Bye bye G T I...

[fredgroves]

Of course you need to be able to afford it but if my budget is five hundred a month, I'd still sooner pay four hundred a month and that's entirely dependent on what the agreed purchase price is.. Whether its cash or PCP or hp. Lease is the only time purchase price is irrelevant and pch is still not common...

[monkeyhanger]

Of course you need to be able to afford it but if my budget is five hundred a month, I'd still sooner pay four hundred a month and that's entirely dependent on what the agreed purchase price is.. Whether its cash or PCP or hp. Lease is the only time purchase price is irrelevant and pch is still not common...

Buying outright, my aim is about £250 a month these days (for each of 2 cars). Given the amount of interest on PCPs generally, £250 a month depreciation on a cash buy probably amounts to almost £400 a month PCP. at 6% APR.

[Guzzle]

That's because you're savvy. Not everyone is.

I recall my last visit to a VW showroom to negotiate a purchase. The salesman wasn't interested in telling me how much discount he was giving me, he simply wanted to know what my monthly budget was and he would make it suit.

Lots of people buy their car like this. We don't because we know better, but it's why dealers still have fancy showrooms and why people still ask whether companies like Drive The Deal are legit.

[fredgroves]

But how can he make a hp or PCP deal "suit"?

He can't change the interest, he can't change the gfv (for PCP), all he can change is the agreed price...

I suppose he can try to tempt you into taking four years rather than three and hope you are daft?

[monkeyhanger]

But how can he make a hp or PCP deal "suit"?

He can't change the interest, he can't change the gfv (for PCP), all he can change is the agreed price...

I suppose he can try to tempt you into taking four years rather than three and hope you are daft?

There's 4 years instead of 3, as you suggest (more and more people seem to be doing this as prices go up and up), or alternatively, if the salesperson gets you a deal that can come out at £380pm and you've said you have a £400 budget, they'll make damn sure they find a way to get you to spend the other £20pm by slipping in a high commission product like lifeshine or gap.

My favoured salesman at Pulman told me he'd make £41 commission on my Golf R , but he makes £60 on every lifeshine he sells or manages to give "free" if there's enough margin left on your deal to do so.

Another way to clinch the deal is variable GFV. Not seen this at VW, but saw it going on at Audi when we bought the wife's A1. We took finance to score for the deposit contribution and settle within 14 days. I was playing along as an interested PCP buyer. He was pushing the "hiw much a month can you afford?" angle and I said if the deals right, the monthlies look after themselves. He increased the GFV figure by £600 to save £15pm, but I bet there's a flag on the system to remind them to offer very little equity at p/x time.

[fredgroves]

I didn't think gfv was set by a dealer, it was set by vwfs...

[monkeyhanger]

I didn't think gfv was set by a dealer, it was set by vwfs...

I was surprised myself (as I'd never seen it done by VW dealers), but the Audi salesman definitely had movement threshold on the GFV. He upped GFV by £600 rather than discount by £600 to get close to DTD figure I had.

The initial and revised GFV used didn't match the one on the website for finance examples.

[Jim_mk7.5]

Maximum Gloss level now 

[fredgroves]

I didn't think gfv was set by a dealer, it was set by vwfs...

I was surprised myself (as I'd never seen it done by VW dealers), but the Audi salesman definitely had movement threshold on the GFV. He upped GFV by £600 rather than discount by £600 to get close to DTD figure I had.

The initial and revised GFV used didn't match the one on the website for finance examples.

I am sure that you understand that emperilling the equity in a PCP deal reduces the chance of getting a serial PCP customer, which is pretty much the point of PCP. "oh look you already have the deposit for a new car and the monthlies are the same - no brainer, buy a new car from us!"

[kmpowell]

I didn't think gfv was set by a dealer, it was set by vwfs...

I was surprised myself (as I'd never seen it done by VW dealers), but the Audi salesman definitely had movement threshold on the GFV. He upped GFV by £600 rather than discount by £600 to get close to DTD figure I had.

The initial and revised GFV used didn't match the one on the website for finance examples.

Dealers have absolutely no control over VW GFV's. It's set by VWFS centrally and built into the algorithms used for their forecasting. The finance tool they use can be altered manually (which he may have shown you), but that manual change gets put into grey and is for illustration purposes, it cannot be set. If a BM wants to change a GFV they have to go directly to VWFS, but I've never known of them agreeing to anything as it upsets the car's value later down the line especially as margins are very small these days. The dealer/BM normally just hides the money in the PX or discount given etc etc so it levels out to the agreed 'cost to change' amount overall.

The only way a GFV can be directly manipulated by a dealer is by them offering another product from another provider such as Black Horse finance where they work with that provider to tailor the finance accordingly. Blackhorse in essence give them stretch bands to work in for GFV's.