How do people fund their new Polo

[Steve_2019]

How do you all pay for your new Polo.

PCP or cash?

I’ve never had a PCP before always paid cash or had a bank loan but that’s also been on second hand cars though.

PCP seems good way if you changed your car regularly.

[Adam_013]

I went for PCP because I fancied a new car and have 0 money saved, so was the only way I could see me getting one.

I also liked the idea of getting a decent credit rating out of it too, especially being that I'm a wee young whipper snapper.

Do I regret doing it?

Mixed opinions, I'm now locked in for 4 years if I don't upgrade early. I do like my car, but there's a few options I wish I had chosen, and it has been quite a bit of trouble since I've had it. Not to mention the dealer hassle

But overall I think I've got a fair deal, and a half decent motor out of it too.

For those wondering I put down £1000 and paying £244 pcm inclusive of GAP protection and smart repairs. The overall interest I would pay if I purchased the car outright after would be just under 2k. However for someone who has no credit history, I don't think it's too bad.

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[Dark_cze]

I have a normal bank loan because I want to keep my gti for long time, Iam young and insurance is usualy crazy high (I have a friend working for insurace comapny who give me masive discount). That mean I didn't want to finance my car with VW because they will finance it only with their own insurace. And i didn't want any kind of "borrowing" that car like leasing (not sure if you guys have that in UK). If anything happend to me (like loosing job etc.) I can and if needed I will sell my car and be albe to pay without any problems.

[Steve_2019]

Im choosing the PCP route for mine. I have got the money saved to pay cash but rather keep that I try earn bit of interest on it when got the PCP running.

And at end of the PCP you got options that you have not got when you pay cash

1. Buy the car so it becomes your property
2. Have another car
3. Just walk away

If I was 100% sure I would want to keep the car for the next 8-10 years I would pay cash.

Plus I’m getting £3500 cash back on my trade in that’s help me make my mind up.

[monkeyhanger]

Im choosing the PCP route for mine. I have got the money saved to pay cash but rather keep that I try earn bit of interest on it when got the PCP running.

And at end of the PCP you got options that you have not got when you pay cash

1. Buy the car so it becomes your property
2. Have another car
3. Just walk away

If I was 100% sure I would want to keep the car for the next 8-10 years I would pay cash.

Plus I’m getting £3500 cash back on my trade in that’s help me make my mind up.

PCP works best when you're brand loyal - if you fancy an early change or even if you go full term, a VW dealer is going to give you more allowance for your VW towards the next one than a Honda/Kia/Ford etc. garage (whether that be writing off a modest negative equity for an early change, or giving you a decent part ex/positive equity towards the next one).

PCP is easy, but you don't usually get a decent amount of savings interest to offset the 6% APR of a PCP.

If you don't mind tying up your money, paying cash and putting enough away each month to cover the interest works out cheaper. If you've got a performance VW where the car is expected to retain 50% RRP after 3 years, on a PCP, about 1/3 of what you pay in monthlies is interest.

VW are quite accurate with their predicted residuals via the GFVs , but err slightly on the side of caution, so having to hand back at 3 years with no equity doesn't really happen, even for Golf GTDs with the unpredicted bombshell that was dieselgate.

If you buy cash or unsecured private bank loan, the car is yours to offload whenever you like, either in a private sale or p/x.

When PCPing, best to take a 3 year term rather than 4. Less interest and only marginally more expensive per month. Last thing you want is a 4 year obligation to pay monthlies on a car with a 3 year warranty if something big or expensive goes pop in the 4th year.

Whatever you do, research and get the best deal you can - 12% off a GTI/GTI+ is achievable which is around the amount VWFS usually like to have in deposit for PCP.

My GTI+ and Golf R are cash buys.

[Steve_2019]

Im choosing the PCP route for mine. I have got the money saved to pay cash but rather keep that I try earn bit of interest on it when got the PCP running.

And at end of the PCP you got options that you have not got when you pay cash

1. Buy the car so it becomes your property
2. Have another car
3. Just walk away

If I was 100% sure I would want to keep the car for the next 8-10 years I would pay cash.

Plus I’m getting £3500 cash back on my trade in that’s help me make my mind up.

PCP works best when you're brand loyal - if you fancy an early change or even if you go full term, a VW dealer is going to give you more allowance for your VW towards the next one than a Honda/Kia/Ford etc. garage (whether that be writing off a modest negative equity for an early change, or giving you a decent part ex/positive equity towards the next one).

PCP is easy, but you don't usually get a decent amount of savings interest to offset the 6% APR of a PCP.

If you don't mind tying up your money, paying cash and putting enough away each month to cover the interest works out cheaper. If you've got a performance VW where the car is expected to retain 50% RRP after 3 years, on a PCP, about 1/3 of what you pay in monthlies is interest.

VW are quite accurate with their predicted residuals via the GFVs , but err slightly on the side of caution, so having to hand back at 3 years with no equity doesn't really happen, even for Golf GTDs with the unpredicted bombshell that was dieselgate.

If you buy cash or unsecured private bank loan, the car is yours to offload whenever you like, either in a private sale or p/x.

When PCPing, best to take a 3 year term rather than 4. Less interest and only marginally more expensive per month. Last thing you want is a 4 year obligation to pay monthlies on a car with a 3 year warranty if something big or expensive goes pop in the 4th year.

