@captmorgan
It's a used car, but I will check to make sure how much they will pay out in the first year.
@TheLittlestHobo
Any tips on how/where to check HPI? I can google it, but if you have any recommendations then please let me know 🙂
@the-muffin-man
Will do. My research on prices is based on Autotrader searches for the same make/model. I believe there is some wiggle room because there are similar models with additional features (safety pack) around the same price. I was going to see if they could at least throw in some services, fuel, floor mats etc to sweeten the deal if I can't get a discount on price.
It's a used car, but I will check to make sure how much they will pay out in the first year.
The car you are looking at buying on PCP is used?
How used? I would only get a PCP if I get to hand the car back when it is still under warranty and doesn't need an MOT
Less than a year. Is it normal for the dealer to not want to discuss finance over the phone? If they pull any bait and switches then I will leave immediately.
Is it normal for the dealer to not want to discuss finance over the phone?
Yes - they'd rather have you sat in front of them. You're more likely to buy if you can see the lovely, shiny new car across the forecourt! 😀
Haha! I thought that! It would be good to know exactly what they can offer before I pop down though. Is it not normal to have PCP on nearly new cars? Not averse to a straight finance deal as long as terms are right.
Is it not normal to have PCP on nearly new cars?
Nearly new - yes. But it would have to be really low mileage and nearer 6 months old than a year old for me. I wouldn't take nearly new over more than 3 years either.
The main idea of PCP is you can get into a [b]new[/b] car cheaply.
Is it not normal to have PCP on nearly new cars
Yes they are about.
Regardless of how you finance the car you need to be looking at the total cost.
Personally if I was leasing (which a PCP is) I would want a new car.
Go in knowing how much you can get finance for on the high street.
Plus if the car is nearly new then I can not imagine PCP will much if at all more expensive on a new car. Main dealers like to shift new cars so you can tend to get better deals on them.
Of course you are looking at exactly at the wrong time at the start of a financial quarter...
5) What wzzzz did is possible but not very honest tbh. The dealer usually gets a recharge of the contributions used from the manufacturer for the finance if its settled in the first couple of months (I usually state 6mths to settle). I bet his dealer loves him as essentially they will have covered the £500 themselves. Not that big a deal in wzzz case but some of the deposit contributions on our vans are £4000+ from manufacturer.
Hang on, I take offence at any implication of dishonesty.
The right to withdraw without penalty within 14 days is there in black and white on the finance agreement.
The salesman was well aware I was going to do this as I specifically asked about the wording of this section when negotiating.
I don't care what the dealer thinks of me! He pushed the deal through before the end of the month to get his sales target bonus. We both win.
Don't forget folks, you can always overpay your finance to reduce the cost to you (obvs makes no difference on 0%).
@FunkyDunc
When is the end of the quarter? September month end?
As per my insurance - they pay out full market in first year so GAP not necessarily needed if 0%.
Privilege.
Buy GAP for year 2+ online. Don't let the monkeys build it into your quote automatically, as they will posh wax treatment. It's a new car FFS , why does it need a treatment on top of its factory finish!! And then, do it yourself.
PCPurchase is not leasing.
PCHire is.
RE: Mileage on PCP, if you're covering more miles than you had intended, is it worth contacting the Finance Company before the end of the contract and having the payments adjusted?
I'm 2 years into a 4 year PCP on a fiat 500 (I know) and I'm now doing at least 12k miles pa due to a change of work, in our little 'run-about' car that was on an agreed mileage of just 5k.
Also the finance is 10k, the car now worth 6k... and looks like I'm too late to GAP insure it as I've had it 2 years now. In the event of total write off do I need to find 10k immediately? Or could I buy another equivalent value run about and just continue the finance? I know this has been covered but I couldn't quite grasp the gist of it.
In all honesty I'm counting down the days until I can get rid of it, but financially I think I'm stuck with it for a long time yet.
1/ depends on what your mileage excess is. So your 4 year limit is 20K and you're now on for what, 40K. That's 20000 say at maybe 8ppm = £1600. Plus you might need to check your paperwork, in case there's a clause for massively excess mileage.
2/ Finance might be for 10K but you've already paid 'half' of it off so you actually only owe 5K (not exactly true as you usually pay more interest initially, but you will have paid off at least some of the capital) There might still be a gap between what you owe and what it's worth but it won't be as high as the total finance.
3/ You need to read the T&C's carefully. You might be able to just hand it back and cancel the deal if you have paid a certain proportion, and if you haven't caned the mileage yet the excess might be manageable, whereas in 2 years time at +7K py extra it won't be. You'll lose the deposit you paid and have nothing to show for it but weigh it against having to pay a big excess mileage at the end.
4/ Or you can let it run and then buy the car with the final GFV payment. You'll be paying over the odds for the car because it'll be substantially higher mileage but then again you'll have been underpaying on a monthly basis where you've been devaluing it through extra mileage.
At the end of the day the PCP deal is car price = deposit + monthly payments + final payment*; if you underpay on one then you'll have to make it up elsewhere, and the * bit is that if you don't want to pay the final payment to own the car you can hand them back a car with the miles and condition you agreed it would be in at that point. Hand them something ragged and shagged and expect to be shafted in return.
