Interest free deals

All Skoda Kamiq related discussions
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Ant
Posts: 13
Joined: Sat Sep 05, 2020 2:29 pm

Post by Ant » Wed Oct 07, 2020 6:40 pm

I see that Skoda are offering PCP deals at 0% APR on all 3 SUV models in the range. Might be worth telling anyone you know who is considering buying...?

Not quite sure why they’ve sent me this information a few weeks after I got mine though (at 4.4% APR)!!! :cry:

Lofty
Posts: 168
Joined: Wed Jul 08, 2020 5:05 pm
Location: Bristol

Post by Lofty » Thu Oct 08, 2020 8:45 am

You must be right pis*** off but I’m surprised, visit my local Skoda dealer a few weeks ago & was told buy the sales supervisor that Kamiq was the only suv coming into the uk. Kodiac & Karoq are like hens teeth so surprised they’re offering this deal. They were grabbing as many Kamiqs that they could get their hands on & were selling them!! (he is a friend so don’t think it’s bull dung).

Needaliftdad
Posts: 6
Joined: Sun Oct 04, 2020 7:47 pm

Post by Needaliftdad » Tue Oct 13, 2020 6:37 pm

I did look at the interest free deals on the PCP scheme.
However as I only keep the car until deal runs and then trade in or hand back, I had a look at the cars under the PCH scheme.
Big difference! best PCP was 4 years at around £240 a month, but PCH was 3 years at £185.
On top of that you dont pay road tax either.

Bit of a no brainer for me but I appreciate others might want to keep their cars after the PCP runs out.

silverhairs
Posts: 19
Joined: Tue Mar 10, 2020 1:56 pm

Post by silverhairs » Thu Oct 22, 2020 11:12 am

I always purchase my new cars for cash. The thing is, I always keep my cars for about 5 - 7 years.
I've seen these PCP deals, and you get a bigger discount if you go with PCP. I do less than 4,000 miles per year (retired) so we don't go out much, (especially at the moment). As soon as it gets to 18.00 hours, we lock the front door, we don't venture out much at night. I was looking at those scrolling indicators, but your looking at a different type LED lights, also another £1,000 !!!
The problem is, it's not yours till you have paid the final balance, no difference to interest free HP !
Can someone explain what the advantage of PCP as 80% of cars are purchased this way?

Needaliftdad
Posts: 6
Joined: Sun Oct 04, 2020 7:47 pm

Post by Needaliftdad » Thu Oct 22, 2020 8:20 pm

Silverhairs

It all depends on your situation.

From my experience the vast majority of "buyers" renew their cars after 3 or 4 years.

So with PCP all they are actually paying is the depreciation on the car.

If you pay £20k cash for your car and get £5k after 7 years as a trade in, then it has cost you £15k net which is £180 a month.
If you take the same car on PCP for 4 years and the final settlement is £11k then you pay £187 a month, but you get a new car 3 years early with less going wrong. You also do not have to tie up £20k on a car (if you have it!)

A bit simplistic but you get the idea. The Skoda salesman I spoke to said he had 50 cars going out during the week and had not "sold" any . All were financed, PCP or PCH. He was now the main PCH salesman as so many customers were attracted by the deals. Same vehicle was£185 for PCH (no road tax), £240 for PCP or £20k cash.

The best example I can give is my 22 year old son who had little savings and an average wage for his age.

He got a great PCP deal on a BMW one series for around £210 per month which included a service plan.

Now the car was around £16k at the time - no way he could afford that, but he could afford the monthly payments.
Thats why now you see all the younger generation running about in new cars! Unlike in my day where you bought a cheap rustbucket that was always breaking down.
The bonus is you might even have some equity left in the car for a trade-in. He just recently traded in for another new car on PCP. No hassle, no worry about how much his car was worth. The salesman basically cleared his finance and he started all over again. Simple.

Having bought for cash in the past and then moving to PCP I would now definitely favour with PCP. However I have now got my car under PCH which is so much cheaper, and meant I could get a Kamiq I could not have afforded previously.

Lofty
Posts: 168
Joined: Wed Jul 08, 2020 5:05 pm
Location: Bristol

Post by Lofty » Thu Oct 22, 2020 8:36 pm

To Silverhairs & Needaliftdad
Great information, excellent contributions to the forum. Long may it continue.

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