Has anyone gone down the 10 year finance route?

[Richard Hurst]

I'm still trying to work a good deal on a 4 year PCP deal with a couple of dealers with all the spec I would like, maybe I'm being too unrealistic or maybe I need to stand my ground and get them to budge a bit.

Anyway one of them offered a 10 year Hire Purchase agreement as a solution to keep costs down but I wondered if this is a dangerous route to go down. If I was to change the van say after 5 years would I owe a lot more than its worth or would it not depreciate much in 5 years if mileage was low and in excellent condition.

Just a bit unsure it's a wise path to take

 

[Blueeyedboy]

Personal choice but if you want my view buy something that you can afford and not stretch to 10 years just to have all the bells and whistles.
There are plenty of good quality used and demos most owners really do llook after them more so than a car.
Too many people are jumping on this idea you need top spec to enjoy the experience. Rubbish!
I can sleep at night knowing I own it.
All the best with whatever you decide to do.

 

[johnyboy]

Personally I'd think 3.3% on £30k with first direct for 7 years would be a better option (assuming you have some deposit)

And I'd go second hand, still in warranty

 

[Richard Hurst]

Personal choice but if you want my view buy something that you can afford and not stretch to 10 years just to have all the bells and whistles.
There are plenty of good quality used and demos most owners really do llook after them more so than a car.
Too many people are jumping on this idea you need top spec to enjoy the experience. Rubbish!
I can sleep at night knowing I own it.
All the best with whatever you decide to do.

Good advice, I think i need to look at a used. I don't want to be over stretching myself

 

[Blueeyedboy]

You can buy a very good quality warranty from VW themselves. Just check for good service history and you get a feel speaking to the owners within the first few minutes if they are genuine.
Buying from dealers is in most people’s view the safest but they have to make profit.

 

[James Powell]

I have just bought mine on a 10 year hp as buying partly as the monthly payments are less and as you say if you sell after 4 or 5 years should still be able to sell more than the residual so pay less overall than pcp. although if you sell more than the balloon you can then get the extra you paid back then. just prefer not to pay it in the first place. Also if buying though business it works out a lot better than PCP because of Co2 means you can only claim 85% minus personal use element of rentals whereas Hp you have 8% write down plus interest you can claim back minus personal use. when you come to sell anything you get the rest of the value of the vehicle.

 

[andyinluton]

I'm still trying to work a good deal on a 4 year PCP deal with a couple of dealers with all the spec I would like, maybe I'm being too unrealistic or maybe I need to stand my ground and get them to budge a bit.

Anyway one of them offered a 10 year Hire Purchase agreement as a solution to keep costs down but I wondered if this is a dangerous route to go down. If I was to change the van say after 5 years would I owe a lot more than its worth or would it not depreciate much in 5 years if mileage was low and in excellent condition.

Just a bit unsure it's a wise path to take

A 10 year Hp may still be a better bet than a 4 year PCP. With the 4 year PCP in 4 years time you are either going to have to find the balance to pay £30+k ? or sell the van to settle the finance. You may struggle to find lenders willing to lend you that amount on a 4 year old vehicle that you already have possession of.

Do your sums carefully between new & used cheaper finance is often available on brand new rather than used vans, the sticker price may be lower but add in increased interest charges & the total amount paid may be less with a new van.

If you do go for 10 years, try & get gap insurance to cover any shortfall should the van be written off in the first few years - what you owe will be the purchase price plus a lot of interest less an early settlement discount -
ie borrow £50k against a £60k van today at 5% over 10 years means you owe £62,500 tomorrow.

Historically California list prices have risen more each year than the interest charges of a loan to pay for one.

Ie 5 years ago you could buy a new SE for £35,000 on a ten year deal 5% interest. total to pay £43,500.00. now 5 years later you would still owe £21,750.00 but the van would be worth probably 50%+ more than that.
So actually not a really bad deal.
So if 10 year deal is the only way of getting it - go for it.

