[Swsgm30]

Thought I'd be a little bit nosey and ask a general question as to what financial 'tactics' fellow Forum Members are using to buy their cars? ......
Obviously some people will be buying outright while others might be getting their Roc as a Company car but there are all sorts of deals in between ..
When I eventually get mine, I'll be paying a £5750 deposit and then £258 per month for 48 months (PCP finance) there will be a 'Balloon' charge at the end of approx £9500. Now, I've got no intention of making that Balloon payment, my plan has been to use the Guaranteed value 'excess' I get back at the end of the term as part of my next deposit on my next car. .......
However, I have now become aware of the 'Contract Hire' side of VW Finance Group - for a First Payment of approx £750 and 36!! monthly payments of £249, I can get the same car!! .. I don't really need to own the car (and want to avoid the Balloon Payment) and doing it this way would suggest I get a new car every 3 years and will eventually not renew (hopefully a good few years in the future) and me and the missus will go down to one car.
Anyone see any snags to doing it this way .... or any better ideas out there (short of stealing one :lol: )
Cheers Guys

 

[Hawkeye]

Be careful with PCP and using the word "guaranteed" - Manufacturers are no longer giving a guaranteed value at the end of personal PCP what they do give is a view of what they believe it to be worth at the end of the PCP contract when you initially take out the PCP.

As for not making the balloon payment at the end - you do one way or another, as your options at the end of PCP are:
- hand the car back with no further payments
- pay the balloon payment and keep the car
- trade the car in for another - in which case, the residual value calculation is trade-in value less the balloon payment - which counts towards your deposit (assuming there is cash left over of course)

All I'm saying is do the math, as one way or another you do pay the balloon payment at the end, if only to settle the PCP you take out for this car.

The other thing I'd check - you say 48 payments? There may be an additional 49th - when I was quoted on a 3 year PCP that came out as 37 monthly payments, the 37th payment being an admin or something charge. Just check what the finance model they will have given.

As for monthly contract hire - haven't looked at that yet - next on my list to see if that is better for me also!

 

[Swsgm30]

Unless the 'rules' have changed recently I have to disagree with your interpretation of what the balloon represents.... My missus used to work in the Car Leasing/ Finance world and they used to call it 'Guaranteed Residual Value'. As long as you adhere to,the terms of the contract i.e. Return the car in an acceptable condition, within agreed mileage etc that residual value will at least cover the outstanding Ballon. In March of this year I came to the end of a PCP agreement with Renault. My car had a balloon of £4800 and they offered me £6500 .. I chose to pay the balloon so I now own the car but I could have walked away with a cheque for £1700 or used it as part of a new deposit.
I've just checked the VW Finance site and in their faq's they refer to it as 'Minimum Future Value (also refer to Balloon Payment)'
I'll speak to my sales man in the next few days and see what he reckons

 

[hugger]

I had been looking to move over to private lease with this purchase. My current car is on PCP and it's the first time i've done it; the only reason I haven't gone down the leasing road is that I received £4500 discount on the new purchase via PCP. This made it about £10 a month more than a lease with the potential added equity at the end of the term, if I keep it that long that is. The other thing to remember with a lease, if you get bored of the car and want to change before the end of your term, you will have to pay up the lease. There is no option to trade in and release any equity you may have accrued.

 

[Radders]

We are leasing our 1.6 tdi SEL in Ravenna blue. Ordered 3rd October will be delivered this Thursday.

36 month lease, 10k per annum. £1500 up front payment and 35 months of £251 includes car tax but no maintenance. Quite happy with that as no big bills due to warranty and hand it back in three years.

 

[Mackemsteve]

Cold hard cash. No finance. Bought via the PCP to get the "manufacturer's £500 contribution" and then paid off after 1 day with no penalty.

 

[Mackemsteve]

As for not making the balloon payment at the end - you do one way or another, as your options at the end of PCP are:
- hand the car back with no further payments
- pay the balloon payment and keep the car
- trade the car in for another - in which case, the residual value calculation is trade-in value less the balloon payment - which counts towards your deposit (assuming there is cash left over of course)

All I'm saying is do the math, as one way or another you do pay the balloon payment at the end, if only to settle the PCP you take out for this car.

Your final statement is incorrect and in opposition to the first of the three options that you list...
You CAN avoid the balloon payment by simply handing it back.

