Novice PCP queries

[macp]

Afternoon all

We are coming close to the end of our lease and starting to think about what to get next. This is our first lease so unsure of what happens when it comes time to change. Can we look at any manufacturer or do we have to stick with the same make. Do we need to find another deposit. We chopped in a 2013 Polo GT with an additional £500 I seem to remember.

Sorry probably pretty green questions but appreciate the advice.

[Clarkedontgo]

Was it a lease or pcp?, either way you can get what you want

[macp]

Clarkedontgo said:

Was it a lease or pcp?, either way you can get what you want

Sorry yes PCP.

[Andy665]

This kind of thing is genuinely scary that people have no idea what happens next

[bennno]

macp said:

Afternoon all

We are coming close to the end of our lease and starting to think about what to get next. This is our first lease so unsure of what happens when it comes time to change. Can we look at any manufacturer or do we have to stick with the same make. Do we need to find another deposit. We chopped in a 2013 Polo GT with an additional £500 I seem to remember.

Sorry probably pretty green questions but appreciate the advice.

1. Whats the car?
2. Whats your final payment?
3. Put reg number in to WBAC and it will give you an immediate understanding of its rough value versus the final payment.

You can keep the car and pay the balance, you can sell the car so long as whoever buys it pays off the balance, you can px it at any dealer and should get a higher value than the WBAC offer.

[Tomo1971]

You may get calls from the supplying dealer of current car with deals to change. Or, if you contacted them, they may offer incentives to stick with them.... Obviously you don't need to but could use that deal as a yardstick and to help negotiating other dealers.

If your not aware then any miles done over the initial agreement (will be in your contract) will be chargeable.

Also, any damage above wear and tear will be chargeable.... Costs vary between finance companies... Some reasonable, even considered 'cheap'... Others, less so.

[Barchettaman]

Andy665 said:

This kind of thing is genuinely scary that people have no idea what happens next

Helpful response, that.

[Glosphil]

You would think that when people enter into an agreement part of their due diligence would be to find out what happens at the end of the term. Or it would be explained to them.
I agree - scary.

[Mandat]

Tomo1971 said:

If your not aware then any miles done over the initial agreement (will be in your contract) will be chargeable.

Also, any damage above wear and tear will be chargeable.... Costs vary between finance companies... Some reasonable, even considered 'cheap'... Others, less so.

Not quite.

Excess mileage and damage are only chargeable by the finance company if you want to hand the car back to them.

There are no charges to pay if you buy the car or part-ex, although the part-ex price will reflect the prevailing mileage & condition.

[anonymous-user]

If you have a PCP you do not have a lease, they are different financial products.

Your PCP has an optional final payment, if you do not wish to keep the car you need to inform the finance company in advance else some may take the payment 30 days after the last installment of the agreement period.

You should do a quick check to find out if you can dispose of your car for more than the payment, because any excess you can keep. But this is unlikely.

If you want another PCP from a different manufacturer you are likely to need a new deposit.

[macp]

Barchettaman said:

Andy665 said:

This kind of thing is genuinely scary that people have no idea what happens next

Helpful response, that.

I usually dont comment on people acting like dicks but in this case I will make an exception.

[Dimebars]

You have 3 choices at the end

1. Pay the final payment/GFV and keep it
2. Hand it back to the finance company (assuming that the car is worth less than the GFV)
3. PX it against another car (assuming it’s worth more than the GFV)

If you go with 2, there may be excess mileage charges and/or damage charges

If you go with 3, it’ll be valued in its condition and mileage

You can PX anywhere against anything

First thing to do is check We Buy Any Car or similar to see what it’s worth.

It’s highly unlikely you’ll see much of the original deposit back, so yes, you’ll need to find that again.

[macp]

Thanks guys
And apologies I never even considered that people would think we dont know the belt & braces of the scheme. This was just a couple of additional questions that popped up and I was not certain of the answer.

Edited by macp on Sunday 17th January 21:03

[Mark V GTD]

Mandat said:

Excess mileage and damage are only chargeable by the finance company if you want to hand the car back to them.

There are no charges to pay if you buy the car or part-ex, although the part-ex price will reflect the prevailing mileage & condition.

100% correct and needs to be borne in mind!

[Superleg48]

macp said:

Thanks guys
And apologies I never even considered that people would think we dont know the belt & braces of the scheme. This was just a couple questions that popped and I was not certain of the answer.

I don’t think apologies are necessary to get things straight in your mind. As a helpful poster commented earlier, it was likely explained to you at the outset, but that would have been sometime ago. These things can be a minefield, so no harm at all in refreshing yourselves and seeking advice on this forum. You can also get the same advice from the Finance Company and/or a motor dealer, but some good advice already provided.

One tip, many manufacturers offer “contributions” to the initial deposit amount that helps with that. You may want to research who is offering what on their PCP plans. It changes regularly, so read around on their websites.

[Mark V GTD]

Or get out of PCP and go for leasing (PCH) which I did a few years ago and have never looked back!

[loskie]

slightly side tracking the thread BUT used car prices seem to be pretty buoyant. Are folks now coming to the end of a PCP finding the cars worth more that the GMFV? Balloon payment or whatever it's called.

[Sheepshanks]

macp said:

Barchettaman said:

Andy665 said:

This kind of thing is genuinely scary that people have no idea what happens next

Helpful response, that.

I usually dont comment on people acting like dicks but in this case I will make an exception.

I would add that it's also scary that you said you had a lease when it's a PCP.

There's a body of opinion that PCP is a bit of a "scam" as the general public doesn't fully understand it, as your posts demonstrate.

[macp]

Sheepshanks said:

I would add that it's also scary that you said you had a lease when it's a PCP.

There's a body of opinion that PCP is a bit of a "scam" as the general public doesn't fully understand it, as your posts demonstrate.

Oh right well thankyou for your valuable & helpful post. Im sorry I scared you by using the wrong word. Could you and your pals above be more condescending or is that patronizing or is that supercilious. Not sure which is the right word

I should leave now cos I is too fick to understand any of this

Edited by macp on Sunday 17th January 22:32

[macp]

Superleg48 said:

macp said:

Thanks guys
And apologies I never even considered that people would think we dont know the belt & braces of the scheme. This was just a couple questions that popped and I was not certain of the answer.

I don’t think apologies are necessary to get things straight in your mind. As a helpful poster commented earlier, it was likely explained to you at the outset, but that would have been sometime ago. These things can be a minefield, so no harm at all in refreshing yourselves and seeking advice on this forum. You can also get the same advice from the Finance Company and/or a motor dealer, but some good advice already provided.

One tip, many manufacturers offer “contributions” to the initial deposit amount that helps with that. You may want to research who is offering what on their PCP plans. It changes regularly, so read around on their websites.

Thanks for the understanding post and to everyone else who took the time to help and not judge.