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Discussion Starter #1
As per one of my previous posts, I have just ordered a 3.0D L.

Was considering looking at PCP (Jaguar Privilege) via the dealership and a couple of posts have intmated that there is a different APR available for outgoing 2.7 than for new 3.0 models.

Has anybody got any more detail on this - want to be fore-armed when I go to dealership to ensure I get the best deal.

Any experience or advice about PCP would be great also - I have a significant portion (30% potentially) available for deposit but wasn't sure whether it was wise to sink it all into the PCP up front or go with a lower deposit.

Cheers
Payload
 

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I've just ordered the same car. If I remember correctly the 2009 XF PCP rate was 6.9% whilst the (new) 2010 XF PCP rate was 9.9%.

I'm sure someone else will have the actual figures.
 

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RichXF said:
I've just ordered the same car. If I remember correctly the 2009 XF PCP rate was 6.9% whilst the (new) 2010 XF PCP rate was 9.9%.

I'm sure someone else will have the actual figures.
Welcome to the forum RichXF :)
I have to say that this money business is well over my head :?
As you say, others will have a view. :D
 

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The website says 5.9% on 2009 Model Year... no information on 2010 but I'm sure you can get them to lend at (least at) the same rate given the market has fallen...

At such a low rate it makes sense to pay less up front, although of course the rate you get might depend on the size of deposit you're willing to place...

One thing to keep in mind when negotiating - Jaguar is getting it's cash for around 2% at the moment, so by lending it onto you, even at 5.9, it is making a tidy (and very low risk) profit.

If you do need a cheap lending source outside of the dealership - Zopa is an interesting concept offering loans around 7.3%. Personally I think you've most leverage with the dealer though...
 

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Hiya and welcome to the forum...
I just posted quite a lengthy post to you regarding PCP, but the post doesnt appear to have submitted, so I will write another but condensed as time is running on!!

Basically I said about how it would be silly to pay upfront full amount on a depreciating asset, as you start to lose money the day you drive it away. We nearly bought ours outright until we heard about PCP.
Jag PCP on 2.7d was (and maybe still is) 5.9%, whereas a 3.0d(s) is more like 9.9/10%; at least that is what our arrangement is.

We wanted to put a large deposit down, but 40% is the max Jag allows, so that is what we did, which gave us a reasonable balloon end payment and very good monthly payments for 3 years. We liked that we could then, after the 3 years, either hand over the car (recouping any money in the car value if owed), exchange for newer or different model, or just pay the balloon payment and own the car - option dependant on how much we liked the XF (and as it is, we like v much so will either keep or change for new). The XF atm is also being predicted a good market value forecast, which is good for the guaranteed minimum future value.

If you want more specifics, I can post more info; one thing though, Jag dont seem to be able to lower the APR on the 3.0d at this time, but the deals on the 2.7 are very good at 5.9, but if going for PCP we found that for a few quid more a month we could get the 3.0d and up the XF to a premium luxury as well as add a few extras :!: It really is worth getting all the details.

Again, welcome to the forum.....
 

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I've had Jaguar confirm the 9.9% rate on the new models - pretty disgusting with interest rates as they are although I didn't push to see if there's flexibility.

One thing to remember is if you go for PCP you never actually own the car (unless until after 3 years when you decide to pay the lump sum).

I'm interested to learn FX if they reduced the GMFV because of placing the larger deposit? This would seem a little odd?

XF FX said:
it would be silly to pay upfront full amount on a depreciating asset, as you start to lose money the day you drive it away
Yes, just to clarify that point... when you go for a PCP, your initial deposit and your monthly payments are basically paying 3 years worth of expected depreciation on the car. On top of this you have to pay interest. And you don't own the car for 3 years.

Basically there's a few rational reasons for taking a PCP rather than paying up front I can think of:

- You don't have enough cash to pay up front.
- You expect used car prices on the XF (or in general) to be considerably worse than predicted.
- You can earn more on the cash you keep in the bank (or elsewhere) than the % interest charge on the finance.

