you reach equity on a 4 year deal without a colossal deposit.
*
Assuming 12% deposit (either by discount or money paid) on a £30k R (back in May 2014) and £15.5k* GFV you've got £10900 + interest to pay over 4 years. Chances are you'll have cleared around 15% of that £10900 in year 1 (£1635), the car would've had to be worth £24765 in p/x at 1 year old for you to not be in negative equity on it.

Right now on your 2 year old example, you're probably looking at the car being worth £20k in p/x and you actually owing £22040 (on the assumptions above).

Unless you had close to the full allowable 30% deposit (financing 70% of the RRP from money down and discount) you will be in  negative equity.

*Assuming you've got a 4 year GFV of around £15500 (i'm taking an educated guess based on the old GFV of £18500 at 3 years) you're likely to be handing the keys back with zero equity, unless the R's used prices strengthen a lot if/when the VW CO2 scandal blows over.

Okay mate, I see what ur saying and what ur saying is worrying me as I had traded in a vehicle to the tune of £4700 as my deposit, what does this mean that I've in effect lost nearly £5000?

[monkeyhanger]

2 years into a 48 month deal it but I had amassed £1000 of equity last May when a got my car service

Prices have taken a massive hit since then, I'd be surprised if you've any equity at the moment.  Unfortunately.

And it generally takes longer on a 4 year deal to reach the point of equity as you're paying less capital off per month. Prior to the big drops in p/x prices caused by VW's incentives and emissions scandal fallout previous VWs on a 3 year PX saw me in positive equity at around 2 years, likely 3 years before you reach equity on a 4 year deal without a colossal deposit.
*
Assuming 12% deposit (either by discount or money paid) on a £30k R (back in May 2014) and £15.5k* GFV you've got £10900 + interest to pay over 4 years. Chances are you'll have cleared around 15% of that £10900 in year 1 (£1635), the car would've had to be worth £24765 in p/x at 1 year old for you to not be in negative equity on it.

Right now on your 2 year old example, you're probably looking at the car being worth £20k in p/x and you actually owing £22040 (on the assumptions above).

Unless you had close to the full allowable 30% deposit (financing 70% of the RRP from money down and discount) you will be in  negative equity.

*Assuming you've got a 4 year GFV of around £15500 (i'm taking an educated guess based on the old GFV of £18500 at 3 years) you're likely to be handing the keys back with zero equity, unless the R's used prices strengthen a lot if/when the VW CO2 scandal blows over.

Okay mate, I see what ur saying and what ur saying is worrying me as I had traded in a vehicle to the tune of £4700 as my deposit, what does this mean that I've in effect lost nearly £5000?

You'll have never seen all of that back to be honest, you were never getting £4700 in equity at trade-in against the next one over and above your GFV, £1500-2000 would've been realistic if GFVs hadn't taken a hammering (assuming your GFV at 4 years was about £15500 as i've presumed). The only way to see that kind of equity on PCP is to be overpaying with an artificially low GFV or making overpayments to take your balance owed to buy the car outright lower than the GFV on your agreement.

If you spread that £4700 "lost" over 4 years rather than 2 and it's much more palletable, that £4700 downpayment has saved you around £140 a month on the PCP payments (about £100 a month in capital and £40 a month in saved interest).

PCPs are designed to cover the depreciation during the term and (hopefully) give you a modest equity on p/x to hook you in for another. You pay a big deposit and have small monthlies, or a small one and bigger monthlies.

You either lose that £4700 or would've paid an extra £140 a month upfront, it hasn't evaporated.