PC Sums

Willspireite

Was just wondering about this the other day.

We moved into a new build house just over 2 years ago. In the stated price, there was 1500 towards PC sums ... fair enough thinks me.

I wandered around the kitchen, bathroom and fireplace showrooms that we HAD to use the PC sums in, but the prices were huge ... so decided against using them, and instead visited trusty B and Q.

I would have imagined this would have reduced the price by 1500 ... however we were informed that we could only get 750 back.

I didn't ask any questions, as I just assumed this was normal, and it probably is ... but I was wondering, in new moneysaver mode ... how is this ok?

Surely it's saying, you can use this very limited number of companies, that we've teamed up with (making lots of profit) ... if you decide you don't want to use them/can't afford it ... then we'l sting you, so we still get some cash out of you?

Cheers for any info on this, as am just a bit confused!

Doozergirl

Most people, if told buy a salesperson, that something is a good deal, will believe it. There are always people on the board infering that they are getting a bargain because a developer offers them 5% deposit paid. Money for F&Fs is the same. I should think you can buy stuff for a thrid of the price they charge.

You are in a small minority if you actually compared prices. I went to a showhome where they had attached the price of extras to the items - I nearly keeled over. The mark up on the stuff is vast! They must keep Neff in business - they should be able to sell it cheaper!

Everything about a new build is overpriced. A true moneysaver would either not buy one at all or barter very hard indeed on the asking price.

PasturesNew

Spot the ones you like and wait for them to come on the market second-hand
As it seems the resale prices are cheaper.
Might even get a BTL one .... that's never been lived in

Willspireite

Cheers for feedback guys ... but was just really asking if the fact that the builders took 50% of the PC sum value that we didn't spend is normal ... or was I ripped off at the time?

Doozergirl

It's totally normal is what I was saying. Sorry.

They're out to make as much cold hard cash as they can. The retail price of the items is of course, far less than they pay wholesale. So you think they're offering you £1500, but they're only actually offering you what costs them about £500.

PasturesNew

I've actually no idea what any of this meant. To be honest.
Or what the question was.

Mrs_Bogroll

PasturesNew wrote: »

I've actually no idea what any of this meant. To be honest.
Or what the question was.

I think the OP is a N.Ireland person. In NI some builders sell their new properties as "turn key" which means that the house/flat is all painted, kitchen, bathroom etc fitted, and the buyer just moves in with their furniture. The buyer doesn't get a lot of choice in the house's final finish.

Other builders quote a price for a house which includes PC Sums. PC Sums = Prime Cost Sums. Usually they are sums of money set aside to go toward fireplace, kitchen and bathroom fittings, but only if you shop at suppliers nominated by the builder.

Eg I bought my house with a PC sum of £500 for the fireplace. The fireplace and fitting cost a total of £1,200, but as £500 was included in the price of the house I gave the fireplace supplier £700. I had similar deals for the kitchen and the bathroom.

The OP may be correct in that getting these things from other suppliers might actually work out cheaper, though I would be surprised if B&Q's offerings are a fair comparison in terms of quality.

The builder probably has special deals with the suppliers so while in the fireplace example I gave above the builder may not have paid £500 to the supplier but some other lower price. If that's the case then In effect the PC Cost sums aren't truly worth what the builder says they are and if you refuse them then they aren't willing to give you back the full amounts they quoted in the first place.

OP I don't think you were ripped off, but I do think you could have driven a deal with the suppliers to get your money's worth.

Doozergirl

Thanks Mrs Bogroll

I was in rant mode