PCP: How many people actually pay the balloon
Discussion
HumanDoing said:
Yes you're right, I'm the 'troll' for having the temerity to have someone insult me out of nowhere for owning a Fiesta ST. Let's hope they never ask you to do jury duty, the victim blaming is extraordinarily unedifying.
You honestly think that you are a victim for driving a Fiesta?They aren’t great cars, but thinking you are a victim seems a bit strong.
Sheepshanks said:
Elysium said:
Not profit, just mitigation of cost because the private sale value should be around 20% more than the GMFV. This was not always the case, but seems to be consistent over the last 8 years.
I reckon that's very unlikely to be the general case. Only a PH used car selling God could reliably achieve that. We get thread after thread on here of people who aren't getting any interest in cars they have for sale.And don't forget, the GFV in itself is a bit irrelevant. It's easy to have a low figure - but you paid for it with a higher deposit and/or monthly payments.
If you don't understand something it doesn't automatically mean you were mis-sold. Plenty of dim people buy products and services they genuinely need but don't understand.
Having said that.....some people were bamboozled into having PPI bolted onto their personal loans. Some of those people shouldn't have been sold it as they wouldn't be able to make a valid claim (mis-sold). For others it was relevant (they could have made a valid claim so they were genuinely covered) but they now claim not to have realized (yeah, right). Others have had mis-seling refunds when they didn't ever have PPI (refunding banks being numpties).
Not entirely sure how anyone coukd claim a mis-sale on PCP unless the paperwork is flawed. Surely it is crystal clear ?
Having said that.....some people were bamboozled into having PPI bolted onto their personal loans. Some of those people shouldn't have been sold it as they wouldn't be able to make a valid claim (mis-sold). For others it was relevant (they could have made a valid claim so they were genuinely covered) but they now claim not to have realized (yeah, right). Others have had mis-seling refunds when they didn't ever have PPI (refunding banks being numpties).
Not entirely sure how anyone coukd claim a mis-sale on PCP unless the paperwork is flawed. Surely it is crystal clear ?
liner33 said:
My car trade in value is currently around 30% higher than the "final payment" but thats largely as the mileage agreed was 10k per year and I've only done 18k in 2 years 7 months
Was that with a big deposit?I'm 42 months into a 4 year PCP (BMW 1 series) and speaking to the dealer last week I'm just about at break even right now. I cannot see the car being worth much more, or any more, than the GFV in 6 months but I guess time will tell.
garyhun said:
Was that with a big deposit?
I'm 42 months into a 4 year PCP (BMW 1 series) and speaking to the dealer last week I'm just about at break even right now. I cannot see the car being worth much more, or any more, than the GFV in 6 months but I guess time will tell.
Yes as big as I could but the deposit only impacts the monthly payments not the "GFV" I'm 42 months into a 4 year PCP (BMW 1 series) and speaking to the dealer last week I'm just about at break even right now. I cannot see the car being worth much more, or any more, than the GFV in 6 months but I guess time will tell.
I used the car valuer on Autotrader dont know how accurate that it is
Elysium said:
Interested to know why you think your car will be different if you are reasonably in line with predicted mileage?
I'm right in line with my mileage allowance, I chose it because it matched my usage. I might even be a thousand miles under come handback.But the car is a Renault Zoe, and the depreciation on them is pretty severe. My suspicion is that Renault knowingly shunted more money into the final payment in order to reduce the monthly payments to attract people, but however it came to be, I think it will be worth a grand or two less than that.
bad company said:
Blown2CV said:
it isn't a balloon. If you buy the right car at the right price and really study what the GFV is against what the residual might be, really look after the car etc then you could be paying it off and selling it privately and making money back every single time. I once made £7k back on an E-class. If you're just a 
who doesn't know anything about cars and either bought the wrong car or paid too much, or indeed can't be arsed then yea hand it back. The big question is that if you really had no intention of every paying the final payment then why the fk didn't you lease it for less money (generally)?
Because some of us lease/pcp the car WANT which may not be the ‘right car’ in terms of residual value. who doesn't know anything about cars and either bought the wrong car or paid too much, or indeed can't be arsed then yea hand it back. The big question is that if you really had no intention of every paying the final payment then why the fk didn't you lease it for less money (generally)?I like pcp because that way I know that my costs are capped. At the end of the agreement I can sell or part exchange the car if there is equity in or return it if there isn’t.
t deal - it just isn't how to use the system. With PCP if you bought the car you simply had to have, rather than chose wisely from a financial perspective then you won't have equity. Also if you're worrying about your costs being 'capped' (which they aren't by the way e.g. with mileage) then you're clearly someone who would be going above fair wear and tear... so definitely no equity then. What is your total equity you've recovered on cars using PCP then? Be honest.OddCat said:
If you don't understand something it doesn't automatically mean you were mis-sold. Plenty of dim people buy products and services they genuinely need but don't understand.
