Skoda Karoq 1.6 TDi SE £199+48x£199 4 year PCP deal £9751 at Richmond Motor group
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Skoda Karoq 1.6 TDi SE £199+48x£199 4 year PCP deal £9751 at Richmond Motor group

25
Posted 9th Sep
Good 4 year PCP deal on a Skoda Karoq with a very low £199 deposit.
Only 5,000 miles pa, but should be plenty of equity left at the end to cover the balloon payment of £10534.50
Excesd mileage is 7.4p so works out around and extra £30/mo if you need 10,000miles pa.
Balloon payment required if you want to keep the vehicle at the end of the term.
Seems to be a competitive alternative to the lease deals if you'd like to hold on to the car for a longer period



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The Škoda Karoq is a stylish and compact SUV with a spacious interior and the latest technology. Its carefully sculptured contours leaves a powerful impression, creating a unique silhouette. A panoramic sunroof will let sunlight into the cabin as well as fresh air, keeping you and your passengers comfortable. The Karoq features premium technology, instantly putting you at ease. A virtual cockpit, interior light pack, electric seats and an amazing sound system are just a few of these features.

The Koraq is perfect when it comes to saving space. The boot is completely adaptable, and will be able to accommodate to all your needs. It is also completely electrically operated, so can be opened or closed just by the touch of a button. With features such as lane assist, rear traffic alert, adaptive cruise control and blind spot detect, you can be sure of a relaxing, effortless drive. On automatic models, direct shift gearbox is put in place to adapt to the way you drive, reducing the strain on the engine and delivering a smooth and effortless drive.
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I was made aware today that PCP deals are suitable for most, especially those who are not 100% sure on their choice of car where there is a dealership discount for specific individual scenarios and that I have no idea what I am talking about.
So drive this for 4 years for just under £10k. How does this differ to leasing ? Do I need to put down a hefty deposit. How much do these depreciate in a 4 year period ? Only 5k a year..
HeadphoneGeeza09/09/2019 22:47

I was made aware today that PCP deals are suitable for most, especially …I was made aware today that PCP deals are suitable for most, especially those who are not 100% sure on their choice of car where there is a dealership discount for specific individual scenarios and *** that I have no idea what I am talking about. ***


Nice to see someone admit that for a change...
I calculated recently that £200 per month is break-even price for me (2nd hand vs PCP), so this is as good as it gets (if only it was same price for £36 months and 8k p.a).
I doubt there would be equity left in this after 4 years personally, monthly payments good but you are stuck with it for 4 years, and a year after the warranty has expired.
SFconvert09/09/2019 23:43

I doubt there would be equity left in this after 4 years personally, …I doubt there would be equity left in this after 4 years personally, monthly payments good but you are stuck with it for 4 years, and a year after the warranty has expired.


Why is it so bad to be stuck a year after the warranty ? Serious question
wboy8409/09/2019 23:50

Why is it so bad to be stuck a year after the warranty ? Serious question


You wanna be paying out for possible repairs on a car your still paying off? What you think happens if a very expensive part goes wrong after the warranty. U can’t just leave it and give it back to them. You’d have to pay to repair it then give it back having spent 10k and whatever on the repair. If you don’t get why it’s a issue maybe leasing and pcp isn’t for you!!
Maybe the miles is ok for some. But 5k miles a year is crazy to be spending £200 a month on 416 miles a month 50p a mile .
wboy8409/09/2019 23:02

So drive this for 4 years for just under £10k. How does this differ to …So drive this for 4 years for just under £10k. How does this differ to leasing ? Do I need to put down a hefty deposit. How much do these depreciate in a 4 year period ? Only 5k a year..


Just a £199 deposit.

