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  • FIRST POST
    • t45
    • By t45 12th Oct 16, 11:08 AM
    • 50Posts
    • 4Thanks
    t45
    PCP plan
    • #1
    • 12th Oct 16, 11:08 AM
    PCP plan 12th Oct 16 at 11:08 AM
    Hello,
    Looking to buy a new car - went to dealer and like a car priced 6800.
    Tey have offered a PCP deal (I have no idea about these - ive never financed a car) and have said to me this would be good.
    Car is priced 6800.
    I have put down 500 deposit
    Have arranged to go back and put down another 1000k as the payment
    So I put down a total of 1500
    They have asked that I pay 36 mthly payments of 120 followed by a balloon payment of, If I remember, about 3600 at the end of the 3 years
    I am covered for alloys, paintwork, MOT for 3 years
    After the 3 years I can return the car, keep the car (I assume buy it outright) or trade it in for a new car....
    I said I could pay for the car outright and or put down a bigger payment and they kept saying this package would be best - think they could see I had no idea about PCP.
    My question: would I be best for me to put down more money and lower my monthly payments or balloon payment?
    I understand that the salesman is on commission.
    Also, even though I have signed some draft paperwork and filled in a finance form that asked employment and residency questions - can I still go back to them and ask to put down more money? I feel that for some reason they are pushing me into this plan when I have said I would like
    to put down more....
Page 2
    • BeenThroughItAll
    • By BeenThroughItAll 12th Oct 16, 5:16 PM
    • 3,463 Posts
    • 2,773 Thanks
    BeenThroughItAll
    If you sign up for the PCP & cancel quickly, i.e. within a couple of days you will pay near the screen price for the car (just a tiny bit of interest added) but you will still get the free services included & have the cover of GAP insurance.
    Originally posted by Oakdene
    Assuming of course that the servicing and Gap insurance are actually 'free' and aren't actually just extras added onto the original screen price, then financed. Bearing in mind how clueless the OP seems to have been when faced with the salesman, they probably realised they can get away with anything so as I said above, I bet these 'free extras' are all chargeable.
    • neilmcl
    • By neilmcl 12th Oct 16, 5:23 PM
    • 8,570 Posts
    • 5,607 Thanks
    neilmcl
    i have only put down a deposit
    I feel really stupid
    I had no idea but it's not good
    I am goiung to see what I can ref this deposit and purchase the car on cash
    Originally posted by t45
    The deposit is simply to secure the car nothing to do with the finance deal. Just tell them you're no longer going for the PCP deal and you'll be paying cash, which means you should pay a further £6,300.
    • flashg67
    • By flashg67 12th Oct 16, 6:54 PM
    • 1,942 Posts
    • 1,268 Thanks
    flashg67
    If you want an easier life, forget all the exras - they'll likely be overpriced. I've certainly found this with gap insurance.

    Unless you're confident enough to make sure you cancel the finance afterwards then I'd go in, pay cash, stand firm. They will give in as they won't want to lose a sale, even without the commission earning extras.
    As already suggested, it's likely the extras have been added on the the sticker price.

