Leasing deals being rolled over

[k6chris]

Talking to a mate in the pub today (yes, I know) and he mentioned that he has never got to the end of his last two (4 year) leasing deals as a salesman has approached him well before then end (18 months in one case) to offer a deal on another lease - with the implication he has never had to bother with the end of lease inspection / mileage check etc. Is this a well know thing that happens frequently??

Thanks.

[SteBrown91]

He has a PCP not a lease.

Your friend clearly has no idea what he is signing up for.

[Nickp82]

SteBrown91 said:

He has a PCP not a lease.

Your friend clearly has no idea what he is signing up for.

This, to be honest.

[k6chris]

Nickp82 said:

This, to be honest.

Yes...turns out it is PCP, via a BMW main dealer. Is the dealer likely to be simply starting a new PCP deal or rolling over and adding in any debt from previous leases?? The former sounds too good to be true??

[ATM]

It's just finance with an optional baloon if you choose to keep the car at the end. Yes they can roll up negative equity from your last deal if they want to get shut of the newer car. If the final value is ludicrously low then there can be some positive equity if the deal is getting towards the end. Don't forget they are getting shut of a new/newer car to take back in a cheaper older car in part exchange. Not rocket science is it.

[st4]

Quite often Hire Car pilots get lucky and get the negative equity wiped clean so they can pilot a newer hire car.

[Sheepshanks]

k6chris said:

Yes...turns out it is PCP, via a BMW main dealer. Is the dealer likely to be simply starting a new PCP deal or rolling over and adding in any debt from previous leases?? The former sounds too good to be true??

It's meaningless without knowing about the deals he's getting - he might be paying a fortune,

But, yes, it is normal. The one car we had were we ran a PCP (because it was 0%) they called and tried to get us into a new car for the same monthly. However the original PCP was over 2yrs and the new one was 3yrs. The salesman was really evasive about the GFV - he said it irrelevant as "no-one" ever pays it.

[nickfrog]

st4 said:

Quite often Hire Car pilots get lucky and get the negative equity wiped clean so they can pilot a newer hire car.

Not sure what you're on about. There is no negative equity in a lease as there is no equity / ownership transfer. Not sure what you mean by "pilot" but perhaps English is not your first language ?

[Mandat]

k6chris said:

Yes...turns out it is PCP, via a BMW main dealer. Is the dealer likely to be simply starting a new PCP deal or rolling over and adding in any debt from previous leases?? The former sounds too good to be true??

It's not a lease!

The deal will depend a lot on different factors, mainly how much equity is in the current car, and how much has been paid off the current deal.

[ATM]

nickfrog said:

st4 said:

Quite often Hire Car pilots get lucky and get the negative equity wiped clean so they can pilot a newer hire car.

Not sure what you're on about. There is no negative equity in a lease as there is no equity / ownership transfer. Not sure what you mean by "pilot" but perhaps English is not your first language ?

Or he is half cut like everyone else because it's Christmas.

[Sheepshanks]

Mandat said:

It's not a lease!

The context in the OP is enough to make it perfectly clear what is meant.

Any, a PCP is effectively an Operating Lease.