New Scirocco for Fiesta money anyone?

[Grampa]

Just had an e-mailed offer through from Ferguson Contract Hire (not the people I actually use but a company that quoted me) on a Scirocco GT TDi 140.
£218.50 per month for 35 months after £655.50 down for 6000 miles a year or £235.99 per month after £677.97 down for 10,000 miles a year.

Only Candy White or Salsa Red (I assume they've used the solid colours to get the headline prices as low as possible) - but I guess they'd do metallic for a bit extra and also do a higher mileage a little bit more. The downside is the prices are for business users and ex VAT (you can claim back half the VAT on contract hire) upside is that's the kind of rental you'd pay on a Fiesta or similar.

[caprinolaw]

To give you an idea of what you can probably get for the money i had a quote for the following about 2 months ago:

GT TDI 170 - White - Personal Contract Purchase (60 months, can return after 36) - £3k deposit - 25k pa - no extra's - fully maintained (including tyres) - £450pcm inc vat.

[caprinolaw]

Also bare in mind with Contract Hire that while you may pay 17.5% VAT now, this will rise to 20% in Jan 2011 and so your monthly payment would increase as a result (not an issue if you have it on a business lease and can claim it back).

[Grampa]

Also bare in mind with Contract Hire that while you may pay 17.5% VAT now, this will rise to 20% in Jan 2011 and so your monthly payment would increase as a result (not an issue if you have it on a business lease and can claim it back).

Which would increase your monthly payment on the 6000 mpa deal by a massive £6 a month!
(£3 of which will be claimed back if you're VAT registered)

Difficult to compare deals with your 170 when the car, mileage and term varies so much, but on a 1+35 deal (i.e. no deposit), 210GT with Lugano Black, sunroof and metallic, non-maintained I pay £347 a month for 8000mpa.

[caprinolaw]

Also bare in mind with Contract Hire that while you may pay 17.5% VAT now, this will rise to 20% in Jan 2011 and so your monthly payment would increase as a result (not an issue if you have it on a business lease and can claim it back).

Which would increase your monthly payment on the 6000 mpa deal by a massive £6 a month!
(£3 of which will be claimed back if you're VAT registered)

Difficult to compare deals with your 170 when the car, mileage and term varies so much, but on a 1+35 deal (i.e. no deposit), 210GT with Lugano Black, sunroof and metallic, non-maintained I pay £347 a month for 8000mpa.

Gotta look after the pennies gramps - you of all people should know that ...rations n all

[Kris]

Hi,

I Pay: £320pm, for 24 months with 15,000 miles per month - GT 140TDi, White, Cruise Control, Bi-Xenon Headlights, Electric folding door mirrors, 19" Lugano style pack, Black, and 3 years servicing included.

My inital payment is £5000 which i will do off when i sell my car.

Hope this helps.

Kris

[caprinolaw]

I pay £499pcm for a PCP over 60 months (option to return with no charge after 36)

GT 2.0 TDI 170 - 25,000 miles pa - DSG - Candy White - Bi-Xenons - Cruise Control - All Servicing and Maintenance included - All Tyres (Flats, Punctures, Worn) included - Breakdown Cover and Replacement Car - £3k deposit down.

Its a combination of mileage plus full maintenance that significantly increases the cost.

[bleedsoff]

I pay £499pcm for a PCP over 60 months (option to return with no charge after 36)

GT 2.0 TDI 170 - 25,000 miles pa - DSG - Candy White - Bi-Xenons - Cruise Control - All Servicing and Maintenance included - All Tyres (Flats, Punctures, Worn) included - Breakdown Cover and Replacement Car - £3k deposit down.

Its a combination of mileage plus full maintenance that significantly increases the cost.

Wow is that not a hell of a lot of cash!!!!! what is the pay off at the end?

[caprinolaw]

I pay £499pcm for a PCP over 60 months (option to return with no charge after 36)

GT 2.0 TDI 170 - 25,000 miles pa - DSG - Candy White - Bi-Xenons - Cruise Control - All Servicing and Maintenance included - All Tyres (Flats, Punctures, Worn) included - Breakdown Cover and Replacement Car - £3k deposit down.

