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Well not really, as the monthly cost is a product of the deposit and the GFV. If you had no deposit thats a great deal. If you had a £20k deposit it's a terrible deal.
PCP How much?
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Well not really, as the monthly cost is a product of the deposit and the GFV. If you had no deposit thats a great deal. If you had a £20k deposit it's a terrible deal.
Like Fox said - monthly payment information is pointless without knowing other costs like a deposit or initial payment.
I could get a Ferrari 458 for £299 a month..... with an initial payment of £175k.
I pay a TCO (Monthly payments plus Deposit) that amounts to £261 a month over 2 years (24 x £199 + £1490 = £6266) on a PCH for an Octavia vRS Diesel with the wrong (cheapest) gearbox. I consider that to be acceptable for the car its got me and given my personal circumstances.
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Acceptable amounts is purely subjective as many have said. If you earn £200k/year, a £1k/month PCP is nothing, but if you earn £15k/year, a £300/month PCP is quite a bit.
Don't let dealerships trick you into thinking a deal is better than it is though, split the deposit value up across the term of the PCP into monthly amounts and add that to the PCP price. That's essentially what you're paying! (e.g. don't let £300/month with 5k deposit win you over if you weren't happy with £400/month with no deposit)
For reference, I'm currently looking at buying a new XF (quite highly speced) with a retail price of ~£42k (but because of a work discount, it's ~£33k for me) at ~£400/month with a 3k deposit.
Don't let dealerships trick you into thinking a deal is better than it is though, split the deposit value up across the term of the PCP into monthly amounts and add that to the PCP price. That's essentially what you're paying! (e.g. don't let £300/month with 5k deposit win you over if you weren't happy with £400/month with no deposit)
For reference, I'm currently looking at buying a new XF (quite highly speced) with a retail price of ~£42k (but because of a work discount, it's ~£33k for me) at ~£400/month with a 3k deposit.
My asset finance / hire purchase figures compared to PCP
I am paying £499.99 a month for a RS3 for 60 months
11k deposit and then £16k residual
That's 5% flat rate and the car was 52k
Total repayable is around 57k and the car should be worth around 30k at the end of the term.
I plan on paying about 2k extra a year which will use to lower the repayments
I am paying £499.99 a month for a RS3 for 60 months
11k deposit and then £16k residual
That's 5% flat rate and the car was 52k
Total repayable is around 57k and the car should be worth around 30k at the end of the term.
I plan on paying about 2k extra a year which will use to lower the repayments
I don't understand? Why is there a residual value in a HP agreement?
That can't really be a high spec XF surely? I was in looking at one the other day, with virtually zero extra spec on it, and it was still £52k or something. Granted it was an S with the SC engine, but still, poverty spec otherwise (apart from metallic).
The salesman was a bit of a muppet though. We were comparing monthly figures (based on same deposit and term as I took with my 530d) and it was significantly more expensive. Obviously because of the massive discount from BMW. But the salesman did say "with respect though, your BMW didn't have a list price of £52k". To which I had to reply "with respect, it did have a list price of £52k, that's just not what I paid for it."
I didn't think the XF was worth £10k more than the 5 series personally (i.e. the discount from BMW). So I struggle to see how they manage to sell any of them really, unless they are ALL company cars. That was also the reason why I didn't buy one when I was looking at the 5 series though.
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Something odd here, there is no final payment ( well there is but its about a quid) on HP. It sounds like yours is a PCP not HP.
Also what on earth is going on with that rate, 5% flat is almost 10% APR!?
That is a PCP, although on what planet a 5 year old RS3 will be worth 30k is a bit of a mystery
4 year old RS3's with average mileage are about £25k, so £30k is a little optimistic.
16k gfv
500 x 60 = 30k
11k deposit
= how he got a cost of 57k for a 52k car?
So he's paying about 8-9% more to "finance" it?
Depending how many miles he does I still can't see it being worth 30k after 5 years?
I'd imagine at least 20k, so 4k "cash back".
41k - 4k = 37k to rent an RS3 for 5 years? Jesus.
Im probably wrong though.
500 x 60 = 30k
11k deposit
= how he got a cost of 57k for a 52k car?
So he's paying about 8-9% more to "finance" it?
Depending how many miles he does I still can't see it being worth 30k after 5 years?
I'd imagine at least 20k, so 4k "cash back".
41k - 4k = 37k to rent an RS3 for 5 years? Jesus.
Im probably wrong though.
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Unfortunately I only get the discount for the 2L engine, not the 3L, but the 3L does add quite a lot extra on top! I'm looking at a 2L Portfolio (top trim level) with a couple more extras.
I have noticed BMW seem to always sell their cars with massive discounts on them, but I've never liked BMWs so never considered them myself.
16k gfv
500 x 60 = 30k
11k deposit
= how he got a cost of 57k for a 52k car?
So he's paying about 8-9% more to "finance" it?
Depending how many miles he does I still can't see it being worth 30k after 5 years?
I'd imagine at least 20k, so 4k "cash back".
41k - 4k = 37k to rent an RS3 for 5 years? Jesus.
Im probably wrong though.
Nope thats right. TCO of £616 per month. You could actually rent one for the same price (6+23, £428+VAT = ~£620) but get a new one every 2 years!
It was £2k cash deposit and part exchanged my old 56 plate A3 for it
If I remember correctly he has £10k+ worth of options added, so the base lease version would be poverty spec in comparison.
Fair enough, although nearly 10% APR is a horrible rate
Apologies It's 5% Apr
When I say flat I mean as in its not variable
The final payment is a balloon to lower the monthly repayments due to all the options it has which asset finance companies don't like.
I could get of got a deal with a lower APR over 4 years but obviously the repayments were higher and the balloon lower.
It's the amount of options that screwed me over really. Yes I could lease one at a poverty spec level for less.
The value after 5 years is partly dependant on how many they make I guess and the potential for a coupe RS3.
When I say flat I mean as in its not variable
The final payment is a balloon to lower the monthly repayments due to all the options it has which asset finance companies don't like.
I could get of got a deal with a lower APR over 4 years but obviously the repayments were higher and the balloon lower.
It's the amount of options that screwed me over really. Yes I could lease one at a poverty spec level for less.
The value after 5 years is partly dependant on how many they make I guess and the potential for a coupe RS3.
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