Having said that.....some people were bamboozled into having PPI bolted onto their personal loans. Some of those people shouldn't have been sold it as they wouldn't be able to make a valid claim (mis-sold). For others it was relevant (they could have made a valid claim so they were genuinely covered) but they now claim not to have realized (yeah, right). Others have had mis-seling refunds when they didn't ever have PPI (refunding banks being numpties).
Not entirely sure how anyone coukd claim a mis-sale on PCP unless the paperwork is flawed. Surely it is crystal clear ?
it isn't about the product, it's about finance. You may 'need' a car, but you don't necessarily need a PCP as there are other methods.Having said that.....some people were bamboozled into having PPI bolted onto their personal loans. Some of those people shouldn't have been sold it as they wouldn't be able to make a valid claim (mis-sold). For others it was relevant (they could have made a valid claim so they were genuinely covered) but they now claim not to have realized (yeah, right). Others have had mis-seling refunds when they didn't ever have PPI (refunding banks being numpties).
Not entirely sure how anyone coukd claim a mis-sale on PCP unless the paperwork is flawed. Surely it is crystal clear ?
Blown2CV said:
If you're picking the car first and then finding a lease then you're almost always getting a st deal - it just isn't how to use the system. With PCP if you bought the car you simply had to have, rather than chose wisely from a financial perspective then you won't have equity. Also if you're worrying about your costs being 'capped' (which they aren't by the way e.g. with mileage) then you're clearly someone who would be going above fair wear and tear... so definitely no equity then. What is your total equity you've recovered on cars using PCP then? Be honest.
Of course I pick the car first, then I decide how to pay for it. As I said I like pcp because the depreciation is known or limited from the outset. My last car was a BMW 335d which had equity from the pcp to put towards my current car. t deal - it just isn't how to use the system. With PCP if you bought the car you simply had to have, rather than chose wisely from a financial perspective then you won't have equity. Also if you're worrying about your costs being 'capped' (which they aren't by the way e.g. with mileage) then you're clearly someone who would be going above fair wear and tear... so definitely no equity then. What is your total equity you've recovered on cars using PCP then? Be honest.I’m not into ‘using the system’ as you say. I’m into choosing the car I want then deciding the best way to pay for it including paying cash.
Edited by bad company on Saturday 21st October 14:30
DuraAce said:
Frighteningly I think they are.
Some folk will sign anything without reading /understanding.
I know of two people with PCP disasters, one didnt know it was mileage limited and another was unaware (or thick/not listening to the salesman) of the final payment. The silly sod somehow twisted the facts of the deal in his mind to believe the gfmv was the amount of deposit into his next new car.
Explain! What's the issue with paying off the final payment and keeping the car?Some folk will sign anything without reading /understanding.
I know of two people with PCP disasters, one didnt know it was mileage limited and another was unaware (or thick/not listening to the salesman) of the final payment. The silly sod somehow twisted the facts of the deal in his mind to believe the gfmv was the amount of deposit into his next new car.
bad company said:
Blown2CV said:
If you're picking the car first and then finding a lease then you're almost always getting a st deal - it just isn't how to use the system. With PCP if you bought the car you simply had to have, rather than chose wisely from a financial perspective then you won't have equity. Also if you're worrying about your costs being 'capped' (which they aren't by the way e.g. with mileage) then you're clearly someone who would be going above fair wear and tear... so definitely no equity then. What is your total equity you've recovered on cars using PCP then? Be honest.
Of course I pick the car first, then I decide how to pay for it. As I said I like pcp because the depreciation is known or limited from the outset. My last car was a BMW 335d which had equity from the last pcp to put towards my current car. t deal - it just isn't how to use the system. With PCP if you bought the car you simply had to have, rather than chose wisely from a financial perspective then you won't have equity. Also if you're worrying about your costs being 'capped' (which they aren't by the way e.g. with mileage) then you're clearly someone who would be going above fair wear and tear... so definitely no equity then. What is your total equity you've recovered on cars using PCP then? Be honest.I’m not into ‘using the system’ as you say. I’m into choosing the car I want then deciding the best way to pay for it including paying cash.
Chose the car, then chose the most effective way to pay for it.
This doesnt seem difficult? I dont understand why some people struggle with it - cash MUST be cheapest, people who lease a specific car MUST have got a crap deal?
Strange.
James_B said:
You honestly think that you are a victim for driving a Fiesta?
They aren’t great cars, but thinking you are a victim seems a bit strong.
Please tell me what you think a 'great' car is then so i can immediately trade in my fantastic Fiesta ST for it in order to impress you. They aren’t great cars, but thinking you are a victim seems a bit strong.
Lord knows I exist solely to win the approval of self-important, pompous gas bags pontificating/lecturing us mere mortals on how we should conduct ourselves on the internet, who il never meet. It's their opinion that matters to me more than anything - I'd merrily put years on my working life widdling PCP money up the wall so I can come on here saying i rent whatever car you sodomise in order to win your approval.
daemon said:
Chose the car, then chose the most effective way to pay for it.
