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Can't find a decent PCP deal where the interest rate makes it 'worth' it. Still looking though.
When are you going fully electric?
- Thread starter Ricochet J
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Can't find a decent PCP deal where the interest rate makes it 'worth' it. Still looking though.
Soldato
Hmm, anyone in here have a Polestar 2?
Very nearly decided on one but would be great to get real world opinion - particularly if the Performance Pack is worth having as a Top Gear review said not to bother. Can't say I'm particularly bothered with Brembos and Ohlins.
Very nearly decided on one but would be great to get real world opinion - particularly if the Performance Pack is worth having as a Top Gear review said not to bother. Can't say I'm particularly bothered with Brembos and Ohlins.
The interest rate is only relevant if you want to keep the car. If you just plan on selling it or trading it in at the end then all that matters is how much you’ll actually pay compared to a lease.
There are several P2 owners on here, including myself.
I don't think the Performance Pack is worth the £5k. The wheels looks amazing but that is the only plus. The suspension requires manual adjustment (which is tricky) and the Brembo brakes will hardly ever be used due to brake re-gen doing 99% of the stopping.
Use that money to upgrade to the 20" wheels and spec the Pilot and/or Plus pack.
VW are meant to be considering a roadster id3. Bentley is doing one as well.
But to be honest most arent expected until near 2030.
I've got a Polestar with the Perf Pack LOVE it. I think it totally changes the looks (for the better). That said, I only have it because it didn't cost me any more to have it. If it was my own money, I would say it's not worth the £5k.
The Leather (whilst expensive) is much better value IMO. The leather is really lovely and adds a bit of class.
Soldato
Thanks chaps.
I've had a look on the Polestar site and there a couple of cars pre-spec'd with two of the three packs included - not the performance pack. I have two old JDM cars for the thrills so not really needed for my every day car.
If I can get the payments paid by my company (not vat registered) and reduces my corporation tax bill then I'm very tempted by the P2. I have a 330 touring so space is useful for us - 2 adults, 2 kids under 10. Bikes on the top etc
I've had a look on the Polestar site and there a couple of cars pre-spec'd with two of the three packs included - not the performance pack. I have two old JDM cars for the thrills so not really needed for my every day car.
If I can get the payments paid by my company (not vat registered) and reduces my corporation tax bill then I'm very tempted by the P2. I have a 330 touring so space is useful for us - 2 adults, 2 kids under 10. Bikes on the top etc
The performance pack (ironically) doesn't add anything to the performance, anyway.Thanks chaps.
I've had a look on the Polestar site and there a couple of cars pre-spec'd with two of the three packs included - not the performance pack. I have two old JDM cars for the thrills so not really needed for my every day car.
If I can get the payments paid by my company (not vat registered) and reduces my corporation tax bill then I'm very tempted by the P2. I have a 330 touring so space is useful for us - 2 adults, 2 kids under 10. Bikes on the top etc
If you're used to the touring, you'll be disappointed with the space in the P*, but with a roof rack etc you can probably make it work.
Soldato
not quite true. In a pcp you have equity in the car as you’re paying capital and interest.
Often at the end you have equity to use as your deposit for the next car. Or you can sell it for more than the outstanding buy value etc
I would always look at pcp vs lease as what you pay over the contract length, but if you’re buying right most times you will have equity on top of it.
The interest rate is a big part of how much you pay, though. So it's hugely relevant.
Only in so far as its a factor in how much a month your payments are but doesnt matter when comparing between types.
For example, if its still cheaper per month to buy your car on pcp lets say than the lease cost you have been quoted, are you bothered if the interest rate is 2.9% or 29%?
Fact is its still cheaper or it isnt.
When someone says they care about the interest rate, they clearly mean they care about the cost the interest rate creates.
To say the interest rate isn't important is a bit misleading. It's a major factor in how much something costs. If you can secure a lower rate, clearly you'll pay less.
