Returning a PCP car early
Discussion
I've called an early end to my PCP on a Z4C as the settlement figure was way higher than the trade-in value. Getting the finance company to take the car off my hands is proving pretty tricky- apparently it's their busiest month and they were unable to collect at all last week or any afternoon this week, which is when I've been available.
As a result, I'm going to be forced into a Saturday collection, for which they want an additional fee (£37) and I have to keep it taxed and insured until they get around to picking it up, and the windows for collection is 0800 - 1300, so I'm going to be hanging around for a fair while.
Has anyone any experiences of dealing with these guys? I don't really see why I should have to pay for a Saturday collection just because September is a busy month with new registrations etc, but I've made no headway with getting that waived at all. There's no reference to that fee on the contract I signed when I got the thing. Can I just post them the keys, leave it somewhere accessible and tell them to fill their boots?!
As a result, I'm going to be forced into a Saturday collection, for which they want an additional fee (£37) and I have to keep it taxed and insured until they get around to picking it up, and the windows for collection is 0800 - 1300, so I'm going to be hanging around for a fair while.
Has anyone any experiences of dealing with these guys? I don't really see why I should have to pay for a Saturday collection just because September is a busy month with new registrations etc, but I've made no headway with getting that waived at all. There's no reference to that fee on the contract I signed when I got the thing. Can I just post them the keys, leave it somewhere accessible and tell them to fill their boots?!
h. In hindsight, don't buy a car on PCP. Don't worry about the £37 or whatever it is, it should be but a tiny drop in the sea of depreciation you've just experianced.
andy665 said:
Most finance houses use the BVRLA VBRJ guidelines for assessing condition of vehicles when returned.
To those that believe PCP is the work of the devil - just think how much worse the OP's position would be if the finance house was not shouldering much of the depreciation
To those that believe PCP is the work of the devil - just think how much worse the OP's position would be if the finance house was not shouldering much of the depreciation
In what way is the OP >not< shouldering the depreciation?
Car bought for £30k. After 3 years: worth £25k. Depreciation £5k, cost to finance £5k plus profit margin, call it £2k p.a. (Wouldn't that be nice).
Car bought for £30k. After 3 years: worth £15k. Depreciation £15k, cost to finance £15k plus profit margin, call it £6k p.a. (More realistic).
Car bought for £30k cash. After 3 years: worth £15k. Sold for £15k cash.
Would you rather pay for your depreciation in instalments, or all at once?
Car bought for £30k. After 3 years: worth £25k. Depreciation £5k, cost to finance £5k plus profit margin, call it £2k p.a. (Wouldn't that be nice).
Car bought for £30k. After 3 years: worth £15k. Depreciation £15k, cost to finance £15k plus profit margin, call it £6k p.a. (More realistic).
Car bought for £30k cash. After 3 years: worth £15k. Sold for £15k cash.
Would you rather pay for your depreciation in instalments, or all at once?
Gizmo! said:
In what way is the OP >not< shouldering the depreciation?
Car bought for £30k. After 3 years: worth £25k. Depreciation £5k, cost to finance £5k plus profit margin, call it £2k p.a. (Wouldn't that be nice).
Car bought for £30k. After 3 years: worth £15k. Depreciation £15k, cost to finance £15k plus profit margin, call it £6k p.a. (More realistic).
Car bought for £30k cash. After 3 years: worth £15k. Sold for £15k cash.
Would you rather pay for your depreciation in instalments, or all at once?
With PCP, the Minimum Future Guaranteed Value is specified at the start of the agreement. This was 3 years ago for me. The finance company didn't see the big value drop for big(ish) capacity petrols coming, so they lose out as the car has depreciated more than they predicted it would do. I think it would be called a put option in derivative terms(?)Car bought for £30k. After 3 years: worth £25k. Depreciation £5k, cost to finance £5k plus profit margin, call it £2k p.a. (Wouldn't that be nice).
Car bought for £30k. After 3 years: worth £15k. Depreciation £15k, cost to finance £15k plus profit margin, call it £6k p.a. (More realistic).
Car bought for £30k cash. After 3 years: worth £15k. Sold for £15k cash.
Would you rather pay for your depreciation in instalments, or all at once?
I've still paid a bit more in total than if I'd bought cash because of the interest charge, but if I had the money to pay outright upfront (hypothetical), I could have invested that money elsewhere and possibly outweighed the interest charge minus the unexpected depreciation.
So, yeah, I've probably done OK to wear the £37 with a smile- thanks for putting it into perspective.
Gizmo! said:
In what way is the OP >not< shouldering the depreciation?
Car bought for £30k. After 3 years: worth £25k. Depreciation £5k, cost to finance £5k plus profit margin, call it £2k p.a. (Wouldn't that be nice).
Car bought for £30k. After 3 years: worth £15k. Depreciation £15k, cost to finance £15k plus profit margin, call it £6k p.a. (More realistic).
Car bought for £30k cash. After 3 years: worth £15k. Sold for £15k cash.
Would you rather pay for your depreciation in instalments, or all at once?
Or you could look at what a good friend of mine has just gone through with PCP on a CLSCar bought for £30k. After 3 years: worth £25k. Depreciation £5k, cost to finance £5k plus profit margin, call it £2k p.a. (Wouldn't that be nice).
Car bought for £30k. After 3 years: worth £15k. Depreciation £15k, cost to finance £15k plus profit margin, call it £6k p.a. (More realistic).
Car bought for £30k cash. After 3 years: worth £15k. Sold for £15k cash.
Would you rather pay for your depreciation in instalments, or all at once?
If he'd have paid cash - £50k - now 3 years old, best offer £22k - loss (or cost) of £28k over 3 years
He bought on PCP - £4k in, £19k in payments over 3 years - handed back at end - total cost £23k - £5k better off than paying cash
PCP CAN work very much in your favour if finance house are desperate / stupid enough to attach unrealistically high GMFV's
Gizmo! said:
In what way is the OP >not< shouldering the depreciation?
Because the PCP company did not predict the car's future value right and the market value of the car is less than the guarnteed future value:Car costs £30,000. GFV £18000. Actual market value £14000.
Under PCP: Depreciation £12000 plus finance costs.
Outright purchase: Depreciation £16000 plus finance costs.
I dropped the ST off at the auction having gotten out of the PCP using 'paid half of the amount' get-out.
They (hitachi capital) then tried to sting me for £500 for lack of spare key and manual even though I left it in the glovebox. Took a while but I got sorted.
I think I p*ssed them off when I settled early then my dad offered to buy the car at trade value. Considering it was going through auction anyway I don't know why they didn't accept the deal.
They (hitachi capital) then tried to sting me for £500 for lack of spare key and manual even though I left it in the glovebox. Took a while but I got sorted.
I think I p*ssed them off when I settled early then my dad offered to buy the car at trade value. Considering it was going through auction anyway I don't know why they didn't accept the deal.
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