PCP n00b

All your ordering information here!
User avatar
goron59
Posts: 5788
Joined: Sun Aug 09, 2015 10:15 am

Post by goron59 »

Is this good/bad?

36 Monthly payments -- £632.67
Customer Deposit -- £15,000.00
Representative APR -- 4.9% APR
On the road price -- £61,800.00
Amount of credit -- £46,800.00
Interest charges -- £5,673.62
Total amount payable -- £67,473.62
Optional Final Payment -- £29,697.50
Duration of agreement -- 37 months
Fixed interest rate -- 2.52% per annum
Mileage per annum -- 7000
Excess mileage charge -- 14.9p per mile

No idea about PCP. I just look at the £5,673.62 interest and :shock:
Used to have 2016 Macan Turbo PHCKCL70
Previously a 2014 Macan Turbo.
Now a 2021 Tesla Model 3 LR

User avatar
Wing Commander
Posts: 19874
Joined: Tue Oct 06, 2015 5:43 pm
Location: Wiltshire

Post by Wing Commander »

4.9% APR is not bad, but there are better deals out there.

Clearly, if one has the cash in the bank, it would make sense to use that, rather than borrow the bulk of the purchase price. :geek:
Simon

Sold: 2016 Rhodium Silver Macan 2.0
Sold: 2013 Platinum Silver 911 (991.1) C2
Sold: 2017 Carmine Red Panamera 4
Mine: 991.2 Carrera T Racing Yellow 06/04/2018
User avatar
Paul
Posts: 8603
Joined: Fri Sep 05, 2014 6:19 pm
Location: Bristol
Contact:

Post by Paul »

Standards stuff for a PCP....(and not bad rates at 2.53 flat) most people just look at £xx per month and ignore / blank the rest.
PCP protects " your" residual but 5 yr finance can be cheaper as you're paying interest on a reducing balance instead of the full residual month in month out.
One comment; £15 K in up front, but will the p/x in 3 yrs be £15K more than the £30K residual? If not, you'll need another £15K (+?) in 3 yrs time...if you're OK with that all well and good - if not pay a bit more monthly to reduce the initial deposit.
1st Sapphire SD
2nd Sapphire GTS
viewtopic.php?f=23&t=4296
Current 992 S Cab
viewtopic.php?f=23&t=9845&p=196465#p196465
User avatar
goron59
Posts: 5788
Joined: Sun Aug 09, 2015 10:15 am

Post by goron59 »

Indeed WingCo, borrowing money from myself is always going to be cheaper, but I thought there would be a a guaranteed minimum value thingy in these calculations (for predictable costs), but I don't see that here?

@Paul, if I set deposit to £3000 the payments become about £1k and interest paid goes up about £k too.

All looks a bit scary to me.
Used to have 2016 Macan Turbo PHCKCL70
Previously a 2014 Macan Turbo.
Now a 2021 Tesla Model 3 LR
User avatar
Wing Commander
Posts: 19874
Joined: Tue Oct 06, 2015 5:43 pm
Location: Wiltshire

Post by Wing Commander »

I guess that the optional final payment is the predictable future cost.

Pay that to buy the car outright, or choose to walk away.
Simon

Sold: 2016 Rhodium Silver Macan 2.0
Sold: 2013 Platinum Silver 911 (991.1) C2
Sold: 2017 Carmine Red Panamera 4
Mine: 991.2 Carrera T Racing Yellow 06/04/2018
User avatar
goron59
Posts: 5788
Joined: Sun Aug 09, 2015 10:15 am

Post by goron59 »

Nods. Thx
Used to have 2016 Macan Turbo PHCKCL70
Previously a 2014 Macan Turbo.
Now a 2021 Tesla Model 3 LR
User avatar
goron59
Posts: 5788
Joined: Sun Aug 09, 2015 10:15 am

Post by goron59 »

Oh, by the way, this was a Volvo PCP offer. Should I go the hybrid route, I don't think I want to fully own the car up front, given the uncertainty of things right now.
Used to have 2016 Macan Turbo PHCKCL70
Previously a 2014 Macan Turbo.
Now a 2021 Tesla Model 3 LR
User avatar
Wing Commander
Posts: 19874
Joined: Tue Oct 06, 2015 5:43 pm
Location: Wiltshire

Post by Wing Commander »

Certainly a lower APR than Porsche offer! 👍
Simon

Sold: 2016 Rhodium Silver Macan 2.0
Sold: 2013 Platinum Silver 911 (991.1) C2
Sold: 2017 Carmine Red Panamera 4
Mine: 991.2 Carrera T Racing Yellow 06/04/2018
Kasfranks99
Posts: 2522
Joined: Thu Jul 28, 2016 8:38 pm

Post by Kasfranks99 »

depending on your monthly payment restrictions you can save thousands on the overall cost buy asking them to increase the monthly payments and reduce ththe final payment down as much as possible.
When I was looking at an Audi of similar value there was a finance incentive but I wanted to pay cash. Basically the final payment was less that £2k for the car and interest over the whole term was very low and I would of just paid the finance off in a few months anyway.
PCP is great if your situation does not change and you don't want to own the car outright and want low monthly payments. Overall it can cost you especially if you do more miles.
A friend of mine has to pay thousands just to hand the car back as she has far exceeded th agreed millage.
It's good that you have looked at the overall figure which unfortunately some have not and just see a monthly figure which is what the sales guy generally presents you with to do the deal.
At the end of the 3 years you hand car back and find a new deposit etc or you pay the balloon payment and car is yours.
If like me you are a low millage / keep car in great condition then PCP is very very expensive over the long term.
GTS 😀
User avatar
goron59
Posts: 5788
Joined: Sun Aug 09, 2015 10:15 am

Post by goron59 »

Thanks Kasfranks99.
If I wanted to keep a car for a long time(>4 years), I'd just pay cash. Most of my money is tied up in a small offset mortgage (I have almost much offsetting as I have debt) at around 1.8% so taking cash away costs me more in interest, but nothing compared to what these PCP deals charge.

I'm thinking PCP might be useful to mitigate against the risk that uk.gov (and public opinion) might pivot again and make my car worth a lot less than I thought it might be.

So get a car for 24-30 months, then another, until dust settles/I retire.

Fixed outgoings, but probably much higher overall cost.

Maybe not.

If I were to get something emotionless like a Volvo or Audi or a diesel, I wouldn't have the urge to actually own it :-)
Used to have 2016 Macan Turbo PHCKCL70
Previously a 2014 Macan Turbo.
Now a 2021 Tesla Model 3 LR
Post Reply