Originally posted by Paddy
View Post
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Collapse
You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:
- You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
- You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
- If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.
Logging in...
Previously on "PCP car finance, is optional payment included in credit amount?"
Collapse
-
Mal,
The balance you borrow is still the purchase prices less the deposit.
Interest is charged at the normal rates. Obviously a finance co could chose to apply different rates to different portions of the loan. Never seen it though.
Leave a comment:
-
Use the built in formula in Excel and you can calculate and compare the balloon payment yourself?
Leave a comment:
-
Originally posted by ASB View PostNot for the firsttime I am completely baffled.
it is very rare for dealers to finance anyway. They are simply introducers anyway.
whoever provides the finance pays the dealer. You pay them, you may or not make the final payment. The finance co ownsthe car until you pay it all (notwithstanding rules of 1/2 and 1/3). It is just like any other form of hp.
There is some interest due on the final payment money, of course, but only what it is costing the finance company to lose access to that sum for a few years as opposed to having t fund a three year loan deal from the bank for that amount, but they are making money from the deal itself which likely more than covers that fairly small amount.
But as has been said, buying the best car you can afford from your own pocket is the better idea.
Leave a comment:
-
Originally posted by malvolio View PostYes you do, but not as part of the finance with the dealer...
it is very rare for dealers to finance anyway. They are simply introducers anyway.
whoever provides the finance pays the dealer. You pay them, you may or not make the final payment. The finance co ownsthe car until you pay it all (notwithstanding rules of 1/2 and 1/3). It is just like any other form of hp.
Leave a comment:
-
What car is it ? Used car but the costs seem to be more than a brand new Jaguar.
Leave a comment:
-
Originally posted by malvolio View PostNo, it's outside the loan amount. All they do is take £15k (or whatever) out of the equation so you don't pay interest on it via a loan, hence the apparent savings. Your end-of-term options are give the car back (assuming you don't owe them money for exceeding the agreed total mileage), pay them £15k and keep the car, or trade it against a new deal using the £15k less the market value of the car (which may be less than £15k of course, meaning you also owe them something.)
PCP deals work if you keep using them as per the last option and hope the dealer gets their sums right. At some point you have to stop by paying off the final payment. Or better still, don't start in the first place.
Leave a comment:
-
Originally posted by ehhwhat View PostAs title, im looking at a used car with example details below
Deposit £5,000
Monthly fee £500+
Term 36 months
OTR price £30,000
Total amount of credit £25,000
Optional final payment £15,000
Apr 10.9%
My question is, is the optional final payment of £15,000 included in the credit amount of £25,000? So if i wanted to get a bank loan at a better apr i would just need to finance £10k over the specific term? And then i choose what to do with car at the end of the term?
I have always paid cash for a car in the range I an afford.
Have you got a small willy?
Leave a comment:
-
Q1. Yes it is.
Q2. No. You would then be comparing apples and pears.
That 15k final payment is related to the finance deal.
Leave a comment:
-
Originally posted by ehhwhat View PostAs title, im looking at a used car with example details below
Deposit £5,000
Monthly fee £500+
Term 36 months
OTR price £30,000
Total amount of credit £25,000
Optional final payment £15,000
Apr 10.9%
My question is, is the optional final payment of £15,000 included in the credit amount of £25,000? So if i wanted to get a bank loan at a better apr i would just need to finance £10k over the specific term? And then i choose what to do with car at the end of the term?
Leave a comment:
-
Hang on a minute... you're a contractor aren't you? Why do you need to borrow £10k? If you're £10k short for a £30k car, then buy a £20k car.
Leave a comment:
-
Originally posted by ehhwhat View PostAs title, im looking at a used car with example details below
Deposit £500
Monthly fee £50+
Term 36 months
OTR price £3000
Total amount of credit £2,500
Optional final payment £1,500
Apr 10.9%
My question is, is the optional final payment of £1,500 included in the credit amount of £2,500? So if i wanted to get a bank loan at a better apr i would just need to finance £1k over the specific term? And then i choose what to do with car at the end of the term?
Leave a comment:
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Leave a comment: