Reply to: PCP Car Frustration

[RichieBoy56]

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

[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/

[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.

[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.

[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.

[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.

[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.

[diseasex]

Bought the Wife's (tm) car as an ex-management one. 9 months old, 5k on the clock, £8k below list.
The best deal I could get was on HP, so I bought it that way.


The deal was 3 years free servicing and an extra £2k off the price.


So, I took it on HP. Got the 3 years free servicing vouchers when I picked the car up.
Of course, you have a 14 day cooling off period on a finance loan like that, so 10 days after getting the car, I paid it off. No interest, no hassle and over £600 saved from the servicing.

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

[WTFH]

Bought the Wife's (tm) car as an ex-management one. 9 months old, 5k on the clock, £8k below list.
The best deal I could get was on HP, so I bought it that way.


The deal was 3 years free servicing and an extra £2k off the price.


So, I took it on HP. Got the 3 years free servicing vouchers when I picked the car up.
Of course, you have a 14 day cooling off period on a finance loan like that, so 10 days after getting the car, I paid it off. No interest, no hassle and over £600 saved from the servicing.

[diseasex]

I tried to pay for a car with a cc , dealer said it would incur a 1.5% charge

how do you get around that one , as every dealer i spoke was the same ?

I couldn't buy on CC, I've taken barclay's CC to bank transfer @1% for a year. and that cash is making me 3% a year so i guess a bonus.

[quackhandle]

I tried to pay for a car with a cc , dealer said it would incur a 1.5% charge

how do you get around that one , as every dealer i spoke was the same ?

I could be incorrect here but I'm sure I read that you can pay £100 on the cc, then rest via BACS/cheque/etc and you'll still be covered, via the cc, for the full cost.

Was a while ago mind.

qh

[bobspud]

I drive a battered Mondeo. When I finish the house I'll buy something nice, but you don't put paving slabs in a Merc if you can avoid it.

I did the same when we renovated our place. we had a couple of snot wagons that I didn't mind destroying now we have nice toys.

I bought my 2 YO beemer for 20k, 16k miles. It was 39k new so someone paid 19k to drive only 16k miles and sold for half the value

Yes if you are not fussy about options and colour combinations finding an idiot to suffer the first few painful years of depreciation is a great way to go.

[unemployed]

Good man, you're learning. Did you put it on a credit card, then shift it to a 0% balance transfer one?

I tried to pay for a car with a cc , dealer said it would incur a 1.5% charge

how do you get around that one , as every dealer i spoke was the same ?

[LondonManc]

PCPs are a fantastic finance tool for car sales backers.


I can sell you a loan and give you the collateral to cover it, whilst also giving you the responsibility of maintaining said collateral.
Still, if the GFV is less than the market value of the car, it's pretty good. If the GFV is £4800, and the car's worth £4500, that's not great.

[diseasex]

Good man, you're learning. Did you put it on a credit card, then shift it to a 0% balance transfer one?

Actually yeah , that cash is sitting now and earning interest on 123, ready to repay the card at any time. Also use American express 1% cashback for pretty much every purchase