New to PCP - advice on what to do at the end?

All Volkswagen T-Roc related discussions
geolum13
Posts: 7
Joined: Sat Sep 15, 2018 11:25 am

New to PCP - advice on what to do at the end?

Post by geolum13 » Thu Jul 15, 2021 3:05 pm

Hi all,

Long time reader, first time poster.

I'm 3 years into a 4 year PCP, this being the first time I've had a PCP deal or indeed a new car!
Love our T-Roc SE 1.0, my intention is to get another T-Roc (the current "Active" trim 1.5 DSG ticks all the boxes for us).
We bought from West London VW, and I would be happy to go back to them again.

I'm hoping you experienced folk can explain to me, a PCP newbie, what I should be doing in the next 12 months leading up to giving the car back?

My questions:
  • Should I be planning to approach the dealer several months early to order my new T-Roc, so that at the end I drive there in our current T-Roc, and drive home in the new one? Or will there inevitably be a gap?
  • We have done far less miles than the terms of our PCP deal (8k per year, we'll likely have done half that) - is there a reliable way for me to calculate our positive equity without relying on the dealer valuation? Should I concern myself with this?
  • Would they say "so long as you return the car at or under X miles on the clock, we'll guarantee this part exchange price"?
Thanks in advance for people's thoughts and advice!

Best,
G

Ste007
Posts: 10
Joined: Thu Jul 08, 2021 3:08 pm

Re: New to PCP - advice on what to do at the end?

Post by Ste007 » Thu Jul 15, 2021 3:32 pm

Hi there

I probably can't answer your questions directly but I can let you know my experiences in a similar situation.

I currently have a SEL 1.0 purchased on a 4 year PCP in December 2018. I recently decided what I actually wanted was a SEL 1.5 so on the off-chance I contacted the dealer who sold me the original car to see if a deal could be done. As you said, what with one thing and another, my mileage has ended up being much lower than the PCP allowance. Also, it is my understanding that second hand cars are holding their value very well at the moment due to a number of different factors (microchip shortages, factory shutdowns and other restrictions).

To my surprise, the dealer came back to me to say there was at least £5k equity in my car over what remained to be paid on the loan. That, along with the current VW deposit contribution deal and a number of discounts and extras offered by the dealer meant that I have now ordered that SEL 1.5, hopefully with delivery in early September.

My advice would be to ask your dealer what they can offer you (then obviously ask for more) and see how you feel about it. I remember the guy who sold me the original car saying that, if he was any kind of salesman, he would have me back in 3 years collecting a new car.

Hope that helps.
T-roc SEL 1.0 TSi
December 2018
Ravenna Blue, Black Roof

User avatar
twist
Posts: 1565
Joined: Sun Mar 17, 2019 7:38 pm

Re: New to PCP - advice on what to do at the end?

Post by twist » Thu Jul 15, 2021 4:44 pm

Carwow and Orange Wheels. They will give you the best deal. You’ll have to travel as the dealership can be a couple hundred miles away but I saved a crazy amount on my R-line by doing that.

Negotiate the value of your current T-Roc with them and see who gives you the best overall deal.

There is no reward for loyalty these days so don’t just stick with your local dealership. My local’s deal was a joke and I laughed all the way out the door.
UK 1.5 DSG R-line in Indium Grey
Keyless, park assist, rear view cam, driver assist pack plus, lumbar support
Ordered: 11/12/19 / Collected 20/03/20

Phototext
Posts: 4
Joined: Wed Jul 14, 2021 4:55 pm

Re: New to PCP - advice on what to do at the end?

Post by Phototext » Fri Jul 16, 2021 7:56 am

I’d suggest getting quotes from Carwow then showing them to your local dealer. If he gets close then there’s less hassle.

“ We buy any car” will show you what your current car is worth. If you have lots of cash you can take on a new pcp get the discounts then pay it off immediately saving the 2000 plus in interest on the loan.

User avatar
twist
Posts: 1565
Joined: Sun Mar 17, 2019 7:38 pm

Re: New to PCP - advice on what to do at the end?

Post by twist » Fri Jul 16, 2021 11:18 am

Phototext wrote:
Fri Jul 16, 2021 7:56 am
I’d suggest getting quotes from Carwow then showing them to your local dealer. If he gets close then there’s less hassle.

“ We buy any car” will show you what your current car is worth. If you have lots of cash you can take on a new pcp get the discounts then pay it off immediately saving the 2000 plus in interest on the loan.
Careful with WBAC, they totally low-balled me with my Golf and I got substantially more by selling to Evans. I’d get several different valuations.

The “PCP then immediately pay it off” method is exactly what I did though - it’s a tremendous way to save a chunk of money. I don’t feel bad about it either as cars are disgustingly overpriced to begin with.
UK 1.5 DSG R-line in Indium Grey
Keyless, park assist, rear view cam, driver assist pack plus, lumbar support
Ordered: 11/12/19 / Collected 20/03/20

Bigwheel
Posts: 48
Joined: Tue Apr 23, 2019 12:39 pm
Location: West of Scotland

Re: New to PCP - advice on what to do at the end?

Post by Bigwheel » Fri Jul 16, 2021 12:45 pm

If there's more than 6 months remaining on the finance, VW Finance will recalculate your remaining monthly payments when you tell them what you think your new end of term mileage total will be.
This works for either decreasing the total mileage or increasing it. VW will charge a fee of about £60. Other finance houses don't charge a fee. This can be done more than once but check.
1.5 SEL, Manual, Rear Camera, Lumbar Adjust, White Silver, Roof Rail Delete.
Kangaroo ECU update success Sept.'19
Ordered July '18, Collected January '19.

Swsgm30
Posts: 424
Joined: Sun Sep 02, 2018 8:06 pm
Location: Swansea

Re: New to PCP - advice on what to do at the end?

