Financing a new car
Discussion
I have recently placed an order on the Range Rover Velar and wanted to ask about views on financing (as I haven't taken out financing before).
I intend to take out 3 year PCP financing from JLR as there was a dealer contribution of c.£2k on the deposit. I should be able to repay that within the next 6-8 months (as I will have funds by then); I have been told that the penalty is only two months interest for early repayment. At a stretch, I could get the funds to purchase the car now but I would lose the dealer deposit contribution so I thought might as well take the financing.
Can I ask experienced users of PCP if the guaranteed payment at the end is worth something i.e. how many times you have had a car which has been below that price come the time of exchanging? and hence if I should keep the PCP for the full term? Also asking in the context of some views I have read on this forum which suggests that the car is over-priced...
Any views on the approach to financing would be appreciated.
I intend to take out 3 year PCP financing from JLR as there was a dealer contribution of c.£2k on the deposit. I should be able to repay that within the next 6-8 months (as I will have funds by then); I have been told that the penalty is only two months interest for early repayment. At a stretch, I could get the funds to purchase the car now but I would lose the dealer deposit contribution so I thought might as well take the financing.
Can I ask experienced users of PCP if the guaranteed payment at the end is worth something i.e. how many times you have had a car which has been below that price come the time of exchanging? and hence if I should keep the PCP for the full term? Also asking in the context of some views I have read on this forum which suggests that the car is over-priced...
Any views on the approach to financing would be appreciated.
Cant speak for LR finance but most manufacturer finance companies who offer an FDA will not reclaim the support money if you withdraw from the agreement using the 14 day term. Most dealers however are fearful of explaining this as one of the stats measured by the FCA is the number of 14 day withdraw's a dealer has as it can be indicative of miss selling.
The days of large equities after a PCP are generally well behind us due to the accuracy of RV forecasting now in use. IT does still happen but don't expect a massive deposit going into the next deal.
From my experience their are 2 ways to use PCP advantageously.
1. Plan to return the car. Keep the deposit small, be honest about your mileage and take great care of the vehicle you are borrowing.
2. Use the offer as cheap HP financing (most have very low rates and many have FDA's) and set up any deal you like, planning to pay the balloon.
Velar is not performing as JLR envisaged and there are deals to be had. They now seem to be falling victim to the wider market conditions and many LR owners are finding themselves in negative equity and hugely increased payments.
Be wary of claims of 2 Months interest, you would need to see the terms to know this.
The days of large equities after a PCP are generally well behind us due to the accuracy of RV forecasting now in use. IT does still happen but don't expect a massive deposit going into the next deal.
From my experience their are 2 ways to use PCP advantageously.
1. Plan to return the car. Keep the deposit small, be honest about your mileage and take great care of the vehicle you are borrowing.
2. Use the offer as cheap HP financing (most have very low rates and many have FDA's) and set up any deal you like, planning to pay the balloon.
Velar is not performing as JLR envisaged and there are deals to be had. They now seem to be falling victim to the wider market conditions and many LR owners are finding themselves in negative equity and hugely increased payments.
Be wary of claims of 2 Months interest, you would need to see the terms to know this.
The 2 months interest you have been quoted is a rough guide - assuming the agreement is written in your name and not through a limited company then it'll be regulated by the consumer credit act and all finance companies have to adhere to the same formula when calculating your settlement figure.
In my experience, customers rarely reach the end of their PCP agreement, the majority change cars for one reason or another before the end of the contract.
In my experience, customers rarely reach the end of their PCP agreement, the majority change cars for one reason or another before the end of the contract.
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