Bye bye BMW 120D, hello...
Discussion
2004 Ford Focus 1.6i Zetec!
Wasn't exactly the planned 'shed' to replace the BMW but that's how it's turned out.
A little story to explain:
We got the 120D on BMW's finance but for stupid reasons we were mislead with the finance arrangements. It wasn't as flexible as the salesman explained (despite asking the right questions!) as we were a bit, well, disappointed with the whole experience.
At the point where we wanted to trade it in, we realised that it wasn't how he said and we were stuck with a terrible trade in value on the car (vs what we owed). Oh well, we've learned from that and won't be going back.
So, through a chance conversation with a workmate, he was after a new TT but was a bit scared off by the depreciation and also wanted something a bit more practical. I half seriously said "you can buy my 1 series if you like" and he agreed (not quite that immediately!).
We agreed on the a price to cover my outstanding finance and set about looking for a replacement. As he was also having to sell his car (the Focus 1.6) then I suggested taking his car in Part Ex for £1k (private value probably around £1700).
And that, my friends, is how I've ended up with a 1.6 petrol Ford Focus!
Basically, I wanted something for the commute whilst we save a bit of cash for the next purchase which is likely to either be a big engined estate (3 series or S4) or something small and fast (Z4MC, Cayman, Lotus).
So a bit of 'shedding' for the next couple of months. Might get some pictures of it... but it's boring and nobody will care!
I'm quite glad I'm out of the finance agreement without being too much out of pocket!
Wasn't exactly the planned 'shed' to replace the BMW but that's how it's turned out.
A little story to explain:
We got the 120D on BMW's finance but for stupid reasons we were mislead with the finance arrangements. It wasn't as flexible as the salesman explained (despite asking the right questions!) as we were a bit, well, disappointed with the whole experience.
At the point where we wanted to trade it in, we realised that it wasn't how he said and we were stuck with a terrible trade in value on the car (vs what we owed). Oh well, we've learned from that and won't be going back.
So, through a chance conversation with a workmate, he was after a new TT but was a bit scared off by the depreciation and also wanted something a bit more practical. I half seriously said "you can buy my 1 series if you like" and he agreed (not quite that immediately!).
We agreed on the a price to cover my outstanding finance and set about looking for a replacement. As he was also having to sell his car (the Focus 1.6) then I suggested taking his car in Part Ex for £1k (private value probably around £1700).
And that, my friends, is how I've ended up with a 1.6 petrol Ford Focus!
Basically, I wanted something for the commute whilst we save a bit of cash for the next purchase which is likely to either be a big engined estate (3 series or S4) or something small and fast (Z4MC, Cayman, Lotus).
So a bit of 'shedding' for the next couple of months. Might get some pictures of it... but it's boring and nobody will care!
I'm quite glad I'm out of the finance agreement without being too much out of pocket!
Similar happened to me with BM.
I thought I knew what I was getting into with a PCP, but reality strikes when you see:
?months x £??? - (market value of car - settlement figure) = £????? (wads owing).
It is very easy to end up in -ve equity and of course, if circumstances change and you are nowhere near the end of the term, then its a bit of a shocker. These PCPs are not be taken on without a great deal of thought.
No one forced me to sign and it will be the same, i presume for the OP, and for others taking out these agreements, you want the car and think the payments are acceptable, but really they are not.
I thought I knew what I was getting into with a PCP, but reality strikes when you see:
?months x £??? - (market value of car - settlement figure) = £????? (wads owing).
It is very easy to end up in -ve equity and of course, if circumstances change and you are nowhere near the end of the term, then its a bit of a shocker. These PCPs are not be taken on without a great deal of thought.
No one forced me to sign and it will be the same, i presume for the OP, and for others taking out these agreements, you want the car and think the payments are acceptable, but really they are not.
SSBB said:
Do you get royally shafted on a PCP if you terminate early? I've only ever had experience of old fashioned hire purchase.