 

[johnyboy]

With PCP you're really paying the depreciation which seems madness (yes I did do that on a land rover but how I kick myself!)

 

[Blueeyedboy]

If you could have a SE 5 years ago for 35k we all would have bought one. More like 44-46k for a standard SE.
Most people don’t keep vehicles that long these days. Live within your means maybe tough times ahead for all.

 

[andygenders]

10 year route for us, got a cost +£1 offer as well on a pre built \beach

 

[Elmo3]

If you are not planning on keeping it for the full agreement term, whatever that might be, you are better off with a personal loan or a balanced payments facility. You’ll always get shafted by early settlement charges otherwise (as well as a higher interest rate than a decent personal loan).

PCP’s don’t really work on a Cali because they are always worth more than the GFV, so VWFS are taking zero residual risk whilst charging you an interest rate premium for the privilege. Highly profitable for them.

The other factor to remember is the very strong private sale market for the Cali. With ‘normal’ cars of this value, most people want / need finance so there are very few private sales, meaning you generally have to accept dealer trade in values when you want to change. This is not the case with a Cali.

 

[soulstyledevon]

I would avoid PCP on a California.
From my experience of trying to sell my California Beach through the dealer network over the last few weeks. They take your pants down on valuation.
I’ve sold privately and sold for £8k more than most dealers were offering.
I probably could have got another £2k but I was after a quick sale so was happy to sell at a reduced price to get someone to jump on it.

I imagine the dealers valuation through PCP will be nasty.

Go secondhand and have a few £££ stored with in the war chest

 

[larrylamb]

If you could have a SE 5 years ago for 35k we all would have bought one. More like 44-46k for a standard SE.
Most people don’t keep vehicles that long these days. Live within your means maybe tough times ahead for all.

Yes ordered mine late 2014 and starting price for an SE was £45.5k ish from memory. I thought we might sell or upgrade after 3/4 years but with the large price increases for basically the same vehicle I think ours is now a keeper.

 

[JohnnyP]

Yes ordered mine late 2014 and starting price for an SE was £45.5k ish from memory. I thought we might sell or upgrade after 3/4 years but with the large price increases for basically the same vehicle I think ours is now a keeper.

I have just priced a new ocean based on exactly the same spec as mine with the same discount I got and the price is £10k higher than 2.5yrs ago when I ordered mine.

No wonder the depreciation on the Cali is so low, price increases keep used vehicles value buoyant

 

[Richard Hurst]

What is the current road tax on an ocean?

 

[RetroRed5]

What is the current road tax on an ocean?

Depends on the spec; year 1 ranges from £1,240 and £1,760 and years 2 through 6 incur the £40k list price surcharge of £310 per year on top of the standard rate of £140, so based on current rates it is £450 per year for years 2 through 6.

 

[Richard Hurst]

Do they normally include it in the price when purchasing a new vehicle?

 

[RetroRed5]

When you get a quote from your dealer it will usually be the OTR price which includes the VED for year 1; although VW don't foot the bill, you do.

 

[Richard Hurst]

When you get a quote from your dealer it will usually be the OTR price which includes the VED for year 1; although VW don't foot the bill, you do.

OK as long as I know it's being built into the pricing he is quoting me then that is fine.

 

[RetroRed5]

OK as long as I know it's being built into the pricing he is quoting me then that is fine.

Yes but be sure to double check the quote detail they send you to make sure that it is in fact the OTR price that you have been given.

 

[rippers]

I used the 10year finance three times now on different Cali's not regretted it at all. Its enabled me to get into a vehicle that I couldn't normally afford and it fit into my monthly budget. I've put next to nothing in each time and walked with equity on every van I've sold too!
This said I wouldn't recommend it on any other vehicle that didn't have the high residuals the California has.

 

[MarkVw2017]

I just signed up to a 10 years HP yesterdsy and did my research so much on this so heres why thought process;

Pcp, higher payments but thought what about if money is tight one month, thing is with 10 year hp, monthly premiums are much lower and if you have the cash you can overpay whenever to reduce the term of monthly payments.

