PCP Experiences Good AND Bad please
Discussion
Hi Everyone.
Can someone explain to me the process behind a PCP deal. what experience have you had with one? Was it good? Bad? (I am talking about car finance by the way)
I recently bought a 61 plate A6 DIEsel and we are scrapping the company car scheme so I might be able to get out of the boring land of diesels and into something a lot more high end! I'm thinking Audi RS, BMW M etc.
Many thanks in advance.
Can someone explain to me the process behind a PCP deal. what experience have you had with one? Was it good? Bad? (I am talking about car finance by the way)
I recently bought a 61 plate A6 DIEsel and we are scrapping the company car scheme so I might be able to get out of the boring land of diesels and into something a lot more high end! I'm thinking Audi RS, BMW M etc.
Many thanks in advance.
Had a 61' plate 335i BMW
Lost my job, didnt have GAP insurance, BMW took the car back and auctioned it off leaving a £10k deficit that ive had to repay for a car that i no longer have and my credit rating is now ruined.
Its literally been the bane of my life for the last year, think VERY long and hard before you pull the trigger, this has been a very expensive and unpleasent experience for myself that could of been avoided if i'd had a backup plan or bought within my means.
Lost my job, didnt have GAP insurance, BMW took the car back and auctioned it off leaving a £10k deficit that ive had to repay for a car that i no longer have and my credit rating is now ruined.
Its literally been the bane of my life for the last year, think VERY long and hard before you pull the trigger, this has been a very expensive and unpleasent experience for myself that could of been avoided if i'd had a backup plan or bought within my means.
Edited by dele on Wednesday 5th June 13:55
dele said:
Got a 61' plate BMW
Lost my job, didnt have GAP insurance, BMW took the car back and auctioned it off leaving a £10k deficit that ive had to repay for a car that i no longer own and my credit rating is now ruined.
Think VERY long and hard before you pull the trigger, this has been a very expensive and unpleasent experience for myself that could of been avoided if i'd had a backup plan or bought within my means.
God that's awful Lost my job, didnt have GAP insurance, BMW took the car back and auctioned it off leaving a £10k deficit that ive had to repay for a car that i no longer own and my credit rating is now ruined.
Think VERY long and hard before you pull the trigger, this has been a very expensive and unpleasent experience for myself that could of been avoided if i'd had a backup plan or bought within my means.
dele said:
Got a 61' plate BMW
Lost my job, didnt have GAP insurance, BMW took the car back and auctioned it off leaving a £10k deficit that ive had to repay for a car that i no longer own and my credit rating is now ruined.
Think VERY long and hard before you pull the trigger, this has been a very expensive and unpleasent experience for myself that could of been avoided if i'd had a backup plan or bought within my means.
Bloody hell. Lost my job, didnt have GAP insurance, BMW took the car back and auctioned it off leaving a £10k deficit that ive had to repay for a car that i no longer own and my credit rating is now ruined.
Think VERY long and hard before you pull the trigger, this has been a very expensive and unpleasent experience for myself that could of been avoided if i'd had a backup plan or bought within my means.
PCP is one of the easiest way of buying to be fair.
Peugeot had issues a few years back with the 1007, being worth less than the GFV. Owners who purchased them, or took HP, lost more than owners on PCP, as they were guaranteed their GFV, which is nice.
I know for a fact now though, that Peugeot have a 6 month Waiver policy set up, included on their PCP deals. Which means they will cover the payments should you loose your job etc, aslong as its further than 6 months into the PCP. I think this is great. I don't know if others do the same to be fair, I know that Toyota don't though
Peugeot had issues a few years back with the 1007, being worth less than the GFV. Owners who purchased them, or took HP, lost more than owners on PCP, as they were guaranteed their GFV, which is nice.
I know for a fact now though, that Peugeot have a 6 month Waiver policy set up, included on their PCP deals. Which means they will cover the payments should you loose your job etc, aslong as its further than 6 months into the PCP. I think this is great. I don't know if others do the same to be fair, I know that Toyota don't though
Yes, PPI, christ why couldnt i remeber that? Anyway it wouldnt of helped as i think they only offered to pay for 3 months and in the end i was out of work for 6, only just started a new job this month.
