New for Old... Deal

[SidStrom]

After two years of my current California, time for a new one. My PCP does not end until August next year, but the 6.1 list price is a bit rich for my taste. With the dealer offering £9000 off a new Ocean, including awning, with £1000 of accessories free servicing. Exactly same Van with DSG, except in Red and this time with a Heated front Screen. No rear camera this time, but to be honest I never really used the camera, preferring mirrors and sensors instead, Even better lower monthly payments!!! Good deal???

 

[2haw]

No more money in?

Sounds good, go for it!

 

[2into1]

I'd love to see the full (FULL) details of the two deals.
Whenever I read posts like this I feel I'm only getting half (the good half) of the information. All the downside has been omitted.
I'm not saying that's the case here, just my suspicious 'sounds too good to be true' mind.

 

[Amarillo]

I'd love to see the full (FULL) details of the two deals.
Whenever I read posts like this I feel I'm only getting half (the good half) of the information. All the downside has been omitted.
I'm not saying that's the case here, just my suspicious 'sounds too good to be true' mind.

I agree. PCPs are complex financial agreements with multiple components. I found it tough enough to work out the benefits to my dealer when we recently bought a new Skoda as a second car. In the end I found the cheapest way to buy the Skoda was to cancel the PCP almost immediately after purchase keeping the £1500 deposit contribution and £500 of other discounts, and the benefit to the VW Group for offering this contribution and discounts was a hook to try to get me perpetually in debt to them for new cars.

 

[HB19]

I agree. PCPs are complex financial agreements with multiple components. I found it tough enough to work out the benefits to my dealer when we recently bought a new Skoda as a second car. In the end I found the cheapest way to buy the Skoda was to cancel the PCP almost immediately after purchase keeping the £1500 deposit contribution and £500 of other discounts, and the benefit to the VW Group for offering this contribution and discounts was a hook to try to get me perpetually in debt to them for new cars.

Well said. I did exactly this with my new Cali. You can happily cancel the PCP within the 14 day cooling off period (or any time after, although there will be interest to pay), pocket the VW contribution and take a cheaper loan from an alternative lender.

It might not work for everyone, but it’s worth doing some calculations.

 

[Amarillo]

Well said. I did exactly this with my new Cali. You can happily cancel the PCP within the 14 day cooling off period (or any time after, although there will be interest to pay), pocket the VW contribution and take a cheaper loan from an alternative lender.

It might not work for everyone, but it’s worth doing some calculations.

I think that there is a proposed bill to go through parliament which will make it unlawful to offer better terms on credit than a cash purchase.

It seems that too many people are caught in a seeming endless cycle of debt over car purchases.

 

[pjm-84]

PCP is an interesting concept which I don't agree with but accept its pretty much the norm these days.

To me, it allows people to buy vehicles which they may not necessarily be able to afford, thus creating a wider "false" market and allowing prices to increase. This is noticeable via the depreciation within the vehicle. However people are happy to pay so..... hey ho.....

One of the best things we managed to do was to avoid the borrow and pay arrangement for our cars since 2008. The downside of this is that you do reflect somewhat on your purchases.

 

[B J G]

Instances of 'terrific deal' PCP's that I've seen are where a lump sum deposit is paid and then monthly payments with either a lump sum option to complete the purchase or return the vehicle and walk away with nothing.
Another deposit required to start a new PCP which probably wasn't set aside so no new car, back to old banger car for a solution.

Another instance is when the agreed total mileage has been reached but the vehicle still has over 6 months until end of PCP. driver can't afford to return the vehicle early or pay the mileage excess rate. Result vehicle parked up for duration of PCP term. Alternative as is coming to light is where the driver gets the vehicle 'clocked' to hide the excess mileage. Future Buyer ripped off.

Yet another was when a PCP vehicle was written off in an accident and the Insurance payment covered the current market value. The Driver then found that he still had to pay the PCP as he was liable for the showroom cost of the vehicle. Back to a banger until PCP paid off.

All of those instances are genuine and have happened within my social circle.

 

[SidStrom]

Well I think I should make a few corrections here. PCP has nothing to do with the deal. I got £9000 off the list with £1000 of free accessories and 4 free services. I got that deal by buying and stock ‘end of line’ 6.0. That price was the cash price. To be honest, if I had waited until next year, a 6.1 in the spec I want would have been £70k. That deal was regardless of PCP. I had a fair amount of equity in my old Cali has I had the maximum deposit. So obviously I have to pay interest on the finance, but I don’t have 35k lying around.car finance is car finance. With the discount plus current interest rate, my PCP has dropped by £70 pcm. My motivation was to secure the joy of a Cali for the next 3 years without paying what seems like an excessive price for a 6.1. Maybe in two years the time will be right for a 6.1.