Post by Swsgm30 » Sat Jul 17, 2021 1:52 pm

Just to describe my scenario .. I have a March'19 R-line (11000 miles) and I will have approx a £11k balloon to pay at the end of my 4 year PCP deal. My intention has always been that I had to see out the agreement and that I would return the car with whatever equity is agreed at the time (for me 4years is long enough with one car - I like to change, sooner if poss). However, about 3 weeks age I had an email from my dealer stating "we want your T-roc, get in touch".
I thought I'd call them for a laugh just to see what they would offer and then let then down by telling about the PCP deal ... HOWEVER - the salesman told me not to worry about the deal as he would check if I had equity and they'd settle the outstanding amount and hopefully I'd have enough for a deposite on my next VW.
Long story short, he eventually said my car was still worth about £21k and after settling the finance I would have £6660 equity! He then offered me a new Tiguan Life, I declined and within the hour he rang me back offering a Tiguan R-line!! .. Now this may sound like I'm being a bit pedantic. but he wanted a £300 deposit and my monthly payments would be £20pm more so I turned him down. He also said, when asked, that they would buy my T-roc and give me a cheque for £6660 .. I'm still considering that one!! ;) ;)
Turns out we're not tied in to these PCP deals for the duration :D :D
1.5 TSI R-Line 150PS EVO
Manual Box
Pure White/Black Roof (Wrapped)
Winter Pack, Reverse Camera
F/R mudflaps, keyless entry
Delivered - 1st March 2019
:D :D :D :D :D

User avatar
twist
Posts: 1565
Joined: Sun Mar 17, 2019 7:38 pm

Re: New to PCP - advice on what to do at the end?

Post by twist » Sat Jul 17, 2021 2:05 pm

Swsgm30 wrote:
Sat Jul 17, 2021 1:52 pm
Just to describe my scenario .. I have a March'19 R-line (11000 miles) and I will have approx a £11k balloon to pay at the end of my 4 year PCP deal. My intention has always been that I had to see out the agreement and that I would return the car with whatever equity is agreed at the time (for me 4years is long enough with one car - I like to change, sooner if poss). However, about 3 weeks age I had an email from my dealer stating "we want your T-roc, get in touch".
I thought I'd call them for a laugh just to see what they would offer and then let then down by telling about the PCP deal ... HOWEVER - the salesman told me not to worry about the deal as he would check if I had equity and they'd settle the outstanding amount and hopefully I'd have enough for a deposite on my next VW.
Long story short, he eventually said my car was still worth about £21k and after settling the finance I would have £6660 equity! He then offered me a new Tiguan Life, I declined and within the hour he rang me back offering a Tiguan R-line!! .. Now this may sound like I'm being a bit pedantic. but he wanted a £300 deposit and my monthly payments would be £20pm more so I turned him down. He also said, when asked, that they would buy my T-roc and give me a cheque for £6660 .. I'm still considering that one!! ;) ;)
Turns out we're not tied in to these PCP deals for the duration :D :D
Supposedly the used car market is desperate for stock right now so if you’re wanting to trade up, now is the time. I’m not exactly sure why there’s such a shortage. People holding onto cars longer because of Brexit/covid maybe?
UK 1.5 DSG R-line in Indium Grey
Keyless, park assist, rear view cam, driver assist pack plus, lumbar support
Ordered: 11/12/19 / Collected 20/03/20

geolum13
Posts: 7
Joined: Sat Sep 15, 2018 11:25 am

Re: New to PCP - advice on what to do at the end?

Post by geolum13 » Wed Jul 21, 2021 5:48 pm

Thanks for the advice everyone, I’ve contacted a dealer to see what they can offer.

We used Carwow to get our current T-Roc so I had intended to use them this time. Drift Bridge VW in Epsom came out cheapest so going to have a chat with them about an early trade in on our current PCP.

Current shortages have been due to shipping delays and computer chip shortages, I’m facing the same issues with computer components at work.

So I think we’re looking to swap for an Active 1.5 DSG, Ravenna blue, with extras rear camera, tow bar and a space saver spare. Hoping our low mileage will give us some good positive equity. We don’t have the cash to buy outright so I’m hoping we can just do a swap with no deposit and keep the monthly payment increase low! Let’s see, I’ll report back.

geolum13
Posts: 7
Joined: Sat Sep 15, 2018 11:25 am

Re: New to PCP - advice on what to do at the end?

Post by geolum13 » Sun Jul 25, 2021 10:30 am

Test drove a 1.5 DSG at the local dealer, which was interesting… it didn’t blow my mind as much as I’d hoped, compared to manual. It was obviously smooth and responsive, but I need to decide if I’m ready to give up all the control 🤔 I had to sit through the sales pitch after, of course…

They said they won’t match Carwow prices, which doesn’t surprise me for that dealership… they offered me a lowball PX price and a high monthly cost. I pointed out that the PX price was at least £1k lower than it’s value, and even so the monthly price was already much higher than the price I’d been offered on carwow. I was told the part exchange price was projected for 15 weeks time when my new car might arrive. I pointed out that my current pcp settlement figure they’d used was inaccurate for 15 weeks time, then, as I’d have paid off nearly £1k more by that point. Went back to the manager who lowered the monthly a bit and increased the PX to closer to reality… of course I walked away. Tbh never intended to buy from them anyway, never had a good feeling from them and their servicing quotes have consistently been £100 more than the dealership I bought from every year I check.

Aaaaaanyway… I spoke to a very helpful gent from another dealer the other side of London, who is going to get back to me with a pcp offer based on their Carwow price. Much more up front and honest about what he’d be able to do, so I have hope that I will be able to have a no BS conversation with him.

Post Reply