End of 0% PCP on Leons

[Jonno02]

Surely Seat have just hugely shot themselves in the foot with this?

I was twitching between a Cupra 290 Black Edition - £1,000 deposit and £271 a month, or a Golf R £3000 deposit and £290 a month.

Now, I own a mk2 FR+ right now, so wanted to stick with seat. The 0% finance on the Seat kind of offset the huge depreciation (lower GFV) which was nice. Now that Seat's PCP is up at 4.9%, the extra 2k deposit on the golf seems like nothing for the improved interior, 4WD, residual etc. Now with £1000 deposit, the cupra deal is £303 a month. Eh...

I'm sorely disappointed that Seat have taken the 0% PCP away as the cupra was my choice due to some sense of brand loyalty and I don't want a lease.

 

[ukoldschool]

I don't think SEAT have shot themselves in the foot, but it sounds like you might have?
Procrastination is a terrible disease..............

 

[Jonno02]

I don't think SEAT have shot themselves in the foot, but it sounds like you might have?
Procrastination is a terrible disease..............

You won't hear my arguing that. But the point still stands, the cupra on PCP, is almost exactly the same as a Golf R now. I love my seats, but the residuals/cabin quality just aren't there to warrant that...

 

[DANFR180]

when it was on 0% the deposit contribution was 500 now its 2500 deposit contribution at 4.9% so I'm not sure how you would end up paying more ?

 

[Jonno02]

when it was on 0% the deposit contribution was 500 now its 2500 deposit contribution at 4.9% so I'm not sure how you would end up paying more ?

Brokers offering far bigger discounts that the £500 contribution, with the 0% finance.

 

[Walpurgis]

Now, I own a mk2 FR+ right now, so wanted to stick with seat.

This makes you eligible for a £500 "loyalty discount" – if you are buying through Drive the Deal (and maybe other brokers). This discount doesn't seem to be widely advertised (I can't see any mention of it on the Seat web site). It was £1,000 before the end of June.

 

[DANFR180]

Brokers offering far bigger discounts that the £500 contribution, with the 0% finance.

No you don't understand, you got the 500 deposit contribution when taking out seat 0% finance on top of any other discount, whether its through a broker or not.

most brokers will assume you are taking this option so it includes the 500 deposit discount on their quoted price, therefor if you do not take finance you would need to add the 500 on to the price.

 

[seatgraham]

Surely Seat have just hugely shot themselves in the foot with this?

I was twitching between a Cupra 290 Black Edition - £1,000 deposit and £271 a month, or a Golf R £3000 deposit and £290 a month.

Now, I own a mk2 FR+ right now, so wanted to stick with seat. The 0% finance on the Seat kind of offset the huge depreciation (lower GFV) which was nice. Now that Seat's PCP is up at 4.9%, the extra 2k deposit on the golf seems like nothing for the improved interior, 4WD, residual etc. Now with £1000 deposit, the cupra deal is £303 a month. Eh...

I'm sorely disappointed that Seat have taken the 0% PCP away as the cupra was my choice due to some sense of brand loyalty and I don't want a lease.

You can also receive an additional £500 towards your purchase if you take a test drive. Offer is valid until 30 Sept 16.

All depends on what sort of discount you can negotiate. If the amount of credit is lower, the 4.9% with additional SEAT contribution could work out similar to the 0% offer?

Edit - agree that the gap between 290 and Golf R seems to be narrowing - but is the Cupra not better specced...?

 

[pmmcbl]

The world of cheap new cars are going to end by the end of the year. Get a cheap car now from December things will change. Manufacturers this year have targets to meet so will give money away. With the over supply and the drop in residual values and now the EU exit the volumes are going to be much lower which means less discounts.

 

[seatgraham]

The world of cheap new cars are going to end by the end of the year. Get a cheap car now from December things will change. Manufacturers this year have targets to meet so will give money away. With the over supply and the drop in residual values and now the EU exit the volumes are going to be much lower which means less discounts.

Not sure about that - do you have some inside knowledge of car manufacturers' sales and profit forecasts. Who knows what interest rate and inflation figures will look like in 6 months or 12 months time?

Most of SEAT's current offers end on 30 September. And, what happens after that is into the unknown. And any offers could be withdrawn or varied at any time.

If you're happy with the deal you can get and can afford it, don't procrastinate! Prices tomorrow could be better or worse depending on monthly targets, operating costs etc.

 

[DANFR180]

The world of cheap new cars are going to end by the end of the year. Get a cheap car now from December things will change. Manufacturers this year have targets to meet so will give money away. With the over supply and the drop in residual values and now the EU exit the volumes are going to be much lower which means less discounts.

I agree with the over supply, the problem with everyone moving over to leasing is what happens to the cars when the lease ends, they will become effectively worthless. The lower end of the used car market will always be there but that's not much good for a 20,30.40k car coming off a lease. Im sure they will think of something though!

 

[seatgraham]

Exactly - there will always be a marketing strategy

 

[pmmcbl]

New car registrations are much higher than expected even by SMMT predictions. With the high uptake of PCP and lease deals on 24 months the market can't cope. There aren't enough people out there to buy them and if they are they won't get the 3 or 4 year old cars, which will then kill their values. For example, there are VW dealers who don't want to sell used 12 to 24 month cars since it will be cheaper to sell new cars!