Yep, if you are not halfway through then its heavily weighted against you. Some do have a clause that the car can be handed back after half the payments have been made, called 50/50 or something like that.SSBB said:
Do you get royally shafted on a PCP if you terminate early? I've only ever had experience of old fashioned hire purchase.
Surely it's the final balloon payment + outstanding months payments (adjusting a bit for interest)? Which is the same as normal HP in that you pay back outstanding monthly payments (again with a little bit of interest shenanigans)I will level with you - I don't really understand how you can be mis-sold a PCP. Agreed - if you back out early, you will get stung, and the 50/50 thing is not really 50/50 - read the terms, you will not save much over the entire combined payments. Perhaps 1 or 2 months money on a 24 month term.
If you see the term through, you should always set the Balloon as high as possible at the start, so that you payments are as low as possible. Come the end of the term, hand the keys in. I cannot see how it is possible to get stung.
Does anyone ever pay the balloon payment? I have always assumed that no-one ever did.
If you see the term through, you should always set the Balloon as high as possible at the start, so that you payments are as low as possible. Come the end of the term, hand the keys in. I cannot see how it is possible to get stung.
Does anyone ever pay the balloon payment? I have always assumed that no-one ever did.
McSam said:
Sounds like you had a rough time with the BMW, but picking up a Mk2 Focus that age for a grand can't be bad, assuming it's in semi-decent nick? Fair play!
It's a 2004 Mk1 in excellent nick with over 100k miles on it. Still a great price.SSBB said:
Out of interest, were you lied to by the dealer, or did you not read the agreement? I would have thought you could report them to FSA if they have acted improperly.
Yes, I believe I was but I don't intend doing anything other than voting with my feet. It's surely my word against his and they'll just state that we didn't read the agreement, which to be fair, we weren't thorough enough. We read it... just not thoroughly and you do kind of expect the dealer to be truthful to save you the worry.dooosuk said:
Have you stiffed your workmate twice? Once on the price for your car and once on the price for his?
Nice work!
No, I've not stiffed him. I know you're kidding Nice work!
Trade in - excellent: £12,001.00
Trade in - average: £11,350.00
Trade in - below average: £10,250.00
Dealer retail price: £14,950.00
Private sale price: £13,355.00
We were offered 'average' trade-in but they were insisting on non-RF tyres so were going to knock £1k off that price so effectively £10,500. We owed £12500 on finance and actually sold it to my mate for £12000. He's let his go for £500 under private sale price so we're both happy
It's not the PCP package, it's their 5 year finance which was fine because we could "hand it back and walk away at every quarter of the agreement term" (I paraphrase). Fortunately, because it's not a PCP we didn't get shafted with an early repayment charge.
MagicalTrevor said:
It's not the PCP package, it's their 5 year finance which was fine because we could "hand it back and walk away at every quarter of the agreement term" (I paraphrase). Fortunately, because it's not a PCP we didn't get shafted with an early repayment charge.
Ah OK, that is some billy bulls
tting there. Half the repayment term is the norm. (Don't know why I thought it was PCP). SSBB said:
Ah OK, that is some billy bullstting there. Half the repayment term is the norm. (Don't know why I thought it was PCP).
To be fair, I didn't say either way and most people choose a PCP if financing.tting there. Half the repayment term is the norm. (Don't know why I thought it was PCP). We specifically didn't go for a PCP [u]because[/u] we wanted the flexibility.
garos said:
SSBB said:
Do you get royally shafted on a PCP if you terminate early? I've only ever had experience of old fashioned hire purchase.
Yep, if you are not halfway through then its heavily weighted against you. Some do have a clause that the car can be handed back after half the payments have been made, called 50/50 or something like that.The other potential gotcha is that the GFV is only guaranteed at the end of the term - hand it back early and they may offer less. This happened when the arse fell out of the SUV market in 2007/8.
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