Finance

[Californication69]

What’s the best finance company to take a plan out with?
VWFS looks like a good choice for a 8 year HP plan.
Any others that would be suitable.
I’m feeling HP as want to own the Buzz at the end.
PCP is the same 6.8% APR as HP so makes sense paying off the capital for the first 5 years rather than paying PCP.
Thoughts?
I’ll have £15k deposit. The rest finance over 8 years.
On 10k p.a. Mileage.

 

[WelshGas]

What’s the best finance company to take a plan out with?
VWFS looks like a good choice for a 8 year HP plan.
Any others that would be suitable.
I’m feeling HP as want to own the Buzz at the end.
PCP is the same 6.8% APR as HP so makes sense paying off the capital for the first 5 years rather than paying PCP.
Thoughts?
I’ll have £15k deposit. The rest finance over 8 years.
On 10k p.a. Mileage.

Can you start those plans now, when the vehicle is not available? Are those rates guaranteed in 12-24 months when you are in possession?

 

[Californication69]

Can you start those plans now, when the vehicle is not available? Are those rates guaranteed in 12-24 months when you are in possession?

I cannot start the plans until I’m in physical possession of the Buzz.
No guarantee on rates.
Will have to see in May / August next year

 

[WelshGas]

I cannot start the plans until I’m in physical possession of the Buzz.
No guarantee on rates.
Will have to see in May / August next year

Personal bank loan that you could start now?

 

[Californication69]

Personal bank loan that you could start now?

Would be nice, but cannot double down on paying for two vehicles at present.

 

[Californication69]

Just wondered what other companies are out there that do an 8 year HP loan ?

 

[couplands]

Personal bank loan that you could start now?

If you were to do that, why not put the same amount of money into a savings account. Make interest rather than pay interest.

You’d then have a bigger deposit if/when the Buzz arrives.

 

[sidepod]

So approx cost of vehicle, £57k? £15k deposit, balance over 8 years?
That's a ton if interest? You must really want one!
Is it not likely the vehicle will be obsolete in 8 years the way technology is moving and worth 4/5ths of ***k all?

 

[Brightonbelle]

I know you didn’t ask the question, but I’d also think about the 10,000 p a mileage. I don’t know where you’re planing to go. We’ve had our Cali Ocean for a month and have already clocked up 1,700 miles just in this country! That’s with just using the Cali for trips!
I’m used to pcp and lease deals (currently have one on my Mercedes-Benz- our daily vehicle). Sometimes a bit extra on mileage doesn’t cost that much. Definitely insure it for a higher mileage. Good luck.

 

[Van Diesel VW]

Black horse provide a lot of the finance for independent motor home dealers, rate was 8%, but may have gone up since last bank rate rises.

 

[andyinluton]

I’ll have £15k deposit. The rest finance over 8 years.
On 10k p.a. Mileage.

If you are using HP the annual mileage makes no difference.
The only reason to take mileage into consideration on HP is to make sure you are not being silly. At 10k your van will only have done 80 by the end of the agreement.
Doing 8 years HP fixing the interest rate at the start is less of a risk than doing a 5 year PCP and having to try and finance the ballon in 5 years time.

A Cali is one of the few vehicles where it is not insane to do long term finance due to the decent residuals.

 

[2into1]

Some posts have missed this is in relation to a Buzz. I must admit, I share some of @sidepod 's concerns..... While it's the newest thing in the world right now, I'm not sure how it will be in 8 year's time.... Thinking betamax video recorders and all that. I know you don't have to keep it for the full term, but thought I'd share my worry.

 

[soulstyledevon]

I did the numbers on the Buzz and VW finance makes no sense at all. I think interest payments alone, were about £13.5k…

I’ve decided to use some savings, probably about 15k and personal loan the rest over 4 years. Best rate I could find was Barclays. So, 5 year term and it’s paid, no balloons or final payments etc. Hopefully at that point it’s still worth £35k+ and I will sell and buy the latest model if it meets expectations.

 

[Californication69]

I did the numbers on the Buzz and VW finance makes no sense at all. I think interest payments alone, were about £13.5k…

I’ve decided to use some savings, probably about 15k and personal loan the rest over 4 years. Best rate I could find was Barclays. So, 5 year term and it’s paid, no balloons or final payments etc. Hopefully at that point it’s still worth £35k+ and I will sell and buy the latest model if it meets expectations.

Very true, but my lump sum isn’t available for another 4 years, then hopefully if the US company does well, I can pay off in 4 years.
But could also do as you say in 4 / 5 years if the electric / hydrogen is a goer and a looker.
Who knows. Nobody knows how it’s going to go.
But also like the lock in of a low ish rate.
As in 9 months it might start going northwards and we’ll have 8 years of yearly increase interest rates.

