Range Rover PCP ending

[BensZ4MC]

I received a letter from Santander with my PCP options for the end of June on my Range Rover Sport AB (15 Reg with 45k miles). Option 1 was retain £35,190,2 - return and 3 PEX. There was no option to extend the lease so I spoke with Santander who said I could reschedule the term for another 12 months. They would charge the same monthly of 0.01p (I paid the remaining balance early) and at the end of the term the repayment would be £36,915 and I would have to pay this amount, there is no option to just hand back the car. Does this sound right to you?

Thanks, Ben

[LarsG]

Personally when a JLR vehicle is out of warranty dump it on some other mug unless you have a bottomless pocket of cash. Ask yourself this "can I afford to buy 4 new tyres this afternoon (not on finance) can I afford to service it, fill the tank, cover the cost of the insurance and tax before 5pm today?" If you can't and you have to juggle credit cards etc it's not a car you can afford to run.

[J1990]

BensZ4MC said:

I received a letter from Santander with my PCP options for the end of June on my Range Rover Sport AB (15 Reg with 45k miles). Option 1 was retain £35,190,2 - return and 3 PEX. There was no option to extend the lease so I spoke with Santander who said I could reschedule the term for another 12 months. They would charge the same monthly of 0.01p (I paid the remaining balance early) and at the end of the term the repayment would be £36,915 and I would have to pay this amount, there is no option to just hand back the car. Does this sound right to you?

Thanks, Ben

What does your post even mean? I think you might need to take a step back and write it again.

PCP is where you pay a deposit (normally), you then make monthly payments for the duration of the contract (normally 36-60 months) and at the end of that period there is a pre-agreed price for which you can purchase the car or you can hand it back.

HP is where you do the above but the entire outsanding balance of the car is paid off over the monthly payments, there is no final 'bubble' to be paid.

Lease (PCH) is where you pay a deposit and then make monthly payments over the duration of the contract. At the end of the contract you can ask to extend the lease, though you're not guaranteed to be made an offer. In some instances you will have the ability to purchase the car from the lease company, though the rates aren't always competitive. Most of the time you will just hand the car back and hope there are no unexpected damages.


If sounds like you PCP'd a used car but I can't work out why they would sell you a car now for £35k or charge you 12pence to have it another year and then offer for you purchase it for £37k. If that is the deal then it's a no-brainer to keep the car for another year for a total cost of one pence per month.

[Muzzer79]

J1990 said:

BensZ4MC said:

I received a letter from Santander with my PCP options for the end of June on my Range Rover Sport AB (15 Reg with 45k miles). Option 1 was retain £35,190,2 - return and 3 PEX. There was no option to extend the lease so I spoke with Santander who said I could reschedule the term for another 12 months. They would charge the same monthly of 0.01p (I paid the remaining balance early) and at the end of the term the repayment would be £36,915 and I would have to pay this amount, there is no option to just hand back the car. Does this sound right to you?

Thanks, Ben

What does your post even mean? I think you might need to take a step back and write it again.

PCP is where you pay a deposit (normally), you then make monthly payments for the duration of the contract (normally 36-60 months) and at the end of that period there is a pre-agreed price for which you can purchase the car or you can hand it back.

HP is where you do the above but the entire outsanding balance of the car is paid off over the monthly payments, there is no final 'bubble' to be paid.

Lease (PCH) is where you pay a deposit and then make monthly payments over the duration of the contract. At the end of the contract you can ask to extend the lease, though you're not guaranteed to be made an offer. In some instances you will have the ability to purchase the car from the lease company, though the rates aren't always competitive. Most of the time you will just hand the car back and hope there are no unexpected damages.


If sounds like you PCP'd a used car but I can't work out why they would sell you a car now for £35k or charge you 12pence to have it another year and then offer for you purchase it for £37k. If that is the deal then it's a no-brainer to keep the car for another year for a total cost of one pence per month.

I'm glad I'm not the only one who was thinking this. The post makes no sense.

LarsG said:

Personally when a JLR vehicle is out of warranty dump it on some other mug unless you have a bottomless pocket of cash. Ask yourself this "can I afford to buy 4 new tyres this afternoon (not on finance) can I afford to service it, fill the tank, cover the cost of the insurance and tax before 5pm today?" If you can't and you have to juggle credit cards etc it's not a car you can afford to run.

