PCP Assistance
Discussion
Work it out yourself with the PCP calculator I posted here.
https://drive.google.com/file/d/0Bx5Jfsdt4yqIRDVjQ...
https://drive.google.com/file/d/0Bx5Jfsdt4yqIRDVjQ...
rsbmw said:
This is exactly what dealers want you to do, and the trap I mentioned above. With a high deposit, you will have 'equity' early on, perhaps throughout, but if you have say £1k equity and had put in a £10k deposit, that car would have cost you £9k + the value of the monthly payments so far for the time period you've had it.
It would cost you even more if you put in a lower deposit in the first place. The more deposit you put in, the less interest you pay.
The car is going to be worth the same amount at any given point regardless of the deposit you put in.
MWM3 said:
rsbmw said:
This is exactly what dealers want you to do, and the trap I mentioned above. With a high deposit, you will have 'equity' early on, perhaps throughout, but if you have say £1k equity and had put in a £10k deposit, that car would have cost you £9k + the value of the monthly payments so far for the time period you've had it.
It would cost you even more if you put in a lower deposit in the first place. Of course it was! That and making new cars seem affordable whilst guaranteeing the manufacturer a stream of 'approved used' vehicles and keeping RRP/residuals high. Mostly PCP is used by those who don't really understand it, like the OP they don't even know they can sell/trade in anywhere at any time.
My point here is simply that if you sell/trade in once you hit the inflection point between negative/positive equity, you are losing both the deposit and the monthlies paid to date. In this case, an incredibly expensive 16 months in an A class.
My point here is simply that if you sell/trade in once you hit the inflection point between negative/positive equity, you are losing both the deposit and the monthlies paid to date. In this case, an incredibly expensive 16 months in an A class.
OP, use this to work out your settlement figure.....
http://www.pcpcal.co.uk
You know what the car cost, you know what deposit you put in and you know what your monthly payments are, if you know the term and the option to buy value then you can easily work it out.
Just change the period to 16 months and keep changing the Final Payment/GMFV figure till the monthly payments match what you are paying, you have your settlement figure.
There may be half a months payment to add on top depending what time of the month the payment goes out.
Be careful using Land Rover Finance on a used car, they are seriously expensive!!
Look at maybe using Hitachi Capital or similar.
I got a quote on a Disco from them, it was £35000, with £5k down and it was coming in at £626 a month over 48 months with £10k at the end.
I got a quote from Hitachi Capital and it was £660 a month over 48 months and it was paid in full.
The rate was 11.9% from LR and 3.1% from Hitachi Capital.
You have to be really careful with used car finance, they hide the rate with GFVs, in reality, you often don't need a GFV because if you go with a straight loan the interest saved over 3-4 years covers the balloon.
Even the guy at Land Rover couldn't get his head round what I was saying to him.
He kept saying "But we guarantee it will be worth £10,000 in 4 years time"
I kept saying "No you're not, you are guaranteeing I will have to pay you another £10,000 in 4 years time if I want to keep my car."
It was like his mind was blown!!
http://www.pcpcal.co.uk
You know what the car cost, you know what deposit you put in and you know what your monthly payments are, if you know the term and the option to buy value then you can easily work it out.
Just change the period to 16 months and keep changing the Final Payment/GMFV figure till the monthly payments match what you are paying, you have your settlement figure.
There may be half a months payment to add on top depending what time of the month the payment goes out.
Be careful using Land Rover Finance on a used car, they are seriously expensive!!
Look at maybe using Hitachi Capital or similar.
I got a quote on a Disco from them, it was £35000, with £5k down and it was coming in at £626 a month over 48 months with £10k at the end.
I got a quote from Hitachi Capital and it was £660 a month over 48 months and it was paid in full.
The rate was 11.9% from LR and 3.1% from Hitachi Capital.
You have to be really careful with used car finance, they hide the rate with GFVs, in reality, you often don't need a GFV because if you go with a straight loan the interest saved over 3-4 years covers the balloon.