Anyway OP, You asked for bad experiences and ive given you one, im not saying it will happen to you but i think you should really consider if you are in a strong position to be able to afford it if s
t hits the fan, you might actually be in a good position to go down the PCP route but i dont really recall hearing many "good" experiences with PCP.
I dont think its put me off the idea of PCP forever, plenty of people out there do it, just remeber though your paying £x amount a month for a car that isnt yours, that didnt sit well with me in the end.
If i could do it all again i would of got a loan for an E46 CSL rather than PCP on a newer car that will depreciate like a brick, that way i would of had options to sell the car on privately without hassle of finance hanging over my head.
Anyway OP, You asked for bad experiences and ive given you one, im not saying it will happen to you but i think you should really consider if you are in a strong position to be able to afford it if s
t hits the fan, you might actually be in a good position to go down the PCP route but i dont really recall hearing many "good" experiences with PCP.I dont think its put me off the idea of PCP forever, plenty of people out there do it, just remeber though your paying £x amount a month for a car that isnt yours, that didnt sit well with me in the end.
If i could do it all again i would of got a loan for an E46 CSL rather than PCP on a newer car that will depreciate like a brick, that way i would of had options to sell the car on privately without hassle of finance hanging over my head.
dele said:
Yes, PPI, christ why couldnt i remeber that? Anyway it wouldnt of helped as i think they only offered to pay for 3 months and in the end i was out of work for 6, only just started a new job this month.
Anyway OP, You asked for bad experiences and ive given you one, im not saying it will happen to you but i think you should really consider if you are in a strong position to be able to afford it if st hits the fan, you might actually be in a good position to go down the PCP route but i dont really recall hearing many "good" experiences with PCP.
I dont think its put me off the idea of PCP forever, plenty of people out there do it, just remeber though your paying £x amount a month for a car that isnt yours, that didnt sit well with me in the end.
If i could do it all again i would of got a loan for an E46 CSL rather than PCP on a newer car that will depreciate like a brick, that way i would of had options to sell the car on privately without hassle of finance hanging over my head.
Thanks for the heads up. Anyway OP, You asked for bad experiences and ive given you one, im not saying it will happen to you but i think you should really consider if you are in a strong position to be able to afford it if s
t hits the fan, you might actually be in a good position to go down the PCP route but i dont really recall hearing many "good" experiences with PCP.I dont think its put me off the idea of PCP forever, plenty of people out there do it, just remeber though your paying £x amount a month for a car that isnt yours, that didnt sit well with me in the end.
If i could do it all again i would of got a loan for an E46 CSL rather than PCP on a newer car that will depreciate like a brick, that way i would of had options to sell the car on privately without hassle of finance hanging over my head.
PCP is epic!! It gives you the chance to have a car you wouldn't normally be able to afford and protects you against depreciation. We're all petrolheads here and no doubt own/want to own fast cars outright, but for mainstream/normal/volume cars (whatever you want to call it) why would anyone want to use their own money to pay for it? It is a depreciating asset afterall! 2 scenarios:
Mr X changes his car every 3 years and is a cash buyer and wants a brand new A6 Avant 2.0 TDI S-Line. He gets about a grand off the car from his local dealer and parts with £33,500 of his hard earned cash. Over the next 3 years Mr X is saving for his next car in 3 years time, putting away a healthy amount each month. 3 years later he comes to trade in and gets £17,000 in part exchange. He's lost £15,500 of his own money.
Mr Y also changes his car every 3 years but always does a PCP, he also wants a brand new A6 Avant 2.0 TDI S-Line. He gets the same approximate grand off the list price of the car from his local dealer but also gets to take advantage of the £2,250 that Audi Finance give towards his deposit. He then puts £6,000 of his own money (or equity in his PX) into the deal and pays £399 a month over 3 years. His Guaranteed Minimum Future Value is £14,000 giving him £3,000 of equity when he trades in. With his payments and his initial deposit he's paid approximately £20,000 over the 3 years, hasn't had to save any money for his next car AND has a nice bit of equity as deposit towards his next car!
Why wouldn't you do a PCP, it's the bks!
Mr X changes his car every 3 years and is a cash buyer and wants a brand new A6 Avant 2.0 TDI S-Line. He gets about a grand off the car from his local dealer and parts with £33,500 of his hard earned cash. Over the next 3 years Mr X is saving for his next car in 3 years time, putting away a healthy amount each month. 3 years later he comes to trade in and gets £17,000 in part exchange. He's lost £15,500 of his own money.
