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  • FIRST POST
    • rjwr
    • By rjwr 25th Jun 17, 9:45 AM
    • 234Posts
    • 152Thanks
    rjwr
    Paying off PCP or keeping the vehicle
    • #1
    • 25th Jun 17, 9:45 AM
    Paying off PCP or keeping the vehicle 25th Jun 17 at 9:45 AM
    Hi all,

    another pcp question. Our local mini dealer sent me a marketing letter asking to buy our car. This is a letter which would have gone out to many mini owners, so not just my particular car.

    I've called with curiosity and im left with a decision as follows:

    Mini dealer has offered £8000 for the mini
    I would need to pay £1500 to clear the agreement

    £1500 is roughly 6 months payments including insurance and tax

    My wife mainly uses the car as i have a fully expensed company car. She doesn't need a vehicle so when i say uses it, its very infrequent.

    Selling the car back to the dealer if you will, means i have reduced my debt to just a mortgage, but in return my wife loses the use of a car.

    £220/month plus fuel is a lot of taxi/bus fare.

    At the end of the agreement we will be giving the car back anyway, we have two years left, so 24 x £220.

    Any advice welcome
    My DFD: http://forums.moneysavingexpert.com/showthread.php?t=5641837
Page 1
    • Tarambor
    • By Tarambor 25th Jun 17, 11:10 AM
    • 898 Posts
    • 604 Thanks
    Tarambor
    • #2
    • 25th Jun 17, 11:10 AM
    • #2
    • 25th Jun 17, 11:10 AM
    OK so you say your wife only uses it infrequently. What is the mileage it does a year? I ask as unless she sits in the house all day when you're at work she's likely to be using it.

    Would your wife accept having an older cheaper car as a runaround? Could you fund buying one outright?

    Does the £1500 "ending the agreement" leave you owning the car or is there a "buy" payment at the end?

    £8000 offered without seeing the vehicle is likely to end up being a lot less when you actually turn up.
    • rjwr
    • By rjwr 25th Jun 17, 3:15 PM
    • 234 Posts
    • 152 Thanks
    rjwr
    • #3
    • 25th Jun 17, 3:15 PM
    • #3
    • 25th Jun 17, 3:15 PM
    nope, its £1500 to the dealer plus the car. We get nothing other than not having any debt.

    Two years from now, we still get nothing, but have £7000 left on the car.... pcp for you.

    They have seen the vehicle, so its not an offer without seeing it.

    my wife doesn't need a car. she didnt want the car in the first place, i wanted her to have freedom, but in reality she has less freedom now, as she feels pressure to drive and doesnt want too.
    My DFD: http://forums.moneysavingexpert.com/showthread.php?t=5641837
    • AnotherJoe
    • By AnotherJoe 25th Jun 17, 6:54 PM
    • 6,891 Posts
    • 7,329 Thanks
    AnotherJoe
    • #4
    • 25th Jun 17, 6:54 PM
    • #4
    • 25th Jun 17, 6:54 PM
    So you can either pay £1500 now to get rid of a car you don't want, or £5,280 (£220 x 24) ( plus tax, insurance, petrol?)

    If that's the choice I'm not sure why you are even thinking about it. Did I misunderstand something ?
    • Mutton Geoff
    • By Mutton Geoff 25th Jun 17, 8:52 PM
    • 809 Posts
    • 615 Thanks
    Mutton Geoff
    • #5
    • 25th Jun 17, 8:52 PM
    • #5
    • 25th Jun 17, 8:52 PM
    Any details on the mini so our car pricing experts can give an idea. Chopping a car into a dealer without buying anything from them is usually the worst way of selling a car regardless of the fact this is packaged to you as a way out.


    Is the PCP closure incentivised or can you just pay them off anyway? Could you sell the car for (much) more privately and be, say, £1,000-£1,500 better off thus saving yourself more.
    Compensations/Refunds from Banks & Institutions - £3,435 | Stooz Profits - £7,636 | Quidco - £3,903

    All with a big thank you to Martin and MSE.com from Mutton Geoff!
    • robber2
    • By robber2 25th Jun 17, 11:13 PM
    • 247 Posts
    • 187 Thanks
    robber2
    • #6
    • 25th Jun 17, 11:13 PM
    • #6
    • 25th Jun 17, 11:13 PM
    I'd take the offer from the dealer and buy a banger for £500 for the occaasional trip that your wife makes. Im guessing she can drive your company car if she has a significant journey to make?
    • AnotherJoe
    • By AnotherJoe 26th Jun 17, 11:57 AM
    • 6,891 Posts
    • 7,329 Thanks
    AnotherJoe
    • #7
    • 26th Jun 17, 11:57 AM
    • #7
    • 26th Jun 17, 11:57 AM
    I'd take the offer from the dealer and buy a banger for £500 for the occaasional trip that your wife makes. Im guessing she can drive your company car if she has a significant journey to make?
    Originally posted by robber2
    It would be cheaper and less hassle to rent or get trains/taxis.

