Quick advise needed early PCP settlement

nufc_fan

Hello all

I am seriously considering taking a 58 reg BMW on a PCP deal, I dont want to keep the car more than 2-3 years but the dealer has suggested I take the car over 4 years and I can hand the car back to the finace company when 50% has been paid.

1. Is this true, I don't know much about these deals
2. Is there any penalties for doing so
3. If I take the deal over 48 months at what point would I get to the 50%, would it be 2 years? Not sure if thats a stupid question because to me its obvious it would be 2 years but I need to check.

Cheers

forgotmyname

Doesnt make sense to me, I know you can hand cars back once you reach a set fee 50%? Not sure.

I would have thought it would appear as a bad mark on your credit file though, Maybe i thought wrong?

Unless you put down a large deposit you coul be into the 3rd year before paying 50% anyway.
Is your deposit bigger than the finance charge?

Make sure you get proper advice before splashing out.

mark5

Is there a final payment in the pcp?

If so, half the payments are not going to be at the 2 year mark.

davemorton

No it does not go against your credit file, and yes, you can hand it back after you have paid 50% of the FINANCE TAKEN.

forgotmyname

davemorton wrote: »

No it does not go against your credit file, and yes, you can hand it back after you have paid 50% of the FINANCE TAKEN.

Thanks, I couldnt remember if it did or not. Now i know until i forget.

Shimrod

And how much the finance altogether? If it is £25K or over, the 50% rule no longer applies? There's more detail on here if you search.

ilovebanksMCMLXXXI

I'd seek some clarification on the deal because if you're confident what you've posted is what the salesman said then it doesn't make sense.

You can hand the car back at the end of a PCP but not at 50%

atrixblue.-MFR-.

and dont forget BMW have recalled upto 8 year old cars to dealerships to have brakes looked at for saftey fears so make sure theyve tested them!!!