Qashqai on PCP. Gauranteed final value

General Information Forum for the J11 QashQai. (Formerly Order Forum)
gibby9
Posts: 8
Joined: Thu Jul 30, 2015 8:39 am

Post by gibby9 »

I've been looking into buying a used Qashqai, however been quoted for a new 1.2 Acenta with Smart Vision pack at around 15% off via Car Wow. This offer is based on taking out Nissan's PCP finance.

As I understand it at the end of the three years I would have the option of buying the car at the balloon payment price. Or to trade in on a new deal using any difference towards a deposit.

My concern is that the balloon payment is around £11,000 and I dont know how much the car may be valued at as trade in in three years time. Therefore I may be left with no deposit.

Does anyone have experience of PCP with Nissan and how generous dealers are when looking at a new deal?
2014 Acenta Premium - Gunmetal Grey

Deleted User 1571

Post by Deleted User 1571 »

The balloon payment [option to buy] seems to be a bit high at £11,000 if you wish for some residual value for the next car. It sounds like it is half the list price of a new car at least, which doesn't leave much potential for any residual equity.

To be safe I would like to pay off at least two-thirds of the new value by the end of the third year, leaving a maximum ballon of one-third of its new value. The car is bound to be worth 40 to 50% of its new price at that time.
AlleyCat
Posts: 571
Joined: Thu Feb 20, 2014 8:56 pm

Post by AlleyCat »

To put it into context our dealer has a 14 plate 1.2 QQ Acenta with S/V pack up at just under £15K (done 9K miles).
As Quacker has already stated I'd suspect £11K is going to give you very minimal equity sadly.

Edit: CAP are predicting the majority of J11 QQ's to retain 50% value over 3 years (@30K miles completed).
Nissan no more...
gibby9
Posts: 8
Joined: Thu Jul 30, 2015 8:39 am

Post by gibby9 »

Thanks, that's what I thought.

I have no experience with PCP having bought previous car with a normal bank loan at a lower price. Can the balloon payment be reduced by increasing the deposit/monthly payment?

I take it if planning on handing back after 3 years a higher balloon payment is best, however if keeping or trade in a lower balloon payment is better.

I mqy be best going for a 14 plate at a lower price, however the car wow price is tempting for new and shiny.
2014 Acenta Premium - Gunmetal Grey
AlleyCat
Posts: 571
Joined: Thu Feb 20, 2014 8:56 pm

Post by AlleyCat »

The general view on PCP or any lease type is to chase the deal and not the car.
It's quite rare to be able to work a deal that makes sense on a "must have" car as the finance company knows what will shift itself with little incentive.

The best initial PCP deals tends to be on high end / high price vehicles, things going end of life and/or stuff that isn't shifting.
The QQ doesn't really fall into those categories sadly.

lingscars.com ( warning: the website is eye destroying) is usually a good way of working out if a car is going to be available on a decent deal or not.

Two examples:

3+35 (3 months deposit)

1.2 DIG-T (1198cc) Petrol 115bhp Acenta Smart Vision Pack Manual Flat 129g 3+35 10k £243.25

Over 3 years that would cost you :- £9,242 (approx).

3+47 (so 3 months deposit)

1.2 DIG-T (1198cc) Petrol 115bhp Acenta Smart Vision Pack Manual Flat 129g 3+47 10k £214.68

Over 4 years about £10,750.

I don't know what this particular model now retails at but how does that compare to your 11K Balloon payment?
Nissan no more...
BWA
Posts: 36
Joined: Wed Sep 23, 2015 10:48 pm

Post by BWA »

Totally agree with chasing the deal once you've made up your mind on what car to get. I picked my new and shiny tekna 65 plate up yesterday and got it on a PCH deal rather than a PCP. The reason being most people end up NOT buying the car at end of PCP term so ignore the balloon value and concentrate on lowest monthly cost.
I did just that and got a 3 year PCH deal at about £60 cheaper per month than best PCP deal I could find and only paid 2 months deposit. Happy days.
At the end of the day if after term you did want to buy the car you could either speak to the finance company or failing that buy one a bit newer, few less miles than yours from the main agent, they will always cut a deal on used cars and would, I bet, be cheaper than your final balloon payment
65 plate Tekna 1.5 DCI with panoramic roof, magnetic red, space saver spare wheel kit
rod9669
Posts: 166
Joined: Thu Jul 16, 2015 10:53 pm

Post by rod9669 »

SAme as above - got a 3+23 dean on a ntec+ 1.5 for £287 a month - 12500 mpa but only 4.5p/mile penalty
big_boz
Posts: 22
Joined: Mon Aug 17, 2015 10:58 am

Post by big_boz »

With the GFV so high you might be better off leasing. Lings cars as quoted above is lease not PCP or finance, so you never actually own the car, its highly likely that they might offer to sell you the car at the end, but not guaranteed.

I always lease and the OH's QQ is no different. Its a non met Ntec+ 1.5DCI manual completely standard. negotiated it down to £255 on a 3+35 with a £60 admin fee giving the total paid over the 3 years of £9,750 on a 10k pa lease with 4p excess per mile. At that price I was struggling to get it any lower.

Consider that to buy it new and drive £30k miles (ok not taking into account any discount) it would have been c£24.5k, then lets say it retains 50% of its value, that is still going to have cost c£12k in depreciation, so significantly more than the overall cost to lease. If the lease company sells me it at the end for that much its going to have saved me a couple of grand.....not many forms of financing a car result in you paying effectively negative interest.

I have repeatedly operated the above formula on cars and it is consistent, only ever had one out of 5 that wasn't offered to me at the end for effectively book trade price.

Would be interested to know the full deal on the OP's quote, so what is the global cost of the car over the 3 years pre balloon.......
65 Plate Quashqi 1.5DCI Ntec+, 15 Plate Passat GT, 1972 Vw Beetle, 02 Plate Alfa 147
AlleyCat
Posts: 571
Joined: Thu Feb 20, 2014 8:56 pm

Post by AlleyCat »

big_boz wrote:
Would be interested to know the full deal on the OP's quote, so what is the global cost of the car over the 3 years pre balloon.......
That's really where i was hoping to get to using lings lease as a cost comparison.
Leasing does have some pitfalls but it's quite often a good way to work out if a deal of any sort is worth doing.
Nissan no more...
big_boz
Posts: 22
Joined: Mon Aug 17, 2015 10:58 am

Post by big_boz »

AlleyCat wrote:
big_boz wrote:
Would be interested to know the full deal on the OP's quote, so what is the global cost of the car over the 3 years pre balloon.......
That's really where i was hoping to get to using lings lease as a cost comparison.
Leasing does have some pitfalls but it's quite often a good way to work out if a deal of any sort is worth doing.
I have no problem with people having their own opinion on things so please don't take this as a dig, but what "pitfalls" do you see with leasing over PCP, or indeed any type of car finance?

I hear this from people all the time and I get the impression that people in the main have some sort of inherent fear of leasing, just be interested to know what you (or anyone else who wants to chip in) see as the down sides.

To me it is the ONLY way I would ever "buy" a new car.
65 Plate Quashqi 1.5DCI Ntec+, 15 Plate Passat GT, 1972 Vw Beetle, 02 Plate Alfa 147
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