I personally prefer a PCP to a lease for a number of reasons, but there are many who will prefer a lease.
Advantages of a pcp:
1. You have the option to buy the car at the end of the term.
2. You can get out early by selling the vehicle although depending on the depreciation vs the amoint paid, you may have to pay a hefty sum to make up the difference. I believe these deals are structured such that somewhere just under the 3 year mark is the break even.
3. mileage is potentially irrelevant on a PCP as the only time it's a consideration is if you 'give the vehicle back'. A well structured pcp deal should theoretically give you equity in the car at the end of the deal such that 'giving it back' is unlikely to be the financially sensible option.
4. Similarly, minor cosmetic damage etc is only a consideration of you decide not to keep the vehicle or with regards to its value for disposal at the end of the term.
Advantages of a lease:
1. Typically lower monthly payments (although not in this case, which is why I believe this deal is so good)
2. Typically a shorter term - allows you to change car more often.
3. Sometimes will include maintenance and or car tax

There may be company car tax considerations too, but as a private buyer I've never looked into these..
Edited by: "mgowans" 10th Sep
SFconvert09/09/2019 23:43

I doubt there would be equity left in this after 4 years personally, …I doubt there would be equity left in this after 4 years personally, monthly payments good but you are stuck with it for 4 years, and a year after the warranty has expired.


Hard to know as there aren't any 4 year old Karoq's around yet. Looking at 3 year old Seay Ateca's though, I recon the equity break even will be at around year 3...
y_am_I_buying_this10/09/2019 01:32

Maybe the miles is ok for some. But 5k miles a year is crazy to be …Maybe the miles is ok for some. But 5k miles a year is crazy to be spending £200 a month on 416 miles a month 50p a mile .


If you double the mileage to 832/mo, payment is £230, so drops to 28p/mile. The more miles covered, the cheaper it gets.
Also, don't forget on a PCP deal, the mileage only comes into play at the end of the term and if and only if you decide to give the vehicle back and walk away..
y_am_I_buying_this10/09/2019 01:29

You wanna be paying out for possible repairs on a car your still paying …You wanna be paying out for possible repairs on a car your still paying off? What you think happens if a very expensive part goes wrong after the warranty. U can’t just leave it and give it back to them. You’d have to pay to repair it then give it back having spent 10k and whatever on the repair. If you don’t get why it’s a issue maybe leasing and pcp isn’t for you!!


Ok that's a big issue so staying within warranty is crucial. Thanks for heads up
wboy8410/09/2019 07:19

Ok that's a big issue so staying within warranty is crucial. Thanks for …Ok that's a big issue so staying within warranty is crucial. Thanks for heads up


If the warranty concern is that great, you can extend the Warranty with Skoda for 4 years and up to 80,000 miles for a one off payment of £300
Because you could have to fork out for broken bits of the car or bits that have worn out. You'll definitely need to replace the tyres in year 3 or 4 if you have done 8 or 10k pa. They aren't cheap on these cars. You shouldn't have other major issues but you *could* have if you are unlucky.
If you look at lease costs, the extra cost of a 2 year lease versus a 3 or 4 year one is generally negligible. Ie a couple of quid a month.
wboy8409/09/2019 23:50

Why is it so bad to be stuck a year after the warranty ? Serious question

Edited by: "SFconvert" 10th Sep
SFconvert10/09/2019 07:47

Because you could have to fork out for broken bits of the car or bits that …Because you could have to fork out for broken bits of the car or bits that have worn out. You'll definitely need to replace the tyres in year 3 or 4 if you have done 8 or 10k pa. They aren't cheap on these cars. You shouldn't have other major issues but you *could* have if you are unlucky.If you look at lease costs, the extra cost of a 2 year lease versus a 3 or 4 year one is generally negligible. Ie a couple of quid a month.


Thanks for explanation. Crystal clear
mgowans10/09/2019 05:56

Just a £199 deposit. I personally prefer a PCP to a lease for a number of …Just a £199 deposit. I personally prefer a PCP to a lease for a number of reasons, but there are many who will prefer a lease.Advantages of a pcp:1. You have the option to buy the car at the end of the term.2. You can get out early by selling the vehicle although depending on the depreciation vs the amoint paid, you may have to pay a hefty sum to make up the difference. I believe these deals are structured such that somewhere just under the 3 year mark is the break even.3. mileage is potentially irrelevant on a PCP as the only time it's a consideration is if you 'give the vehicle back'. A well structured pcp deal should theoretically give you equity in the car at the end of the deal such that 'giving it back' is unlikely to be the financially sensible option.4. Similarly, minor cosmetic damage etc is only a consideration of you decide not to keep the vehicle or with regards to its value for disposal at the end of the term.Advantages of a lease:1. Typically lower monthly payments (although not in this case, which is why I believe this deal is so good)2. Typically a shorter term - allows you to change car more often.3. Sometimes will include maintenance and or car taxThere may be company car tax considerations too, but as a private buyer I've never looked into these..


