Finance

[iAmbu]

Hi all

Looking to order a Scirocco next summer... Have looked into PCP / Solutions with VW. Am I right in thinking that these are only to be used for paying off the whole payment? (I know it's not that simple, but for the sake of my question, let's assume it is). I know you pay an initial deposit, and then a set monthly amount. After the 3 years, you have the option of paying a Final Settlement Figure, or getting a new vehicle and transferring the PCP.

But.... Is it possible to mix PCP with a large cash payment when buying the car? Say for example I paid £11,000 cash when collecting the car, could I pay the rest off (approx. £12,000) using PCP? Or does the VW maximum deposit rule of 30% come in here and prevent you from doing that?

If not PCP, I presume it is possible to just get standard finance on the remaining £12,000 invoice amount? I presume I would be dreaming if this would likely be offered at 0%, on the Scirocco, say next September (2009) ???

Hope that all makes sense.

[CTRnutter]

To be honest with that size of deposit it would work in your favour to pay the rest of the finance off over 3 years owning the vehicle out right, if you are trying to keep the monthly repayments lower then spread it over 5 years, the depreciation will be the same however you decide to pay but obviously spreading the payments over a longer period only means you pay more interest over the extended period of time

you can still sell up after 3 years even if you have finance taken over 5 years and they will recalculate a settlement figure, with an £11,000 deposit there will defo be equity left in the veichle and they will probably offer you a good rate on interest, I got about 2k off the repayments, this is really where the deals can be done

[rehmondo]

30% deposit rule would prevent that mate, worked out only to be around £8000 for me, this of course is depending on spec.

Ask your dealer if he is willing to lower the apr%, this would lower is comission on the finance however you could offer to sub the £150 he would lose. Overall it could save you £100 on your monthly payment!

[ken]

There may be a way of overcoming the maximum 30% deposit rule. If you have optional extras included the dealer may be prepared to invoice these separately from the basic car, so, in fact you get 2 invoices. Then you pay the options invoice in full and work out how much there is remaining of the deposit you want to put down and that goes against the car. Some dealers will do this other may not but it must be worth the question.

[Bagwafu]

My dealer has an arrangement with another PCP company (non VAG) which allows a 50% deposit, thus saving money (less interest) in the long run. Ask yours if they do the same!

[jonallen628]

For all those who have taken delivery and have purchased with finance;

- Who provided your finance
- What rates did you get in terms of APR or flat rate?

Just searching around for the best deal, any help would be most appreciated. VW have quoted 10.9% Apr, given the current BOE rate this is laughable.

[drnick]

borrowed 14000 from HSBC at 9.3%

[iroc]

johnallen628. Give Lombard Direct a try if it's a straight loan you are looking for 8.3% APR.

[mister.c.]

Absolutely bonkers rates aren't they, given the Base and the LIBOR rate?

Savings getting about 3% at the moment, yet can't get loans for less than 8%.

[wigit]

given the world has gone mad decided to fund by loan, in the current climate its good to speak to your bank, barclays were quoting 6.9% when i went in they went through matters and gave me 6.7% (back in October), money was in the bank at a click of the mouse, previously i have used lombard

had looked at leasing 4 years ago and PCP (mileage issues for me) having had company cars up to then before reverting to a car allowance, went the simple route of buy it and sell it when i want

not a fan of moneysaving expert but his website has weird and wacky wasy of saving money, i just use money supermarket for a rate check