And neither does this. What does maintenance costs have to do with warranty.....or anything else?

[AyBee]

Sounds like they don't want it back if you keep it another 12 months. The increase in cost I assume is the interest building up over the year given you're not paying any of it off in the monthly payment. I'm not sure a bunch of randoms on the internet is the best place to ask the question though given it's Santander who have the answer...

[Torquey]

LarsG said:

Personally when a JLR vehicle is out of warranty dump it on some other mug unless you have a bottomless pocket of cash. Ask yourself this "can I afford to buy 4 new tyres this afternoon (not on finance) can I afford to service it, fill the tank, cover the cost of the insurance and tax before 5pm today?" If you can't and you have to juggle credit cards etc it's not a car you can afford to run.

WTF? Are you saying I should be able to pull £1000+ out to spend on a car at any given time? Even the day before payday?

[BensZ4MC]

J1990 said:

What does your post even mean? I think you might need to take a step back and write it again.

PCP is where you pay a deposit (normally), you then make monthly payments for the duration of the contract (normally 36-60 months) and at the end of that period there is a pre-agreed price for which you can purchase the car or you can hand it back.

HP is where you do the above but the entire outsanding balance of the car is paid off over the monthly payments, there is no final 'bubble' to be paid.

Lease (PCH) is where you pay a deposit and then make monthly payments over the duration of the contract. At the end of the contract you can ask to extend the lease, though you're not guaranteed to be made an offer. In some instances you will have the ability to purchase the car from the lease company, though the rates aren't always competitive. Most of the time you will just hand the car back and hope there are no unexpected damages.

If sounds like you PCP'd a used car but I can't work out why they would sell you a car now for £35k or charge you 12pence to have it another year and then offer for you purchase it for £37k. If that is the deal then it's a no-brainer to keep the car for another year for a total cost of one pence per month.

Thanks... Apologies I didn't mean to confuse. You are correct I am being offered to keep the car for another 12 months for 12p which sounds like no brainer!! Unfortunately, I am being told by Santander that at the end of the term I only have one option - I need to pay the £37k, no option to hand the car back like a PCP. I wanted to check if this sounds correct - that you only have the option to pay the money? I am thinking in 15 months time the car will be worth roughly £28k in the trade... so paying £37k doesn't sound great! I hope this makes sense...

Edited by BensZ4MC on Thursday 8th April 15:19

[J1990]

BensZ4MC said:

Thanks... Apologies I didn't mean to confuse. You are correct I am being offered to keep the car for another 12 months for 12p which sounds like no brainer!! Unfortunately, I am being told by Santander that at the end of the term I only have one option - I need to pay the £37k, no option to hand the car back like a PCP. I wanted to check if this sounds correct - that you only have the option to pay the money? I am thinking in 15 months time the car will be worth roughly £28k in the trade... so paying £37k doesn't sound great! I hope this makes sense...

Edited by BensZ4MC on Thursday 8th April 15:19

Ok, now it seems to make a little more sense.

They're trying to get you to purchase the car and the option they're giving is that you can agree to the purchase now and they will effectively give you a 12 month 'payment holiday' at the end of which the full balance is applicable.

A quick look on AutoTrader suggests I could pick up a LR Sport Autobiography with the same mileage but a year older than yours for £30-33k. So if the market stayed exactly the same then you'd be paying en extra £3-7k to have the car for an extra year, rather than the money leaving your account monthly of 12pence. You're also going to be owning a car that's synonymous with big bills and wallet draining potential. Just remember that £30-33k is sale price, if you were trading it in you could be looking at £26-29k and you're then paying £9-12k for the priveledge of having the car an extra year.

It sounds like it's time to hand the car back as the 1pence per month charge is just a 'sweetener' for a rather expensive 1 year payment deferral of £37k whihc could sting you for over £10k.

[Muzzer79]

BensZ4MC said:

Thanks... Apologies I didn't mean to confuse. You are correct I am being offered to keep the car for another 12 months for 12p which sounds like no brainer!! Unfortunately, I am being told by Santander that at the end of the term I only have one option - I need to pay the £37k, no option to hand the car back like a PCP. I wanted to check if this sounds correct - that you only have the option to pay the money? I am thinking in 15 months time the car will be worth roughly £28k in the trade... so paying £37k doesn't sound great! I hope this makes sense...

