PCP on car

mrchips4098

have a question regarding my car that I have on a PCP.
My intention is to buy it at the end of the contract as I like it as I want to keep it.
I have read on other websites that if this is the case then I can ignore the requirement to have it serviced at the dealership and use my local (preferred) garage. Also the mileage limitations do not apply either as I am not handing it back to the dealer.
Am I correct in these assumptions?

bengalknights

In terms of trade in and mileage yes although it will affect your warranty if your local garage dont meet the criteria (usually VAT registered)

National_Debtline

Hi Mrchips,


My advice here would be to be careful and check your agreement. All of the details of what you and they need to do are outlined in that.


If your intention is to buy the car at the end, then you are arguably less bound by things like the mileage restrictions. However, by not complying you may lose any potential ability to negotiate the amount of the balloon payment at the end and could end up paying a lot of money for a car that has further depreciated in value because of the excessive miles/ wear and tear.


This is just something to bear in mind, especially if you are still within the mileage restrictions at this point. Good luck,


Laura
@natdebtline

chanz4

National_Debtline wrote: »

Hi Mrchips,


My advice here would be to be careful and check your agreement. All of the details of what you and they need to do are outlined in that.


If your intention is to buy the car at the end, then you are arguably less bound by things like the mileage restrictions. However, by not complying you may lose any potential ability to negotiate the amount of the balloon payment at the end and could end up paying a lot of money for a car that has further depreciated in value because of the excessive miles/ wear and tear.


This is just something to bear in mind, especially if you are still within the mileage restrictions at this point. Good luck,


Laura
@natdebtline

Ignore the above, if your buying it out right at the end of the pcp it will not have any effect on you

marty2be2000

chanz4 wrote: »

Ignore the above, if your buying it out right at the end of the pcp it will not have any effect on you

But what then happens if the OPs situation changes during the PCP and they end up having to give up the car eg. Job loss or other factors.

Sheep

Why would you need to negotiate the balloon payment at the end? I thought this was a fixed amount agreed at the start?

mrchips4098

Thank you for all the advice

My circumstances have already changed that's why I am asking thequestion. I know that I will blow the mileage restrictions because of this.
I have looked at the price of a similar car of an age that mine will be when I have to pay the balloon payment and it is reasonable. I agree the balloon payment is set. I don't understand why it would it would be negotiable as it set in my contract. If I am taking this course of action then there is no point in paying dealership prices for servicing and rather take it to my preferred local garage that I have used for years.
I know I don't have a crystal ball but it seems like the best course of action.

bearcat16

Just get a settlement figure from the finance company, then get an unsecured personal loan for that amount.

Then pay off the finance with the loan funds.

The car is yours with no more jiggery pokery about milage and servicing and balloon payments etc.

Also, if you have a financial crisis, you can just sell it.

(And I'd bet you'd get s better interest rate with Tesco bank, or Barclays or whoever than your paying the finance co.)

BLOW_FLY

Thing is, the settlement figure on the lease now will be the RV of the vehicle at the end of the term + the number of outstanding finance finance payments to take it to term + balloon payment, so it will likely be more than the car is actually worth depending on how far into the PCP the OP is.

As stated above, it might be worth taking that hit though (OP will pay over the term anyway) so there are no arguments over breach of the lease contract whenever it matures.

BF

MEM62

Nice in theory but if you don't have the car serviced as per the agreement and you rack up excess mileage you better be absolutely sure that you are going to buy the car or you are just racking up excess costs for when the car is returned. Why not stick to the mileage & service terms so that you still have the choice? You may intend to buy it now but if your circumstances change in the meantime you could be screwed.