Even the guy at Land Rover couldn't get his head round what I was saying to him.
He kept saying "But we guarantee it will be worth £10,000 in 4 years time"
I kept saying "No you're not, you are guaranteeing I will have to pay you another £10,000 in 4 years time if I want to keep my car."
It was like his mind was blown!!
Edited by gizlaroc on Sunday 16th October 17:47
gizlaroc said:
Even the guy at Land Rover couldn't get his head round what I was saying to him.
He kept saying "But we guarantee it will be worth £10,000 in 4 years time"
I kept saying "No you're not, you are guaranteeing I will have to pay you another £10,000 in 4 years time if I want to keep my car."
This is what I was saying on the previous page - it's generally called Optional Final Payment now. There's a guy on one of the Merc forums getting upset as he wants to buy his car and they "guaranteed" it would be worth £18K - but it's market value is only £16K. He can't understand why he's being asked to pay £18K for a £16K car.He kept saying "But we guarantee it will be worth £10,000 in 4 years time"
I kept saying "No you're not, you are guaranteeing I will have to pay you another £10,000 in 4 years time if I want to keep my car."
gizlaroc said:
It was like his mind was blown!!
I don't whether they're just being stupid or they really believe what they say.Had one call us and try and switch daughter's Jazz for a HR-V for a lower monthly cost. He seemed baffled by why I was asking about the GFV - he said it's irrelevant as people change before the end of the term anyway.
Butter Face said:
He's right (in theory). I would say less than 5% of the people I have sold PCP to have actually bought the car at end of term
Well, that's the "trap" that PCPs are designed to be - when you get to the end the thing that probably makes most sense is to take another PCP.Sheepshanks said:
Butter Face said:
He's right (in theory). I would say less than 5% of the people I have sold PCP to have actually bought the car at end of term
Well, that's the "trap" that PCPs are designed to be - when you get to the end the thing that probably makes most sense is to take another PCP.But this is PH, so it's horrible evil nasty credit and the people who use it are mugs etc etc.
Sheepshanks said:
Butter Face said:
But this is PH, so it's horrible evil nasty credit and the people who use it are mugs etc etc.
I didn't particularly mean it in a bad way, hence the quote marks. Sheepshanks said:
Butter Face said:
He's right (in theory). I would say less than 5% of the people I have sold PCP to have actually bought the car at end of term
Well, that's the "trap" that PCPs are designed to be - when you get to the end the thing that probably makes most sense is to take another PCP.
Sheepshanks said:
I don't whether they're just being stupid or they really believe what they say.
Had one call us and try and switch daughter's Jazz for a HR-V for a lower monthly cost. He seemed baffled by why I was asking about the GFV - he said it's irrelevant as people change before the end of the term anyway.
Haha, yeah saw that. Had one call us and try and switch daughter's Jazz for a HR-V for a lower monthly cost. He seemed baffled by why I was asking about the GFV - he said it's irrelevant as people change before the end of the term anyway.
I think Lee hit the nail on the head when he said....
"Am I reading this thread right? The OP is unhappy that his car is worth less than the GFV?"
gizlaroc said:
Sheepshanks said:
I don't whether they're just being stupid or they really believe what they say.
Had one call us and try and switch daughter's Jazz for a HR-V for a lower monthly cost. He seemed baffled by why I was asking about the GFV - he said it's irrelevant as people change before the end of the term anyway.
Haha, yeah saw that. Had one call us and try and switch daughter's Jazz for a HR-V for a lower monthly cost. He seemed baffled by why I was asking about the GFV - he said it's irrelevant as people change before the end of the term anyway.
I think Lee hit the nail on the head when he said....
"Am I reading this thread right? The OP is unhappy that his car is worth less than the GFV?"
Butter Face said:
But this is PH, so it's horrible evil nasty credit and the people who use it are mugs etc etc.
Its what bemuses me on here.If this was a golfing forum and somebody bought a top end set of clubs, no-one would be asking - or concerned - how they paid for them. No one would say "oh he had to put it on his credit card so he really cant afford them".
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