Can you use PCP deal to your advantage

[1975jas]

Hi all

I am looking to buy a gt tdi blue motion and have managed to get the local dealer down to £23,500 (includes paint upgrade) - not sure if thats considered a good deal?

I know a personal loan is a better deal than PCP but the PCP offer includes £1,000 deposit contribution and 3 years servicing for £149 so certainly has its advantages.

Does anyone know if I could take the car on PCP and then pay off the entire finance (funded by a personal loan) after say the first monthly payment - taking advantage of the deal and then shifting the debt.

Also, does anyone know if the scirocco's can be set up on long life servicing (if I did not buy the 3 year servicing deal).

Thanks
Jason

[Cuprabob]

I can answer one of your questions, yes the Scirocco can be set up for long life servicing, in fact they tend to come from the factory that way as default.

[ZephyR]

That's something the salesman was trying to sell me a few weeks ago. I told him I was after a cash deal but he still tried pushing the PCP. In the end he told me I could take full advantage of the £1000 VW deposit and cheap servicing by taking out the PCP and then paying it off after a period of 3 months.
Now I didn't pursue this so I don't know what penalty clauses may be invoked or what additional "administration" fees might be added to tell whether it would be worth all the faff.

Re the servicing. If you do lots of short journeys, town driving or driving under load then you will probably find that your long life service is required much sooner than the specified maximum mileage, and ultimately will end up costing you more.

[Sarah]

All I no with PCP deals is that there is a clause for paying it off that says if you pay it off after a certain amount of time you pay less interest however if you pay it off really early you will end up paying a higher amount of interest. It doesn't specify in my doucuments when these periods of times are so I can't tell you what is deemed as early.

When I was looking, PCP was much cheaper interest rate than a personal loan for me but I dont think that is still case. I had free servicing and mots and tax thrown in on my deal to which made the PCP seem much more enticing!

I would call up Volkswagen finance and ask them for advice of paying off periods and stuff. They are usually very helpful people.

Sarah

[AgaZaKa]

Hi all

I am looking to buy a gt tdi blue motion and have managed to get the local dealer down to £23,500 (includes paint upgrade) - not sure if thats considered a good deal?

I know a personal loan is a better deal than PCP but the PCP offer includes £1,000 deposit contribution and 3 years servicing for £149 so certainly has its advantages.

Does anyone know if I could take the car on PCP and then pay off the entire finance (funded by a personal loan) after say the first monthly payment - taking advantage of the deal and then shifting the debt.

Also, does anyone know if the scirocco's can be set up on long life servicing (if I did not buy the 3 year servicing deal).

Thanks
Jason

Have you checked http://drivethedeal.com/" onclick="window.open(this.href);return false; website? There's a lot of Bluemotion models so it's difficult to guess which one you're ordering, but compare it with the dealer offer. Car will be delivered to a dealer and you will be able to take finance the same way you would buy it directly from dealer. Or you can use the quote from Drivethedeal to negotatiate the price with your current dealer.

You can pay off VW Finance. You will have to call them to get the quote of the outstanding debt and pay it off.

[Mark V]

Time/distance servicing is compulsary with VW service plans!

[rm0rgan]

Hi. You can pay off any finance at any time without penalty. You can also pay a wedge of cash off the finance at any time and have them recalculate the balance of finance to lower payments etc. Things have changed a lot in the PCP world since they first came out.

This is exactly what I will be doing once I collect my car in January and have had this confirmed by the dealership.

Hth.

[matthewbob]

I considered both options (Personal Loan vs PCP) and found PCP working out cheaper doing it this way.


PAY MAX DEPOSIT (35% of Total)
Go for the shortest period i.e 18 months
Go for the maximum mileage, doesnt matter if you do less but it brings the final value down.

I have the end payment available in cash so place that in an ISA and earn a few hundred over the 18 months or whatever term your looking to repay.

Get the £1000 allowance against your deposit VW are offering
Take the £149 for three years servicing

For me it works out a saving of £600 over the term, not alot but obviously have the final payment in cash if any disasters happen in your life!!


Oh and Drive the deal excellent but my dealer reckons he can match their prices so will be playing dealers off against each other as well for a few more ££££ off

Hard I know but you got to do what you can do these days!

I will have no trade in which helps obviously!

Just for info VW APR rate went down slightly in the last QTR, new rates due 1st Jan then every QTR.

Hoping for a further reduction in Jan with a increase in deposit from VW maybe....

Do I sound like an accountant? .......

[Cuprabob]

Just a note that VW historically put up their prices in the first quarter every year.

[matthewbob]

Hi all

I am looking to buy a gt tdi blue motion and have managed to get the local dealer down to £23,500 (includes paint upgrade) - not sure if thats considered a good deal?

I know a personal loan is a better deal than PCP but the PCP offer includes £1,000 deposit contribution and 3 years servicing for £149 so certainly has its advantages.

Does anyone know if I could take the car on PCP and then pay off the entire finance (funded by a personal loan) after say the first monthly payment - taking advantage of the deal and then shifting the debt.

Also, does anyone know if the scirocco's can be set up on long life servicing (if I did not buy the 3 year servicing deal).

Thanks
Jason

Drive the deal £21333 if you take PCP (VW 1k contribution)

Or obviously £22333 straight.


I would put those figures under your dealers nose!!

[Vogel82]

Anyone know the penalty of paying off the PCP early?

[rm0rgan]

No penalty for early payment :-)

[Buuren]

I had no penalty for taking the pcp, getting the £1000 off and then paying it off the day after. Just withdraw from the contract within 14 days of taking it out and you'll have to pay a daily interest rate of about £3. If you chose to repay early then you are hit with additional charges such as acceptance fees as far as I know but withdrawing from the contract avoids all charges except the daily interest.

[ZephyR]

Don't they ask for the £1000 back if you withdraw from the contract? Is the 14 days a cooling off period?

[Buuren]

No they didn't ask for any money back. I was concerned about that too at first but I have even received all the relevant documentation stating that I am no longer tied in to the finance now. Yes the 14 days is the cooling off period. One thing to note is that you must pay off the full amount within 30 days of withdrawing from the contract which I did by phone when requesting to withdraw from the contract. The dealer should give you the pre-contract documentation for the finance before you take it out and it explains all of the above in there. Hope this helps!

[Mark V]

Looks like they have missed a trick not asking for the grand back if the cobtract is cancelled! Maybe don't be too quick to spend it!

[ZephyR]

No they didn't ask for any money back. I was concerned about that too at first but I have even received all the relevant documentation stating that I am no longer tied in to the finance now. Yes the 14 days is the cooling off period. One thing to note is that you must pay off the full amount within 30 days of withdrawing from the contract which I did by phone when requesting to withdraw from the contract. The dealer should give you the pre-contract documentation for the finance before you take it out and it explains all of the above in there. Hope this helps!

Yes, that's very helpful. Thanks for info. Might see what kind of deal I can squeeze out of the dealers before Christmas.