 

[YerMaw]

I've been hearing this "cheap finance on cars will be over by next month/quarter/year" for the last 5 years and it's still not happened. Anyone that thinks VW had no plan for all the batches of cheap R's they leased is kidding themselves on. Those R's are all through VWFS and there is no option to buy..... they want them back. You don't do that without a plan. I've heard rumours of the new business model being built on 2 smaller bites of the pie. Sell huge volume at minimal profit then sell/auction it used for a second small profit. The simple fact is that without cheap finance, Joe public can't afford new cars and without new cars there won't be any used cars. The industry would simply die.

Brexit and what the pound does, interest rates, lenders nervous about potential recession could all affect it. Europe won't want their massive car industry crumbling. Look at how the vw emissions fiasco was felt by Germany. Imagine bmw, Mercedes and the numerous other manufacturers with factories in Germany and Europe feeling the pinch of the arse falling out.

But anyway, back to the OP. Why be against leasing? A car will only lose money so unless you just keep them until they go to the scrap heap why not enjoy several years on the cheapest form of finance (whatever that may be). The cupra BE is available to lease for around £240pm and the golf R about £260 at the moment. That's including initial payment divided over the term. The PCP deals you quoted will cost thousands more over the term to drive the same car.

 

[pmmcbl]

There is a reason why VW want the golf R's back. They want to control the disposal of these units, if 1000's go out at the same time it will kill their values and the gti. They will store may of these and release them over a period of six months. They have around 800 units coming over the next few months and more to come.

I agree with the last post, lease in many cases is the best way to get a car, yes you don't own it but the money you would lose in the depreciation will pay for the contract in some cases.

 

[YerMaw]

The first batch of leased Rs have largely been returned and as you rightly point out, appear to be being controlled in how they hit the used market. I haven't spotted many blatant ex-lease models about for sale. i did see one at a dealership recently (bog standard 3 door in lease red) of the correct age and it certainly wasn't cheap. VAG aren't daft (apart from that whole emissions thing, that was pretty dumb).

 

[DANFR180]

the problem is much more general than just golf Rs though, more and more people are choosing to lease (because its the best option for many people) but the chances are when that lease ends another will be taken out unless ones circumstances change considerably (why would finance a used car when you could just lease another new one if the deal is as good or better?) so there is going to be a lot of 2-3 year old cars that still owe the manufactures a lot of money, at some point these cars are going to have to become more attractive to finance than a lease. In my opinion of course

 

[YerMaw]

I believe we are just using the golf as one example of a car that we almost definitely know has a higher percentage of leased examples than bought. It's the car everyone expects to be available for tuppence used as its a niche car that's been leased in high numbers.

I think car forums can give a tainted perspective of how people buy cars. If I think about the people I work with the vast majority drive used cars, I know one guy is on a PCP but doesn't really understand it and has every intention of paying the balloon and keeping the car and I've just switched one other guy on to leasing.

Even on places like pistonheads you will see people treated like lepers for not owning their car outright or buying a heavily depreciated German barge of some sort. Leasing has definitely grown in popularity but I still don't think it's how many own their cars. Just look at any car park and count the number of cars over 3 years old.

 

[DANFR180]

The majority of new cars now are sold on a lease or a PCP, very few are sold on traditional HP and even fewer are bought outright. Surely long term that is unsustainable ? Im not against Leasing at all, its a fine thing if it suits

 

[@JamesSM]

Surely Seat have just hugely shot themselves in the foot with this?

I was twitching between a Cupra 290 Black Edition - £1,000 deposit and £271 a month, or a Golf R £3000 deposit and £290 a month.

Now, I own a mk2 FR+ right now, so wanted to stick with seat. The 0% finance on the Seat kind of offset the huge depreciation (lower GFV) which was nice. Now that Seat's PCP is up at 4.9%, the extra 2k deposit on the golf seems like nothing for the improved interior, 4WD, residual etc. Now with £1000 deposit, the cupra deal is £303 a month. Eh...

I'm sorely disappointed that Seat have taken the 0% PCP away as the cupra was my choice due to some sense of brand loyalty and I don't want a lease.

I did a deal on 30th June including the 0% PCP - I was going back down to sign the paperwork and the dealer told me that I could do it the following day (1st July) if I wanted as they were quite busy on the 30th. They assured me the offer would still stand, which it did the next day.

I then wanted to make a slight change to the spec a couple of days later (add an extra option) but the dealer told me although the order had not been put through yet the 0% PCP had ended and that it may revert to the 4.9% if he amended the spec. Decided to pay for the extra option on my credit card instead!

I worked out that the 0% PCP saves me a little over £1700 in interest over the 42 months versus the 4.9% rate. Even with the £2000 deposit contribution versus the £500 I got on the 0% I am better off by just over £200. These calculations were based on me only paying the minimum deposit of £200 - obviously on the 4.9% the more deposit you pay then the less interest charges.