Thanks for that info - based on that I'll have a good pick through the documents this weekend, for some reason 12ppm rings a bell but not 100% on that. It was bought without due care and attention on my part frankly, just handed in my old fiat and drove off in a new one, but times have changed drastically and I have to be much more careful with the £££ these days. Outstanding finance is currently 10k (total was 14k), car value is £5200, so a potential £5k shortfall if it got totalled is worrying, on top of excess mileage concerns. I might park it up on a relatives driveway, and go buy a £500 px'er from one of the dealerships I work for! Literally kicking myself, but as they say, live & learn.
Ordered the car yesterday. Really grateful to everyone who has helped me understand what I'm getting into! Now I play the waiting game.
What did you order in the end?
We've just taken delivery of my other half's new MINI on a PCP - it basically reduces her fuel bills and fixes her monthly motoring costs. Her 330 had a drink problem as it wasn't suited to her short trips and was due tyres. Plus on an older car there was the risk of something going pop. When we bought that it was the right car but things change. I know there is the depreciation argument but she wasn't interested!
I used a broker to get a price and the nearest dealer wouldn't entertain the fact that there were discounts to be had whereas the dealer from the same chain near my office matched the broker's deal and got my order. They were pretty good to deal with - listened when I said no to stuff like their paint protection etc. We did order near the end of the quarter and I think they needed / wanted out car in that quarters figures because they sent a transporter to the factory to get it a week earlier.
I don't think they expect us to see the deal through because they've already said that they'd call us in two or three years time. I don't really have an issue with it as I'm not likely to keep a car forever (boredom).
We did look at leasing but it didn't seem to be cheaper even when factoring in lowish mileage.
Mazda 6 Tourer.
I used a broker too (Carwow, thanks to someone who posted here!). I tried two dealers who couldn't match the price I got through the broker. I'm after as much car as I can get for as little money as I can spend from a quality manufacturer.
Hope this helps
jimwah - Member
RE: Mileage on PCP, if you're covering more miles than you had intended, is it worth contacting the Finance Company before the end of the contract and having the payments adjusted?
[b]Usually yes it is worth letting them know. As you are on a PCP then its calculated on a final value which tbh will be less now that you are doing more miles. I have seen these range from 6-12ppm. Easier to pay this in increased monthly payments rather than one big lump at the end. One way or another it will need to be covered unless you buy the car at the end. The good part of that is the fact that for every penny it raises your monthly, it should reduce the final payment by this much too[/b]
I'm 2 years into a 4 year PCP on a fiat 500 (I know) and I'm now doing at least 12k miles pa due to a change of work, in our little 'run-about' car that was on an agreed mileage of just 5k.
Also the finance is 10k, the car now worth 6k... and looks like I'm too late to GAP insure it as I've had it 2 years now. In the event of total write off do I need to find 10k immediately? [b]Yes you would need to settle the finance. You cant just continue the finance on something else[/b] Or could I buy another equivalent value run about and just continue the finance? I know this has been covered but I couldn't quite grasp the gist of it.
In all honesty I'm counting down the days until I can get rid of it, but financially I think I'm stuck with it for a long time yet.
[b]Finally, because you are a private individual you sign a contract which is called a Regulated agreement. Basically this means it has a few protections built in for joe public. A couple of them are 1/2's & 1/3rds. Once you have paid 50% of the total agreement (Including interest and charges) then you are, by law able to hand the vehicle back to the finance company without any issues to your credit worthiness. So i take it you have another £3k to go before you reach this position. £14k/2= £7k. £10k-£7k=£3k. Painfull to get out of tbh because i reckon your payments will be about £200 per month so thats most of the balance of your payments over 2yrs (Especially when you factor in the higher mileage you are doing will increase them payments /reduce final payment). There isnt right or wrong answer but you are going to end up having to pay on your monthlys or at the end. I would prefer monthly tbh. Then hand it back and walk away.[/b]
My wifes car was a fiat 500 on pcp. Got 0.3% finance rate and the final payment was based on car doing 20,000mls per annum when in fact it did 5000mpa. Think it was about £2500. Car was £10500 and i paid £10594.50 in total including the finance.
Cheers for taking the time Hobo - I sat down at the weekend with my calculator to figure it all out. After some deliberation I have extended out an existing loan to clear the finance on the car, I intend to sell it, and then pay back the majority of the loan extension.
The shortfall between car value on the private market (while it has relatively low miles and good condition) versus outstanding finance is much more bearable than any other option. I guesstimate this will be about £1.5k ish hopefully, versus £3k expense for halves, or running it for another 2 yrs + excess miles (£1500 in itself by my calculation). Actually my immediate monthly outgoings will look a lot rosier for now - none of it is ideal but this seemed like the best option from a bad lot.
I've laid it on a bit thick at work re: new baby etc and I'm being considered for a company car, probably a little Fabia or maybe an Octavia if I'm lucky - fingers crossed!