 

[Swsgm30]

thought I'd simplify my own case .... bear in mind, I am currently on order to buy via PCP but have no intention of paying the required Balloon at the end of the agreement ... I will walk away with a cheque for the excess value of the car (see previous details re the fact that the residual Value should at least cover the Balloon - unless you've totally abused the car). I will then put a bit more money to that and 'go-again' on my next car.
My current PCP figures:
Deposit £5750
48X £258 / mth £18134
4X Road Tax £560 TOTAL = £18694

Leasing Figures
Initial Rental £736
36X £245 £8590
Arrangement Fee £300 TOTAL = £9626 *Road Tax is included .. no Balloon

Obviously all I am concerned with is how much money I will be spending. My VW salesman did not want to talk Contract Hire though I know one of their branches does do it .... If my delivery is delayed until after Xmas, I will consider that they have not fulfilled their side of our agreement and seriously think about cancelling PCP and then Lease

 

[Ian J]

Hawkeye- My understanding is that if you meet the fair wear and tear and mileage the car is Guaranteed to be worth the Final payment as you can hand the car back and walk away

 

[Swsgm30]

Ian J
Yes you are correct .. I finished a PCP with Renault in March 2018. Towards the end of the deal I was approached by the Finance Company to make my decision (Pay Balloon, Part-ex or Walk away). I chose to pay the balloon (£4800) but was offered £6500 if I part-exe'd ..
This may be where some of the confusion arises ... if you walk away you still have to cover the outstanding 'Balloon' but get to keep the excess if there is any.

 

[Hawkeye]

Sorry, bad choice of words on my part regards just handing car back, yes you are right that you just walk away,

 

[davidf27]

Leasing through a salary sacrifice scheme with NHS. Comes out of salary at source.
No deposit, £325 a month, includes insurance for 4 people, mot, service, tax, repairs etc.
plus the option to buy at the end of the 3 year term.

 

[JAMCT]

:!: For those potential purchasers still negotiating.......I have just received, through my letterbox, an 'Inchcape Volkswagen Manchester flyer 'with outstanding offers' including £3000 towards finance deposit when purchasing a T-Roc with Solutions PCP, at 5.5% APR Representative.

I know previous offers have been as low as £500, I was offered £1000 but declined, as I paid cash. Since then I have seen £2000 offers. £3k seams to indicate a desperate attempt to boost flagging sales especially for diesels.

 

[Hawkeye]

:!: For those potential purchasers still negotiating.......I have just received, through my letterbox, an 'Inchcape Volkswagen Manchester flyer 'with outstanding offers' including £3000 towards finance deposit when purchasing a T-Roc with Solutions PCP, at 5.5% APR Representative.

I know previous offers have been as low as £500, I was offered £1000 but declined, as I paid cash. Since then I have seen £2000 offers. £3k seams to indicate a desperate attempt to boost flagging sales especially for diesels.

I've just ordered my TRoc (last week) through Inchcape Chelmsford. As I understand it the 3K offer was only for the 1.5 (or was it 1.6) Diesel T-Roc and it has to be registered by end of October (either way it's only on a specific diesel model of the TRoc). Else you only get the 1K contribution and a reduced price for the first 2 services (if you take out PCP).

 

[JAMCT]

Offers probably vary based on dealership location and sales volume. See flyer below for Inchcape VW Manchester but T&Cs apply!.

There's nothing stopping a buyer from having a test drive in one location and ordering from another dealership or then 'negotiating' for a better deal for the petrol/diesel required. Address: 99 Bridgewater Way, Manchester M16 9SF Tel: 0161 825 8018 [sorry, sliced off bottom of flyer]

 

[Ian91]

I was wondering if there been any recent significant changes to buying the car through VW pcp solutions and paying off the balance within the cooling off period. I did this @ 2 years ago to take advantage of the £1000 contribution from VW finance and 2 years servicing. I contacted the finance company the day after signing the agreement and they waived any interest payments, the only thing I did watch out for was the dealership adding Extras I hadn't asked for like paint protection on their invoice, which inflates any balance to clear the agreement.

 

[Craigelsx]

We are doing hire purchase over 4 years for our 1.6 design diesel. Trading in our 131 golf got €11000 for it so happy with that

 

[Ian91]

Has anyone paid off their pcp solutions deal recently within the cooling off period, Just to get the extra discount from VW finance, I did this a few years ago and was wondering if there have been any changes to the VW pcp deal?

 

[avamissile]

Has anyone paid off their pcp solutions deal recently within the cooling off period, Just to get the extra discount from VW finance, I did this a few years ago and was wondering if there have been any changes to the VW pcp deal?

I'd be interested to know this. I'm going to be buying my T-Roc as personal loan finance, but was wondering if I were going to take advantage of the £1,000 off using PCP, would I save money by paying it off straight away with a personal loan instead?

 

[Hance_uk]

Mines 1.6 R-line with black metallic paint

£1800 upfront
£301 a month
I just pay for service and tyres.
36 months with 15,000 miles through stable leasing but it's with VW