PCP & Guaranteed Future Value

parking_question_chap

neilmcl wrote: »

How does driving at 1,000 rpm increase the miles you drive :rotfl:

The 1,000rpm aspect was alluding to the fact you would need to keep the mpg high in order to make the operation cost effective.

If you went about adding the miles by tearing up country lanes in second, then the cost of petrol used would likely negate any benefits from the reduced final payment.

Didnt think that would need spelling out in as many words, but I guess there are all sorts of maths abilities on here.

:rotfl:

Ectophile

dolphin85 wrote: »

Many thanks to the responses so far, although I feel I kind of understood the permutations, it's always nice to hear other opinions and get some clarification.
For those who mentioned it, I did try to increase my mileage limit after 9 months, but the finance company refused and basically said it was tough.
I think I'm going to press on and find the money to pay the balloon at the end of the agreement although I may look to see if a dealership will be willing to value my car at or around the balloon value and trade in for a new one. I was looking at the new Focus so maybe I'll just return to the Ford dealership I went to for the Fiesta.

Thanks again,
Dolph

You're trying to talk yourself into buying a new car now. Which means you'll be locked into another finance agreement.


Your current car isn't old, or very high mileage. It should have many years left in it.

Mercdriver

parking_question_chap wrote: »

The 1,000rpm aspect was alluding to the fact you would need to keep the mpg high in order to make the operation cost effective.

If you went about adding the miles by tearing up country lanes in second, then the cost of petrol used would likely negate any benefits from the reduced final payment.

Didnt think that would need spelling out in as many words, but I guess there are all sorts of maths abilities on here.

:rotfl:

I will rephrase Neil's question. How will driving at 1000rpm reduce the final payment that the OP must pay at the end?

neilmcl

Mercdriver wrote: »

I will rephrase Neil's question. How will driving at 1000rpm reduce the final payment that the OP must pay at the end?

Glad I'm not the only one

His reply makes even less sense than his original statement.

wgl2014

parking_question_chap wrote: »

The 1,000rpm aspect was alluding to the fact you would need to keep the mpg high in order to make the operation cost effective.

Unfortunately any imaginary fuel savings would be negated by either the inevitable fine for driving along the motorway at 25mph or the cost of repairing your car after being rear ended by a truck!

AdrianC

1,000rpm may well be somewhere around 40-50mph in something with a very high 6th gear.

parking_question_chap

Mercdriver wrote: »

I will rephrase Neil's question. How will driving at 1000rpm reduce the final payment that the OP must pay at the end?

Read ops first post.
Anyway, I always drive at 350 rpm any more than that is just a waste.

dolphin85

It's more a case of not currently having the means to pay £5k + to pay the balloon at the end of the agreement.
A friend of mine works for VW and he has suggested, in my circumstances, going round the local dealers and see who will offer the full balloon figure as a trade in value for my car and settle the agreement that way, does that make logical sense? It seems to do so

Cheers,
Dolph

marlot

dolphin85 wrote: »

It's more a case of not currently having the means to pay £5k + to pay the balloon at the end of the agreement.
A friend of mine works for VW and he has suggested, in my circumstances, going round the local dealers and see who will offer the full balloon figure as a trade in value for my car and settle the agreement that way, does that make logical sense? It seems to do so

Cheers,
Dolph

I guess that's an alternative to getting a discount off the purchase price of the new car. ie. the £1000 difference between your car's value and the balloon payment has to be paid somehow.



Kicking the debt down the road may help you in the short-term, but will not help you long term.

dolphin85

Sorry to drag this one on and, again, thanks for all the information so far, but to clarify, should I be able to find a dealer willing to meet the £5777 balloon value for my car will that mean that I effectively have a deposit of £5777 against a new agreement or will I have to find additional funds for this. I'm assuming the former as the dealer would have the car (even if they cant sell it for £5777) they will still get a good number for it and have a sale of a new car on the books too, am I correct?

Thanks,
Dolph