mowflow Posted January 9, 2015 Report Share Posted January 9, 2015 That's your opinon but that's not what I agree with. For one, would you really save the 100 a month and put it away to earn minimal interest? As an example if I lay out £4k deposit, based on a £28.8k car on 3 year pcp at 5k miles a year the monthly is 380 and a final of c.£16k Will the R be worth 19-20k 3 years down the line considering I don't even cover 1k miles a year - I would like to think so. If the GFV is £19k your less likely to see much back. So say I did save £100 a month and by the way I know someone who got on the higher GFV train and their monthly with similar deposit and overall cost is 340 ish a month so the saving is not as you make out, that's 3600 saved over the term on monthly that most likely you wouldn't diligently save. So yes an accountant I'll take my equity back out at the other end rather than start again at the end of the GFV deal. So say 2 people buy a £30k car over the same 3 year term on a PCP with the same deposit and same interest but there is a £3k difference in GFV. Buyer 1 amount to be financed = 30,000 - 19,000GFV = 11,000 Pays £3000 deposit leaving £8,000 to be financed £8,000/36 = £222.22pm TOTAL PAID = £11,000 Buyer 2 amount to be financed = 30,000 - 16,000GFV = 14,000 Pays £3,000 deposit leaving £11,000 to be financed £11,000/36 = £305.55pm TOTAL PAID = £14,000 At the end of the 3 years the car is worth: £16000 = Buyer 2 has paid £3k more and comes away with nothing, buyer 1 just hands the car back £17000 = Buyer 2 gets £1k back but has still paid £2k more than buyer 1 £18000 = Buyer 2 gets £2k back, feels like a winner as this is more than his deposit but has still paid £1k more than buyer 1 who walked away. £19000 = Buyer 2 levels the playing field and has finally only paid as much as buyer 1. They get £3k back but don't forget it was actually their own money to begin with, it's not a lottery win. It's all smoke and mirrors anyway as the equity will usually be offset against deposit on the next car anyway (even thought they tell you they don't do that), it can vary from 1 dealer to the next and also how good you are at haggling. However, I know which buyer I'd rather be above. *note that i've ignored interest in my example because i'm not an accountant. I suspect it only makes buyer 1 even more of a winner anyway as they have less money on loan from the start. monkeyhanger 1 Link to comment Share on other sites More sharing options...
nwxan90 Posted January 9, 2015 Report Share Posted January 9, 2015 My dealer has been ignoring my emails for the last 3 days. Since my car has arrived they have been silent. Do you think I can contact Benfield Newcastle directly? Link to comment Share on other sites More sharing options...
Danb Posted January 9, 2015 Report Share Posted January 9, 2015 Sorry for the delayed response Dan I've been busy hooning around . Was going to avoid the red line for the first 1000 but as soon as you switch to 'race mode' (which can't be avoided) the foot plants! Only pushed it hard in a straight line 2 - 3 times so haven't been to OTT on it. From order to delivery more or less 4 months and couldn't be happier with the car. Will try and get some pics of it today before it gets dark. Enjoy Nick, you're probably like a kid in a sweetshop:-) Link to comment Share on other sites More sharing options...
Lawrie Posted January 9, 2015 Report Share Posted January 9, 2015 My dealer has been ignoring my emails for the last 3 days. Since my car has arrived they have been silent. Do you think I can contact Benfield Newcastle directly? Yes, you may as well. Link to comment Share on other sites More sharing options...
nwxan90 Posted January 9, 2015 Report Share Posted January 9, 2015 Yes, you may as well.Spoke to them and they are waiting for Arrival to accept the car. The PID is done and the reg plate is on the car. NEWCATSLE Are going to chase Audi to get it accepted asap. Really would be handy if I can pick it up on the 16th Link to comment Share on other sites More sharing options...
Lawrie Posted January 9, 2015 Report Share Posted January 9, 2015 So say 2 people buy a £30k car over the same 3 year term on a PCP with the same deposit and same interest but there is a £3k difference in GFV. Buyer 1 amount to be financed = 30,000 - 19,000GFV = 11,000 Pays £3000 deposit leaving £8,000 to be financed £8,000/36 = £222.22pm TOTAL PAID = £11,000 Buyer 2 amount to be financed = 30,000 - 16,000GFV = 14,000 Pays £3,000 deposit leaving £11,000 to be financed £11,000/36 = £305.55pm TOTAL PAID = £14,000 At the end of the 3 years the car is worth: £16000 = Buyer 2 has paid £3k more and comes away with nothing, buyer 1 just hands the car back £17000 = Buyer 2 gets £1k back but has still paid £2k more than buyer 1 £18000 = Buyer 2 gets £2k back, feels like a winner as this is more than his deposit but has still paid £1k more than buyer 1 who walked away. £19000 = Buyer 2 levels the playing field and has finally only paid as much as buyer 1. They get £3k back but don't forget it was actually their own money to begin with, it's not a lottery win. It's all smoke and mirrors anyway as the equity will usually be offset against deposit on the next car anyway (even thought they tell you they don't do that), it can vary from 1 dealer to the next and also how good you are at haggling. However, I know which buyer I'd rather be above. *note that i've ignored interest in my example because i'm not an accountant. I suspect it only makes buyer 1 even more of a winner anyway as they have less money on loan from the start. When you take out PCP you pay interest on the whole cost of the car less your deposit, not the purchase price less GFV. In your example buyer 2 will clear the loan a little more quickly so will have to pay less interest over the term. However, I am an accountant and I would take the higher GFV every time. TerryCTR and mowflow 2 Link to comment Share on other sites More sharing options...
