How do people fund their new Polo

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Andy Beats
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Re: How do people fund their new Polo

Post by Andy Beats »

monkeyhanger wrote: Tue Mar 05, 2019 10:02 pm
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.
So go compare the monthly cost of a 5 year loan, taking the car down to zero balance, compared with PCP.
No offence, but I wouldn't even contemplate buying a Polo, I think mine would be something like £17k and that's just a joke!
It's not a £17k car, but it is a £199 month a car.
phillos
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Re: How do people fund their new Polo

Post by phillos »

Andy Beats wrote: Wed Mar 06, 2019 8:48 am So go compare the monthly cost of a 5 year loan, taking the car down to zero balance, compared with PCP.
No offence, but I wouldn't even contemplate buying a Polo, I think mine would be something like £17k and that's just a joke!
It's not a £17k car, but it is a £199 month a car.
You ready.. my GTI in Denmark is a whopping £520 a month on lease. £1730 down payment. Road tax £137 bi annually. :roll: :roll: :roll:
The lease cost includes, insurance, as well as any repairs for the 3 year period.
Andy Beats
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Re: How do people fund their new Polo

Post by Andy Beats »

phillos wrote: Wed Mar 06, 2019 12:46 pm
You ready.. my GTI in Denmark is a whopping £520 a month on lease. £1730 down payment. Road tax £137 bi annually. :roll: :roll: :roll:
The lease cost includes, insurance, as well as any repairs for the 3 year period.
Holy crap, that's crazy. :shock:
£520 a month in the UK would get you a VERY fancy car!
monkeyhanger
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Re: How do people fund their new Polo

Post by monkeyhanger »

Andy Beats wrote: Wed Mar 06, 2019 8:48 am
monkeyhanger wrote: Tue Mar 05, 2019 10:02 pm
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.
So go compare the monthly cost of a 5 year loan, taking the car down to zero balance, compared with PCP.
No offence, but I wouldn't even contemplate buying a Polo, I think mine would be something like £17k and that's just a joke!
It's not a £17k car, but it is a £199 month a car.
Is that £199 a month plus a hefty deposit? Cars are all expensive now - even the crappy Dacias have crept up in price quite significantly over the last 2 years (but are still pretty cheap).
Andy Beats
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Re: How do people fund their new Polo

Post by Andy Beats »

monkeyhanger wrote: Wed Mar 06, 2019 2:24 pm Is that £199 a month plus a hefty deposit? Cars are all expensive now - even the crappy Dacias have crept up in price quite significantly over the last 2 years (but are still pretty cheap).
Not too hefty, £999 down.
I don't like those deals that offer attractive monthly costs, but mean you've to pay 90% up front :D
Well, yeah, duuuuh, no wonder you can offer £120 a month....
It should be illegal to advertise like this.
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Re: How do people fund their new Polo

Post by RUM4MO »

Andy Beats wrote: Wed Mar 06, 2019 1:23 pm
phillos wrote: Wed Mar 06, 2019 12:46 pm
You ready.. my GTI in Denmark is a whopping £520 a month on lease. £1730 down payment. Road tax £137 bi annually. :roll: :roll: :roll:
The lease cost includes, insurance, as well as any repairs for the 3 year period.
Holy crap, that's crazy. :shock:
£520 a month in the UK would get you a VERY fancy car!
Maybe @phillos could come back and tell us what the "on the road" price is for a GTI Polo in Denmark - and that might explain the higher cost of leasing.
monkeyhanger
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Re: How do people fund their new Polo

Post by monkeyhanger »

RUM4MO wrote: Wed Mar 06, 2019 3:42 pm
Andy Beats wrote: Wed Mar 06, 2019 1:23 pm
phillos wrote: Wed Mar 06, 2019 12:46 pm
You ready.. my GTI in Denmark is a whopping £520 a month on lease. £1730 down payment. Road tax £137 bi annually. :roll: :roll: :roll:
The lease cost includes, insurance, as well as any repairs for the 3 year period.
Holy crap, that's crazy. :shock:
£520 a month in the UK would get you a VERY fancy car!
Maybe @phillos could come back and tell us what the "on the road" price is for a GTI Polo in Denmark - and that might explain the higher cost of leasing.
They pretty much double the UK OTR price in Denmark. Used to work for a UK site of a Danish packaging firm, my corporate boss used to come over and be hugely envious of my Golf R which had a £71k price tag in Denmark. Environmental taxes on cars that aren't the environmentalists flavours of the month. He was driving a diesel because it crept under a CO2 threshold for (relative to Danish standards) low tax bracket.
Andy Beats
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Re: How do people fund their new Polo

