PCP: Have I been duped

MEM62

Walshy252 wrote: »

If I hand back I've paid £11700 over the 3 years and essentially have nothing at the end

That's exactly how PCP works and this would have been illustrated on the documents that you were given.

If you want to finance the car and own it outright at the end of the term then you use HP - not PCP.

benten69

ratrace wrote: »

Mate, if you you are looking in to buying a house in the next 2 years if i was you id stay away from any type of monthly commitments and build them savings up so i could get a better ltv rate on my mortgage

A cars job is to get you from a to b just buy a car for £2,000 and drive that for now, dont get me wrong i love my cars but if i was applying for a mortgage id stay away from expensive cars, buying a house is not only about a despoit you have a lot of other expenses so the more cash you have the better

good luck

This, 100% this! I love my cars, used to have an Evo and a race bike. When I was looking to get a house I sold the Evo for a cheap diesel run about and the race bike has had to sit in the garage for the last year, as the house swallows money like you wouldn't believe.

Only now (12 months since purchasing) am I starting to get things sorted and considering going back to my toys.

New (or newish) car is not a wise choice when saving for a house. Hand the car back if you can under the 14 day cooling off period, buy a good, cheap reliable car. Save for the house, once you are settled into the new place, go and buy a new car.

That's what I would do.

marlot

>> Hand the car back if you can under the 14 day cooling off period...

The cooling off period relates to the finance, not to the purchase of the car.

marlot

MEM62 wrote: »

Walshy252 wrote: »

If I hand back I've paid £11700 over the 3 years and essentially have nothing at the end

...
If you want to finance the car and own it outright at the end of the term then you use HP - not PCP.

You can do either - but if you use PCP you'll need to think through how you'll pay the balloon payment at the end. HP is usually 'safer' as there is no balloon payment.

I did this on one car because I had some savings locked away in a fixed term investment, which would matures at the right time to pay the PCP off.

Mercdriver

Some dealers do have limited satisfaction guarantees with a limited time/mileage on them. I can imagine these would be fought fairly hard, though.