Reply to: Car PCP - What am I not understanding?

[gables]

Another vote for lingscars here, the customer service was exceptional. Maybe its who she deals with but for any extra mileage I'll only get charged 2.7p whereas the dealers I went into were nearer the 8p mark. They (dealers) also took a sharp intake of breath when I mentioned that I needed a 20k/year deal.

[LondonManc]

Have a careful look at your credit agreement, if it's regulated by the 1974 consumer credit act then it should have a termination clause. Once you have paid half the agreement amount you can hand the goods back with no prejudice. There is an Industry standard for auto wear and tear (Google it). If you don't have the detailed credit agreement then ask for it, they don't like you seeing the termination bit. I've done this with three cars and my credit rating is unaffected.

That's the one thing I don't like about PCP - you don't have any equity in the vehicle. It's an absolute win-win for the car dealers, who are in effect providing you with both the bank loan and the collateral that covers it.

[Gibbon]

I'm on my third PCP vehicle and to be honest I'm not sure I'll be doing it again. At first it seems like a great way of getting into a new vehicle, and having had brand-new company cars up to that point I was reluctant to go back to second hand, but I'm now half-way through a 4 year deal with a car that's currently worth less (by about £2k) than the outstanding debt.

Have a careful look at your credit agreement, if it's regulated by the 1974 consumer credit act then it should have a termination clause. Once you have paid half the agreement amount you can hand the goods back with no prejudice. There is an Industry standard for auto wear and tear (Google it). If you don't have the detailed credit agreement then ask for it, they don't like you seeing the termination bit. I've done this with three cars and my credit rating is unaffected.

[LondonManc]

£400 a month

Depends what he's got to be fair.

[vetran]

£400 a month

[Willapp]

I'm on my third PCP vehicle and to be honest I'm not sure I'll be doing it again. At first it seems like a great way of getting into a new vehicle, and having had brand-new company cars up to that point I was reluctant to go back to second hand, but I'm now half-way through a 4 year deal with a car that's currently worth less (by about £2k) than the outstanding debt.

Don't get me wrong it's 'nice' having a shiny new car (though it's neither any more) but paying nearly £400 a month when I'm currently barely doing 50 miles a week seems a huge waste, and yet I can't get rid of the car without buying my way out (no thanks) so I am very much trapped which is a crap feeling really.

The flip side is that, when the deal ends I'll give the car back probably with little or no equity and then need to borrow money somehow to get a replacement. There are some great PCP deals at the moment though if you can get the right APR - my mate's just got an Audi A6 Avant on a 4 year deal at 2.9%, which is cheaper than the bank loan he had on his previous car!

[LondonManc]

If you're a contractor with unknown mileage each year, surely the HP model has to work best? I don't see how significantly variable miles/years can be conducive to a rental model.

[FrontEnder]

It's marketing, and it works.

There was a guy on here a few months ago who was directed to her site and came back saying how it was so bad and he could make it better. He didn't quite understand that she has one of the most successful leasing businesses, and the "quirkiness" of her website is part of what keeps driving business her way.

The site works just fine too, it's just an intentionally bad design.

[WTFH]

MY EYES!

The goggles do nothing.

It's marketing, and it works.

There was a guy on here a few months ago who was directed to her site and came back saying how it was so bad and he could make it better. He didn't quite understand that she has one of the most successful leasing businesses, and the "quirkiness" of her website is part of what keeps driving business her way.

[Agent]

I looked at leasing as I'm currently in the market for a car but was put off by the final cost that the leasing company might choose to apply (for dents etc). How does Ling differ from other companies?

I ended up taking out my lease with the main dealer for exactly that reason. I've heard that the cheaper lease companies are extrmeley anal when it comes to final inspection and dealers are more reasonable. That said, I would expect to pay for any dents that I cause so I guess it just makes you that little more careful.

You can always get the cr touched up prior to inspection, at a fraction of the cost that they would charge for a penalty.

[chopper]

Her website. HTH.

MY EYES!

The goggles do nothing.

[northernladuk]

I looked at leasing as I'm currently in the market for a car but was put off by the final cost that the leasing company might choose to apply (for dents etc). How does Ling differ from other companies?

Her website. HTH.

[ChimpMaster]

In your situation I would lease from lingscars dot com

Biggest risk with both PCP and leasing is how they react to the inevitable minor stone scratches on the bonnet and other "wear and tear" items. Its easy to get overcharged. For that reason you are better having someone like Ling advising you.

<snip>

I looked at leasing as I'm currently in the market for a car but was put off by the final cost that the leasing company might choose to apply (for dents etc). How does Ling differ from other companies?

[CoolCat]

In your situation I would lease from lingscars dot com

Biggest risk with both PCP and leasing is how they react to the inevitable minor stone scratches on the bonnet and other "wear and tear" items. Its easy to get overcharged. For that reason you are better having someone like Ling advising you.

Also PCP and leasing tend to be expensive if you need to change car before the end of the contract, say you have some babies and need more space, or knacker your leg and need an automatic. Also costs if going over agreed miles can be crazy.

So yes straightforward HP or bank loan are less risk and easier in many ways, as all the decision making is in your own hands if your need to change cars or expected miles change, or whatever happens.

[ChimpMaster]

Based on Car Finance PCP Calculator
That's saying the PCP interest rate is around 13.5%


You should be looking at half that or less. Perhaps it's due to the size of deposit compared to the overall value.

Or wot I said above