Oh or I guess...

- You love Jaguar or your dealer so much you want to help them out with a nice tip :)


Has anyone had any cracking PCP or other deals to write home about?
 

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I understand your statement, and although we had the cash upfront, we also have a very high monthly income and dont miss the extra few quid paid on interest; so leaves the cash in the bank for our little, and often, rainy days ;)

Just to add, as per our PCP agreement, the 9.9% APR isnt actually the rate for the full monies owed, its actually 4.82% on the monthly payments over 3 years and 9.84% on the balloon payment at the end (once you get the actual agreement in writing and read it through properly!). The residual value of the car is about £22,000 after 3 years but the agreement pitches it at 14500 as a final payment, but then it is all forecasting and we dont really know what the final value will be; I guess this is done so makes an upgrade or trade in for new car attractive.

Basically, for ours we paid 40% deposit (max allowed unfortuantely), monthly payments over 3 years for nigh on 350 and optional final purchase fee of just over 14500. Ok, at 3 year end, it does cost a bit more to get the car than paying outright, that goes without saying, but its less financial risk in 'todays climate'.

For a thirty-something couple, with one person being lady of leisure ;) , its sound for us :D
 

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Very interesting!!! The car is forecast to be worth £22k and Jaguar pitch it at £14.5k.

By doing that, they transfer virtually all the risk of excess depreciation onto the customer. Given that depreciation risk is a key reason a dealer will give to sell a PCP deal, that's a touch naughty.

XF FX said:
it does cost a bit more
Hmmm true, just over £5k more in your case. Possibly a bit more in my case :eek: But then the rainy day argument is a good one.... ahhh decisions!!! :geek:
 

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no, they havent forecast at 14500, that is just the end value that we can pay off to own... its just a value, not really what they propose the car to be worth; its just a minimum they will give you...if the car is worth 22000 then that is what you will get on exchanging in... if however, the car was only worth 12000, you will still get 14500.

As for it costing £5k more, then yes it would cost someone that extra if they go all the way and pay off the car at the end (luckily we got a better car deal and its only costing us £3k) :) ..and rainy days, well, this is UK, and we can now afford to skip the country a few more times this year, than we would have after buying a £40k car in one go :D ;)
 

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Discussion Starter #10
Very interesting discussion - by the sounds of it I reckon that I am better off paying as much deposit as possible to both:

a) reduce monthly commitment
b) pay less overall in interest

...just like a traditional loan
 

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Exactly that, Payload. We would have liked to put more, but 40% is max. It works for us anyway. Everyone has there preference, this just happened to be ours.... roll on another rainy day to book Florida & Caribbean again ;)
 

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Payload said:
Very interesting discussion - by the sounds of it I reckon that I am better off paying as much deposit as possible to both:a) reduce monthly commitmentb) pay less overall in interest...just like a traditional loan
Exactly true... unless you can earn more on your cash than the % on the finance. Not easy at the moment, but do-able.
XF FX said:
costing £5k more, then yes it would cost someone that extra if they go all the way and pay off the car at the end
Just to clarify that - it makes no difference whether you decide to pay off the car, hand it in, or get a new one after 3 years; you've already paid the extra £5k in interest.
XF FX said:
they havent forecast at 14500, that is just the end value that we can pay off to own... its just a value
Very true! However, car dealers sell PCP partly based on the fact you get a "guaranteed minimum future value", as though you're getting a valuable guarantee against used car prices falling unexpectedly fast.

If the car is forecast to be worth £22k, that means the customer is taking on the first £7.5k of exceptional depreciation risk. Short of a monumental collapse in prices, Jaguar is sitting pretty, and the guarantee is far from valuable.

I'd be interested to know how flexible the GMFV is... personally I'd advocate PCP buyers push for as high a GMFV as possible. You'll pay a little more interest overall, but you will actually receive genuinely valuable protection against used car prices falling... and you'll lower your monthly payments... which means even more holidays in the Caribbean :)
 
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