 

[andyinluton]

Some posts have missed this is in relation to a Buzz. I must admit, I share some of

Sorry I had missed that with it being in the "buying a california" section of a California forum & all that.

Id3 which are the closest available thing to compare with have approx 8% battery degradation per year. On that basis I would be looking for a PCP with a Guaranteed minimum residual value. Then after 4 years if its failing or worth nothing like the GFV give it back.

 

[Californication69]

Sorry, I mean a California Ocean 4M
Not an ID buzz.
I call an Ocean a Buzz which is confusing now there is an actual Buzz !

 

[Californication69]

Sorry I had missed that with it being in the "buying a california" section of a California forum & all that.

Id3 which are the closest available thing to compare with have approx 8% battery degradation per year. On that basis I would be looking for a PCP with a Guaranteed minimum residual value. Then after 4 years if its failing or worth nothing like the GFV give it back.

That’s why I’m not feeling Battery’s for my usage.
Yes for the wife as she does 5k a year which is suitable for a Battery only car
Around 20 miles a day and always home at night.

 

[andyinluton]

Sorry, I mean a California Ocean 4M
Not an ID buzz.
I call an Ocean a Buzz which is confusing now there is an actual Buzz !

I am now totally lost.

Ocean = good residual risk will last as long as fuel is available. Tried & tested bought with the heart not just the head

ID Buzz = new technology, battery life not known & is a white goods people carrier, look at the residuals on a VW Sharon for an idea as to how it may fare in the future. Bought because you need something to get the kids to school & pretend you are not really driving the new equivalent of a Zafira.

 

[Californication69]

I am now totally lost.

Ocean = good residual risk will last as long as fuel is available. Tried & tested bought with the heart not just the head

ID Buzz = new technology, battery life not known & is a white goods people carrier, look at the residuals on a VW Sharon for an idea as to how it may fare in the future. Bought because you need something to get the kids to school & pretend you are not really driving the new equivalent of a Zafira.

Lol.
I can’t remember what I asked now…

 

[soulstyledevon]

I would base future residual values on an ID3 or Tiguan. Which is around 47%. Decent enough for a family car.
Then factor in future price increases and demand vs availability.
I would expect a decent return on a Buzz at year 3.

I wouldn’t worry about how the technology moves on. We’re at the bench mark now.
I wouldn’t expect radical change from the car manufacturers. It will be drip fed incremental changes. A bit like apple and the IPhone, small changes often, a bit to entice those willing to upgrade and still plenty left over for those wanting something with a smaller outlay.

There’s not much on the market that interests me at the moment, unless you default to a Tesla.
The only other new everyday vehicle I would be interested in, is a new Defender. But when you start playing with that configurator, the Buzz seems like a bargain…!!!

 

[Geoff York]

What’s the best finance company to take a plan out with?
VWFS looks like a good choice for a 8 year HP plan.
Any others that would be suitable.
I’m feeling HP as want to own the Buzz at the end.
PCP is the same 6.8% APR as HP so makes sense paying off the capital for the first 5 years rather than paying PCP.
Thoughts?
I’ll have £15k deposit. The rest finance over 8 years.
On 10k p.a. Mileage.

I paid cash for the Calli but taking out pcp for Buzz
65% residuals guaranteed minimum after 3 years plus3 free annual services and free mot at end of you want it
No road tax no fossil fuel codtd
No repair bills
Cost about£350 per month
I will pay the pcp up after a few months with a bank loan ata much lower rate than vw finance
Check out tsb. Sainsbury Tesco for cheaper money

 

[Californication69]

Tesco is 6.6% for a 35k loan over 5 years.
So VWFS very close in apr.
I’ll have it over 5 years pcp.
Then pay the 37k GFV off with my shares.
Or if I’m feeling electric, go with the not announced Cali Buzz. But wish they’d go hydrogen.
If I knew Electric was only produced with wind / tidal / nuclear then that’s good.
But with China opening 200 new coal mines I don’t think it really matters.
And with aviation taking off (excuse the pun) again I cba with sitting at a service station twice to drive to my destination.
Unless eurotunnel starts charging cars on the train.

 

[andyinluton]

Tesco is 6.6% for a 35k loan over 5 years.
So VWFS very close in apr.
I’ll have it over 5 years pcp.
Then pay the 37k GFV off with my shares.

Why not pay in the £37k from the shares at the start and save 5 years of interest on that amount?

 

[soulstyledevon]

Try Barclays at 4.3%

 

[2into1]

but taking out pcp for Buzz
65% residuals guaranteed minimum after 3 years

That may turn out to be a great deal if technology moves on quickly. I think I'd sit tight on the pcp for a bit to have that guaranteed residual.