Its a combination of mileage plus full maintenance that significantly increases the cost.

Wow is that not a hell of a lot of cash!!!!! what is the pay off at the end?

£4k at the end, which is less than the estimated residual value of the car. Not that i care because as a 23 year old who gets easily bored ill probably want to swap it for a better model after 3 years.

If i only did 10,000 miles pa id be looking at a figure more like £400pcm - my high mileage therefore means more maintenance i.e. more cost.

The maintenance in itself adds £120 a month. Some may say this is excessive but for me its peace of mind. In the last 5 years on my golf (and 100,000 miles) ive had all of the tyres replaced 8 times, 6 punctures, 3 new sets of break discs all my servicing and MOT at no charge and numerous other niggles which have fallen outside of the VW Warranty - so for me i have received great value for money.

Especially as a i drive the s@#! out of it!

[bleedsoff]

I pay £499pcm for a PCP over 60 months (option to return with no charge after 36)

GT 2.0 TDI 170 - 25,000 miles pa - DSG - Candy White - Bi-Xenons - Cruise Control - All Servicing and Maintenance included - All Tyres (Flats, Punctures, Worn) included - Breakdown Cover and Replacement Car - £3k deposit down.

Its a combination of mileage plus full maintenance that significantly increases the cost.

Wow is that not a hell of a lot of cash!!!!! what is the pay off at the end?

£4k at the end, which is less than the estimated residual value of the car. Not that i care because as a 23 year old who gets easily bored ill probably want to swap it for a better model after 3 years.

If i only did 10,000 miles pa id be looking at a figure more like £400pcm - my high mileage therefore means more maintenance i.e. more cost.

The maintenance in itself adds £120 a month. Some may say this is excessive but for me its peace of mind. In the last 5 years on my golf (and 100,000 miles) ive had all of the tyres replaced 8 times, 6 punctures, 3 new sets of break discs all my servicing and MOT at no charge and numerous other niggles which have fallen outside of the VW Warranty - so for me i have received great value for money.

Especially as a i drive the s@#! out of it!

Just to get things clear in my head (because the dealer tried to sell me PCP when I wanted Finance but didn't really understand it), you pay over 3 years total £20964 then just give the car back with nothing gained or do they put the value of the car as a deposit on your next order. Otherwise if its the way I am thinking you pya £20000ish and gain nothing. Sorry not having a go just confused!

[caprinolaw]

On my contract (PCP) its 60 months.

I can hand the car back after 36 months, or once half the value of the car is paid back (36 months).

If i hand it back after 36 months i gain nothing. (nothing toward deposit etc.)
If i hand it back after 60 months i gain nothing. (nothing toward deposit etc.)

I do have the opportunity after 60 months to purchase the car for £4k - I could then sell the car and use the cash as a deposit on a new car. (This is only worth in the instance where the car's resale value at that time is more than the final payment amount i.e. worth more than 4k)

My understanding of Personal Contract Hire (PCH) is that you will never have an amount to buy the car in your contract (although it can be requested at the end of the contract but would be at a premium). With PCH you also have to pay the VAT on the car at the then rate. with PCP you pay the VAT as of the date you sign the contract. I.e. i will always pay VAT at 17.5% regardless of whether VAT goes up or down.

Theres not really much in it, it comes down to personal preference.

[Grampa]

Yep - contract hire is what it says on the tin - instead of hiring a car for a day or a week you have a contract to hire it for (for instance) 3 years. At the end of the term you simply hand it back in the same way you would any other hire car - you get first chance to buy it though, but at whatever price they would sell it for elsewhere - not a low price such as on a PCP or lease. What you're doing in effect is financing the depreciation and you'll find that for instance a car like a £25k Scirocco costs the same as something like an £18k Focus. I like it as a business user (self employed) - no deposit means no capital tied up in the car, monthly payments are about what you'd pay to finance a £12-13k car, and the at the end of the term, I just choose what I want next and adjust the payments accordingly - no deposit means no effect on cashflow, takes all the hassle of a trade in out of the change - no running round different dealers trying to get the best price and you don't have to worry about for instance a VW dealer not wanting a Vauxhall as a trade in and no tax issues with a profit or loss on its book value. Plus you can chose a colour like Viper Green (or anything else in the spec) which may not be to everyone's taste when you come to sell. Added to which it's the only kind of car 'purchase' on which you can reclaim VAT - albeit only half the VAT on the rentals.