Whatever you do, research and get the best deal you can - 12% off a GTI/GTI+ is achievable which is around the amount VWFS usually like to have in deposit for PCP.

My GTI+ and Golf R are cash buys.

Interesting read monkeyhanger there is a couple things you mentioned got me thinking about the pcp. I haven’t signed nothing at the finance yet. I was have one over 4 years I’m find out how much the monthlies be over 3 years.

[steeve]

Paying cash, well a trade in Mini Cooper and cash balance.

[Andy Beats]

PCP
I will never 'buy' a car again, it's PCH/PCP for us until death now.

[CJ-77]

Planning to do PX+cash but will see what the dealer comes up with.....

[S_94]

PCP. Left University last year so don't really have that much spare cash laying around for a GTI+.

I've heard once you get in the PCP cycle it's 'hard' to get out of because of how easy it is. I've been told it's like a phone contract (just more expensive).

Would love to buy a car outright one day though.

[Andy Beats]

PCP. Left University last year so don't really have that much spare cash laying around for a GTI+.

I've heard once you get in the PCP cycle it's 'hard' to get out of because of how easy it is. I've been told it's like a phone contract (just more expensive).

Would love to buy a car outright one day though.

It's not hard to get out of PCP at all, it's actually very simple.

1. If the car is worth less than the GFV, hand it back, not your problem, walk away and go elsewhere.
2. If the car is worth more than the GFV, get the dealer to put the equity towards another car of the same make or settle the finance and sell the car yourself.

People who think PCP 'traps' them are ill-informed or just too lazy to sell the car themselves.
They settle for the easier option of letting the dealer sort it out and just getting another car of the same make.
Owning a car is all very well, if you intend to keep it for a long time.
I get bored of cars very easily, so effectively just paying the depreciation for three years and not having to worry about its future value, or re-selling it, suits me just fine.
I look on cars the same way as phones.
Settle on a contract you're happy with, upgrade every three years.

[Griff74]

I am a recent convert to PCP, before my current Leon I had always paid for cars outright with a personal loan + whatever my current car is worth part-ex. The PCP route worked out pretty well for me with my Leon so have gone down the same route with my Polo GTi I have just ordered. As others have said if you like to change your cars often it is usually the best way to go.

[Andy Beats]

I am a recent convert to PCP, before my current Leon I had always paid for cars outright with a personal loan + whatever my current car is worth part-ex. The PCP route worked out pretty well for me with my Leon so have gone down the same route with my Polo GTi I have just ordered. As others have said if you like to change your cars often it is usually the best way to go.

A pet hate of mine is people who come out with 'whole cost' arguments.
They'll argue that buying the car, when taking the future value into account, is a lower cost overall - especially when personal loans are often (but not always) lower APR rates than PCP.
It's a completely irrelevant argument if the monthly payments to buy it are out of your budget!
My Polo PCP is £199 per month, what would a personal loan cost per month to buy it
If people use whole cost arguments, then you could argue a bloody Bugatti Veyron is the lowest cost car you can buy.
It doesn't depreciate, it probably appreciates.
Doesn't matter when you can't afford to buy it in the first place, does it.....

My own personal circumstances are that I'm only willing to spend £200 per month on a car.
That's it, no more, it's only a second car for commuting.
So, for that £200 per month, I can get a new PCP car or a used bought car.
Sod that, I'll take the new one thanks.

[stevereeves]

"So, for that £200 per month, I can get a new PCP car or a used bought car. Sod that, I'll take the new one thanks. "
True, sums up how I accidentally got into PCP cars. Almost sounds too good a deal to be true but it is true....

[monkeyhanger]

I am a recent convert to PCP, before my current Leon I had always paid for cars outright with a personal loan + whatever my current car is worth part-ex. The PCP route worked out pretty well for me with my Leon so have gone down the same route with my Polo GTi I have just ordered. As others have said if you like to change your cars often it is usually the best way to go.

A pet hate of mine is people who come out with 'whole cost' arguments.
They'll argue that buying the car, when taking the future value into account, is a lower cost overall - especially when personal loans are often (but not always) lower APR rates than PCP.
It's a completely irrelevant argument if the monthly payments to buy it are out of your budget!
My Polo PCP is £199 per month, what would a personal loan cost per month to buy it
If people use whole cost arguments, then you could argue a bloody Bugatti Veyron is the lowest cost car you can buy.
It doesn't depreciate, it probably appreciates.
Doesn't matter when you can't afford to buy it in the first place, does it.....

My own personal circumstances are that I'm only willing to spend £200 per month on a car.
That's it, no more, it's only a second car for commuting.
So, for that £200 per month, I can get a new PCP car or a used bought car.
Sod that, I'll take the new one thanks.

But you can't (or shouldn't) compare a 3 year PCP with a 3 year loan - the loan will undoubtedly cost more - because you keep a 3 year old car at the end of it rather than pay interest on the whole cost and just service the capital depreciation. If you want to save interest, taking out a 5 year loan with the aim of having the equivalent balance for years 4 and 5 of the loan to a PCP's GFV to pay at the end of year 3 is comparable. Of course, if you don't want the hassle of selling privately at the end of year 3 then the convenience of PCP might be more valuable to you than interest saved.