Ford Options

pheonixrising21

Amme wrote: »

Hi,

Yes I would be needing a car in 2 years, I did not know you could transfer from brand to brand so that sheds a different light on the matter. I was worried that at the end of the contract I would end up with nothing after podding out all that money if I decided not to keep the car.

Thanks for that

Yes, the PCP is fully transferrable to another brand. Think of the GFV as a settlement figure. The GFV is the sum you still owe after the 2 years in order to own the car outright. Its similar to getting a settlement figure after two years of a four year hire purchase deal.

Always best to go back to Ford to see what they can offer next time. Even if you decide you want another brand, at least Ford will give you a trade in value to compare against

BadgerFace_2

Amme wrote: »

Hi,

Yes I would be needing a car in 2 years, I did not know you could transfer from brand to brand so that sheds a different light on the matter. I was worried that at the end of the contract I would end up with nothing after podding out all that money if I decided not to keep the car.

Thanks for that

Just to clarify, you WILL lose any deposit you put down over those 2 years. All the deposit is doing is lowering the monthly payment you will NEVER get it back.

Keep the cash and lease one, or do pcp with a much lower deposit.

pheonixrising21

BadgerFace wrote: »

Just to clarify, you WILL lose any deposit you put down over those 2 years. All the deposit is doing is lowering the monthly payment you will NEVER get it back.

Keep the cash and lease one, or do pcp with a much lower deposit.

I'm afraid I don't understand your comment. Please explain where the deposit is "lost" - other than in depreciation, which I have already mentioned?

Lets assume a PCP on a £24000 car, £10000 GFV with a £1000 dep against a £9000 deposit. Lets assume 0% to make the calculations easier.

Formula: Monthly price = (Car price-GFV-deposit)/24

Scenario one (£1,000 deposit): £24000-£10000-£1000 = £13000 to finance
£13000/24 = £541 per month

Scenario two (£9000 deposit): £24000-£10000-£9000 = £5000 to finance
£5000/24 = £208 per month

£541-£208 = £333 per month saved with higher deposit. £333x24 = £7992 (rounding accounts for the £8 difference).

If there is interest charged, then a bigger deposit will SAVE money over a low one as there is a smaller sum that interest is applied to.

Leasing usually costs more per month (to cover the cost of the depreciation of the vehicle - you don't think the lease company will take the hit on that do you?) and there are usually massive penalties for excess mileage and for even the smallest amount of damage when returned. Oh, and you never have the chance to own the car, ever.

If your PCP has an APR lower than your savings account (after tax), go for a low deposit. If the APR is higher than your savings account, go for a high deposit. Make sure the dealer tells you the APR and not the "flat rate". The APR is usually around double the flat rate.

BadgerFace_2

Yes, i'm aware that the higher deposit will save money on interest etc. My concern was, if you re-read op's posts (one below), it sounds like they think they will get some or all of this deposit back at the end of the rental period, which they won't (they may get a small amount)

Amme wrote: »

Hi,

Yes I would be needing a car in 2 years, I did not know you could transfer from brand to brand so that sheds a different light on the matter. I was worried that at the end of the contract I would end up with nothing after podding out all that money if I decided not to keep the car.

Thanks for that

Also, on the leasing front, they may pay much less for their cars and it sometimes works out better to pay their profit!

The lease in post 2 gives a total 2 yr cost as £11.7k
The options agreement gives it as £14.9k