 

[SidStrom]

Instances of 'terrific deal' PCP's that I've seen are where a lump sum deposit is paid and then monthly payments with either a lump sum option to complete the purchase or return the vehicle and walk away with nothing.
Another deposit required to start a new PCP which probably wasn't set aside so no new car, back to old banger car for a solution.

Another instance is when the agreed total mileage has been reached but the vehicle still has over 6 months until end of PCP. driver can't afford to return the vehicle early or pay the mileage excess rate. Result vehicle parked up for duration of PCP term. Alternative as is coming to light is where the driver gets the vehicle 'clocked' to hide the excess mileage. Future Buyer ripped off.

Yet another was when a PCP vehicle was written off in an accident and the Insurance payment covered the current market value. The Driver then found that he still had to pay the PCP as he was liable for the showroom cost of the vehicle. Back to a banger until PCP paid off.

All of those instances are genuine and have happened within my social circle.

I had an allowance of 12k per year, after two years I had done 32k. I owed 27k, I got a trade in of 40k. The Cali works well on PCP because of the residual value. PCP works OK if you either buy outright at the end or tradein with the same manufacturer.

 

[SidStrom]

BTW I have never seen so much nonsense spouted without having the facts, which only I know. My previous Cali cost 54k, I put a deposit down of 18k, max allowed on PCP. After three years I would have paid £23k to keep the van. So at the time a 3 year Cali obviously are worth more than 23K. The interest rate was 4.5%. Finance is finance. Last time I ever post something like this. My point was 9k of list price because it was the last of the 6.0.

 

[SidStrom]

I think that there is a proposed bill to go through parliament which will make it unlawful to offer better terms on credit than a cash purchase.

It seems that too many people are caught in a seeming endless cycle of debt over car purchases.

The price was same for cash or finance. Obviously I pay interest for the finance.

 

[pjm-84]

The question mark is how a deal is so good. Selling cars is a business and as a business you need to make money. Otherwise you go out of business. The dealer will make money on yours and money on the new one.

If it works for you then that's fine.

 

[SidStrom]

The question mark is how a deal is so good. Selling cars is a business and as a business you need to make money. Otherwise you go out of business. The dealer will make money on yours and money on the new one.

If it works for you then that's fine.

Well that is fairly obvious, they run a business. Presumably on a new 6.1 and with finance and VW are coining it in. Manufactures always discount outgoing models. The 9k discount means they cannot easily shift their 6.0 models in Winter.

 

[pjm-84]

Agreed or maybe the 9k discount is the true (current) market price.

I actually think, on paper, the 6.1 is good value for money. I thought the T6 was expensive as my equivalent T5 spec was coming out at 63 to 64k in the T6 (just over 10k more than I paid for mine in 2015).

 

[SidStrom]

The price was same for cash or finance. Obviously I pay interest for the finance.

Agreed or maybe the 9k discount is the true (current) market price.

I actually think, on paper, the 6.1 is good value for money. I thought the T6 was expensive as my equivalent T5 spec was coming out at 63 to 64k in the T6 (just over 10k more than I paid for mine in 2015).

I agree. Like you say ‘value’ is perception. I felt that that 55k I paid for 6.0 in 17 was pretty much my limit for me. Basically 70k for a DSG 6.1 does not feel like value to me. I know my local dealer pretty well (one the parent companies owners used to live next door). Anyway the dealer tells me that sales are pretty slow on the 6.1. They have had two orders only since release. He also reports another price rise coming in Nov. I can see you now get more spec for your money with lots more as standard. But 70k is serious luxury car money. However I love the Cali so decided to secure at least another 3 years with a 6.0 and see how the 6.1 pans out. If sales are slow there might be discounts later. Maybe 7.0 is not far away.

 

[SidStrom]

Maybe skip 6.1 and wait for T7.0

 

[pjm-84]

I thought the 6.1 was around £65k in the spec I was looking for. Hence I thought it GVFM. Will have to look again.

T7 looks a dog (sorry dogs)

 

[MarkVw2017]

After two years of my current California, time for a new one. My PCP does not end until August next year, but the 6.1 list price is a bit rich for my taste. With the dealer offering £9000 off a new Ocean, including awning, with £1000 of accessories free servicing. Exactly same Van with DSG, except in Red and this time with a Heated front Screen. No rear camera this time, but to be honest I never really used the camera, preferring mirrors and sensors instead, Even better lower monthly payments!!! Good deal???

What about the rip off tax VED element?