Lexus finance PCP - affordability checks

bengalknights

When they filled in the application did you tell them what your income and outgoings was? If you did then it simply went through the credit application process and was approved.

There is nothing wrong with that as long as you didnt lie and boost up your income to try and get approved (at which point its you that has commited the crime of fraud)

However it sounds more like you want an excuse to try and get out of your agreement as you have changed your mind, the best way for this is voluntary termination at the half way mark.

[Deleted User]

misiek404 wrote: »

You're confusing PCP with HP

Not at all. PCP can make sense if there are manufacturer offers than mean you get a better deal for the overall cost of the car vs cash or loan.

The problems happen when people want to get out of a PCP contract early.

foxy-stoat

camelot1971 wrote: »

Complete and utter rubbish. I guess you pay cash for everything, including your house, and never buy anything new as second hand is just as good :think:

Half correct, I do not think you can compare a mortgage for you and your family to live in and eventually pay off to a PCP deal where you pay to rent a car with an option to buy it or hand it back - and do read my whole post before commenting on part of it. Note, small deposit.


I can PCP a new RX with a screen price of £51,500, put down £1500 and pay £822 a month for the next 36 months. Can I afford to drop £51K cash on a new car - hell no....can I afford £822 a month to drive around in a new £51K RX for 3 years - probably. When is the VT point - month 31.

takman

camelot1971 wrote: »

Not at all. PCP can make sense if there are manufacturer offers than mean you get a better deal for the overall cost of the car vs cash or loan.

The problems happen when people want to get out of a PCP contract early.

If you get a better deal with PCP then you can buy the car then pay it off using cash to save even more money by not paying interest.
So just because PCP offers a better deal doesn't mean you have to see it through to the end.

[Deleted User]

foxy-stoat wrote: »

Half correct, I do not think you can compare a mortgage for you and your family to live in and eventually pay off to a PCP deal where you pay to rent a car with an option to buy it or hand it back - and do read my whole post before commenting on part of it. Note, small deposit.

Your whole post was "PCP deals are designed for you to drive a car that you cannot afford."

I read the whole thing. Yes, really. Maybe your small deposit comment was typed in invisible ink?

You can get PCP deals on 0% APR. If you wanted a new car, why tie up your capital when you can pay monthly and gain interest on the amount you would have paid for the new car.

Of course, there are bad PCP deals and there are people who buy a car and can barely afford the payments. That doesn't mean that PCP is a bad thing.

Gaz83

camelot1971 wrote: »

Your whole post was "PCP deals are designed for you to drive a car that you cannot afford."

I read the whole thing. Yes, really. Maybe your small deposit comment was typed in invisible ink?

You can't have read it very well, then.

This was the "whole post":

foxy-stoat wrote: »

PCP deals are designed for you to drive a car that you cannot afford. If you paid a small deposit and minimum monthly payments then you will always be in negative equity, but its not a worry as at the end of the term you just hand the car back and walk away.


If you cannot afford the car then find out your half way point and VT it, its probably near the end of the agreement though unless you dropped a large deposit at the start.