PCP deal calculation help

[daemon]

shocka144 said:

(just signed up to this forum for this very topic!)

I've had PCP deals now for 6 years, Corsa (awful), fiesta (lovely), fiesta (outstanding!) but I have found it is way too expensive!!

I owe 7k on my car, it's two year old with 45k on the clock, runs like a dream but I need to get off this deal, they will only pay £6100 so I still need to cough up £1k to settle the finance *cry!* lets hope this used (1 owner) low mileage Mondeo will be better option for me financially, damn PCP!

You may be able to do a voluntary termination?

How long was the agreement for and have you checked how close you are to the 50% mark?

Also, if the Fiesta is outstanding why are you looking rid?

[shocka144]

daemon said:

You may be able to do a voluntary termination?

How long was the agreement for and have you checked how close you are to the 50% mark?

Also, if the Fiesta is outstanding why are you looking rid?

Termination? The agreement was for 3 years with the remainder to be refinanced or handed back(with a few £k's because of miles,, I've had it for 2 years and a month.
The fiesta is a dream but too small with teenager children taller than me

[daemon]

shocka144 said:

daemon said:

You may be able to do a voluntary termination?

How long was the agreement for and have you checked how close you are to the 50% mark?

Also, if the Fiesta is outstanding why are you looking rid?

Termination? The agreement was for 3 years with the remainder to be refinanced or handed back(with a few £k's because of miles,, I've had it for 2 years and a month.
The fiesta is a dream but too small with teenager children taller than me

Ok. If you look at the finance agreement there should be an amount on it talking about 50% of the total paid.

If your previous deposit, plus payments made matches or exceeds that, you have the right under the Consumer Credit Act with nothing more to pay (assuming you've looked after it)

You "might" be too early in the agreement yet, but its worth checking.

[shocka144]

daemon said:

Ok. If you look at the finance agreement there should be an amount on it talking about 50% of the total paid.

If your previous deposit, plus payments made matches or exceeds that, you have the right under the Consumer Credit Act with nothing more to pay (assuming you've looked after it)

You "might" be too early in the agreement yet, but its worth checking.

thanks for the info mate, I'm £1k over the 50% at the moment, do you know if they look at the mileage? incidently may be that's why its the ford dealership who are offering more than anyone else?

[Grandfondo]

shocka144 said:

(just signed up to this forum for this very topic!)

I've had PCP deals now for 6 years, Corsa (awful), fiesta (lovely), fiesta (outstanding!) but I have found it is way too expensive!!

I owe 7k on my car, it's two year old with 45k on the clock, runs like a dream but I need to get off this deal, they will only pay £6100 so I still need to cough up £1k to settle the finance *cry!* lets hope this used (1 owner) low mileage Mondeo will be better option for me financially, damn PCP!

Classic PCP!

45k miles in 2 years?
What was the contracted mileage PA?

[shocka144]

Grandfondo said:

Classic PCP!

45k miles in 2 years?
What was the contracted mileage PA?

I know right? what can I say, I was hook line and sinkered

12k mileage a year I was supposed to only do

[daemon]

shocka144 said:

thanks for the info mate, I'm £1k over the 50% at the moment, do you know if they look at the mileage? incidently may be that's why its the ford dealership who are offering more than anyone else?

Hmmm. 45K on the clock - they would probably query that - just spotted it.

You can get away with a bit over average if you are returning under the Consumer Credit Act but they might dig their heels in with that miles.

[daemon]

shocka144 said:

Grandfondo said:

Classic PCP!

45k miles in 2 years?
What was the contracted mileage PA?

I know right? what can I say, I was hook line and sinkered

12k mileage a year I was supposed to only do

In what way were you hook line and sinkered?

Did you not know you were going to be doing 22.5K PA when you signed up to 12K miles? Did your circumstances change?

If they did change suddenly, why didnt you renegotiate the payments to adjust for the extra miles? Or did you set aside some extra cash each month instead?

Were you not planning on using that car to transport your teenagers when you got it?

If you'd bought the fiesta new with cash you'd be facing exactly the same issues - a car that doesnt suit your needs and that will have taken a rather large bath in depreciation.