    A "£500 banger "will still cost a grand in the first year and probably £500 ongoing a year. That's a lot of trains and taxis.
    Last edited by AnotherJoe; 26-06-2017 at 1:02 PM.
    • rjwr
    • By rjwr 29th Jun 17, 7:30 PM
    • 234 Posts
    • 152 Thanks
    rjwr
    • #8
    • 29th Jun 17, 7:30 PM
    • #8
    • 29th Jun 17, 7:30 PM
    it might sound odd but my wife does not need a car. she only took her test through family pressure. absolutely hates driving, is physically frightened. any long journeys i drive, fuel is free for me.

    ive gone with selling the car back to the dealer. despite costing me £1500, im now out of debt apart from the mortgage.
    thanks for your help
    My DFD: http://forums.moneysavingexpert.com/showthread.php?t=5641837
    • rjwr
    • By rjwr 10th Jul 17, 7:37 PM
    • 234 Posts
    • 152 Thanks
    rjwr
    • #9
    • 10th Jul 17, 7:37 PM
    • #9
    • 10th Jul 17, 7:37 PM
    ok, so car went today. Thats £9000 weve spent in two years with insurance and tax and nothing to show for for it!!

    thank you for your help
    My DFD: http://forums.moneysavingexpert.com/showthread.php?t=5641837
    • MataNui
    • By MataNui 12th Jul 17, 10:03 AM
    • 774 Posts
    • 390 Thanks
    MataNui
    Normally it annoys me a bit when people get all high and mighty about whether you 'need' a car or not or what sort of car you 'need', but in this case not only does your wife not 'need' the car but she didn't even want it in the first place.

    That would be a bit frustrating. Your right about PCP too. Its rarely the most suitable finance option yet its becoming the most common by a long way. Looking around on autotrader and the number of traders who are only offering PCP type finance is unbelievable. It really seems like financial suicide, particularly on used cars.
    • rjwr
    • By rjwr 24th Jul 17, 10:00 PM
    • 234 Posts
    • 152 Thanks
    rjwr
    yep thats correct. Weve been managing more than ok since the car has gone.

    Agree with the PCP comment, hence us paying to get out of it.
    My DFD: http://forums.moneysavingexpert.com/showthread.php?t=5641837
    • chanz4
    • By chanz4 25th Jul 17, 10:11 PM
    • 9,874 Posts
    • 2,871 Thanks
    chanz4
    its going to be the next missold I think, its not explained well at all
    Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.
    • pmartin86
    • By pmartin86 25th Jul 17, 11:52 PM
    • 429 Posts
    • 218 Thanks
    pmartin86
    [QUOTE=MataNui;72826455]
    That would be a bit frustrating. Your right about PCP too. Its rarely the most suitable finance option yet its becoming the most common by a long way. Looking around on autotrader and the number of traders who are only offering PCP type finance is unbelievable. It really seems like financial suicide, particularly on used cars.[/]

    I dont want to argue unneccassarily, and you entitled to your opinion, but that sweeping statment, is in my opinion, !!!!!!!!.

    I personaly would say that for a large proprtion of people, PCP is an entire suitable option if all the pros and cons are considered, as opposed to the "Ohh shiny car, i want!" Attitude. I personaly beleive the main issue with PCP is the fact its heavily incetived for the salesmen and heavily weighed to be "one low payment" for people who can't see the big picture.

    I use myself as an example, I have a reasonable disposable income a month, I drive aproxx 40,000 miles a year (work and business) yes I have got a deal thats costs me less than £200 a month plus a one off "£350 for 3 years service" fee. I know that having a relible car Ive got a guranteed handin price for in 3 years which will effectivly be a deposit on the next car is great.

    While I understand that my situation is unique, im sure there are several examples of where PCP is mutualy beneficial.
    • phillw
    • By phillw 26th Jul 17, 12:28 AM
    • 616 Posts
    • 271 Thanks
    phillw
    Your right about PCP too. Its rarely the most suitable finance option yet its becoming the most common by a long way.
    Originally posted by MataNui
    PCP itself isn't a problem. Most of the time they are 0%, so your payment is just the depreciation of the car. If anything the problem is that they have made buying new cars too affordable, like interest only mortgages.

    Most new car owners don't need a new car, they just want it.
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