Mr Y also changes his car every 3 years but always does a PCP, he also wants a brand new A6 Avant 2.0 TDI S-Line. He gets the same approximate grand off the list price of the car from his local dealer but also gets to take advantage of the £2,250 that Audi Finance give towards his deposit. He then puts £6,000 of his own money (or equity in his PX) into the deal and pays £399 a month over 3 years. His Guaranteed Minimum Future Value is £14,000 giving him £3,000 of equity when he trades in. With his payments and his initial deposit he's paid approximately £20,000 over the 3 years, hasn't had to save any money for his next car AND has a nice bit of equity as deposit towards his next car!
Why wouldn't you do a PCP, it's the b
ks!
LA167 said:
PCP is epic!! It gives you the chance to have a car you wouldn't normally be able to afford and protects you against depreciation. We're all petrolheads here and no doubt own/want to own fast cars outright, but for mainstream/normal/volume cars (whatever you want to call it) why would anyone want to use their own money to pay for it? It is a depreciating asset afterall! 2 scenarios:
Mr X changes his car every 3 years and is a cash buyer and wants a brand new A6 Avant 2.0 TDI S-Line. He gets about a grand off the car from his local dealer and parts with £33,500 of his hard earned cash. Over the next 3 years Mr X is saving for his next car in 3 years time, putting away a healthy amount each month. 3 years later he comes to trade in and gets £17,000 in part exchange. He's lost £15,500 of his own money.
Mr Y also changes his car every 3 years but always does a PCP, he also wants a brand new A6 Avant 2.0 TDI S-Line. He gets the same approximate grand off the list price of the car from his local dealer but also gets to take advantage of the £2,250 that Audi Finance give towards his deposit. He then puts £6,000 of his own money (or equity in his PX) into the deal and pays £399 a month over 3 years. His Guaranteed Minimum Future Value is £14,000 giving him £3,000 of equity when he trades in. With his payments and his initial deposit he's paid approximately £20,000 over the 3 years, hasn't had to save any money for his next car AND has a nice bit of equity as deposit towards his next car!
Why wouldn't you do a PCP, it's the bks!
there are a million reasons... Mr X changes his car every 3 years and is a cash buyer and wants a brand new A6 Avant 2.0 TDI S-Line. He gets about a grand off the car from his local dealer and parts with £33,500 of his hard earned cash. Over the next 3 years Mr X is saving for his next car in 3 years time, putting away a healthy amount each month. 3 years later he comes to trade in and gets £17,000 in part exchange. He's lost £15,500 of his own money.
Mr Y also changes his car every 3 years but always does a PCP, he also wants a brand new A6 Avant 2.0 TDI S-Line. He gets the same approximate grand off the list price of the car from his local dealer but also gets to take advantage of the £2,250 that Audi Finance give towards his deposit. He then puts £6,000 of his own money (or equity in his PX) into the deal and pays £399 a month over 3 years. His Guaranteed Minimum Future Value is £14,000 giving him £3,000 of equity when he trades in. With his payments and his initial deposit he's paid approximately £20,000 over the 3 years, hasn't had to save any money for his next car AND has a nice bit of equity as deposit towards his next car!
Why wouldn't you do a PCP, it's the b
ks!dele said:
Had a 61' plate 335i BMW
Lost my job, didnt have GAP insurance, BMW took the car back and auctioned it off leaving a £10k deficit that ive had to repay for a car that i no longer have and my credit rating is now ruined.
Its literally been the bane of my life for the last year, think VERY long and hard before you pull the trigger, this has been a very expensive and unpleasent experience for myself that could of been avoided if i'd had a backup plan or bought within my means.
I can't understand why you didnt try and sell the car yourself when you lost your job. You would have had a month at least to sell it before they came to take it away. Even if you took a low bid from a trader you would surely be in a better position. Lost my job, didnt have GAP insurance, BMW took the car back and auctioned it off leaving a £10k deficit that ive had to repay for a car that i no longer have and my credit rating is now ruined.
Its literally been the bane of my life for the last year, think VERY long and hard before you pull the trigger, this has been a very expensive and unpleasent experience for myself that could of been avoided if i'd had a backup plan or bought within my means.
Edited by dele on Wednesday 5th June 13:55
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