PCP APR rates

[CarbonGTD]

I've never gone down the PCP route before - I have always part-ex'd my car and funded the balance via personal loan (typically around 3% APR).

Does anyone have experience of PCP finance rates through VW main dealers?  I'm looking to change my GTD shortly and am considering PCP this time - I am seeing around 9.5% APR rates typically in dealer quotations - is this typical of others experience?  Do dealers have 'wiggle room' in PCP finance rates negotiation?

[fredgroves]

Interest rates are provided by VWFS and thats the deal on offer.

I've never seen them as high as that, unless you mean on a secondhand car?

Looks like the current rate is 5.1% APR on new cars.

[Little Lofty]

I got 5.9% apr on my used CS, it was a 'special' offer at the time, the usual rate for used is around 9/10%. New car rates vary between models but the norm is around 5% apr. Over the term a bank loan will nearly always work out cheaper, a PCP will usually have a cheaper monthly and if values plummet you have the option of handing it back and the manuafacturer has to cover the loss. If you bank with the Haliafax they do a PCP scheme with competitive rates, Clydesdale also offer good rates but usually on lease purchase.

[CarbonGTD]

Apologies, yes I should have made clear - 9.5% APR is the typical PCP rate I have seen at dealers for Das Welt Auto Used models (67 plate cars) not for brand new orders.  Excuse my (near complete!) ignorance, but is there a reason why the APR rates for new orders seems to be so much lower than for Used?

[Tethias]

I got 5.0% on my new GTI order a few days ago.

I believe you tend to get better % on new cars (over used) so the finance companies cover themselves better on residual values. New car value in 4 years time is easier to predict than a used car value in 4 years, so they have a higher % rate to cover them selves and make a littler more money.

Thats one story ive heard anyway... 

[fredgroves]

VW want new car sales... new registrations are a critical metric.

Buy new is what they want and use APR rates to encourage that logical decision.

PCP on secondhand is IMHO a terrible idea.

[SRGTD]

Apologies, yes I should have made clear - 9.5% APR is the typical PCP rate I have seen at dealers for Das Welt Auto Used models (67 plate cars) not for brand new orders.  Excuse my (near complete!) ignorance, but is there a reason why the APR rates for new orders seems to be so much lower than for Used?

If you’re considering a nearly new 67 plate Golf on PCP at 9.5% APR, you may be better off getting a new car through a broker such as Drive the Deal with a decent discount off the list price - the broker discounted price on a new car may actually be less than the dealer forecourt price on a nearly new car. With a new car, you’d get the lower PCP APR rate of 5.1%, plus you’d also get VW’s current finance deposit contribution of £1,500. You would need to wait for the car to be built though.

It may actually work out cheaper overall than buying a nearly new VW under the Das Welt Auto scheme.

[Watts]

Apologies, yes I should have made clear - 9.5% APR is the typical PCP rate I have seen at dealers for Das Welt Auto Used models (67 plate cars) not for brand new orders.  Excuse my (near complete!) ignorance, but is there a reason why the APR rates for new orders seems to be so much lower than for Used?

If you’re considering a nearly new 67 plate Golf on PCP at 9.5% APR, you may be better off getting a new car through a broker such as Drive the Deal with a decent discount off the list price - the broker discounted price on a new car may actually be less than the dealer forecourt price on a nearly new car. With a new car, you’d get the lower PCP APR rate of 5.1%, plus you’d also get VW’s current finance deposit contribution of £1,500. You would need to wait for the car to be built though.

It may actually work out cheaper overall than buying a nearly new VW under the Das Welt Auto scheme.

Definitely this.

[fredgroves]

Depending on how fussy you are about options, you might even be able to get one sooner than a factory order too... usually there are some in flight orders you can hijack, especially right now as demand is low.

[Tethias]

Depending on how fussy you are about options, you might even be able to get one sooner than a factory order too... usually there are some in flight orders you can hijack, especially right now as demand is low.

I did a drive the deal offer and got a pre built that was waiting in Germany, discount was around £5,235 from DTD and the car will be here for pick up March 1st, so id definitely recommend that route over getting a used at a higher APR currently.

I think the £1500 dealer deposit contribution ran out yesterday though, so that might cause an issue?