Limey Posted January 9, 2015 Report Share Posted January 9, 2015 I'm a bean counter too............just want the car Dave TerryCTR, Snooky and Lawrie 3 Link to comment Share on other sites More sharing options...
Lawrie Posted January 9, 2015 Report Share Posted January 9, 2015 Spoke to them and they are waiting for Arrival to accept the car. The PID is done and the reg plate is on the car. NEWCATSLE Are going to chase Audi to get it accepted asap. Really would be handy if I can pick it up on the 16th National Vehicle Solutions just emailed me to say that mine can be picked up from Tuesday onwards, but they need to know ASAP as they have a lot of them to PDI and schedule for pick-up/delivery. I guess it's just ARVAL holding thing up for you. Link to comment Share on other sites More sharing options...
monkeyhanger Posted January 9, 2015 Report Share Posted January 9, 2015 As Lawrie says above - higher GFV means you're paying more interest on more of the car for longer. In reality, on £3k it'll mean maybe £450 extra interest (but don't forget, if you put that money away you saved, it'll be making some interest of its own), i'd still rather do the surefire high GFV though and pocket the £100 a month. For some, the difference between paying £300 a month and £400 a month might be a dealbreaker. I can't see myself chopping in my R against something else (Scirocco MK4? R400?) and being offered a whole £3k over the prevailing GFV in 3 years time. Best i've ever had is £1500 "equity" at p/x time. Link to comment Share on other sites More sharing options...
Limey Posted January 9, 2015 Report Share Posted January 9, 2015 Just called them for update. BW7 isn't confirmed, it's just an estimate. He said it should be confirmed next week and that stage 2 on the tracker is correct. Also said to add approximately a month to BW for me to get my grubby mitts on it Dave Pigpen 1 Link to comment Share on other sites More sharing options...
Pigpen Posted January 9, 2015 Report Share Posted January 9, 2015 Just called them for update. BW7 isn't confirmed, it's just an estimate. He said it should be confirmed next week and that stage 2 on the tracker is correct. Also said to add approximately a month to BW for me to get my grubby mitts on it Dave That is exactly what I have been told. They have also just confirmed the finance deal was fixed so no surprises on the day! Presumably the service plan for three years at £199 is worth it even at low miles per year? Link to comment Share on other sites More sharing options...
TerryCTR Posted January 9, 2015 Report Share Posted January 9, 2015 (edited) So say 2 people buy a £30k car over the same 3 year term on a PCP with the same deposit and same interest but there is a £3k difference in GFV. Buyer 1 amount to be financed = 30,000 - 19,000GFV = 11,000 Pays £3000 deposit leaving £8,000 to be financed £8,000/36 = £222.22pm TOTAL PAID = £11,000 Buyer 2 amount to be financed = 30,000 - 16,000GFV = 14,000 Pays £3,000 deposit leaving £11,000 to be financed £11,000/36 = £305.55pm TOTAL PAID = £14,000 At the end of the 3 years the car is worth: £16000 = Buyer 2 has paid £3k more and comes away with nothing, buyer 1 just hands the car back £17000 = Buyer 2 gets £1k back but has still paid £2k more than buyer 1 £18000 = Buyer 2 gets £2k back, feels like a winner as this is more than his deposit but has still paid £1k more than buyer 1 who walked away. £19000 = Buyer 2 levels the playing field and has finally only paid as much as buyer 1. They get £3k back but don't forget it was actually their own money to begin with, it's not a lottery win. It's all smoke and mirrors anyway as the equity will usually be offset against deposit on the next car anyway (even thought they tell you they don't do that), it can vary from 1 dealer to the next and also how good you are at haggling. However, I know which buyer I'd rather be above. *note that i've ignored interest in my example because i'm not an accountant. I suspect it only makes buyer 1 even more of a winner anyway as they have less money on loan from the start. In my case I will always get a loan to clear the GFV so lower is better. I also plan to keep it considering it won't even have 3k on the clock at the end of the deal-once again lower GFV suits me. If you include interest then buyer one will be charged more being that the GFV is higher - what makes you think they give this away for free? Obtaining a mortgage is now much stricter and many lenders look at what you owe on finance, the higher the GFV, the higher the amount you are liable for and this could potentially impact prospective house buyers. You are correct though, having equity in the car is only of real use when you go down the private sale route. No dealer wants to give you max discount on the next car and a great trade in to boot. Edited January 9, 2015 by TerryCTR Link to comment Share on other sites More sharing options...
Hodge00079 Posted January 9, 2015 Report Share Posted January 9, 2015 When I spoke to VW CS on Monday I was given an unconfirmed BW 11 and was told it would take about a month after build. They suggested I call back at the beginning of Feb. I go through periods of not checking and then I want to know if there have been any developments. Link to comment Share on other sites More sharing options...
Limey Posted January 9, 2015 Report Share Posted January 9, 2015 It's a form of torture! Dave Link to comment Share on other sites More sharing options...
dui Posted January 9, 2015 Report Share Posted January 9, 2015 My dealer has been ignoring my emails for the last 3 days. Since my car has arrived they have been silent. Do you think I can contact Benfield Newcastle directly? I found Benfield Volkswagen Newcastle were quicker to respond. My car has been authorised for release by Arval, so just needs the PDI and delivery sorting out. Link to comment Share on other sites More sharing options...
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