Just add fuel scheme question

GemJud

Hi

I am looking at the Peugoet just add fuel scheme, does anybody know if I can part ex my old car as part of this scheme to reduce the monthly payments even more?

Thanks x

Credit_Crunched_2

Yes you can!

chichee

Also, do you have to pay an initial amount up front for the car? Or, is it a simple case of passing a few credit checks and you stick to your monthly payments etc?

Credit_Crunched_2

Deposit range is 0-40% of the vehicle price, so you do not need to pay an initial payment, but it will impact on the monthly payments. Yes a credit check will take place.

IIRC you need to be aged 25-75, have a UK/EU licence for 2 years, have at least 2 years ncb and no more than 1 "minor" motoring conviction, and no more that 1 fault claim in the last 3 years.

GemJud

Great fantastic, thanks for all your help. Will have to go into my local garage and go through it all to see how low I can get the monthly payments! x

daveyjp

Don't go into the garage yet - get the agreement and read the smallprint. This is no more than a lease. You will be tied to dealer servicing for replacement parts (unable to opt out as the car is theirs) and you will never own the car.

From the FAQs

"If you choose to pay off the optional final rental at the end of contract, you can keep the car but will not own it – you will pay an annual rental equivalent to one of your monthly rentals."

I'd be wary.

Credit_Crunched_2

daveyjp wrote: »

Don't go into the garage yet - get the agreement and read the smallprint. This is no more than a lease. You will be tied to dealer servicing for replacement parts (unable to opt out as the car is theirs) and you will never own the car.

From the FAQs

"If you choose to pay off the optional final rental at the end of contract, you can keep the car but will not own it – you will pay an annual rental equivalent to one of your monthly rentals."

I'd be wary.

Really not the case at all..

From the very next line in the Terms & Conditions:

" However car ownership is possible with Just Add Fuel Passport"

This is a personal contract purchase (PCP) deal. You are able to own the car by paying off the guaranteed future value (GFV).

Peugeot, like most manufacturers base their advertising on a personal finance lease (No need to advertise an APR), whereby the only way to continue using the car is to pay a peppercorn rent at the end of the term. This is not how Just add fuel is structured.

I do agree that you should understand how the scheme T&C's work etc.

daveyjp

The OP asked about Just Add Fuel, not Just Add Fuel Passport. The scheme is still one to be very wary of.

Credit_Crunched_2

daveyjp wrote: »

The OP asked about Just Add Fuel, not Just Add Fuel Passport. The scheme is still one to be very wary of.

There is only one scheme... It is called Just add fuel. They are one and the same thing.

Nothing to be wary of if you understand fully how it works. No difference to any PCP scheme on the market.

Kite2010

The "guaranteed future value" will most likely bear no relation to what the car is actually worth in 3 years time, and be wary of any annual millage limits as it can become costly if you breach them

Credit_Crunched_2

Kite2010 wrote: »

The "guaranteed future value" will most likely bear no relation to what the car is actually worth in 3 years time, and be wary of any annual millage limits as it can become costly if you breach them

GFV will be roughly 85% of expected book value in 3 years. In fact in most cases there will be equity involved at trade in.

As in all PCP deals, excess mileage is only an issue if you hand the car back to the finance company. If you trade in, the valuation will reflect the mileage, if you pay off the GFV it really does not matter.

Just set the mileage limit to what you think you will do.