Downsides are it could end up costing you more overall than buying a car and standing the depreciation - but that can work both ways - if the second hand market crashes like it did in the late 90's (which was what prompted me into contract hire), you could win - either way you know exactly how much you will lose on the car when you sign the contract. The other downside is that the penalties for handing back early can be quite harsh, so you really need to be sure you want to keep the car for the length for the contract. Keeping it beyond the term can be expensive as well - because idiot VW dealers made my car just over 2 months late, I had to pay an extra three rentals on my old car - which was a bit steep considering the car would have depreciated by perhaps half of one rental once it got past its 3rd birthday.

Contract hire won't suit everyone, but for me, and my circumstances (I have the cash available for monthly payments but I don't want to suck say £10-£15k cash out of my business account) it means I drive a £25k car instead of perhaps a £12-£15k car.

[discowill]

Grampa (or anyone else that can help), I am looking at ordering GT 2.0 TSI (210), in viper green with Lagano Black style pack, electric folding mirrors, luxury mats & cruise control - final price of £24,924.

I was planning to do this via Contract Hire via my LTD company, i was quoted £1333 insurance and this all seemed fine until I realised that the car would be 'owned by Volkswagen Finance UK' and not me, after editing/ringing a few companies my insurance quote was still double that of the original £1333, I cannot get anything below £3500. The insurance companies are now stating that it would be classed as fleet insurance and they cannot do this. Can I ask how much your insurance was/is and who it is with?

Be a great help. Thanks

[EndOfMyNightmare]

I insure through Elephant declaring VW Finance UK as the owner & registered keeper for £520 on a 210 GT TSi, 26 with 2 years ncb, 1 theft & 1 fault claim in the last 3 years. Good post code. Dont imagine that helps much but found that the elephant group of companies (admiral, elephant, bell, diamond) were the cheapest by far of all my quotes, with elephant being the cheapest overall

[Grampa]

Grampa (or anyone else that can help), I am looking at ordering GT 2.0 TSI (210), in viper green with Lagano Black style pack, electric folding mirrors, luxury mats & cruise control - final price of £24,924.

I was planning to do this via Contract Hire via my LTD company, i was quoted £1333 insurance and this all seemed fine until I realised that the car would be 'owned by Volkswagen Finance UK' and not me, after editing/ringing a few companies my insurance quote was still double that of the original £1333, I cannot get anything below £3500. The insurance companies are now stating that it would be classed as fleet insurance and they cannot do this. Can I ask how much your insurance was/is and who it is with?

Be a great help. Thanks

Sorry for the delay in replying - I haven't had a good nose round the site lately - I'm with Direct Line - they appear to have no problem with the fact I'm not the owner of the car - there's just a note on the certificate saying that I'm not the owner - as far as I'm aware they didn't load it at all - basic premium is £346 (with full NCD) but I add no claims discount protection and legal protection that brings it up to £425 - I'm 49 and live in probably one of the lowest rated areas in the UK - they also knock a bit off as we (as a family) have three other cars insured with them - all actually being far and away the cheapest we could find - £700 (1 yr NCB) for an 18 yr old on a MINI One for instance.

Only drawback with Direct Line is no after market mods (factory options are no problem), so if you want nice wheels etc you'll be stuck.
with what VW offer.

Also in my experience, manufacturer's PCPs or Contract Hire are not very competitive - have you tried shopping around?

This place was the best deal for me: http://www.dayscontracthire.co.uk" onclick="window.open(this.href);return false;