Good value PCP deals / best GFV performers?

[mikehhhhhhh]

I've never financed a car before, so I'm a little green on this front.

I've been talking to a finance provider about some used cars I'm interested in and nearly all of the GFVs are absolutely savage.

Which leaves a £30k RS3 as the cheapest, despite being one of the most expensive cars I had a quote for. The thing is, I only really checked the RS3 because I suspected it would have a solid GFV.

Other cars I looked at was an M4, S4, 340i Touring, Macan S - and it's bigger cars that I'm really interested in.

Are there any other fast family cars with strong GFVs that are worth looking at?

 

[Dominic-Toretto]

Yes, the rs3 is a solid performer when it comes to residual value.

Would you consider a 911 a family car?

 

[mikehhhhhhh]

Would you consider a 911 a family car?

As much as I wish a 911 could do the job, I think the rear seats are on the small side for my growing 11 year old.

I wouldn't rule it out if the value proposition was right, but I suspect they are a fair way out of budget.

 

[Pentland]

Why do you care about the GFV?
Cost per month of ownership is more important and the consideration of if want to own the at the end of the period.

 

[mikehhhhhhh]

Why do you care about the GFV?
Cost per month of ownership is more important and the consideration of if want to own the at the end of the period.

Because the higher the GFV, the lower the monthly payments at a given price point.

I’m unlikely to keep the car at the end of the term so I’m mostly looking for good value. Other running costs will be generally comparable for this class of car.

 

[paradigm]

Have you looked at PCP deals for new cars? I’ve never found a used PCP to look anything other than poor value.

 

[Pentland]

Because the higher the GFV, the lower the monthly payments at a given price point.

I’m unlikely to keep the car at the end of the term so I’m mostly looking for good value. Other running costs will be generally comparable for this class of car.

I’m well aware of how PCPs work. Back to the point, if you are not keeping the car, you’d never, unless you are desperate, just hand it back. You’d almost always sell it or trade it to all intents, it amounts to the same). Therefore the GFV is irrelevant to you. The monthly cost however, is.
compare it to a lease to decide if it’s a deal, and to other similar vehicles to decide if it’s value.

But note Paradigm’s post above, second hand PCPs are not value.

 

[mikehhhhhhh]

I’m well aware of how PCPs work. Back to the point, if you are not keeping the car, you’d never, unless you are desperate, just hand it back. You’d almost always sell it or trade it to all intents, it amounts to the same). Therefore the GFV is irrelevant to you. The monthly cost however, is.
compare it to a lease to decide if it’s a deal, and to other similar vehicles to decide if it’s value.

But note Paradigm’s post above, second hand PCPs are not value.

Given that the interest rate varies very little and the term and deposit will be the same whatever car I choose, what else would impact the monthly payments besides the GFV?

The question was, what other cars enjoy strong residuals and thus low monthly payments

I appreciate the tip about new cars, it’s another avenue I’m exploring.

 

[dlockers]

According to this website, the Lamborghini Urus:
https://www.autoexpress.co.uk/best-cars/107122/car-depreciation-the-cars-that-hold-their-value-best

 

[paradigm]

I appreciate the tip about new cars, it’s another avenue I’m exploring.

I’d be VERY surprised if you couldn’t get into a new car for similar monthlies. Typically new car discounts plus manufacturer contributions plus the better interest rates will usually bring the price of a new car somewhere around the cost of an 18-24 month old one. This was certainly the case when I was looking at buying my S3 back in late 2016. Granted I ended up going for a traditional HP agreement, but the figures for the new car PCP were beating out those for the used stock on the same forecourt.

In all honesty though, I’m glad to be out of the PCP cycle, it’s nice to own all of our cars outright, even if that did mean going 3 year old this time around.

 

[mikehhhhhhh]

I’d be VERY surprised if you couldn’t get into a new car for similar monthlies. Typically new car discounts plus manufacturer contributions plus the better interest rates will usually bring the price of a new car somewhere around the cost of an 18-24 month old one. This was certainly the case when I was looking at buying my S3 back in late 2016. Granted I ended up going for a traditional HP agreement, but the figures for the new car PCP were beating out those for the used stock on the same forecourt.

