Gti Mileage on PCP

[king monkey]

Correct. Total amount payable is what matters. That’s why I’m not going pcp next time tbf.

[kmpowell]

Those GFVs are interesting. Can’t believe the difference.

It's also worth noting that unlike Audi do with some of their models (A1, TT, Q7, Q5), VW don't adjust balloons for their models when options are ticked, so even if you chuck £5k at the options list, the balloon remains the same. they are in effect a worst case scenario, which is also a good mental head-marker that when you come to sell if you car is well loaded then you will probably get a bit more than the balloon.

[Adam T7]

Maybe consider an Asset Finance scheme - basically an HP agreement with a balloon. Been using for car purchases for nearly 20 years over 8 cars for myself and family. Make sure you choose a sensible balloon balance on the residual value and it works (for me anyway) - over the years the value of the residual over the balance of the balloon and deposit for a new car increases - no mileage limits, not tied to a brand.
Speak to your bank manager and see if they offer it.
Used on a BMW, Mercedes, Disco 3 and 4, Golf for the Mrs, Polo for the Mrs and Aygo for the eldest and finally GTI for me. Opted out of the company car scheme in 1999.

[kmpowell]

Maybe consider an Asset Finance scheme - basically an HP agreement with a balloon. Been using for car purchases for nearly 20 years over 8 cars for myself and family. Make sure you choose a sensible balloon balance on the residual value and it works (for me anyway) - over the years the value of the residual over the balance of the balloon and deposit for a new car increases - no mileage limits, not tied to a brand.
Speak to your bank manager and see if they offer it.
Used on a BMW, Mercedes, Disco 3 and 4, Golf for the Mrs, Polo for the Mrs and Aygo for the eldest and finally GTI for me. Opted out of the company car scheme in 1999.

The problem with the LP's (Lease Purchase) is whilst the balloon is fixed, it's just indicative, it isn't guaranteed meaning there's no 'hand back' or Trade-In option at the end of the agreement, you have to pay balloon payment regardless if you keep the car or not. If the car is worth less than the balloon, you have to find the difference.

In the current financial economy of uncertainty it would take a brave man to take a balloon payment out which isn't a guaranteed value.

[Adam T7]

It’s all about the size of the balloon - been purchasing cars this way for 20 years without an issue an meant I could put a big deposit down on the GTI.
If the car has strong known residuals and you never go near the maximum allowable balloon, risk is negligible.

[fredgroves]

The problem with the LP's (Lease Purchase) is whilst the balloon is fixed, it's just indicative, it isn't guaranteed meaning there's no 'hand back' or Trade-In option at the end of the agreement, you have to pay balloon payment regardless if you keep the car or not. If the car is worth less than the balloon, you have to find the difference.

In the current financial economy of uncertainty it would take a brave man to take a balloon payment out which isn't a guaranteed value.

The only thing you are losing here is some kind of mega crash protection, because nobody in recent years makes money on PCP GFV, its always a loss (especially when you factor in the interest rates). The only upside is in the event of a major economic downturn the GFV is the GFV and you might end up winning after VWFS pay 8 grand for a vehicle now worth 6.

Subtle shifts you'll not benefit from at all.

However with LP, its no different to cash purchase.... its a 30k car, you pay 30k (plus some interest). After 3 years you finish paying and its all yours - depreciation and all.

TBH there is no one winning formula in car finance. It depends on the deals on offer at that moment and your ongoing available cash to cover it. Some people get very lucky and get an good deal, most get a average deal and the finance companies are very happy with that.

[Jim_mk7.5]

Makes interesting reading seeing different opinions. I'm going to consider opting out of company car when mine is due to change next year but to be fair, the Golf isn't too bad. Around £200 a month (on basic but bonus does affect this) for a car that I just have to put fuel in for private miles.

Will be doing some maths though over the next year to work out the best way to go in 2020. Do really fancy a 2nd hand RS3 next.....

[Adam T7]

I opted out of the car scheme at work 20 years ago because the choice was crap - Vauxhall Vectra L, choice of colour or hatch / boot.
TBH - I’m really not sure how tax efficient a comycar is these days?

[fredgroves]

I opted out of the car scheme at work 20 years ago because the choice was crap - Vauxhall Vectra L, choice of colour or hatch / boot.TBH - I’m really not sure how tax efficient a comycar is these days?

I bailed out in 2017 after several decades of company cars.

It did used to be an actual benefit, now its just a tax drag and you are better off taking the cash and DIY.

The only possible way you stand to gain anything from a company car is if you go with a milk float. Probably that is advantageous.

Assuming of course that your company car is just a perk for you to use to visit the supermarket once a week.... because a milk float is f*** all use if you are actually a mobile worker and its a tool for your job.

[2007GTI]

There was a thread on here a few weeks saying about how expensive PCP is compared to a cheap bank loan. Might be worth crunching the numbers and looking at drivethedeal.com to get an idea how much you could buy the car outright for and have no worries about mileage or ballon payments!