Discussion
Hello,
I purchased my car on PCP a year ago on a 4 year plan. I'm looking over the paperwork and have concerns over the total cost.
The car price at time of purchase was £9500, with a £300 deposit and total credit of £10'670.00 and £4471.04 which is insanely high. My total amount payable reads £15'741.04
The balloon payment is £3010.00
Would the total cost payable include the balloon payment or exclude?
If it includes that, fine with me, however if its excluding, then to total amount I am required to pay would be £18'751.04. That is an insane amount as the purchase price was roughly £9500. I hade a few extras added increasing the price and the usual charity donation.
If it is the latter, I am essentially paying 200% the cars initial value!
Therefore, I'm feeling rather 'hosed' at present
Ironically, the model is now discontinued, and oddly, the current value of the car is £6500, dealer will give me £4000 to take it back! at this rate the value of the car at the end of the agreement is looking to be £1500, which means the finance company will make a loss, theoretically - but my ridiculous amount paid will far offset that.
I'm feeling rather stupid for taking out PCP from Vauxhall at this point and wondering if any ways to minimalise my loss could exist, I could VT at 50% but still, I would have paid the cars value at that point, but would save £9k.
Side note, written correspondence from them state that its Hire Purchase on one document and PCP on another, as far as I'm aware they're two different things? Seems like an odd mistake on their part!
What's peoples thoughts?
I know I'm an idiot for this deal, so be as unkind as you choose, I deserve it!
I purchased my car on PCP a year ago on a 4 year plan. I'm looking over the paperwork and have concerns over the total cost.
The car price at time of purchase was £9500, with a £300 deposit and total credit of £10'670.00 and £4471.04 which is insanely high. My total amount payable reads £15'741.04
The balloon payment is £3010.00
Would the total cost payable include the balloon payment or exclude?
If it includes that, fine with me, however if its excluding, then to total amount I am required to pay would be £18'751.04. That is an insane amount as the purchase price was roughly £9500. I hade a few extras added increasing the price and the usual charity donation.
If it is the latter, I am essentially paying 200% the cars initial value!
Therefore, I'm feeling rather 'hosed' at present
Ironically, the model is now discontinued, and oddly, the current value of the car is £6500, dealer will give me £4000 to take it back! at this rate the value of the car at the end of the agreement is looking to be £1500, which means the finance company will make a loss, theoretically - but my ridiculous amount paid will far offset that.
I'm feeling rather stupid for taking out PCP from Vauxhall at this point and wondering if any ways to minimalise my loss could exist, I could VT at 50% but still, I would have paid the cars value at that point, but would save £9k.
Side note, written correspondence from them state that its Hire Purchase on one document and PCP on another, as far as I'm aware they're two different things? Seems like an odd mistake on their part!
What's peoples thoughts?
I know I'm an idiot for this deal, so be as unkind as you choose, I deserve it!
Generally PCP deals are for those who are happy to "rent a car" for a period and then get another one. (never actually paying the "bubble")
You have been a muppet as the calculations you have just done you really should have done before you got the car.
Now you need to decide what your options are.
Keep it, pay the bubble.
Keep it, buy another Vauxhall
Hand it back
Some point in between
You have been a muppet as the calculations you have just done you really should have done before you got the car.
Now you need to decide what your options are.
Keep it, pay the bubble.
Keep it, buy another Vauxhall
Hand it back
Some point in between
PCP is really just a type of hire purchase with a particular payment profile, so that's that mystery solved.
Next time you are thinking of entering into a contract that involves you handing over lots of money READ IT FIRST.
And I'd be VTing as soon as possible, which I think will be around the two and a half year mark. As you've established you've got no good option, but that's almost certainly the least bad.
Next time you are thinking of entering into a contract that involves you handing over lots of money READ IT FIRST.
And I'd be VTing as soon as possible, which I think will be around the two and a half year mark. As you've established you've got no good option, but that's almost certainly the least bad.
The deal is done - so you are where you are, it’s now irrelevant if it’s a good deal bad or pants down in the cold.
Now You bought the car used from a main dealer (?) on a used PCP setup. BMW offer used PCPs somewhere in the 10-13% APR. Not that compellling.
How much have you got left to pay?
How many more months do you have until the final payment?
What’s its real value now- does that match the outstanding finances?
Is it still affordable?
What’s the termination cost and would a personal loan for the remaining balance be similar or vastly cheaper than the PCP?
Is the.car still good? I
Now You bought the car used from a main dealer (?) on a used PCP setup. BMW offer used PCPs somewhere in the 10-13% APR. Not that compellling.
How much have you got left to pay?
