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+--- Thread: PCP - Equity (/Thread-PCP-Equity)
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PCP - Equity - JM40 - 17-05-2016 09:05pm
Ok so i'm nearly there with buying a used (2013) Evoque. I've got a pcp quote and would like to hear from other owners who have come to the end of their pcp deals and IF there was any equity left in the car against the gfv.
I understand pcp's so don't need an explanation. The apr i'm being offered from the dealer is 7.9%. Personal loans as everyone knows are much cheaper (approx 3.4%) but the pcp will keep my monthly payments low. Car is approx 29k and i'm putting 6k down from my part exchange.
Concerns are that there won't be any equity left after the 3 year term. The part i don't like is the interest on the pcp compared to the loan. I'm not interested in leasing as want to part ex my current car.
So ... pcp owners how many had equity in their cars at the end of the term?
Thanks!!
RE: PCP - Equity - mjab - 18-05-2016 09:44am
(17-05-2016 09:05pm)JM40 Wrote: Ok so i'm nearly there with buying a used (2013) Evoque. I've got a pcp quote and would like to hear from other owners who have come to the end of their pcp deals and IF there was any equity left in the car against the gfv.
I understand pcp's so don't need an explanation. The apr i'm being offered from the dealer is 7.9%. Personal loans as everyone knows are much cheaper (approx 3.4%) but the pcp will keep my monthly payments low. Car is approx 29k and i'm putting 6k down from my part exchange.
Concerns are that there won't be any equity left after the 3 year term. The part i don't like is the interest on the pcp compared to the loan. I'm not interested in leasing as want to part ex my current car.
So ... pcp owners how many had equity in their cars at the end of the term?
Thanks!!
I'm in the same position as you. 2 year PCP with a GFV of £14500 in 2 years on a 2013 Pure Tech. Dealer told me it will be worth 18K then but was that retail?
Changed my motorbike last year and got £1000 more than the GFV as a part ex so I'm hopeful it will work out.
See if you can get the APR dropped. I was quoted 9.9% and said no then dealer offered me 6.9% instead.
RE: PCP - Equity - Gjh0702 - 18-05-2016 08:37pm
It's a gamble - I had Evoque and after 2 years changed for a DS - i was 'hurt' with the erosion I incurred after 2 years- Indeed when I bought Evqoue the business manager told me how much I could look forward to having 'Equity' after 2 years- when I went back to that dealer they 'insulted' me with Part X offer .
Without a PCP I couldn't afford to run a 40K+ car - so whilst Personal loan rates can be as low as 3.5% you have to fund the full loan which significantly increases monthly payments.
A personal loan is cheaper- a PCP allows me to 'afford' to have a new car
RE: PCP - Equity - Stadt Panzer - 19-05-2016 07:44am
PCP, GFV?
What?
Can someone please explain, I suspect it's leasing?
RE: PCP - Equity - XFullFatTim - 19-05-2016 11:10am
Personal Contract Plan and Guaranteed Final Value..................... It is a form of leasing that is geared to the private buyer as the monthly payments can be smaller than the loan repayments if you borrow from the bank, can also tie you into buying a new car every 3 or 5 years from that manufacturer or throwing the keys back at the dealer after the contract period or using GFV as the deposit on a new car. Often the dealerships will make your part ex value the same as the GFV leaving you with no equity in the car so you have to borrow more for the next car....................... And they get a juicier commission!
PCP - Equity - Stadt Panzer - 19-05-2016 02:21pm
Aahhhh[emoji6]
RE: PCP - Equity - Good shot - 19-05-2016 05:02pm
(19-05-2016 11:10am)XFullFatTim Wrote: Personal Contract Plan and Guaranteed Final Value..................... It is a form of leasing that is geared to the private buyer as the monthly payments can be smaller than the loan repayments if you borrow from the bank, can also tie you into buying a new car every 3 or 5 years from that manufacturer or throwing the keys back at the dealer after the contract period or using GFV as the deposit on a new car. Often the dealerships will make your part ex value the same as the GFV leaving you with no equity in the car so you have to borrow more for the next car....................... And they get a juicier commission!
Think they make more money from the financing than they do from making cars.
PCP - Equity - bigmac3161 - 19-05-2016 11:39pm
(19-05-2016 05:02pm)Good shot Wrote: Think they make more money from the financing than they do from making cars.
Yep dealers don't make money from selling cars they make money from selling finance
RE: PCP - Equity - PJRComputerSolutions - 21-05-2016 01:05pm
(19-05-2016 11:39pm)bigmac3161 Wrote: Yep dealers don't make money from selling cars they make money from selling finance
2 weeks ago I took Delivery of a 2014 Firenze Red Pure Tech on the Recent 14-Day LR Event, which had a £1K Fininacial Dealer Contribution, if taken with the PCP Finance Option, on the Approved LR Car....
So I put down more than 1/2 in cash & took the rest on PCP on an Interest Rate of 10.9% & Got the £1K Dealer Contribution....
To Cut a long Story short, I have contacted the Finance Arm LR & have got a Settlement Figure from them having made 1 payment, & Obtained Other Finance via a Personnel Loan on 3.3%, & So will payoff the LR Finance with this new Loan, so even with paying a "little" Bit of Interest on the LR Finance, It still saves me nearly £2.2K over 4 Years in Interest alone & Cuts my payments down from £344.04 a month to £305.88 a month....
Also the Car then becomes my Property as the new Loan is not secured on the Asset, so no GFV or Mileage restrictions to worry about....
So LR have made some cash, but not as much as they would've, & I will have saved the extra Interest Payments...
Win-Win for everyone.....
RE: PCP - Equity - Tyrefitter - 21-05-2016 02:19pm
Who did you get the 3.3% with if you don't mind me asking.as I'm going to do same with my next sport,it's 72k & I'm putting 40k deposit down.
Andy.