What affects PCP residual values?

[steve_ford]

I have been playing with numerous configurations and annoying my dealer by requesting multiple VW PCP finance quotes. It seems that absolutely no difference is made to the residual value of the vehicle through adding any factory extras. Is this everyone's experience?

 

[Moakesy]

Not sure about the Cali, but having recently ordered a new car, aside from metallic paint (must have) the only other thing that impacted residual price was annual mileage. They hate high mileage users, which is a bit mad considering most engines will easily do 100k+.

Adding loads of options made little if any difference. In the end we chose metallic paint and the technology pack (digital dash) for our car and that was it.

 

[Digger]

I have been playing with numerous configurations and annoying my dealer by requesting multiple VW PCP finance quotes. It seems that absolutely no difference is made to the residual value of the vehicle through adding any factory extras. Is this everyone's experience?

Correct. No difference. All that matters is milage.

 

[Elmo3]

Out of interest (excuse the pun), what sort of rates and RV's are VWFS offering? Unless the rates are very low / subsidised, I would imagine a personal loan would be more cost effective if you want to finance, with the added benefit of not having to settle if you sell or part ex.

 

[2haw]

I understand that DSG does make a difference to the GFV.

 

[daveyboydanger]

I understand that DSG does make a difference to the GFV.

Yep. It does mean a higher future value meaning that it doesn't add much to your monthly payment to add dsg.

 

[CampervanTime]

Ditto the 204 engine too. There is about a grand or so better residual so it doesnt mean you pay the full 3k extra for it on PCP.

Current PCP rates 4.8% APR so not that bad.

As an example, I am looking at a 204 DSG with about 5k of options, current quote is around 550/month, 10k miles per annum, 48 months, 13.5k down as deposit. Residual value on the contract of 25.8k. Price for purchase after discount is circa 58.1k

We fully expect to buy it at the end of the pcp.

 

[Elmo3]

Ditto the 204 engine too. There is about a grand or so better residual so it doesnt mean you pay the full 3k extra for it on PCP.

Current PCP rates 4.8% APR so not that bad.

As an example, I am looking at a 204 DSG with about 5k of options, current quote is around 550/month, 10k miles per annum, 48 months, 13.5k down as deposit. Residual value on the contract of 25.8k. Price for purchase after discount is circa 58.1k

We fully expect to buy it at the end of the pcp.

Interesting. If you intend to pay off the RV and keep the vehicle (or even if you don't), you'd be better off looking at a fully amortised loan at around 3%, even over a longer period.

 

[CampervanTime]

Yes conscious of that, but this way it's secured on the vehicle. We could mortgage borrowing to cover it at around 2% flat, but we're quite comfortable with the PCP route. It's easy, hassle free and the vehicle will always be in equity with that kind of deposit going in to it at the start.

Lots of different ways to finance, it's all about just picking one that suits each taste.

 

[Elmo3]

Yes conscious of that, but this way it's secured on the vehicle. We could mortgage borrowing to cover it at around 2% flat, but we're quite comfortable with the PCP route. It's easy, hassle free and the vehicle will always be in equity with that kind of deposit going in to it at the start.

Lots of different ways to finance, it's all about just picking one that suits each taste.

Indeed. Horses for courses!

 

[CampervanTime]

It all needs paying back somehow!!!

 

[soulstyledevon]

Yes conscious of that, but this way it's secured on the vehicle. We could mortgage borrowing to cover it at around 2% flat, but we're quite comfortable with the PCP route. It's easy, hassle free and the vehicle will always be in equity with that kind of deposit going in to it at the start.

Lots of different ways to finance, it's all about just picking one that suits each taste.

Not really.
There are bad ways to borrow money, really bad ways to borrow money and horrendous ways to borrow money.

Better off finding the way which works best for your money.