Edited by BensZ4MC on Thursday 8th April 15:19

It sounds like what they're trying to do is, in a very weird way, freeze your final payment at £37k-ish for another year but only charge you a nominal monthly fee.

So, whatever your usual monthly payment is, is going towards offsetting the car's drop in value.

Rough numbers:

Car worth £37k now
15 months normal payment of £600 = £9000
Car worth £28k in a year = £9000 drop

Net difference = £0

But it's all highly unusual and I've never heard of it before.

It's all a bit red-flag to me - I'd just hand it back now.

[BensZ4MC]

J1990 said:

BensZ4MC said:

Thanks... Apologies I didn't mean to confuse. You are correct I am being offered to keep the car for another 12 months for 12p which sounds like no brainer!! Unfortunately, I am being told by Santander that at the end of the term I only have one option - I need to pay the £37k, no option to hand the car back like a PCP. I wanted to check if this sounds correct - that you only have the option to pay the money? I am thinking in 15 months time the car will be worth roughly £28k in the trade... so paying £37k doesn't sound great! I hope this makes sense...

Edited by BensZ4MC on Thursday 8th April 15:19

Ok, now it seems to make a little more sense.

They're trying to get you to purchase the car and the option they're giving is that you can agree to the purchase now and they will effectively give you a 12 month 'payment holiday' at the end of which the full balance is applicable.

A quick look on AutoTrader suggests I could pick up a LR Sport Autobiography with the same mileage but a year older than yours for £30-33k. So if the market stayed exactly the same then you'd be paying en extra £3-7k to have the car for an extra year, rather than the money leaving your account monthly of 12pence. You're also going to be owning a car that's synonymous with big bills and wallet draining potential. Just remember that £30-33k is sale price, if you were trading it in you could be looking at £26-29k and you're then paying £9-12k for the priveledge of having the car an extra year.

It sounds like it's time to hand the car back as the 1pence per month charge is just a 'sweetener' for a rather expensive 1 year payment deferral of £37k whihc could sting you for over £10k.

Thanks for your thoughts and research... Yes I think you are right. We love the car but maybe time to say goodbye!! Re. reliability I think we may have been lucky as the car has never let us down...

[BensZ4MC]

Muzzer79 said:

BensZ4MC said:

Thanks... Apologies I didn't mean to confuse. You are correct I am being offered to keep the car for another 12 months for 12p which sounds like no brainer!! Unfortunately, I am being told by Santander that at the end of the term I only have one option - I need to pay the £37k, no option to hand the car back like a PCP. I wanted to check if this sounds correct - that you only have the option to pay the money? I am thinking in 15 months time the car will be worth roughly £28k in the trade... so paying £37k doesn't sound great! I hope this makes sense...

Edited by BensZ4MC on Thursday 8th April 15:19

It sounds like what they're trying to do is, in a very weird way, freeze your final payment at £37k-ish for another year but only charge you a nominal monthly fee.

So, whatever your usual monthly payment is, is going towards offsetting the car's drop in value.

Rough numbers:

Car worth £37k now
15 months normal payment of £600 = £9000
Car worth £28k in a year = £9000 drop

Net difference = £0

But it's all highly unusual and I've never heard of it before.

It's all a bit red-flag to me - I'd just hand it back now.

Yep thanks, I think you are right - time to hand it back!

[Dashnine]

BensZ4MC said:

Thanks... Apologies I didn't mean to confuse. You are correct I am being offered to keep the car for another 12 months for 12p which sounds like no brainer!! Unfortunately, I am being told by Santander that at the end of the term I only have one option - I need to pay the £37k, no option to hand the car back like a PCP. I wanted to check if this sounds correct - that you only have the option to pay the money? I am thinking in 15 months time the car will be worth roughly £28k in the trade... so paying £37k doesn't sound great! I hope this makes sense...

Edited by BensZ4MC on Thursday 8th April 15:19

If they are 'extending the term' then the it's the same agreement, so the same conditions apply (buy, trade in or return). If it's not the same agreement then it's a new loan, although apart from the increased cost to buy it, I don't see what Santander get out of it. I assume as it's a Santander loan and not Black Horse it's a second hand car, and not from LR.

But the idea of paying £37K in a years time for a year older car that's worth about £10K less isn't a great one.