Post by Andy Beats »

monkeyhanger wrote: Wed Mar 06, 2019 3:52 pm
They pretty much double the UK OTR price in Denmark. Used to work for a UK site of a Danish packaging firm, my corporate boss used to come over and be hugely envious of my Golf R which had a £71k price tag in Denmark. Environmental taxes on cars that aren't the environmentalists flavours of the month. He was driving a diesel because it crept under a CO2 threshold for (relative to Danish standards) low tax bracket.
So are electric cars given price breaks in Denmark?
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Re: How do people fund their new Polo

Post by RUM4MO »

Denmark used to the location of choice to import a new factory spec'd car from for UK buyers - and quite convenient to fly into to collect from Scotland and catch a ferry back to Tynemouth - for the really brave personal importers. For me, Holland and paying a bit more was good enough!
mike sel
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Re: How do people fund their new Polo

Post by mike sel »

I payed cash for mine. Simple and no interest. Negotiated a good deal because of cash. it is only an SEL 115 DSG with most options ticked, so not expensive.
Andy Beats
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Re: How do people fund their new Polo

Post by Andy Beats »

mike sel wrote: Wed Mar 06, 2019 5:15 pm I payed cash for mine. Simple and no interest. Negotiated a good deal because of cash. it is only an SEL 115 DSG with most options ticked, so not expensive.
You're actually more likely to get a better deal using finance of some sort.
Then settling it later, if you're averse to credit.
R15KXK
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Re: How do people fund their new Polo

Post by R15KXK »

I got my car on PCP at £224 a month for the 1.0 Beats model, a massive reason I went for this car in the first place is due to the insurance being lower than most other cars... but even at £2k a years it's not cheap (due to age, time since I got my license and area) it's super expensive.

I really don't mind paying the monthly payments just the worst thing is I am locked down for 4 years unless I want to part ex.
Andy Beats
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Re: How do people fund their new Polo

Post by Andy Beats »

R15KXK wrote: Thu Mar 07, 2019 11:29 am I really don't mind paying the monthly payments just the worst thing is I am locked down for 4 years unless I want to part ex.
You're not really locked down.
You can buy the car off them at any time, leaving you free to sell it or trade it in against another one.
There's also a point at which you can hand the car back and walk away early (look at 'voluntary termination')
It's not like you're absolutely forced to keep it the four years, there are ways and means to get out of it.
R15KXK
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Re: How do people fund their new Polo

Post by R15KXK »

Andy Beats wrote: Thu Mar 07, 2019 11:57 am
R15KXK wrote: Thu Mar 07, 2019 11:29 am I really don't mind paying the monthly payments just the worst thing is I am locked down for 4 years unless I want to part ex.
You're not really locked down.
You can buy the car off them at any time, leaving you free to sell it or trade it in against another one.
There's also a point at which you can hand the car back and walk away early (look at 'voluntary termination')
It's not like you're absolutely forced to keep it the four years, there are ways and means to get out of it.
Oh right, i'll have to take a butchers at that voluntary termination yeah
monkeyhanger
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Re: How do people fund their new Polo

Post by monkeyhanger »

Andy Beats wrote: Thu Mar 07, 2019 11:57 am
R15KXK wrote: Thu Mar 07, 2019 11:29 am I really don't mind paying the monthly payments just the worst thing is I am locked down for 4 years unless I want to part ex.
You're not really locked down.
You can buy the car off them at any time, leaving you free to sell it or trade it in against another one.
There's also a point at which you can hand the car back and walk away early (look at 'voluntary termination')
It's not like you're absolutely forced to keep it the four years, there are ways and means to get out of it.
PCP renders voluntary termination nigh-on useless.

You can only instigate voluntary termination when you have paid off half of the capital of the car. If you have a 3 year PCP where you got a £20k car with a GFV of say £9k, and £3k interest, you'll have had to pay off £10k capital and about £2.5k interest (remember - monthly interest is twice as much at the start than towards the end of the PCP term). At that point you'll only be 3 or 4 payments away from your 36 month term.

Cars like the Audi S3 and Golf R, with a 3 year GFV exceeding 50% of RRP will never reach the point of voluntary termination.
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