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!
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.
I don't have paperwork to hand, but interest is accrued and not front loaded. My settlement figure is £9430.26 saving £2904.25 on interest.
The estimated car resale value is £8250 - £8500. At a guess, and a wild guess that is, I would get 5-6k at most selling back to dealer and talking with the PCP company on paying the remainder, or bank loan etc on lower interest and paying back in full.
The estimated car resale value is £8250 - £8500. At a guess, and a wild guess that is, I would get 5-6k at most selling back to dealer and talking with the PCP company on paying the remainder, or bank loan etc on lower interest and paying back in full.
Monkeylegend said:
Deep Thought said:
Monkeylegend said:
The upside is OP has a Zafira.
Which suits his needs perfectly.
Thanks folks, I'll make enquires regarding the above suggestions and see what happens.
Edit:
I'd not be using finance again on a used, nothing wrong with it per se, had my second YBR on tick, but low interest and new. Next vehicle should I jettison the Zafira would be bank loan or cash.
Edited by anonymous-user on Wednesday 6th February 09:10
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