How many more months do you have until the final payment?
What’s its real value now- does that match the outstanding finances?
Is it still affordable?
What’s the termination cost and would a personal loan for the remaining balance be similar or vastly cheaper than the PCP?
Is the.car still good? I
£16k for a £9.5k car? And I'm assuming new as you mention adding options?
Just checked on BMW used PCP and a £9500 1 series over 40 payments with a £300 deposit works out at £236 per month, final payment of £2300 for a total payable of £11,900. That's at 12.4%.
Exactly what interest rate did you sign up for?
Just checked on BMW used PCP and a £9500 1 series over 40 payments with a £300 deposit works out at £236 per month, final payment of £2300 for a total payable of £11,900. That's at 12.4%.
Exactly what interest rate did you sign up for?
S54Love said:
OP's profile suggests that it's a Zafira! Ouch
Seriously kicking a chap when he’s down. He clearly liked the car when he bought it - appears to now also which is great. No need to change the car and therefore he can spread out the higher purchase costs over a longer timeframe.
We’re not all money bags buying brand new Bentaygas most here are real life people and cannot afford new / have to take finance out on a used car.
Welshbeef said:
Seriously kicking a chap when he’s down.
He clearly liked the car when he bought it - appears to now also which is great. No need to change the car and therefore he can spread out the higher purchase costs over a longer timeframe.
We’re not all money bags buying brand new Bentaygas most here are real life people and cannot afford new / have to take finance out on a used car.
Then the OP would have done himself a massive favour by not borrowing another ~£1500 on top of the car of GAP/warranty/tyre insurance/paint protection/charity donation at a ridiculous interest rate. He clearly liked the car when he bought it - appears to now also which is great. No need to change the car and therefore he can spread out the higher purchase costs over a longer timeframe.
We’re not all money bags buying brand new Bentaygas most here are real life people and cannot afford new / have to take finance out on a used car.
Jaetten said:
Hello,
I purchased my car on PCP a year ago on a 4 year plan. I'm looking over the paperwork and have concerns over the total cost.
The car price at time of purchase was £9500, with a £300 deposit and total credit of £10'670.00 and £4471.04 which is insanely high. My total amount payable reads £15'741.04
The balloon payment is £3010.00
Would the total cost payable include the balloon payment or exclude?
If it includes that, fine with me, however if its excluding, then to total amount I am required to pay would be £18'751.04. That is an insane amount as the purchase price was roughly £9500. I hade a few extras added increasing the price and the usual charity donation.
If it is the latter, I am essentially paying 200% the cars initial value!
Therefore, I'm feeling rather 'hosed' at present
Ironically, the model is now discontinued, and oddly, the current value of the car is £6500, dealer will give me £4000 to take it back! at this rate the value of the car at the end of the agreement is looking to be £1500, which means the finance company will make a loss, theoretically - but my ridiculous amount paid will far offset that.
I'm feeling rather stupid for taking out PCP from Vauxhall at this point and wondering if any ways to minimalise my loss could exist, I could VT at 50% but still, I would have paid the cars value at that point, but would save £9k.
Side note, written correspondence from them state that its Hire Purchase on one document and PCP on another, as far as I'm aware they're two different things? Seems like an odd mistake on their part!
What's peoples thoughts?
I know I'm an idiot for this deal, so be as unkind as you choose, I deserve it!
PCP is a form of Hire Purchase, hence the dual terms.I purchased my car on PCP a year ago on a 4 year plan. I'm looking over the paperwork and have concerns over the total cost.
The car price at time of purchase was £9500, with a £300 deposit and total credit of £10'670.00 and £4471.04 which is insanely high. My total amount payable reads £15'741.04
The balloon payment is £3010.00
Would the total cost payable include the balloon payment or exclude?
If it includes that, fine with me, however if its excluding, then to total amount I am required to pay would be £18'751.04. That is an insane amount as the purchase price was roughly £9500. I hade a few extras added increasing the price and the usual charity donation.
If it is the latter, I am essentially paying 200% the cars initial value!
Therefore, I'm feeling rather 'hosed' at present
Ironically, the model is now discontinued, and oddly, the current value of the car is £6500, dealer will give me £4000 to take it back! at this rate the value of the car at the end of the agreement is looking to be £1500, which means the finance company will make a loss, theoretically - but my ridiculous amount paid will far offset that.
I'm feeling rather stupid for taking out PCP from Vauxhall at this point and wondering if any ways to minimalise my loss could exist, I could VT at 50% but still, I would have paid the cars value at that point, but would save £9k.
Side note, written correspondence from them state that its Hire Purchase on one document and PCP on another, as far as I'm aware they're two different things? Seems like an odd mistake on their part!
