PCP: How many people actually pay the balloon
Discussion
CraigyMc said:
Interesting question. I would be surprised if it meant a more lax approach from the finance company to stonechips and the like.
Has anyone here got experience of this?
I have VT'd 4 cars over the past decade, all without any issue at all, the first time I range the finance co. and sorted the VT and they then let me keep the car for a further 8 weeks (without me paying a penny) as they waited for the auction house to collect it - as it happens I had another car so it just sat on my drive for that period but that was oddHas anyone here got experience of this?
each other time I rang the finance company and the sorted the VT and the car was collected within 4days max, the last one was collected the following day.
the guy collecting in my experience just does a quick walk around, check the mileage and paperwork and then takes it - nothing more than that.
My Q7 will be VTd at some point next year as well, probably in the summer and expect the exact same process again
kieranblenk said:
I planned on buying a year old Fabia Monte Carlo with 9k on the clock on a HP agreement but ended up in the brand new one on PCP due to the much lower interest rate along with a hefty deposit contribution and a free service package. I would never have dreamt of buying new due to the depreciation woes but considering at the time 1 year old models were going for more than the figure after deposit contributions, the numbers worked in favour of the new one and I was able to choose my colour and spec.
Next time round whatever car I decide on if used or a lease works out cheaper I'll do that; I'm undecided on whether I'll buy the Fabia or hand it back yet as I've only had it since March.
I PCP's my wife's (16k) Skoda Fabia Estate Monte Carlo (with extras) for £203 per month. Just about to give it back.Next time round whatever car I decide on if used or a lease works out cheaper I'll do that; I'm undecided on whether I'll buy the Fabia or hand it back yet as I've only had it since March.
Worked out at £6.76 a day for a new car with no repair costs, and all issues fixed FOC. (and free servicing)
Some might find this expensive. I don't.
Edited by GetCarter on Thursday 19th October 15:33
Porsche911R said:
don't you feel bad miss selling the PCP product :-)
Quite the opposite, I Would consider myself one of the few salesman who actually explain the product the right way. we also tell the customer when we feel the product isn't correct for them and explain all the rules GetCarter said:
I PCP's my wife's (16k) Skoda Fabia Estate Monte Carlo (with extras) for £203 per month. Just about to give it back.
Worked out at £6.76 a day for a new car with no repair costs, and all issues fixed FOC.
Some might find this expensive. I don't.
show me the maths ;-)Worked out at £6.76 a day for a new car with no repair costs, and all issues fixed FOC.
Some might find this expensive. I don't.
deposit and fee's to pay as always seem to get forgotten lol you still paid about £6k to run a s
tter, breaking it down per day does not help that fact.briSk said:
I think it must be incredibly low unless it's some middle aged person who gets an inheritance and things 'ooh this car is fine and it hasn't broken down i'll just keep it'. my believe is that people just keep rolling over and over..
Bang on if my parents are anything to go by. They rolled their cars over every 3 years from August 1993 onwards - the arrival of my Mum's brand-new Mk3 Astra estate was clearly kind of a big deal for me! :-p But now his is an '07 MINI Cooper, owned from new, and her Jazz, also owned from new, is on a 58 I think. I don't take much notice of that one! They're both retired and paid the balloons out of their lump sums I think.
I struggle to see the benefit of PCP over PCH personally for the very reason that I'd be likely to roll into another deal so I'd have put more in at the front and spent more monthly to get the same result.
Dan W. said:
Quite the opposite, I Would consider myself one of the few salesman who actually explain the product the right way. we also tell the customer when we feel the product isn't correct for them and explain all the rules
do you tell them the total cost and APR ?I find none do unless pushed hard, most say "how much can you afford a month"
Porsche911R said:
GetCarter said:
I PCP's my wife's (16k) Skoda Fabia Estate Monte Carlo (with extras) for £203 per month. Just about to give it back.
Worked out at £6.76 a day for a new car with no repair costs, and all issues fixed FOC.
Some might find this expensive. I don't.
show me the maths ;-)Worked out at £6.76 a day for a new car with no repair costs, and all issues fixed FOC.
Some might find this expensive. I don't.
deposit and fee's to pay as always seem to get forgotten lol you still paid about £6k to run a s
tter, breaking it down per day does not help that fact.Just to clarify I drove out of the dealer with a new car having paid £203 for the first month. Never paid any more than that. No servicing, no anything.
Edited by GetCarter on Thursday 19th October 15:41
Porsche911R said:
do you tell them the total cost and APR ?
I find none do unless pushed hard, most say "how much can you afford a month"
We print off a pre contract information sheet which has all of the costs, apr and explains the product which we verbally have to explain also. I find none do unless pushed hard, most say "how much can you afford a month"
I Will also put all the questions we have to go through before we can actually go live with a agreement to show you how in depth it is.
Porsche911R said:
GetCarter said:
I PCP's my wife's (16k) Skoda Fabia Estate Monte Carlo (with extras) for £203 per month. Just about to give it back.
Worked out at £6.76 a day for a new car with no repair costs, and all issues fixed FOC.
