Looking at a PCP deal on a new Volvo. Any advice? I’d like to keep the monthly cost low and one deal I’ve been offered is:
Volvo XC60 2.0 B5P AWD Geartronic Momentum
£168.47 / month
You save
£8,162(18.8%)
Term of agreement
24 months
23 monthly payments of
£168.47
RRP
£43,310.00
carwow price
£39,147.50
Customer deposit
£11,500.00 (less £2.5k trade in)
Volvo deposit contribution
£4,000.00
Total amount of credit
£23,647.50
Total amount payable
£41,417.41
Cost of credit
£2,269.91
Representative APR
4.9%
Fixed rate of interest pa
2.53%
Optional final payment
£21,874.13
Mileage per annum
7000
Excess mileage charges
14.9p / mile
Is it best to go for a 24, 30, 36 or 48 month deal?
We’d trade it for a new one at the end of the term I guess. It works out about £15.5k over two years. To buy a used one would cost circa £25k and the monthly cost on a loan would be about £450 pm.
I’ve also looked at leasing but again monthly cost is higher.
Never bought a new car before!
Cheers.
Last edited by dougair; 8th June 2021 at 09:11.
A lease is much cheaper, but you pay less up front and more per month. So instead of paying £23k plus for 2 years, you can pay £16243.76 plus doc fee for 3 years.
Contract cars have it at £355.43 per month inc vat £600 fee then 9 plus 35. You will get the option to buy the car at the end or just hand it back.
Sorry miss read your number still works out cheaper but not as big difference
Volvo Dundee keep pinging me with offers which seem pretty decent, maybe worth a look.
Thanks, will take a look.Originally Posted by GraniteQuarry
I’ve also seen an in stock xc60 r-design with a number of extras at £38k listed as brand new so I’ve asked for some details on finance but might be able to get that down to £150 pm with similar deposit numbers.
It all depends on how you view it but you’re paying interest (albeit at a reasonable rate) on that £21k final payment for the full term of the agreement. Paying a higher monthly fee with a lower final payment will save you money overall.
Use car wow and out in what you’re looking for - the dealers then contact YOU
They make their offers and you can play them off a little or make sure your Volvo comes to a local dealer by getting them to match your best deal offered somewhere else in the U.K.
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Been offered XC60 R design with metallic lease deal £420 down with £420 x47. 8K pa. With £100 doc fee
Last edited by Paneraiseeker; 8th June 2021 at 18:13.
Wife’s just had a very good lease deal from Volvo Edinburgh, same dealer group (John Clark). XC40 R Design T3 Winter Pack, £1500 down £360 pcm, 4 years, 8000 p.a. Obligatory handover shot with my son:
Another thumbs up for Car Wow. I bought my father a new XC40 b4 r design through them. Got a great deal from a very local dealer (who was by far the best deal). Car will be delivered on 21st. All good so far.
Quick question on PCP deals. At the grand old age of 64 I have allways bought my cars new and preowned for cash. Nearly everyone we know now has a car on PCP and seems happy with the payments. I fancy an R design Volvo XC 40 and have had quotes for trade in for £13k .
However I didn't ask about PCP as I assumed you had to have no car to part ex. WBAC has also offered 13k but Im sure they will chip that at inspection, even though my car is in good condition.
So my question is do dealers do part ex’s on used cars such as mine 13K but then reduce the monthly rental or give you cash back. Or am I better bending over to WBAC?
Thanks in advance for the advice.
Steve
You can use the £13k as a large deposit or you can use part of it as the required deposit and have the remainder paid back to you, it’s entirely your decision.
Thanks Dave , I didnt realise you could do that.
Steve
I brought my XC60 not quite 3 years old for 21k, its now worth 15k, so its cost me / lost me £6k in 3 years! And I can do what I like to it.
Why people rent cars is beyond me, just buy what you can afford, reminds me of when we were on the social as kids and had to pay the catalogue man a few quid each week to have things, not a luxury but a neccesity.
Anyway, great car, you wont be disappointed
RIAC
Lots of reasons Kerry; the best deals are often on PCP with large deposit contributions, 0% finance etc.
There’s no stopping you paying it off in full at any time you wish and be in the same situation as you.
Previously,I always bought cars, paid them off over three years and kept them much longer. I haven’t decided what to do at the end of this, my first, PCP yet.
I'm not sure I follow your math. In my understanding, at the end of the 2 year period you need to either give it back, or pay an additional £21,874 to own the car? Total cost would be £37,417.
It's based on the cost to own the car for the period only. However most people with new cars tend to trade them after a shortish period say every 2 years and get another new one.
However you are correct to point this out that PCP does create a merry go round where you generally need to save extra for the deposit in the next car
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Any deposit/money up front is generally lost in the deal unless you intend to buy the car at the end. Lowest deposit you can
That’s right but there’s also the option of part exchanging it for another car and using any value above the final payment as part or all of the deposit for your next car.
That's correct but a prudent approach imo would be to assume there will be no additional value left in the car when working out your finances
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Just google cash v lease v pcp on pistonheads and you will see that in most cases if you have the money or even a bank loan at a very low rate cash is the cheapest option.
However leasing or pcp suits a large number of people so they can have a newer or better car.
Also cash gives you more flexibilty if your circumstances change as with pcp you can't hand it back unless you have paid so much and with leasing you are tied in to a contract.
At the moment a lot on pistonheads are moving back to buying cars with cash/bank loans due to poor deals on lease/pcp
Agreed, I was merely completing the options available at the end of the PCP.
Six months ago my daughter’s car was worth £3600 and get pcp (ending in October) was £4000. Today her car is worth £5,500.
Go onto car wow
Pop in the car you want
All of the deals you will be offered will be pcp
Also gives you a tough trade in advisory
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I bought an ex demo XC60 inscription with 1500 just over 6 months ago. The trouble is, I don’t think there is anything like this available at present
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