In all honesty though, I’m glad to be out of the PCP cycle, it’s nice to own all of our cars outright, even if that did mean going 3 year old this time around.

With new car supply issues, it doesn't seem to be the case for the cars I've looked at. There doesn't seem to be much if any discount to be had, although I'm trying to follow up on a suggestion of someone picking up a new RS4 for £55k on Pistonheads.

I get your sentiment on being in a PCP cycle. I was always against using finance before, opting to buy cars outright to keep my monthly outgoings low and risk-free but I think I can achieve more with the cash than the cost of finance now.

 

[HangTime]

Given that the interest rate varies very little and the term and deposit will be the same whatever car I choose, what else would impact the monthly payments besides the GFV?

The price you pay to begin with. A car might have high GFV but also high price, compared to a car with lower GFV but even lower price, perhaps due to manufacturer incentives.
Or to simplify, you could have two cars with a list price of £40k, Car A has a GFV of £20k and Car B has a GFV of £21k. However, Car A has a £2k contribution. So Car B actually costs more despite having a higher GFV.

I think you are possibly going about it the wrong way - if you care about monthly payments, why not look at monthly payments, instead of trying to interpolate this from cars with a high GFV?

 

[Pentland]

I think you are possibly going about it the wrong way - if you care about monthly payments, why not look at monthly payments, instead of trying to interpolate this from cars with a high GFV?

As per post #7. GFV only relevant as a settlement figure if keeping the vehicle.

 

[mikehhhhhhh]

The price you pay to begin with. A car might have high GFV but also high price, compared to a car with lower GFV but even lower price, perhaps due to manufacturer incentives.
Or to simplify, you could have two cars with a list price of £40k, Car A has a GFV of £20k and Car B has a GFV of £21k. However, Car A has a £2k contribution. So Car B actually costs more despite having a higher GFV.

I think you are possibly going about it the wrong way - if you care about monthly payments, why not look at monthly payments, instead of trying to interpolate this from cars with a high GFV?

I don't think I am, because I'm not interested in the lowest monthly price.

What I'm looking for is value or bang for buck. That, when looking at used cars comes pretty much exclusively from a strong GFV.

For example;
A £25k Golf R estate comes in around £360/m
A £30k RS3 comes in around £370/m

Why? Because the RS3 has a £16k GFV while the Golf is only £9k. I'm sure they'll level themselves out when it comes to selling, but that's not my main concern.

We don't need to get too caught up on what GFV does or doesn't mean but I know that low depreciation cars with a higher GFV, give me the best car for the least amount monthly. I don't actually care about the GFV.

 

[dlockers]

The price you pay to begin with. A car might have high GFV but also high price, compared to a car with lower GFV but even lower price, perhaps due to manufacturer incentives.
Or to simplify, you could have two cars with a list price of £40k, Car A has a GFV of £20k and Car B has a GFV of £21k. However, Car A has a £2k contribution. So Car B actually costs more despite having a higher GFV.

I think you are possibly going about it the wrong way - if you care about monthly payments, why not look at monthly payments, instead of trying to interpolate this from cars with a high GFV?

This is true but OP said he is looking at used cars. I doubt there is finance contribution for used cars.

 

[HangTime]

There can be, my wife's car was bought used from a franchised dealer and had finance contribution from the manufacturer. But I agree it's more common on new cars.

I don't think I am, because I'm not interested in the lowest monthly price.

What I'm looking for is value or bang for buck. That, when looking at used cars comes pretty much exclusively from a strong GFV.

For example;
A £25k Golf R estate comes in around £360/m
A £30k RS3 comes in around £370/m

Why? Because the RS3 has a £16k GFV while the Golf is only £9k. I'm sure they'll level themselves out when it comes to selling, but that's not my main concern.

We don't need to get too caught up on what GFV does or doesn't mean but I know that low depreciation cars with a higher GFV, give me the best car for the least amount monthly. I don't actually care about the GFV.

Whilst it might be a good rule of thumb to find cars that are potentially good value, I still think it's an abstraction not strictly required. I mean, just because a car has a high GFV relative to list price doesn't necessarily mean that for you it was an amazing car. There might be another car that gave you more utility over your three years of ownership than that car. Bang for buck is based on how good the car is versus how much it cost you, not whether it happens to have depreciated a lot or not. There might be a £30k car with a £17k GFV but that doesn't necessarily make it better for you than the RS3, if for you personally the RS3 is a better use of £30k than this other car.