What's peoples thoughts?
I know I'm an idiot for this deal, so be as unkind as you choose, I deserve it!
Did you opt / pay for "extras" that took the price from £9,500 to £10,670? GAP insurance, some sort of paint protection etc?
Whats the APR showing as?
You could get a settlement figure now, and take out a cheap personal loan instead. Would save yourself probably several thousand in interest payments.
https://www.money.co.uk/loans/unsecured-loans.htm
Assuming that settlement figure is around £10,800 - £11,000, you could borrow that over 4 years at 2.8% APR for similar payments and own the car at the end of it. OR pay a bit more over 3 years and own it at the end of it.
If you're otherwise happy with the car i wouldnt be looking to VT.
Edited by Deep Thought on Tuesday 5th February 08:54
OP you need to get your paperwork out and post all the numbers on here for folk to try and offer advice. The 'Total Payable' line will include everything - deposit, monthlies, interest and balloon payment. Getting a settlement figure for the finance would also help.
Also don't be surprised if this thread hits 20 pages once the 'only buy with cash' squad notice it (although as you said, you probably deserve it).
Also don't be surprised if this thread hits 20 pages once the 'only buy with cash' squad notice it (although as you said, you probably deserve it).
Thanks for the replies folks.
The car was used, and extras are relating to transporting my dog(s) and not a huge sum, nor issue with cost etc and oddly, there's the optional 'gift aid' donation on finance here, which was £15 from my cash deposit.
The interest is high, 17%, however the PCP was recommended as I can walk away at the end, initially no intention of keeping the car past the end date as migrating to Canada by 2022 - otherwise I would have done HP and paid a bit more per month. This cost me less per month, although more if I keep the car - maybe lease would have been the better option, but this gives me more freedom when we migrate.
My concern is now due to delaying moving to Canada and potentially keeping the car. My impression was indeed that the balloon payment was included in to total amount payable, and this was confirmed. However, as I do our household budgeting I was looking over the payment details and paperwork - which does not specify if the balloon payment is OR isn't included in the total sum, it is completely ambiguous in this regard. I'll contact them for clarification.
I it isn't included, then as mentioned in an above post the car will be VT'd June 2020 at the 50% mark, if it is included then I'll be keeping the car until the end and then changing.
The issue isn't with affordability, just future proofing my financial liability due to change of future circumstance, hence my concern.
And yes, its a Zafira Tourer, fantastic car for my needs, at present can get 6 in and dog plus luggage. I had a much better offer on a Jaguar XE, but no chance of dog fitting in!
At the end of the day though, I should have planned better and gone HP or even bank loan which at the time, I could have for 5% APR but had the opposite happened and we move in 2020, I have no way out of an agreement.
Hopefully that clarifies things.
Cheers
The car was used, and extras are relating to transporting my dog(s) and not a huge sum, nor issue with cost etc and oddly, there's the optional 'gift aid' donation on finance here, which was £15 from my cash deposit.
The interest is high, 17%, however the PCP was recommended as I can walk away at the end, initially no intention of keeping the car past the end date as migrating to Canada by 2022 - otherwise I would have done HP and paid a bit more per month. This cost me less per month, although more if I keep the car - maybe lease would have been the better option, but this gives me more freedom when we migrate.
My concern is now due to delaying moving to Canada and potentially keeping the car. My impression was indeed that the balloon payment was included in to total amount payable, and this was confirmed. However, as I do our household budgeting I was looking over the payment details and paperwork - which does not specify if the balloon payment is OR isn't included in the total sum, it is completely ambiguous in this regard. I'll contact them for clarification.
I it isn't included, then as mentioned in an above post the car will be VT'd June 2020 at the 50% mark, if it is included then I'll be keeping the car until the end and then changing.
The issue isn't with affordability, just future proofing my financial liability due to change of future circumstance, hence my concern.
And yes, its a Zafira Tourer, fantastic car for my needs, at present can get 6 in and dog plus luggage. I had a much better offer on a Jaguar XE, but no chance of dog fitting in!
At the end of the day though, I should have planned better and gone HP or even bank loan which at the time, I could have for 5% APR but had the opposite happened and we move in 2020, I have no way out of an agreement.
Hopefully that clarifies things.
Cheers
Monkeylegend said:
Would it be worth getting your other half to take on this role in future.
I budget on a monthly basis, keeping outgoings as low as possible, even if we pay more in the long run. This allows us better financial security should one of us become unemployed as we wont have to worry as much about monthly outgoings - easier to mitigate loss if our outgoings are lower per month.
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