Scirocco Central

Just wondered what everyone's views were on available finance options and what you decided to go with. Might be of interest to those looking and wanting some thoughts on finance options.

Well initially I was expecting to pay in the region of £500 a month for a new VW Scirocco GT and was looking to buy outright(with trade in and/or deposit) only because that's what I have always done before. So was pleased to hear I could get a VW Scirocco 2.0 GT TSI for under £400 a month over 3 years. I traded in my old faithful VW Polo TDI for £750 which I thought was reasonable given its age and mileage. Put in £2k deposit and VW put in £1k towards the deposit too on the Solutions option. I am hoping to get into the routine of changing it every 3 years going forward rather than driving it til it's on it's last legs which I have done over recent years.

I'm sure the dealer has explained this but with PCP (solutions), the amount you put in as deposit is never seen again. So either at end of agreement you need to find the cash for another deposit or the car must worth be in part ex your deposit plus guaranteed future value.

Thus lets say 28k car... 12k GFV, £4750 deposit. Come trade in time car worth 17k thus you can swap without puttin further cash. However if car was worth say 15k you have shortfall of 2k to find as a deposit on your next one.

Your monthly payments suggest the dealer hasn't taken the michael with future value which should put you in good place in three years time.

Yeah hoping it puts me in a better position in 3 years time, appreciate your comments.

I think I dropped lucky the day I went looking which ended up being also ordering as they had a manager deal day on as well so were doing good deals.

Generally buying on HP or with a bank loan is cheaper than PCP. However the £1000 contribution from VW on PCPs might just make it a better deal at the moment.
Unless you are paying cash, which works out cheapest overall.

I like contract hire - for my Scirocco, 2.0 TSi, metallic, sun roof and lugano black, 8000 mpa, it's £364 per month (ex VAT) which includes the RFL, no deposit. I have the benefit of being VAT registered which means I can claim half the VAT back.

What I like is not having to find any lump sum and the ease of changing to a new make at 3 years - just walk away from the old car (if it depreciates more than you expect it's not your problem) and walk into the dealer to collect the new one without the concern that a dealer for a different make gives you a poorer trade in - plus you can choose colours like Viper without worrying if they will still be fashionable when you come to sell.

Yes cash would be the cheapest if you have it and don't want to do anything else with it - if for instance you buy a £20000 car that depreciates to £10000 in three years, your £10000 equity in the car is tied up and can't be accessed unless you sell the car and don't buy another. Having said that, our second car (currently a Mini Cooper) is always bought cash, then I have the security of still having a decent car should I lose my income.

Grampa wrote:I like contract hire - for my Scirocco, 2.0 TSi, metallic, sun roof and lugano black, 8000 mpa, it's £364 per month (ex VAT) which includes the RFL, no deposit. I have the benefit of being VAT registered which means I can claim half the VAT back.

What I like is not having to find any lump sum and the ease of changing to a new make at 3 years - just walk away from the old car (if it depreciates more than you expect it's not your problem) and walk into the dealer to collect the new one without the concern that a dealer for a different make gives you a poorer trade in - plus you can choose colours like Viper without worrying if they will still be fashionable when you come to sell.

Yes cash would be the cheapest if you have it and don't want to do anything else with it - if for instance you buy a £20000 car that depreciates to £10000 in three years, your £10000 equity in the car is tied up and can't be accessed unless you sell the car and don't buy another. Having said that, our second car (currently a Mini Cooper) is always bought cash, then I have the security of still having a decent car should I lose my income.

Sounds like you got yourself a good deal there. I do like the sound of changing my car every 3 years. I know a few people who have gone down the contract hire route rather than buying these days.

I was happy with it and it's a means of car finance that suits me - used it now for the past 13 years - one thing to be aware of though is that you need to be sure you're happy with the 3 year term, one of the downsides is that the penalties for getting out early can be expensive - I only did it once, but because I was having a new car financed by the same firm, they were very flexible over the surrender penalty.