If the market was perfect, with every car priced accurately for every customer, and monthly payments solely driven by the difference between this accurate price and the GFV, then I would agree it could be a proxy for finding the best options, because you'd pay less for the same utility value.

 

[mikehhhhhhh]

There can be, my wife's car was bought used from a franchised dealer and had finance contribution from the manufacturer. But I agree it's more common on new cars.


Whilst it might be a good rule of thumb to find cars that are potentially good value, I still think it's an abstraction not strictly required. I mean, just because a car has a high GFV relative to list price doesn't necessarily mean that for you it was an amazing car. There might be another car that gave you more utility over your three years of ownership than that car. Bang for buck is based on how good the car is versus how much it cost you, not whether it happens to have depreciated a lot or not. There might be a £30k car with a £17k GFV but that doesn't necessarily make it better for you than the RS3, if for you personally the RS3 is a better use of £30k than this other car.

If the market was perfect, with every car priced accurately for every customer, and monthly payments solely driven by the difference between this accurate price and the GFV, then I would agree it could be a proxy for finding the best options, because you'd pay less for the same utility value.

This is a little pedantic. I'm only looking for suggestions for strong GFV cars to consider, not someone to pick the car for me

I can weigh up the pros and cons myself, it's the candidates I need help finding as all the cars I thought might have done well have actually been terrible.

Take a 340i or an S4 for example, both close to £30k, both have a long record of comparable models that have had enjoyed strong residuals. £450-485/m! While an RS3 doesn't quite have the space I'd like, it'd likely be more fun and a far more attractive proposition for £100 less. That's 2 extra races I could do each year

 

[Pentland]

We don't need to get too caught up on what GFV does or doesn't mean but I know that low depreciation cars with a higher GFV, give me the best car for the least amount monthly. I don't actually care about the GFV.

That must be the strangest way to choose a car ever. The best cars are subjective.
If the residual /GFV is unimportant because you are, for the sake of debate, handing the car back, the you can only judge value on the monthlies.
What’s the best car you can get for £x per month. Only you can answer that. Is car A better than car B? Again only you hold that answer.
Doing it your way and you could end up with a Kia Picanto because depreciation is low.

I can tell you GFV seems to have little relation to depreciation. My wife had a Kia Sportage, GFV at 3 years was £10500. When it came to that time the car was valued at £18000. It’s up for sale today, 9 years old, at £10k! Kia want you to have profit in the car when the term end to draw you to putting it as a deposit on a new one.
Conversely, BMW have high GFVs because they want you to have a car you can’t afford lol. They just want new car sales.

 

[mikehhhhhhh]

That must be the strangest way to choose a car ever. The best cars are subjective.
If the residual /GFV is unimportant because you are, for the sake of debate, handing the car back, the you can only judge value on the monthlies.
What’s the best car you can get for £x per month. Only you can answer that. Is car A better than car B? Again only you hold that answer.
Doing it your way and you could end up with a Kia Picanto because depreciation is low.

I can tell you GFV seems to have little relation to depreciation. My wife had a Kia Sportage, GFV at 3 years was £10500. When it came to that time the car was valued at £18000. It’s up for sale today, 9 years old, at £10k! Kia want you to have profit in the car when the term end to draw you to putting it as a deposit on a new one.
Conversely, BMW have high GFVs because they want you to have a car you can’t afford lol. They just want new car sales.

A Kia Picanto isn't a fast family car, though.

This is the most bizarre discussion I've ever had. All I wanted was some suggestions of fast family cars that have good residuals / GFVs. I've got the rest of the decision-making process covered, this certainly isn't my first car purchasing rodeo

I think the commenters on this thread may have confused my request for a "spec me" post

 

[Pentland]

The Kia was just an example.
Anyway, GFV to MRRP ratio does not equate to depreciation or value. Either you want a car with a good residual - but you don’t seem to know why, or you want a high GFV to MRRP but again, your reasons are confusing.