PCP deal, leaving early via Voluntary Termination

AnotherJoe

Evesham_Hardcore wrote: »

Dealer suggest we hang on, which we could, but that means another year of service, tyres etc which pushes the monthly up even more. So I'm looking to get out of Fords for another plan (other manufacturer, or buy a car outright)
!

... right ... because when you own a car it no longer needs servicing, new tyres etc .... no wait.... errrr ... are you serious ?

tranduongco

Your way of doing it will probably be suitable for doing my tks so much !

TadleyBaggie

AnotherJoe wrote: »

... right ... because when you own a car it no longer needs servicing, new tyres etc .... no wait.... errrr ... are you serious ?

Probably true regarding the tyres, I only had to replace the fronts in the 2nd year of ownership. So they would get a grace period on that front.

Evesham_Hardcore

madvicker wrote: »

As for your early exchanges previously, the car you gave back each time would be worth far less than the outstanding balance on the finance agreement you signed. So for the dealer not to make a loss and keep you as a customer, they would have given you a lower specced car that is worth the same in value as - the car you gave back + the new finance deal you signed. Trust me, the one who has lost out by switching earlier each time, is you. Not the dealer.

The first one I had I swapped at 9 months, at which point I was at zero balance. I had the option to walk off. It had been a great deal for that time.

Second one less amazing but still good, bit more a month and bit lower spec but was zero balance at 11 months. Again, great.

This one, again happy with everything but the value it a lot lower at this point meaning that I have to keep for the 36 months or find an exit.

For people being !!!!!! here, I am not saying Ford are "doing me over" or that I'm unhappy with them. What I am saying is that the deal this time is not turning out as good as last time and I'm looking at my options. As it stands it looks most likely I'll go the distance on the deal term (which is OK).

(The point about servicing is that if handing back after <12 months I don't pay for that, and therefore it doesn't contribute to my annual car cost.)

Evesham_Hardcore

AnotherJoe wrote: »

... right ... because when you own a car it no longer needs servicing, new tyres etc .... no wait.... errrr ... are you serious ?

When you have a car for under a year it doesn't need those things, no. Thanks for the great input :T

Evesham_Hardcore

BoGoF wrote: »

How could you have swapped at 9 months with a zero balance from the previous car??

Deals used to be better. I get a good rate on it through work and that used to be more generous, combined with the fact that used diesel SUVs have taken a second hand knock now when they used to hold value very nicely.

Just changing times, clearly they were great times and this is more normal! :j

Penelopa.Pitstop

You can find brand/model with long life service and then it will be one every 2 years or close to 2 years. And unless it's performance car (which probably isn't at this price point), you should be able to avoid replacing tyres. I was able to do above 20K miles in high performance cars on the same tyres. So with leasing (not PCP), my only cost was service.

madvicker

Evesham_Hardcore wrote: »

The first one I had I swapped at 9 months, at which point I was at zero balance. I had the option to walk off. It had been a great deal for that time.

Second one less amazing but still good, bit more a month and bit lower spec but was zero balance at 11 months. Again, great.

This one, again happy with everything but the value it a lot lower at this point meaning that I have to keep for the 36 months or find an exit.

For people being !!!!!! here, I am not saying Ford are "doing me over" or that I'm unhappy with them. What I am saying is that the deal this time is not turning out as good as last time and I'm looking at my options. As it stands it looks most likely I'll go the distance on the deal term (which is OK).

(The point about servicing is that if handing back after <12 months I don't pay for that, and therefore it doesn't contribute to my annual car cost.)

I think that's the point that we are all making, each subsequent deal is going to be worse value to you than the last. And you have just confirmed that yourself in bold above. Specifically because the value of the car you're returning is worth less than the outstanding finance on it. Returning the car so early on in the deal means you've not even covered the cost of the depreciation, let alone any interest from the financing.

The other point we are making, is that it is better for you to either stick with the current deal you are with - or to VT when able and buy your own car outright. Whatever you do, stop changing cars so often - it is costing you more and more each time, and you don't seem to see that. I guarantee it's costing you a lot more than the servicing and tyres you are wary of paying for....

Evesham_Hardcore

madvicker wrote: »

I think that's the point that we are all making, each subsequent deal is going to be worse value to you than the last. And you have just confirmed that yourself in bold above. Specifically because the value of the car you're returning is worth less than the outstanding finance on it. Returning the car so early on in the deal means you've not even covered the cost of the depreciation, let alone any interest from the financing.

That's what you're not understanding. On both the first ones I had near zero balance at the point I swapped. I could have returned the car and walked off.
There was NO ROLLING of the cost. Like I said, they were great deals.

The fact that over time they have gone from great, to good, to OK is different market and finance structures rather than an accrual of cost.

madvicker

But you said so yourself! Your next car has always been lower specced, and a higher monthly premium - for the last 4 deals!. You've successfully managed to pull the wool over your own eyes :eek: