PCP Car Purchase
Discussion
In the process of purchasing a demo model SUV from a large dealership group. Now the issue I have is that I have been offered a better deal from a main stream bank. The kick is the dealership refuses to deal with a third party PCP and appears to be if I want the car then its on their PCP contract take it or leave it. They have buckled to some degree so they are only £300,00 adrift but it is the haggling agro. The model configuration is hard to come by as the manufacturer has pulled the engine/gearbox combination. You get the feeling selling PCP is more important than selling cars.
Has any one else had similar issue
Has any one else had similar issue
Yes. It's pretty common, but usually PCPs are done on new cars and there's a deposit contribution which swings the deal in the dealers favour.
I had a dealer suggest they wouldn't sell me a new car from stock unless I took finance, but in the end they did.
Really, dealers couldn't give a toss about the car itself - they're just a way of selling finance and other add-on products. Cash buyers (as you would be) are pretty useless to them.
I had a dealer suggest they wouldn't sell me a new car from stock unless I took finance, but in the end they did.
Really, dealers couldn't give a toss about the car itself - they're just a way of selling finance and other add-on products. Cash buyers (as you would be) are pretty useless to them.
On the face of it the dealer has to sell you the car at the same cash price whether you take it on finance or pay cash, notwithstanding deposit contributions as a way around this.
Logically, you could first tell the dealer that you first intend to pay cash rather than use their PCP, then a day or two later tell them to invoice your finance company.
It's very old-school of the dealer to insist that "you can only buy this rare and desirable car if you also finance it with us and commit to a service plan, paintwork protection and at least £500 of accessories". I've had to tell customers that in the past ( 20 years ago ) but I can;t see it going down too well in today's climate and culture.
If that is what he is doing you could either cave in and just buy the thing, or walk away and see what happens. You have made it clear why you are reluctant to walk away. You could kick up a fuss with the dealer and ultimately the manufacturer but that's unlikely to be a speedy resolution.
One point which may make the dealer's position understandable:
Sometimes when quoting PCP and PCH deals the banks use their associated leasing company's fleet discount to buy the car and ultimately to handle any circumstance where the car may be handed back. It may be therefore that the dealer would have to invoice your bank at a lower amount ( and / or register the car as a fleet deal rather than retail ) than if they sold the car to you. It's understandable that they wouldn't want to do this if they have retail customers happy to pay retail money for the car.
In order to find out whether this is the case in your instance, did you have to give your finance company the invoice price of your particular car or did you just have to tell them the model and options and they worked it out from prices already on their system?
ETA: Just re-read that you said it was a demo model rather than new, so my mitigation is not appropriate in this case!
Logically, you could first tell the dealer that you first intend to pay cash rather than use their PCP, then a day or two later tell them to invoice your finance company.
It's very old-school of the dealer to insist that "you can only buy this rare and desirable car if you also finance it with us and commit to a service plan, paintwork protection and at least £500 of accessories". I've had to tell customers that in the past ( 20 years ago ) but I can;t see it going down too well in today's climate and culture.
If that is what he is doing you could either cave in and just buy the thing, or walk away and see what happens. You have made it clear why you are reluctant to walk away. You could kick up a fuss with the dealer and ultimately the manufacturer but that's unlikely to be a speedy resolution.
One point which may make the dealer's position understandable:
Sometimes when quoting PCP and PCH deals the banks use their associated leasing company's fleet discount to buy the car and ultimately to handle any circumstance where the car may be handed back. It may be therefore that the dealer would have to invoice your bank at a lower amount ( and / or register the car as a fleet deal rather than retail ) than if they sold the car to you. It's understandable that they wouldn't want to do this if they have retail customers happy to pay retail money for the car.
In order to find out whether this is the case in your instance, did you have to give your finance company the invoice price of your particular car or did you just have to tell them the model and options and they worked it out from prices already on their system?
ETA: Just re-read that you said it was a demo model rather than new, so my mitigation is not appropriate in this case!
Edited by Wooda80 on Friday 6th April 18:46
kevinob said:
In the process of purchasing a demo model SUV from a large dealership group. Now the issue I have is that I have been offered a better deal from a main stream bank. The kick is the dealership refuses to deal with a third party PCP and appears to be if I want the car then its on their PCP contract take it or leave it. They have buckled to some degree so they are only £300,00 adrift but it is the haggling agro. The model configuration is hard to come by as the manufacturer has pulled the engine/gearbox combination. You get the feeling selling PCP is more important than selling cars.
Has any one else had similar issue
It could well be that it is. They maybe getting £0 or very little profit on the car itself, and making up the margin on the PCP, and potentially the profit on any trade in.Has any one else had similar issue
If its a hard to come by / sought after spec, they may be unwilling to do a deal that isnt terribly profitable for them overall, knowing they can probably get a better deal from another customer.
If they insist on you using their finance, do as has already been suggested and use it, then cancel it and replace it with your own finance.
LarsG said:
Don't buy a demo on a PCP. Buy a car you can afford rather than what is effectively renting on for three years.
Oh god please dont let this become yet another "if you have to PCP it you cant afford it" thread.Lets work on the assumption the guy knows already whats best for his particular circumstances and for the timeframe he plans on keeping the car and leave it at that please?
daemon said:
It could well be that it is. They maybe getting £0 or very little profit on the car itself, and making up the margin on the PCP, and potentially the profit on any trade in.
If its a hard to come by / sought after spec, they may be unwilling to do a deal that isnt terribly profitable for them overall, knowing they can probably get a better deal from another customer.
If they insist on you using their finance, do as has already been suggested and use it, then cancel it and replace it with your own finance.
I presume the issue is that he won't be able to get a third party PCP provider to settle the dealer arranged PCP . It's not a straight loan with cash in pocket to settle finance.If its a hard to come by / sought after spec, they may be unwilling to do a deal that isnt terribly profitable for them overall, knowing they can probably get a better deal from another customer.
If they insist on you using their finance, do as has already been suggested and use it, then cancel it and replace it with your own finance.
LarsG said:
Don't buy a demo on a PCP. Buy a car you can afford rather than what is effectively renting on for three years.
Are you this dull in real life?Integroo said:
I presume the issue is that he won't be able to get a third party PCP provider to settle the dealer arranged PCP . It's not a straight loan with cash in pocket to settle finance.
Good point, i forgot third party PCP is still linked to the car unlike a third party personal loan 
O/P - ultimately, push the dealer as much as possible and squeeze as hard as you can but if they wont play ball and its down to a couple of hundred over the term of ownership for the exact car you want....
daemon said:
O/P - ultimately, push the dealer as much as possible and squeeze as hard as you can but if they wont play ball and its down to a couple of hundred over the term of ownership for the exact car you want....
I'd agree with that - see if they'll throw in other stuff, perhaps a service or two. Even a tank of fuel makes a difference if they don't normally supply them full.I paid about £300 more than the lowest price available to get an SUV locally and quickly a couple of years ago.
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