Please don"t fall for the "you can get out early" with a PCP. It never works like that and is structured so you can't. I know someone going through a painful divorce trying desperately to get out of 2 x 3 year PCP deals about half way through their terms. Her only real option is to continue on both. She can't get out early without paying all the remaining payments, minus a very slight saving for interest.
Often a dealer will contact you and offer you a new "deal" 6 months or so before your PCP is up, but they clear the outstanding amount and any negative equity as part of the discount on the new vehicle. You don't really "get out early".
With PCP too, you are always carrying a substantial loan amount (due to the balloon /final payment) so pay the capital off very slowly compared to an HP or straight loan.
SFconvert10/09/2019 08:08

Please don"t fall for the "you can get out early" with a PCP. It never …Please don"t fall for the "you can get out early" with a PCP. It never works like that and is structured so you can't. I know someone going through a painful divorce trying desperately to get out of 2 x 3 year PCP deals about half way through their terms. Her only real option is to continue on both. She can't get out early without paying all the remaining payments, minus a very slight saving for interest.Often a dealer will contact you and offer you a new "deal" 6 months or so before your PCP is up, but they clear the outstanding amount and any negative equity as part of the discount on the new vehicle. You don't really "get out early".With PCP too, you are always carrying a substantial loan amount (due to the balloon /final payment) so pay the capital off very slowly compared to an HP or straight loan.


Agreed you carry the full loan amount with a PCP, but I disagree when you say you can't get out early. The PCP is effectively a secured loan, so you should be able to easily get out. You would have to pay any difference between the value you get for selling the car vs the outstanding loan amount though I agree. Depending on where you are in the agreement, that may be more or less than what you owe on the PCP agreement. I got out of a Mercedes C class PCP at the end of year 2 of a 4 year agreement and broke even. On a previous 3 year Qashqai PCP I got out just before the end and pocketed about a grand..

My understanding is that these are typically structured such that the get-out-free point is around year 3 on a 4 year agreement..
There have been some two year karoq leases posted which were around £5k which makes much more sense. Slightly more expensive in lease payments over 4 years (2 times 2 year lease) but you get a brand new car again after two years and no worries about warranty, MOT or changing tyres.
mgowans10/09/2019 08:17

Agreed you carry the full loan amount with a PCP, but I disagree when you …Agreed you carry the full loan amount with a PCP, but I disagree when you say you can't get out early. The PCP is effectively a secured loan, so you should be able to easily get out. You would have to pay any difference between the value you get for selling the car vs the outstanding loan amount though I agree. Depending on where you are in the agreement, that may be more or less than what you owe on the PCP agreement. I got out of a Mercedes C class PCP at the end of year 2 of a 4 year agreement and broke even. On a previous 3 year Qashqai PCP I got out just before the end and pocketed about a grand..My understanding is that these are typically structured such that the get-out-free point is around year 3 on a 4 year agreement..


The final payment is £10.5k, it's around a £22k list price. That's a residual value of nearly 50% at 4 years. There aren't many cars that high at 3 years, let alone 4. And this is a diesel. I can't see this will ever be in equity. They have been discounting these a lot lately. Still, £199 a month is still good though if you are happy with a 4 year tie in.
Ive just handed a car back after a 4year PCP deal and because it was a diesel it was in so much negative equity i had no choice but to hand it back, the dealership washed their hands of it... Once bitten and all that...
Diesel market down compare residual values compared to a petrol some cars there is up to £2000 difference.

I had had this engine in an ateca. Was ok just not enough torque especially for motorways did achieve 55-60 mpg and I’m not lightest of foot overall I think better off with a 1.5 TSI petrol as residual value will be better and probably get a better deal.

