PCP Car Frustration

[bobspud]

Nice trick. "Give me a discount because i'm taking it on finance" - they will think they can make money on interest and will give you reduced price, which then you repay. Gonna use it

Just as long as you remember that as of this year your 20k cash will cost you roughly 30k including the taxes so a 5k interest bill over 3 years will make better sense in future.

[BlueSharp]

I had to get another car this year as the old one was about to die. I sorted out a loan from one of the supermarkets at 3.2%. I have the cash to pay off the loan in the business but this way it keeps me under the higher rate threshold and I don't have to take a tax hit.

If things go wrong I sell the car and pay most off the loan and drive the run-around.

[RichieBoy56]

The OP should Google "Voluntary Termination". This allows return of the vehicle at any time after the half way payment point with no deduction for condition or excess mileage.

[Willapp]

The OP should Google "Voluntary Termination". This allows return of the vehicle at any time after the half way payment point with no deduction for condition or excess mileage.

Yes but exercise caution here. I had considered doing the same with my PCP car until I spoke to another dealer who pointed out that this puts a bad mark on your credit score as you're effectively aborting the finance agreement. Having said that, a quick Google search suggests that it doesn't affect your actual score but they can put a note on your credit history that you've done a VT which can then affect your ability to PCP in the future.

Also I believe your statement about "no deduction for condition" isn't actually true and the car has to be in good order otherwise they can and will make deductions for it - makes sense otherwise you could basically trash it and then hand them back a worthless piece of metal.

[v8gaz]

Yes but exercise caution here. I had considered doing the same with my PCP car until I spoke to another dealer who pointed out that this puts a bad mark on your credit score as you're effectively aborting the finance agreement. Having said that, a quick Google search suggests that it doesn't affect your actual score but they can put a note on your credit history that you've done a VT which can then affect your ability to PCP in the future.

Nope, done it several times. no impact.

[WTFH]

The OP should Google "Voluntary Termination". This allows return of the vehicle at any time after the half way payment point with no deduction for condition or excess mileage.

False...
http://www.thecarexpert.co.uk/car-fi...nation-pcp-hp/

[RichieBoy56]

Agreed that you cannot trash the car but normal wear and tear is ok. I speak from experience having done this.