Car finance/PCP advice

Bernard_Coleslaw

At the beginning of this month we made enquiries on a new car that we would be financing through a PCP contract. The dealer gave us figures for a monthly payment - however these were just scribbled on a compliment slip for us.

We queried the amounts as they were a little higher than we had been quoted elsewhere. The response was "Yes, others may charge less per month, but with this, more is coming off your capital so the balloon payment will be much less, later on".

At the time, we were reasonably satisfied and paid a deposit for the car, however it wasn't until we got home that we realised we hadn't been given a full written quotation for the PCP.

After a couple of phone calls, and two-and-a-bit weeks, the quotation showed up yesterday. Apart from several other charges they hadn't told us about, it also showed that the APR was in fact 2-3% higher than we could have got from other PCP companies, so we're not paying more off the capital at all, in fact the final balloon payment would be higher than that shown on competing quotes.

I feel let down by my own stupidity - I now know that I should have insisted on seeing the full details at the time of enquiry. I'm calling the dealer this morning to complain/renegotiate. Are there any experts around here who could tell me if I have a leg to stand on?

Thanks in advance.

BC

Bernard_Coleslaw

.......and here's the update.

On speaking to the Business Manager at the dealership today, I've managed to negotiate both a lower APR (in line with competitors) and a refund of admin fees.

Goes to prove a couple of things:

• Never accept the first quote you're given
• These people want to do business, so haggle!

Cheers

BC

:j

andymac746

What happens after your agreement term? can you give the car back for example or is it worth more usually than you owe? Looking into this as it lowers your monthly payment but not sure if it is a good plan.

thx

Bernard_Coleslaw

Yes - the reduction has come straight off the interest, i.e. the amount of capital reduction is not adversely affected.

The model in question has some of the best residuals in the UK (checked this out independently) so we're confident about the guaranteed future value.

Cheers

BC

peterg1965

Can I ask what the car is??

Bernard_Coleslaw

New MINI Cooper.

BC

peterg1965

Nice.......

Bernard_Coleslaw

Everyone, after me....

"You're only supposed to blow the bl**dy doors off!"



BC

VincentVega

Good choice in car. I bought one in October 2002 for £13200 or so. When I got it valued at the beginning of the month (buying a Golf), they told me it was worth £8000 (after 24000 miles). Not too bad, IMHO - £5200 depreciation in 40 months (or £130 per month).

paulengland

well i used to work in a car dealership and used to get a lot of credit for customers .but i find out that most of the time i am selling them rather then telling the truth, not to be black mouth the rest of the car credit industry but it is somthing i always look back and think if i didn't say that to this customers what will the customers end up with .

AFter i been to some of the course about personal finance and find out that getting a card loan is a the best way to finance the car.

The best way is secure loans which known as 2nd mortgages which you can get a very low rate on interest but only down side is if there is any problems involve in the car payment then the mortgage will be involved as well which make many people worry .

MY final advise will be .. if you can't afford to buy a car without credit ,, consider not buying it .
The car you buy on credit after couples of years you will end up paiding 50% more (depends on interest) so if for 10K card will end up 15k you paiding .. after 3 years you car will be depreciate more then the money you owe ..which what we called upside down and it is not the best position you want to get into.

Think twice before taking on credit guys !