Does anyone get their meg (or any other car) through a PCP deal? On the surface they seem great but at the end of the term just seems like the dealer is quids in and your left either a big bill or with no car . Are they worth it Or am I missing something ?
You usually get your deposit back to put towards a new car at the end of the term. The dealer always comes out better though imo as they then have a car and you on a never ending pcp cycle
my very first megane 250 cup was pcp 1k deposit 220 /month (included options) for 24 months. worked out at 6k for the whole deal. the man maths worked out and it was a great deal imo.
Now that sounds good for 2 years ownership. Renault manc quoted me my R26 trade in (crap quote as I would have lost around £2k some admin fees at around £150 then 280 pm for 4 yrs for a 265. Then at the end I'd have a ballon payment of abou£8k at at first I thought it was great but when I went away and calculated how much I'd pay and lose on trade in I thought forget it. Do do the manufacturers even maintain the car for this cost ?
so always in a dealers pocket. if you decide to give the car back and not get another car do you get any cash from them??
They usually buy the car back from you in this instance however it will depend on the gmfv and what the cars worth at the end of the term. Sometimes it works out better to pay off the gmfv and sell privately aswell.
These sorts of discussions always miss part of the reason for doing down the pcp route, and as a result generally come to the consensus that they are a rip off. I got the Trophy on 4+ pcp deal. This includes 4 years servicing, 4 years warranty & 4 years breakdown cover - how much do you personally value these at in terms of £/month? The car was brand new, so no worn components, 4 brand new tyres, brand new brakes all round, exhaust, suspension - everything obviously. On my old R26 I was part way through replacing these and more, and some were near needing doing again. This was costing me big time. If I'd have carried on for 4 years I would have paid the same or more than the Trophy is costing, factoring in more expensive insurance, fuel & tax. Yes at the end of the term I would own the car but at that point it would be ten years old and worth very little. Big fan of pcp here - but it doesn't work for everybody.
Yep - fixed costs, plus as you say, the fact you have a brand spanking new car with zero wear on components....low interest rates for the last few years have helped this method as well... I would certainly consider it when looking at either buying a heavily depreciated 5 year car or a brand new substitute
This is my dilemma , my R26 seems to be costing a similar amount To having a new car. It's useful to find out from someone who has it tho so thanks for the input. I've only ever heard it from a dealer and got the impression it helps them only. The gmfv on a 265 was quoted at around £8k which I thought was light given it would be under 5 years with less than 40k on the clock so I don't quite grasp that. Am I right in thinking that if you don't want a new car at the end and gave it back they give me 8k cash and then would sell it themselves for say around 12k (based on current 5 year old 250 values) then they would keep the difference e.g 5k or would they give you no cash and just keep the whole 12k
In your scenario they wouldn't give you anything back - you hand the car back and walk away. They then do whatever they want with the car. If at the end you think the car is worth more than the gfv, you can buy it outright and sell it for a profit, or keep it yourself (knowing the full history obviously), or trade it in with another dealer and use the difference between the trade in price and gfv as deposit. The dealers all understand that finance is outstanding still and will help with the admin. If at the end you think the car is worth less than the gfv, best bet is simply let them have it back. I've got 2 new Renaults through (probably) the same Manchester dealer you went to. It wasn't worth trading in my old car, so your right not to go down that path. I got £2k more privately for my R26 than they would give me. PM if you want and I'll try and help you with the numbers if you like.
If your Forces, Civil Service, Police, NHS or the like try some of the tax free places. Being in the UK you obviously pay the tax but are still eligible for the large discounts. Griffintaxfree.com DDSCars.co.uk Motorsourcegroup.com DDS card holders and bluelight card holders can use them. I got mine through DDS as a civil servant last month. Worked out cheaper than PCP for me. RS265, arctic white, cup pack, leather recaro's and spare wheel for £19700 brand new. Put down £8700 deposit (including trade in) and bank loaned 11k at £246 per month over 4 years. I believe if you have a relative who's eligible they can order one for you.