To answer your question, yes - you'd care that the interest rate is 29% because you know that it isn't a competitive rate and therefore you're paying more than you could be.
Associate
Thing I'm seeing with PCPs is that unless the interest rate is very low the monthly costs can't really compete with lease deals anyway - especially when you factor in either a deposit/up front payment for either.
Suspect the Tesla is just going to be too expensive for me.
Suspect the Tesla is just going to be too expensive for me.
Soldato
How long were you planning to keep the car? Have you completed a TCO calculation based off various residual values at the end of your desired time and number of miles?
Associate
Probably 3 or 4 years, 10k miles a year (though my mileage can very wildly with my job, at the moment its very little but about to increase in the next few months, so trying my best to work out a sensible average).
Yes you should absolutely be bothered. If the 'cheaper' deal you have is 29% interest then there is scope to get it even cheaper (even if the 29% option is less cost).
Basically what you're saying is that it is okay to get ripped off, if the deal you go for is cheaper than another one.
I thought PCP is, just, naturally more expensive as the company is incorporating additional cost to offset the equity they (psychologically) leave you with;
if you over-estimate your mileage then you can build additional equity with a pcp; however pcp ability to buy at the end and not pay for minor niggles - scuffed wheels etc is atrractive.
expensive, that seems the issue ? the bigger rims could detract from the ride, but the adjustable dampers could improve driving pleasure. (quasi performance)
That’s the point I was trying to make. When comparing a pcp to a lease all that matter is how much it actually costs you to own over the period of ownership which includes any money you get back by selling the car at the end of the PCP.
The interest rate on a PCP is going to be around 4.5-5%, yup it’s expensive compared to a loan or mortgage but dealer finance always is more expensive, it’s nothing new and you’ll see those rates on normal run of the mill cars as well.
Leasing a Mode 3 LR with no options and 12k miles is going to cost north of £580/month with a healthy down payment (or roughly £32k over the 4 year term).
The question becomes, can you PCP the same car for the same period for less. I think you could given how strong the residuals are on them, even factoring in a drop in the market. The PCP carries more risk as the value of the car at the end isn’t certain.
The interest rate on a PCP is going to be around 4.5-5%, yup it’s expensive compared to a loan or mortgage but dealer finance always is more expensive, it’s nothing new and you’ll see those rates on normal run of the mill cars as well.
Leasing a Mode 3 LR with no options and 12k miles is going to cost north of £580/month with a healthy down payment (or roughly £32k over the 4 year term).
The question becomes, can you PCP the same car for the same period for less. I think you could given how strong the residuals are on them, even factoring in a drop in the market. The PCP carries more risk as the value of the car at the end isn’t certain.
VT is also a nice benefit of PCP, in case you get in negative equity.
On the P*, yeah I think it's just too expensive. Don't get me wrong, I LOVE mine and think the Leather/PP really adds to it, but if it was my money I wouldn't spend the extra £9k on them.
Yes you should absolutely be bothered. If the 'cheaper' deal you have is 29% interest then there is scope to get it even cheaper (even if the 29% option is less cost).
Basically what you're saying is that it is okay to get ripped off, if the deal you go for is cheaper than another one.
No I am not and the 29% was flippant. What I was saying is that somebody was quite prepared to discount buying a car because interest rate was perceived to be high at lets say 8% but would then quite happily lease a car but if you added up the total cost of ownership over the three years and the lease car cost more. If buying/PCP the car even at 8% works out the cheapest then thats all that matters.
Hence people shouldnt get hung up about what interest rate something is. Yes shop around to get the best interest rate you can but if that deal with the high interest rate is still the cheapest over the ownership of the car then that is what matters.
For example, a few years ago I was buying a new car and managed to get £18k off the list price from a dealer but his interest rate was higher than everybody else.
Nobody could get within £6k of him on purchase cost though so even with the higher intertest rate, I paid less for the car over three years. thats all that mattered. It was irrelevant that I paid him £2k more in interest than anybody else.