This doesnt seem difficult? I dont understand why some people struggle with it - cash MUST be cheapest, people who lease a specific car MUST have got a crap deal?
Strange.
HumanDoing said:
Please tell me what you think a 'great' car is then so i can immediately trade in my fantastic Fiesta ST for it in order to impress you.
Lord knows I exist solely to win the approval of self-important, pompous gas bags pontificating/lecturing us mere mortals on how we should conduct ourselves on the internet, who il never meet. It's their opinion that matters to me more than anything - I'd merrily put years on my working life widdling PCP money up the wall so I can come on here saying i rent whatever car you sodomise in order to win your approval.
I think you're taking this a bit too seriously.Lord knows I exist solely to win the approval of self-important, pompous gas bags pontificating/lecturing us mere mortals on how we should conduct ourselves on the internet, who il never meet. It's their opinion that matters to me more than anything - I'd merrily put years on my working life widdling PCP money up the wall so I can come on here saying i rent whatever car you sodomise in order to win your approval.
bad company said:
daemon said:
Chose the car, then chose the most effective way to pay for it.
This doesnt seem difficult? I dont understand why some people struggle with it - cash MUST be cheapest, people who lease a specific car MUST have got a crap deal?
Strange.
I am just coming to the end of my 2 yr lease with a 335D touring and I will probably pay the final figure and keep it, I always intended to although the PCP/lease is a bit unusual, I took advantage of a scheme through my firm to use their leasing co which gave me a lower % interest than normal and no upfront payment. The total cost over 2 years including the final settlement was a fraction below what I could have bought it outright for from a broker, in addition I included servicing and tax for 2 years plus an option to ditch it after the 2 years if I got made redundant etc. I have done less miles than I thought and currently WBAC are offering more for it than the final payment. I would have to pay more to get a second hand one from a dealer, so from my point of view I am buying a 2 year old car to the exact spec I wanted and I know how it's been used.
Notwithstanding all of the above, I could have got much cheaper monthly payments but the total cost of the car with final payment worked out several thou more so I'm not surprised that not many people pay the final payment on that basis.
Notwithstanding all of the above, I could have got much cheaper monthly payments but the total cost of the car with final payment worked out several thou more so I'm not surprised that not many people pay the final payment on that basis.
daemon said:
bad company said:
Blown2CV said:
If you're picking the car first and then finding a lease then you're almost always getting a st deal - it just isn't how to use the system. With PCP if you bought the car you simply had to have, rather than chose wisely from a financial perspective then you won't have equity. Also if you're worrying about your costs being 'capped' (which they aren't by the way e.g. with mileage) then you're clearly someone who would be going above fair wear and tear... so definitely no equity then. What is your total equity you've recovered on cars using PCP then? Be honest.
Of course I pick the car first, then I decide how to pay for it. As I said I like pcp because the depreciation is known or limited from the outset. My last car was a BMW 335d which had equity from the last pcp to put towards my current car. t deal - it just isn't how to use the system. With PCP if you bought the car you simply had to have, rather than chose wisely from a financial perspective then you won't have equity. Also if you're worrying about your costs being 'capped' (which they aren't by the way e.g. with mileage) then you're clearly someone who would be going above fair wear and tear... so definitely no equity then. What is your total equity you've recovered on cars using PCP then? Be honest.I’m not into ‘using the system’ as you say. I’m into choosing the car I want then deciding the best way to pay for it including paying cash.
Chose the car, then chose the most effective way to pay for it.
This doesnt seem difficult? I dont understand why some people struggle with it - cash MUST be cheapest, people who lease a specific car MUST have got a crap deal?
Strange.
Blown2CV said:
it isn't a balloon. If you buy the right car at the right price and really study what the GFV is against what the residual might be, really look after the car etc then you could be paying it off and selling it privately and making money back every single time. I once made £7k back on an E-class. If you're just a who doesn't know anything about cars and either bought the wrong car or paid too much, or indeed can't be arsed then yea hand it back. The big question is that if you really had no intention of every paying the final payment then why the fk didn't you lease it for less money (generally)?
I have never intended to pay the final payment on any PCP. I've bought 3 cars from new and all would have cost more to lease than PCP. who doesn't know anything about cars and either bought the wrong car or paid too much, or indeed can't be arsed then yea hand it back. The big question is that if you really had no intention of every paying the final payment then why the fk didn't you lease it for less money (generally)?DonHorizon said:
My situation on a new i20; £3000 down payment. £167 a month for 3 years. Final payment of £4800 which I'll be intending to pay. I pay about £1000 in APR credit but getting the car with about £2000 off. I don't think that's too bad... feel free to slam me...
What are you expecting the market value of the car to be at the end of the term?Gassing Station | General Gassing | Top of Page | What's New | My Stuff