PCP seems good value in the middle but the start and end of the term seem like you just shell out massively and its money in the dealers pocket only?? Would I lose the initial deposit I put down on the car. I would have thought if you put a £5k deposit on a £20k car you technically own 25% of it and would be entitled to get something back at the end of a term just like you would if you sold your house. Although there may be depreciation and interest to account for with the car. Sorry to keep bashing on about it I just want to see if I properly understand it and if its suitable for me. I understand there is the "new" factor and its a warranted car etc but I must be missing something else otherwise I cant see why so many people would have cars through PCP
Remember it's a £20k+ car. If you want to own it outright, for example over 3 years you would be paying £600+ per month and interest on top. The dealer gives you a minimum future value, let's say it's £8k. So you pay a deposit then lower monthly payments, say a £3k deposit and £250 per month for 3 years, which adds up to £12k. You can give the car back or pay the gmfv and you've ended up paying £20k. Now giving the car back sounds like you've thrown a load of money away for nothing, but look at it this way: If you paid £20k cash today for a brand new car, then sold it in 3 years time for £8k, you've lost £12k which is exactly the same as you would have done if you'd PCP'd the car in the first place. My wife has just ordered a Captur from Renault on PCP. It was £17,400, the dealer knocked off £2k to match an Internet price we'd seen. She pays £550 deposit and £240 per month, which comes to just over £9k, at the end of that she can then buy the car for a gmfv of £7k. So she'd end up paying £16k including interest, and for the whole time the car is warrantied, breakdown etc. She wouldn't have paid any less if she'd walked into the showroom with cash. The 'downside' to any new car purchase or loan is that you take the hit on depreciation - but you also get the warranty etc to balance it out, plus a brand new car. I've always bought my cars, usually at 3 or 4 years old but I'll be seriously looking at something brand new when I sell the R26 in 2 years time.
Remember it's a £20k+ car. If you want to own it outright, for example over 3 years you would be paying £600+ per month and interest on top. The dealer gives you a minimum future value, let's say it's £8k. So you pay a deposit then lower monthly payments, say a £3k deposit and £250 per month for 3 years, which adds up to £12k. You can give the car back or pay the gmfv and you've ended up paying £20k. (Obviously there is going to be some interest but it's generally not a lot on PCP deals) Now giving the car back sounds like you've thrown a load of money away for nothing, but look at it this way: If you paid £20k cash today for a brand new car, then sold it in 3 years time for £8k, you've lost £12k which is exactly the same as you would have done if you'd PCP'd the car in the first place. My wife has just ordered a Captur from Renault on PCP. It was £17,400, the dealer knocked off £2k to match an Internet price we'd seen. She pays £550 deposit and £240 per month, which comes to just over £9k, at the end of that she can then buy the car for a gmfv of £7k. So she'd end up paying £16k including interest, and for the whole time the car is warrantied, breakdown etc. She wouldn't have paid any less if she'd walked into the showroom with cash. The 'downside' to any new car purchase or loan is that you take the hit on depreciation - but you also get the warranty etc to balance it out, plus a brand new car. I've always bought my cars, usually at 3 or 4 years old but I'll be seriously looking at something brand new when I sell the R26 in 2 years time.
Good points to all above. After thinking more I think I get it now. If I'm honest while I could sell my car for say around 6k reality is I've spent that in maintainance and parts so if I equate everything out I'm probably no better or worse off. If i I get a new car through pcp it's warranted so should cover most items and I may get some value on top provided I don't go over the mileage. Suppose as people suggest I could just get a loan from the bank at the end and then it's mine and can sell private. Would be good in the case of the mk2 focus RS. Either way it's a new car, I think I will look for some good deals and have a word with a few dealers, altho I'll steer clear of bmw and other cars that depreciate like stones ! Thanks for for all your input. It's been a great help
you wouldnt pay list price.. you would get a discount. There is no discount on a Pcp deal (usually) its simply list plus interest.
My wife just got £2k knocked off a Captur Dynamique S bought on PCP. The Renault dealer in Milton Keynes matched the internet deal we showed them. Threw in free delivery and spare wheel too.
Put simply every payment you make is a depreciation payment and usually works out the same as if you paid out right for it, 3 years later you lost the same money, just makes it easy for people to have a brand new car on the drive with piece of mind
My mum bought a brand new capture dymanique s 6 months ago , she paid £16,300 out right, but she will keep it for a long time I think so she's not bothered what it will be worth in say 3 years, it's only a problem if you've not got the money for a new one when the time comes.
Just my 2p's worth - you won't be able to PCP a car that old. HP would be the option there Also, depreciation is a necessary evil of owning a car unless you stumble across a future gem, but who has the hindsight? I wouldn't worry about depreciation as the vast majority of GFV's given in PCP deals leave you with equity come trade in
If you want it just go for it, only here once, if we worried about losing a few quid you would go through your life not having anything
£3300 knocked off the Trophy on a pcp deal and £2000 knocked off the wifes Clio dci on pcp - it does happen. Because we had bought the Clio previously, Renault sent us a £500 voucher for use against another new car, so this was knocked off the deposit I paid too. The deal where you won't get discount is when they are offering 0% finance, as Renault were a while back. I looked at this and the numbers came out very similar to pcp, but with less options at the end of the term.
I don't think they are mate. I think it's a 265 only atm, and like you say the Cup S once it's launched.