    I hope this doesn't come across as rude, but you seem a bit naive in dealing with car buying - have you a friend you can take along for back up? Car dealers are hard nosed by default and you have to be the same yourself sometimes (easier said than done, I know)
    • t45
    • By t45 21st Oct 16, 10:53 AM
    • 50 Posts
    • 4 Thanks
    t45
    Thank you all so much for this.
    Update - I went through with the purchase - the car is lovely and I am now planning to withdraw from the PCP contract within the 14 day period (I assume that the 14 days includes Saturdays and Sundays as opposed to working days) - thank you all ever so much for such brilliant advice and information.
    • neilmcl
    • By neilmcl 21st Oct 16, 12:01 PM
    • 8,570 Posts
    • 5,607 Thanks
    neilmcl
    Let us know how it goes.
    • t45
    • By t45 22nd Oct 16, 10:27 AM
    • 50 Posts
    • 4 Thanks
    t45
    thank you -
    Hope tp settle this today and withdraw from the PCP - thank you to all for advising and helping me understand this. I will pay for the car in one swoop!
    However, in my plan there were additional products added including car/tyre cover, paint cover which I would like to keep.
    However there is a product called GAP COVER which someone has advised me to not keep ie to have this refunded and do not keep active.
    I have to admit gap cover seems a bit complicated but the person I spoke to said that if you are going to own your car (which i will when I pay the finance company and withdraw from PCP) there is no point in having PCP as gap cover is really of use to those who have a car on finance.
    So went back to dealer and asked for clarificationon this added product and they said that I shoud still keep the GAP COVER but if I own the car surely I dont need to have a dealer's gap cover policy?.....
    Does anyone have any ideas about this or experience of gap cover.
    On a positive I am still within my 14 days cooling off period so though i would like to settle this today i could wait until next week - I'm only incurring pennies of daily interest....
    • neilmcl
    • By neilmcl 22nd Oct 16, 10:41 AM
    • 8,570 Posts
    • 5,607 Thanks
    neilmcl
    thank you -
    Hope tp settle this today and withdraw from the PCP - thank you to all for advising and helping me understand this. I will pay for the car in one swoop!
    However, in my plan there were additional products added including car/tyre cover, paint cover which I would like to keep.
    However there is a product called GAP COVER which someone has advised me to not keep ie to have this refunded and do not keep active.
    I have to admit gap cover seems a bit complicated but the person I spoke to said that if you are going to own your car (which i will when I pay the finance company and withdraw from PCP) there is no point in having PCP as gap cover is really of use to those who have a car on finance.
    So went back to dealer and asked for clarificationon this added product and they said that I shoud still keep the GAP COVER but if I own the car surely I dont need to have a dealer's gap cover policy?.....
    Does anyone have any ideas about this or experience of gap cover.
    On a positive I am still within my 14 days cooling off period so though i would like to settle this today i could wait until next week - I'm only incurring pennies of daily interest....
    Originally posted by t45
    Looks like the dealer saw you coming

    GAP insurance is designed to pay off the shortfall between an insurance payout for a total loss/write off and the amount you'd still owe the finance company. As you're settling the PCP then you don't really need the GAP, so you shouldn't have taken it out in the first place. Your best bet is to cancel it and get a refund.

    What may be a complication is if the GAP payment is included in the total amount borrowed, or did you pay for it separately? If it's the former I'm not sure how you go about getting it refunded, hopefully the finance co. can answer this.
    Last edited by neilmcl; 22-10-2016 at 10:46 AM.
    • Mobeer
    • By Mobeer 22nd Oct 16, 6:09 PM
    • 1,552 Posts
    • 4,279 Thanks
    Mobeer
    Gap insurance can still be useful to have, as there are various versions of it. Some are limited to the difference between insurance payout and outstanding finance, other policies cover the difference between insurance payout and original invoice. The later type of policy is still useful even if you own the car with no finance involved.

    Remember though that you can shop around for GAP policies, you don't have to buy from the dealer.
    -----

    Also note there is a difference between settling and cancelling a PCP deal. The 14 day cool-off period relates to cancelling a PCP deal. You should not pay any interest (as the PCP was cancelled) but might lost any incentives related to your taking out a PCP (again as the PCP was cancelled). At that point you need some alternative means to pay the price of the car. The alternative is to settle the PCP, paying a sum of money to the finance company to complete the PCP deal.
    Last edited by Mobeer; 22-10-2016 at 6:13 PM. Reason: added settle vs cancel note
    • t45
    • By t45 24th Oct 16, 10:00 AM
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    • 4 Thanks
    t45
    Neil and Mob, thanks so much...to update you. I called the finance company – used my RIGHTS OF WITHDRAWAL and have 30 days to pay the sum of money.
    Unfortunately the GAP cover was included in the original finance and is part of that so I have to take it up with the dealer and ask for a refund. I have been advised to ask for refund. I have looked into it and believe that I have 30 days to write a NOTICE OF CANCELLATION to the company I have taken out the Gap with – this is all done via the dealer but I have an address for the insurer company and their procedure is to actually write to them and not the dealer.
    The only thing i will lose will be a £35 admin fee.
    To give you an idea of the cost of the Gap it was just under £300.
    I agree I should not have taken it out but this has been an steep learning curve for me. I take full responsibility but I kept saying to the dealer I can make this purchase in cash and don’t need the finance but I feel that they persuaded me with a lot of talk. And of course i was quite an easy customer with no knowledge of PCP and purchasing a car.
    I cancelled the PCP under the 14 days of right to withdraw so i did not lose any of the benefits.
    Thank you very much – i could not have sorted this out without you all offering brilliant advice and guidance. Much appreciated
    • t45
    • By t45 24th Oct 16, 10:06 AM
    • 50 Posts
    • 4 Thanks
    t45
    to give you an idea of the produccts that were added to the overall car deal:


    Tyre cover
    Gap cover
    Paint cover
    • Mercdriver
    • By Mercdriver 24th Oct 16, 11:35 AM
    • 595 Posts
    • 362 Thanks
    Mercdriver
    Lessons for the future:

    If you can't be firm with the dealer don't go alone. Ask for a fully itemised invoice before signing anything. If you had a fully itemised costed invoice you would have noticed the extras weren't thrown in but added.
    • t45
    • By t45 24th Oct 16, 12:14 PM
    • 50 Posts
    • 4 Thanks
    t45
    Thank you – lesson learnt – i did go alone and won’t do that again – and great advice regarding fully itemised costed invoice.
    I have contacted the gap insurance company with my notice of cancellation for gap cover.
    I think i will keep the tyre/wheel cover and paint cover – value of both is about £500 but think they are worth keeping.

    • BeenThroughItAll
    • By BeenThroughItAll 24th Oct 16, 12:34 PM
    • 3,463 Posts
    • 2,773 Thanks
    BeenThroughItAll
    Thank you – lesson learnt – i did go alone and won’t do that again – and great advice regarding fully itemised costed invoice.
    I have contacted the gap insurance company with my notice of cancellation for gap cover.
    I think i will keep the tyre/wheel cover and paint cover – value of both is about £500 but think they are worth keeping.
    Originally posted by t45
    Sadly I suspect you'll find out they're not worth much if you have to try and claim against them. Just concentrate on enjoying your new car and in future say NO to all the pointless extras. Even if they say they're throwing them in 'free', they're not.
    • t45
    • By t45 24th Oct 16, 1:35 PM
    • 50 Posts
    • 4 Thanks
    t45
    Thanks Been Through It - I can still cancel the other products too - the tyre cover and paint cover - I should consider whether or not I need these too.....the approx. price of all my added extras, the products was about £800
    • t45
    • By t45 24th Oct 16, 2:46 PM
    • 50 Posts
    • 4 Thanks
    t45
    The tyre/wheel cover was £199 and has a claim limit of £250.
    Paint cover was £260 - this covers paint work, carpets and upholstery.
    I'm starting to see why lots of extras may not be required....
    The car is a Fiat so no idea how much it would cost for one tyre in the event of accidental or malicious damage or puncture...
    • neilmcl
    • By neilmcl 24th Oct 16, 3:20 PM
    • 8,570 Posts
    • 5,607 Thanks
    neilmcl
    Get a quote for tyres on blackcircles.com
    • t45
    • By t45 24th Oct 16, 3:45 PM
    • 50 Posts
    • 4 Thanks
    t45
    Thanks Neil, this sounds better than have tyre/wheel cover - it's with premier solutions but I think like my gap cover, I will be cancelling this too ...many letters to write!
    • t45
    • By t45 27th Oct 16, 2:37 PM
    • 50 Posts
    • 4 Thanks
    t45
    Thank you All:
    Update:
    After following the wonderful and very valuable advice from you I have successful withdrawn from my PCP plan and am paying the neat screen price for the car. I am so happy with the advice of all on this thread without which i would not have been in the knowledge.
    I now have 30 days to may the payment.
    I have also cancelled 2 added extra products for my wheels and gap insurance. Again, I exercised my right to cancel within the 30 day period and not penalties were levied. The only product that i cannot cancel is my supagard as the car has already been treated!
    Many thanks for all of your help – successful outcome!

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