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Discussion Starter · #1 ·
So been phoning around looking for a 4yr PCP deal on a 5dr UP GTI with cruise & park and seat height adjustment. So with a £2500 deposit its coming out at £240 per mth in tornado red or £254 in kings red. So far I dont seem to be able to better that.
 

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Discussion Starter · #3 ·
I might be wrong but, surely you could get a better deal used even with current prices? I might be wrong
Sadly not the case as the finance deals are nowhere as good and the car comes out more expensive.
 

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Discussion Starter · #5 ·
Could you not do a bank loan though on low interest?
Well we are in a PCP and in a good position as the equity is quite high presently. So we are using that as the deposit.
 

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Well we are in a PCP and in a good position as the equity is quite high presently. So we are using that as the deposit.
Personally I think you'd be better off doing a bank loan myself, you'd pay less interest overall. Totally my opinion.
 

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Discussion Starter · #7 ·
Personally I think you'd be better off doing a bank loan myself, you'd pay less interest overall. Totally my opinion.
I did just quickly check out your suggestion and surprisingly a bank loan seems to be quite a bit more as a monthly cost.
 

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Discussion Starter · #9 ·
Surely it can't be? Is that bank loaning on a new or used?
That was new so I just looked at a used 15k car and took off 2k as my deposit leaving 13k to find. So with an APR of 3.0% over 4yrs it comes out @ £287 per mth.
Admittedly the car would be ours outright at the end but that seems like the only benefit.
 

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Ahh see I tend to do it over 5 years and max out the term knowing that I won't ever keep it that long. Usually on low interest it doesn't make much difference.
 

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Discussion Starter · #11 ·
Ahh see I tend to do it over 5 years and max out the term knowing that I won't ever keep it that long. Usually on low interest it doesn't make much difference.
I tried 5yrs and it was only just better @ £233 but not enough to go through he hassle of selling our car and so on. Anyway appreciate your interest & comments it made me think about it. Fingers crossed we will place an order this weekend.
 

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I tried 5yrs and it was only just better @ £233 but not enough to go through he hassle of selling our car and so on. Anyway appreciate your interest & comments it made me think about it. Fingers crossed we will place an order this weekend.
Look at the total amount of interest payable though? That might be where you save the money
 

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So been phoning around looking for a 4yr PCP deal on a 5dr UP GTI with cruise & park and seat height adjustment. So with a £2500 deposit its coming out at £240 per mth in tornado red or £254 in kings red. So far I dont seem to be able to better that.
Hi
I presume you have tried Car Wow for a quote. Have used it a few times. Even if you don't buy via them it gave us the info to do a deal with a local dealer that matched the deal.

Mike
 

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Discussion Starter · #14 ·
Hi
I presume you have tried Car Wow for a quote. Have used it a few times. Even if you don't buy via them it gave us the info to do a deal with a local dealer that matched the deal.

Mike
Thanks Mike yes it was Car Wow that got us the best price. Im hoping to beat my local dealer down using the offer I got which was done almost instantly where most others seem to be scratching heads. If not im just going back to the dealer who gave us best price and place an order.

One thing that did come up with a couple of dealers was revaluing our car once the new car was about to arrive. Im all for checking our car over just to make sure its in the same condition as when it was valued. But im not into the idea of them telling us its worth less upon delivery of the new car. The Car Wow dealer told us this would not be the case but others have made those noises.
 

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That was new so I just looked at a used 15k car and took off 2k as my deposit leaving 13k to find. So with an APR of 3.0% over 4yrs it comes out @ £287 per mth.
Admittedly the car would be ours outright at the end but that seems like the only benefit.
This is a far better financial position to be in.
Take away the "car" as an emotional desire and think what you are doing. You are paying interest on a depreciating asset. The money paid goes up (initially) while the item goes down.
Choose the lowest APR, put in the max cash you can comfortably afford, get an unsecured personal loan, and at least you will own it at the end.

PCP is the greatest trick the car industry has ever pulled, meaning we lose even more than just buying a car off them. They sell us finance too.

Its also a never ending treadmill. Ask yourself "how do I have a car and get off the 3-4 year PCP cycle?"
 

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With any loan, a key part of the small print is the cost of early redemption. If income goes up, some people may prefer to get rid of the debt earlier, if for example you needed to apply for a mortgage, which will be reduced based on other loans you have.

Finance that commits you to keep paying, or stings you if you want to get out of the debt can be a real trap if you are unaware of the total end-costs....

Also, if you buy a £15k car, and keep it for 3 years, it's worth say, £7.5k for sale or trade in, which is around £208 per month, which to me seems like a lot of flexibility on the price of a normal loan from a bank, or building soc, or a peer-to-peer loan platform.
 

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It's interesting to speculate what the depreciation actually will be on a brand new up GTI over the next 3 years. I think prices will remain very strong. Not least if lots of people start rationalising their finances and start to move away from PCP on more expensive metal. What else is so cheap to run and still offers a bit of fun, if you give up your golf GTi or 3 series that you're paying £300+ a month for.
 

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Just to be fair on PCPs, VW are running 0%apr at the moment on the Up! making it more cost effective than a loan at something between 3 - 6%apr. Makes it more affordable and quicker to pay off as you are only paying capitol and not interest. Still have a balloon at the end but perhaps that is the time to look at a personal loan, especially if the balloon is less than the value.
 
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