Edited by daemon on Thursday 18th December 17:16

[daemon]

shocka144 said:

daemon said:

Ok. If you look at the finance agreement there should be an amount on it talking about 50% of the total paid.

If your previous deposit, plus payments made matches or exceeds that, you have the right under the Consumer Credit Act with nothing more to pay (assuming you've looked after it)

You "might" be too early in the agreement yet, but its worth checking.

thanks for the info mate, I'm £1k over the 50% at the moment, do you know if they look at the mileage? incidently may be that's why its the ford dealership who are offering more than anyone else?

I personally would perservere until the end of term and set aside a bit of cash every month to help you cover the shortfall between what you will owe and what the car will be worth.

[Fox-]

daemon said:

Broad speeds deal assumes you are taking the PCP deal.

No, it doesn't. It's a cash price. You can take a PCP if you want but the price quoted is available for cash purchase.

[crazy about cars]

Well told them I would only proceed if they match the deal and want deposit back otherwise. Still no reply ...

The car is a new car. It's not been registered so I think it's a cancelled order.

[Grandfondo]

daemon said:

shocka144 said:

Grandfondo said:

Classic PCP!

45k miles in 2 years?
What was the contracted mileage PA?

I know right? what can I say, I was hook line and sinkered

12k mileage a year I was supposed to only do

In what way were you hook line and sinkered?

Did you not know you were going to be doing 22.5K PA when you signed up to 12K miles? Did your circumstances change?
If they did change suddenly, why didnt you renegotiate the payments to adjust for the extra miles?
Were you not planning on using that car to transport your teenagers when you got it?

If you'd bought the fiesta new with cash you'd be facing exactly the same issues - a car that doesnt suit your needs and that will have taken a rather large bath in depreciation.

But if he had bought it cash there would have been no interest and he wouldn't have to find £1k to sell it would he?
And you can drive it as much as you want!

Edited by Grandfondo on Thursday 18th December 17:20

[daemon]

Grandfondo said:

ut if he had bought it cash there would have been no interest and he wouldn't have to find £1k to sell it would he?
And you can drive it as much as you want!

Indeed, but he would still have the same problem - a high miles two year old car that has taken a big drop in depreciation that no longer suits his needs.

[Fox-]

daemon said:

Indeed, but he would still have the same problem - a high miles two year old car that has taken a big drop in depreciation that no longer suits his needs.

For Sale: Car

problem solved

[Grandfondo]

Fox- said:

daemon said:

Indeed, but he would still have the same problem - a high miles two year old car that has taken a big drop in depreciation that no longer suits his needs.

For Sale: Car

problem solved

And probably £3k better off!

[shocka144]

Shiny brand new car with no deposit erm sunk the 'deal' live and learn

[daemon]

Fox- said:

daemon said:

Indeed, but he would still have the same problem - a high miles two year old car that has taken a big drop in depreciation that no longer suits his needs.

For Sale: Car

problem solved

Exactly.

Sell it privately and he'll recoup his potential shortfall and more.

[daemon]

shocka144 said:

Shiny brand new car with no deposit erm sunk the 'deal' live and learn

Oh well. Worse things happen at sea.

If you're buying a ford mondeo from a ford dealer, you might not necessarily be getting the best deal?

Have you checked out car supermarket prices?

Have you checked what the likes of We buy any car or their ilk will offer you?

You could also try some of your local indy dealers who stock similar types of cars - ask to speak to the "used car buyer"

OR - as has been suggested, you could try to punt it yourself to get a better price.

[daemon]

JetskiJezz said:

crazy about cars said:

Right final discount £2657 bringing price down to £33218. Go for it??? Need decide in few hours.

I guess it's time for you to make the decision. I don't need anyone else can advise as to whether you can afford it or not.
Reading back through this thread it seems there are really strong arguments both for and against, but at the end of the day the only person that can decide if you're happy with the package being offered is got to be you.

+1

[liner33]

daemon said:

You're assuming all my cash is in a low interest paying bank account and not, say, spread across various properties?

Well if you are a landlord then you would know that it's more tax efficient to borrow against property than it is a car so that's another tick in the box to buy with cash. Let alone trying to clear 8%+ profit on a rental property (that's above the national average before tax )