I didnt want to remorgage house to get a better rate of loan. Wanted to keep car loan and house seperare

If you came across £50k and paid it all over after 3 months (maybe u win lottery), you only get charged one month's interst and £10 admin fee so not that bad (interest is not front loaded unlike some loans so be VERY wary of them.)

Californias are so good at keeping their value, i plan to keep mine for the full ten years. Its going to be family vehicle, holiday machine and my works vehicle. With proper care and maintenance, it should last for along time. I see 2008 California and they look like new!!!

£50k is alot of money, but as i read somehwhere, its not just a car, but a member of the family!!

Just make sure you can afford the payments, tax at £40 pcm, fuel, servicing, insurance et as it all adds up. After 5 years tax goes down to £140 so will be slightly more desirable when its in that bracket.

And dont worry too much, your always be able to selll the Californias for good money, they are sooo popular

Good luck with whatever option you choose. Im sooo excited!!

 

[Richard Hurst]

I just signed up to a 10 years HP yesterdsy and did my research so much on this so heres why thought process;

Pcp, higher payments but thought what about if money is tight one month, thing is with 10 year hp, monthly premiums are much lower and if you have the cash you can overpay whenever to reduce the term of monthly payments.

I didnt want to remorgage house to get a better rate of loan. Wanted to keep car loan and house seperare

If you came across £50k and paid it all over after 3 months (maybe u win lottery), you only get charged one month's interst and £10 admin fee so not that bad (interest is not front loaded unlike some loans so be VERY wary of them.)

Californias are so good at keeping their value, i plan to keep mine for the full ten years. Its going to be family vehicle, holiday machine and my works vehicle. With proper care and maintenance, it should last for along time. I see 2008 California and they look like new!!!

£50k is alot of money, but as i read somehwhere, its not just a car, but a member of the family!!

Just make sure you can afford the payments, tax at £40 pcm, fuel, servicing, insurance et as it all adds up. After 5 years tax goes down to £140 so will be slightly more desirable when its in that bracket.

And dont worry too much, your always be able to selll the Californias for good money, they are sooo popular

Good luck with whatever option you choose. Im sooo excited!!

I’ve gone and done it also now so I’m very excited. Yes your right it’s a lot of money but it’s only £45 a month more than I pay on my current car. Ok I had to put it a £10K deposit but I’m happy

 

[MarkVw2017]

I’ve gone and done it also now so I’m very excited. Yes your right it’s a lot of money but it’s only £45 a month more than I pay on my current car. Ok I had to put it a £10K deposit but I’m happy

Im very excited for you as well! Enjoy your adnveture mobile!!!

 

[paradise city]

I just signed up to a 10 years HP yesterdsy and did my research so much on this so heres why thought process;

Pcp, higher payments but thought what about if money is tight one month, thing is with 10 year hp, monthly premiums are much lower and if you have the cash you can overpay whenever to reduce the term of monthly payments.

I didnt want to remorgage house to get a better rate of loan. Wanted to keep car loan and house seperare

If you came across £50k and paid it all over after 3 months (maybe u win lottery), you only get charged one month's interst and £10 admin fee so not that bad (interest is not front loaded unlike some loans so be VERY wary of them.)

Californias are so good at keeping their value, i plan to keep mine for the full ten years. Its going to be family vehicle, holiday machine and my works vehicle. With proper care and maintenance, it should last for along time. I see 2008 California and they look like new!!!

£50k is alot of money, but as i read somehwhere, its not just a car, but a member of the family!!

Just make sure you can afford the payments, tax at £40 pcm, fuel, servicing, insurance et as it all adds up. After 5 years tax goes down to £140 so will be slightly more desirable when its in that bracket.

And dont worry too much, your always be able to selll the Californias for good money, they are sooo popular

Good luck with whatever option you choose. Im sooo excited!!

I'm thinking of going down this route also. Roughly how much are your payments on the 10 year scheme?

(Feel free to tell me to mind my own business if you think that question is inappropriate!)