This is is only a basic SE don’t think these come with CarPlay not sat nav you need SE technology for that
HeadphoneGeeza09/09/2019 22:47

I was made aware today that PCP deals are suitable for most, especially …I was made aware today that PCP deals are suitable for most, especially those who are not 100% sure on their choice of car where there is a dealership discount for specific individual scenarios and that I have no idea what I am talking about.


Lool
SFconvert10/09/2019 08:08

Please don"t fall for the "you can get out early" with a PCP. It never …Please don"t fall for the "you can get out early" with a PCP. It never works like that and is structured so you can't. I know someone going through a painful divorce trying desperately to get out of 2 x 3 year PCP deals about half way through their terms. Her only real option is to continue on both. She can't get out early without paying all the remaining payments, minus a very slight saving for interest.Often a dealer will contact you and offer you a new "deal" 6 months or so before your PCP is up, but they clear the outstanding amount and any negative equity as part of the discount on the new vehicle. You don't really "get out early".With PCP too, you are always carrying a substantial loan amount (due to the balloon /final payment) so pay the capital off very slowly compared to an HP or straight loan.


Sorry but you are wrong. If she has paid 50% of the total cost of the car then she can just hand it back and walk away.. i have done this twice...It all depends on how much deposit she paid up front and the APR. Otherwise she should ask for a settlement figure and then go check out what we buy any car / Evan's hawshaw are offering..
Edited by: "KCooperman" 10 h, 22 m ago
KCooperman15/09/2019 20:02

Sorry but you are wrong. If she has paid 50% of the total cost of the car …Sorry but you are wrong. If she has paid 50% of the total cost of the car then she can just hand it back and walk away.. i have done this twice...It all depends on how much deposit she paid up front. Otherwise she should ask for a settlement figure and then go check out what we buy any car / Evan's hawshaw are offering..


How exactly are you likely to have paid off over 50% of the car's cost on a PCP just 18 months into it? The gfv itself is often close to 50%.
As for the deposit, yes correct if she'd paid a significant deposit, but she didn't and most people don't, so I'm not sure how you can say I am "wrong", you can sometimes get out early, but this is the exception (and only if you've paid a large deposit or the plan is oddly structured or high interest rates) not the rule, but it doesn't stop dealers (and people on forums) implying to customers that they can "get out early", it's a form of mis-selling imo.
And anyway, paying back over 50% of the list price of a car and then just handing it back after 2 or 3 years is hardly good financial sense. You've paid for over half a car and now own no car at all, brilliant. May as well just lease lol.
Edited by: "SFconvert" 11 h, 53 m ago
SFconvert15/09/2019 21:17

How exactly are you likely to have paid off over 50% of the car's cost on …How exactly are you likely to have paid off over 50% of the car's cost on a PCP just 18 months into it? The gfv itself is often close to 50%.As for the deposit, yes correct if she'd paid a significant deposit, but she didn't and most people don't, so I'm not sure how you can say I am "wrong", you can sometimes get out early, but this is the exception (and only if you've paid a large deposit or the plan is oddly structured or high interest rates) not the rule, but it doesn't stop dealers (and people on forums) implying to customers that they can "get out early", it's a form of mis-selling imo.And anyway, paying back over 50% of the list price of a car and then just handing it back after 2 or 3 years is hardly good financial sense. You've paid for over half a car and now own no car at all, brilliant. May as well just lease lol.


I mean that you are wrong in that you can easily get out of pcp, but I never said it would be cheap!! If it was then you'd have everyone changing ever few months as soon as the new car smell wears off....so obviously it is structured that way.

As for handing it back early, if the car is worth less than what is left in monthly payments then handing it back early makes more sense - particularly if you have no intention of keeping it at the end of term. I doubt many people have the money to pay the balloon payment anyway...

Fyi - I do lease now as it is more cost effective if you want to change every 2/3 years. I will buy a car to own when I retire...

PCP is just leasing with the option to buy at the end.
Edited by: "KCooperman" 10 h, 35 m ago
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