PCP Car Frustration

[diseasex]

I would never buy PCP. At least in lease you pay only for deprecation whereas in pcp you pay more so you will have to pay even more balloon.

[DimPrawn]

Personally, I would be inclined to call the Finance company, who will likely have a more reliable view, than the/a dealer who may well have different motives....

What I said. Guess for a week, or pickup phone and have definitive answer in 10 minutes.

It's like techies at work. Guess something vs asking person directly or via phone call.

No we will guess for a week, put a page on Confluence, ask our buddies on @rsebook, Tweet about it. FFS WTF is wrong with everyone!!!!!!

[quackhandle]

To the OP when you did signed up for all this 3years a go did the contact not say this will be your final(ie balloon) payment should you wish to keep the veeehical?

Mine was 7k paid it off in Jan, moved it to an interest free credit card for 18months.

As people have said, it should be in B&W, nothing to do with the dealer, it's the Finance company you should be dealing with.

qh

[kaiser78]

To the OP when you did signed up for all this 3years a go did the contact not say this will be your final(ie balloon) payment should you wish to keep the veeehical?

Mine was 7k paid it off in Jan, moved it to an interest free credit card for 18months.

As people have said, it should be in B&W, nothing to do with the dealer, it's the Finance company you should be dealing with.

qh

Yes the contract clearly stated that the final/balloon payment would be £x, which is why I was surprised to read that this will now be £y, and hence me questioning.
Regardless though, the car valuation is less than the final payment, albeit based on the trade valuation, which makes it not worth buying outright anyway I guess.

[Old Greg]

Pickup phone ----> Ring dealer now ------> Question answered.

Jeez, what's wrong with people these days? Is it a Facebook generation thing?

[unemployed]

My 3 year PCP car offer comes to an end in Aug and I have received a letter from the dealer around what to do next.

When the deal was agreed, my guaranteed future valued was stated. However in the letter received it states that I will owe more on the car than the gfv, making the final repayment higher than the gfv. I thought gfv is the same as what is owed at the end of the term ? What’s more the valuation on the car is stated as lower than the gfv. So I would be paying more than the gfv if I decided to buy outright, for a car that is worth less than the gfv. This doesn’t seem right.

This is the first PCP deal I have done, and the intention was to pay off the balance at the end of the 3 years to then keep the car. I thought that the gfv would be a fair price that would make it worthwhile – am I just in an unfortunate position, or is the dealer making out that it is not worth buying out the car and taking out another PCP offer (which I won’t) ?

I am meeting the dealer this week to understand the numbers - has anyone else faced this situation before ?

i thought forum members are minted , pcp ???

[WTFH]

I would never buy PCP. At least in lease you pay only for deprecation whereas in pcp you pay more so you will have to pay even more balloon.

Um, false.


At least with PCP you have the option to buy the car at the end. with leasing (aka PCH) all you are doing is renting a car, the idea that you "pay more" and "pay even more" is false, probably sold to you by a marketer.


PCH is like renting a house. You don't have any equity in it. You put down a deposit, pay your monthly sums and then have nothing. At least with PCP you have the option of a deposit for the next car or buying the current one outright.


Take a look at Lings Cars the next time you are thinking of buying an BMW M3, maybe you'll understand better.

[diseasex]

Um, false.


At least with PCP you have the option to buy the car at the end. with leasing (aka PCH) all you are doing is renting a car, the idea that you "pay more" and "pay even more" is false, probably sold to you by a marketer.


PCH is like renting a house. You don't have any equity in it. You put down a deposit, pay your monthly sums and then have nothing. At least with PCP you have the option of a deposit for the next car or buying the current one outright.


Take a look at Lings Cars the next time you are thinking of buying an BMW M3, maybe you'll understand better.

Looking at PCP deals you pay over 36months the value of the car + baloon payment.
Its all down to a deal though...

[bobspud]

Its important to remember the finance company are separate from the dealership (even if they are part of the same group) so handing the car back to say Blackhorse is not the same as trading it in at the dealers.

The final finance figure is not the same as the market value.

I'm guessing that your letter is part of a ploy to try and get you ready to buy your next car. Years ago I had a SAAB on finance. The balloon payment for the car was 11500 at a point when the market was selling them for 4.5k I told the finance company to keep the car as it was pointless to keep it at the settlement figure they had suggested. A few seconds later I had a 50% discount on my final payment because the last thing the finance company wanted was their car back. But its really down to what the market is like for your car right now. If your car is special or is a model selling well then don't expect the finance company to mind taking your car back and selling it for a profit at auction.

In the ideal world your final car payment will be less than what it would cost if you were buying that car off a forecourt on the same day. But sometimes it doesn't work out like that. More likely is that if you leave things alone when you come to the end in August your final trade in will look pretty poor in order for their next offer to sound plausible.

If you don't want a crappy shock I would take a look on Auto-trader and see what it would cost to buy a car like yours today. If you are lucky it will be more than what you actually owe them and when you see the dealer you can force their hand or convince them to use the margin as a way to try and convince you its better to get another one.

However your Guaranteed Future value should be exactly the same figure that was on your finance document on the day you picked the car up.

The only time the figure to hand the car in rises is when you under estimate the milage that you will do and then a standard milage cost will be added to the final price as the car as part of your hand back figures. If it is in a worse condition than expected they can also start making changes for that as well. But remember that fair wear and tear costs only come into force is if you give it back to the finance co. If you trade it in the finance company never sees the final milage they just get a settlement check from the dealer. (Some of the less professional sales monkeys might tell you that the 16p a mile still applies to give them a better margin on your car.)

What I would expect is that when you see the dealer they will find a magic way to make a new car look like a good idea...

[WTFH]

Looking at PCP deals you pay over 36months the value of the car + baloon payment.
Its all down to a deal though...

As I said earlier, a marketing person has sold you that idea.


Make the balloon payment = own the car. Don't make the balloon payment = use the equity as a deposit on your next one.
With PCH, you have nothing but monthly outgoings for something you will never get any equity or ownership from.


As you say, it's down to the deal, but earlier you also said you'd never do PCP because you paid more twice. So either you learn to deal or you accept that making grandiose sweeping statements such as "I would NEVER do something" makes you look a tad foolish/misguided and arrogant.