Some might find this expensive. I don't.
show me the maths ;-)Worked out at £6.76 a day for a new car with no repair costs, and all issues fixed FOC.
Some might find this expensive. I don't.
deposit and fee's to pay as always seem to get forgotten lol you still paid about £6k to run a s
tter, breaking it down per day does not help that fact.
. I'll show you my maths : Tiguan 2.0 TDI Match. £5,240 over 2 years including deposit, fees, tax, whatever. The car was £26k list and available at £22k after discount. It has lost £8k since then if you sell privately, more to the trade. So lease has beaten depreciation by a long shot. Add £35 opp. cost/month on the £22k at 2% and buying would have been £370/month without tax as opposed to £218 rented. Why pay more for a new car taxed, warrantied, zero consumables, zero servicing ?
Edited by nickfrog on Thursday 19th October 15:46
Porsche911R said:
do you tell them the total cost and APR ?
I find none do unless pushed hard, most say "how much can you afford a month"
In arriving at this Finance company have anyI find none do unless pushed hard, most say "how much can you afford a month"
alternative providers declined a proposal
Is a top up loan required to meet any additional
funding needs e.g . covering negative equity
What is the ag reed purchase price of the vehicle
How much deposit is being put down
Approximately how long do you intend to keep
the vehicle (in months)
Please select the number of months this
agreement will be over
The acceptance fee applicable to the above
agreement is
The option to purchase fee for the above
agreement is
The initial payment will be
The monthly payments will be
The final payment will be
The flat rate charge for credit is
The Annual Percentage Rate (APR) is
Ag reed maximum mileage per year
Excess mileage charge
Taking into account your existing monthly
outgoing s e.g . existing monthly finance
repayments, rent/mortgage insurance policies,
recurring direct debits, food, entertaining and
emergencies; how much do you believe you have
left over from which your monthly finance
repayments would be made?
Given the level of finance being proposed are you
happy that you will be able to afford to make
repayments without creating undue financial
hardship now and into the future? Before
answering this you should consider the
consequences of changes in your personal and or
economic circumstances e.g . the end of a work
contract, retirement, redundancy and or a
significant increase in mortgage interest rates
during the term of the agreement.
Yes
Within the last 3 months have you been declined
vehicle finance on creditworthiness or
affordability g rounds at the proposed or similar
repayment level to above with any other lender?
This is just a small amount of the questions we go through with all our finance customers. explaining each stage its called being called itc compliant.
we also have questions with the finance company we go through to so it really is done fairly
nickfrog said:
No they don't get forgotten. I'll show you my maths : Tiguan 2.0 TDI Match. £5,240 over 2 years including tax. The car was £26k list and available at £22k after discount. It has lost £8k since then if you sell privately, more to the trade.
So lease has beaten depreciation by a long shot. Add £35 opp. cost/month on the £22k at 2% and buying would have been £370/month without tax as opposed to £218 rented. Why pay more for a new car taxed, warrantied, zero consumables, zero servicing ?
so [genuine question] how sustainable is this / why continue to pursue this business model if you're a manufacturer?So lease has beaten depreciation by a long shot. Add £35 opp. cost/month on the £22k at 2% and buying would have been £370/month without tax as opposed to £218 rented. Why pay more for a new car taxed, warrantied, zero consumables, zero servicing ?
GetCarter said:
HumanDoing said: I own a 2014 Ford Fiesta ST.
...and you are telling us not to drive cars that we can afford, and we could if we wanted to pay for up front on PCP because?
Why exactly?
I'm not telling anybody anything - but would be interested in why you think my opinion is less valid because of the car I own. Does my opinion somehow 'mean more' if I am in flashier metal (as if an ST is such a s...and you are telling us not to drive cars that we can afford, and we could if we wanted to pay for up front on PCP because?
Why exactly?
t car).If, rather than owning an ST outright, I PCP'd in to a car you happen to respect, does that make my opinion more valid? Bahahahaha.
Zod said:
Most of those people would not be granted the finance. They resent other people's access to it and console themselves by muttering that it will all come tumbling down.
Contender for most ridiculous post ever made. Evidently on Planet Zod, 'access to credit' is an incredibly hard to come by thing that only the most successful people (in life and in finance) can get, and not thinking getting in to debt for a shiny and otherwise unaffordable car can only possibly be as a result of jealousy.Ask yourself who someone pushing finance would rather have in front of them - someone who saved carefully and abhorred debt as a point of principle, or someone on £20k a year who lives month to month and will swallow any deal until they get home and realise they can't really afford it. Does the dealer care if he can afford it or not? Is it hard to get credit?
To be clear - are you genuinely stating that it is difficult to be granted finance and that it somehow confers prestige and status on someone to be told that they've passed a finance check by a car dealer? Abahahahahahahaha.
Incidentally, when it comes 'tumbling down' it won't be the individual shafted in this case, it'll be the car company/finance company left holding the baby. Although the sort of person who PCPs in to a car to impress people they'll never meet at red lights will probably be gutted at having to 'trade down' to something they can actually afford.
/Thread.
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