Do most people finance Cali or ???

[teeboy]

I have updated the spreadsheet with recent PCP/Solution examples. Anyone know what the current HP APR is from VW and what the maximum term is?

 

[Nigel]

I agree with Matt, when i went to buy mine i decided to pay half in cash and took out a loan for the remaining £22000 i got a much better loan rate from Lloyds than the rate VW Dealers were giving.

 

[WelshGas]

I would agree with Nigel. Check out a Bank Personal Loan or Car Loan. They can sometimes be very competitive.
The problem with HP is that you don't own the vehicle until the HP is paid off.
Personally I have always used the Bank.

Another possible method, if you have a mortgage, is to re-mortgage to release some capital. This could be cheaper than any loan or HP as repayments are over an extended period but you can use any saving to make overpayments as and when you can.

 

[larrylamb]

Another possible method, if you have a mortgage, is to re-mortgage to release some capital. This could be cheaper than any loan or HP as repayments are over an extended period but you can use any saving to make overpayments as and when you can.

This is how we funded our Cali after a good deposit, can't grumble at 1.8%apr. No setup fees, no early repayment charges, overpayments welcome and you decide the term to suit the payment you want.

 

[Thomas Powell]

so what has people paid for theres in the past? just wondering as some one mentioned that they have had theres for 3 years and the secondhand price is not far from what they paid for it. This must be the only vehicle on the market that holds its value good

 

[Leemac74]

I was given a quote from VW for used Cali finance 10-12% APR.

I found Lombard finance, flexible and very competitive.

 

[andyinluton]

If you are thinking about buying to hire out, it is worth buying on HP as the interest will be tax deductible. If you remortgage the house to raise the money the taxman won't let you claim mortgage interest as an expense.

 

[Thomas Powell]

when you say tax deductible, won't be able to claim the tax back but can use it against other stuff is that what you are saying?
has any one in the same situation buying on finance and hiring out?

 

[RMAOM&B]

We have just financed ours with a bank loan rather than VW finance as it worked out a lot less, but we are in the fortunate position of having £20,000 to put in. We've wanted one for years and our children are small so we thought now is the time as we have the money at the moment. Can't wait to get it, four month ish wait!

 

[treecity]

One issue is that a specced up Ocean can come in close to £60K. Personal bank loans max out at £25k

 

[andyinluton]

Thomas - yes, any income from rental needs to be declared to the taxman, the interest on the HP and almost all other expenses can be offset against against this & you pay tax on the balance. If you are a higher rate tax payer you are going to be loosing 40% of that rental income!

 

[mikeringrose]

Some lenders are happy to lend individuals over £25K. Lloyds and Arkle Finance to name but two.

 

[TristanSavage]

We did inform the finance company and they did not have a problem, I just think you need to inform them. We currently hire out via several brokers, they charge between 5-10% but this saves us advertising and having a website. We did say in another post that this year has gone so well we are looking to buy another one next year and make it a proper part time business.

Hey guys. Hope all is well. We have been trying to find reliable information about finance and being able to also rent the vehicle out. Would you mind sharing the finance company? Totally understand if not. It's very hard to find good information on this subject. All the best. Tristan & Katie.

 

[Wongo]

One issue is that a specced up Ocean can come in close to £60K. Personal bank loans max out at £25k

Yep mine was a demo but a big spec so it was 62K, it’s £566 a month on PCP, as someone else said you only live once. If you don’t want to own, hire.

 

[s2bear]

Try Lombard finance. They do it at very competitive rates.


Sent from my iPad using Tapatalk

 

[Taff7996]

I financed my new Ocean 204 DSG with my award for disability discrimination and constructive dismissal from my ex-employer

 

[soulstyledevon]

PCP is a mugs game...
You basically pay the depreciation of an asset you don’t own. Then get charged for the privilege on top.
My advice is bank loan. If the cost of new is to far out of your reach. Buy secondhand, keep for two years sell on. You should then have some money in the bank towards the next one.

This PCP nonsense is a ticking time bomb. The only winner is the car dealership.
I recently asked for a cash discount on a secondhand Ford Fiesta for my sister and was told by the salesman, no discount on sticker price unless buying through Ford finance.
We went elsewhere...

 

[frenchie]

2nd the PCP plans, total con based on people with champagne taste and beer money. One of the biggest reasons for the massive price increases these days is HP. It will all fall over at some point.F

 

[westfalia]

people with champagne taste and beer money.

Lol.

 

[Lewis]

We definitely have champagne taste and beer money! Of course PCP isn't the cheapest way to finance a vehicle but it is one of the simplest and I think having a range of finance options available is good for the market and consumers. There are other routes that might better suit individual preferences. I for one like low monthly repayments meaning we can make the most of our Cali right now and we have a plan in place for the balloon. Some prefer mortgage extension to keep the costs low but I don't fancy paying over such a long time nor having a bank question every cappuccino on my bank statement to see if i can afford it.

Also worth acknowledging that PCP has been credited with re-igniting the car industry post-financial crisis which is good for jobs in all of the associated industries.

 

[soulstyledevon]

Also worth acknowledging that PCP has been credited with re-igniting the car industry post-financial crisis which is good for jobs in all of the associated industries.

PCP is the next big financial scandal.
The bubble is forecast to burst.
https://www.theguardian.com/money/2017/sep/19/car-finance-debt-dealers-consumer-credit

 

[BRC]

You can use pcp wisely, paying over three years with lowest balloon possible enables the manufacturer contribution to be used bringing the interest rate right down, overall interest is low, balloon only a couple of K. Monthly payments high though! Salesman did ask if I wanted to pay over 10 years, er no thanks! Some people obviously do though.

 

[WelshGas]

As long as you go into it with eyes open, PCP is no different to Interest only Mortgages. As long as you have a plan to pay the Balloon Payment if you plan on keeping it longterm. Likewise Interest Only Mortgages.
However, with very low interest rates on savings then you could save more using savings rather than loans.

 

[soulstyledevon]

The dealers keep the balloon quite high. Remember it’s a pre-agreed value. So when you reach the end of the 3/4 year term. You need to find the final payment to buy the vehicle.
Let’s say the pre-agreed balloon was £12k. But in reality the car is only worth £10.5k.
The dealer then sells you another PCP deal to return the vehicle and start over. They absorb the mis-value into the new scheme, because they already factored that into the original PCP numbers.
Hence why 80% of people who PCP, renew at contract end and don’t buy the vehicle.
It’s a scam. Truly awful system IMO.
Bloody expensive way to own a vehicle.

 

[NZCol]

When I bought a vehicle recently I asked the dealer how they made the most money-we then agreed that I signed onto finance, left it for 6 days then executed the buy out clause in cash and ended the agreement. Dealer got their cut and I didn’t get charged any interest!. He was quite happy and had given me a massive discount anyway.