Last Minute Finance Change

Charlie1985

Hi All,

My wife and I did a pcp deal with a car dealership last Saturday for a new car. At the time the monthly payments were where we wanted them to be (£440 per month). The dealership took £1k deposit over the phone and said the car will take a few days to arrive as it is currently at another site.

Today however we learned my wife is at risk of being made redundant so we now feel the monthly payments are a little to high by about £40. I know if we cancel the deal we will lose £500 of our deposit.

Given our change in financial circumstances would it be feasible to go back to the dealer to see if they could do a better deal? For example reduce the monthly payments by £40? I know they have targets to meet and many people say the end of the month is the best time to buy.

Any advice/past experiences on this would be highly appreciated.

Thanks

Charlie

KimJongUn88

I’m not sure how saving £40 a month can offset the risk of losing your job altogether.

In any event, you’ve done the deal. Either go ahead with it or cancel altogether.

AdrianC

To reduce the monthly payments, you would need to change the structure of the deal in some way.

The car is the same price.

The balloon is based on the estimated value at the end of the term. That can't be changed unless there's some change to the expected depreciation - perhaps (considerably...?) lower mileage?

So do you want to pay more up front?

Assuming it's a 3yr PCP, there's 36 x £40 to move in the deal, £1,440.

neilmcl

The only ways you can recue your monthlies are either extend the term or reduce the amount being financed (by increasing your deposit). If the the thought of £40 scares you in these times then maybe you shouldn't be looking at doing this at all and back out of the deal if you can.

Charlie1985

Thanks all for the advice. I plan to speak with the dealer tomorrow. They keep pushing me to collect the car by the end of the month (next week). Anyone know why this is? I will struggle to collect it by that time as I work Mon-Thur and Friday is my only day off. Apparently the car will be available to collect from 28th Sep.

Flight3287462

Charlie1985 said:
 I know if we cancel the deal we will lose £500 of our deposit.

You could lose more than your deposit if the dealer can show their costs are in excess of that amount.

Surely the facto thought process for anyone just now is to assume your job is at risk and not enter contracts for new (expensive) cars.

daveyjp

Charlie1985 said:

Thanks all for the advice. I plan to speak with the dealer tomorrow. They keep pushing me to collect the car by the end of the month (next week). Anyone know why this is? I will struggle to collect it by that time as I work Mon-Thur and Friday is my only day off. Apparently the car will be available to collect from 28th Sep.

Next week is end of the sales quarter, which means its bonus time.

Regardless of gnis the dealers don't want sold cars on the lot, they have new stock to accommodate.

Charlie1985

Thanks all. As mentioned it’s end of the sales quarter coming up. Is it worth me telling the dealer to better the price or I will leave it? What chance do I have to get a better deal?

cymruchris

Charlie1985 said:

Thanks all. As mentioned it’s end of the sales quarter coming up. Is it worth me telling the dealer to better the price or I will leave it? What chance do I have to get a better deal?

Well if they take their costs out of your deposit - they won't be any worse off if you cancel - and can put the car back on sale. You can try to reduce it - but looking at it as an outsider - I don't really think they will. If you ask - they say no - you have the choice then to walk away and lose some/most of your deposit, or carry on with the deal and hope for the best. If the job is lost - how do you propose to keep up the monthly payments if there's an emergency such as a boiler going wrong or a cooker that goes bang?

Charlie1985

That’s true I think if we can get the payments to £400 p/m we should be ok. Question is how lenient the dealership will be to do this. I will keep you posted.

WaywardDriver

Making several assumptions, cost of car is approx £k35. One solution is for dealer to have another buyer lined up and  a cheaper model (ex-demo?) in stock for you. Wishful thinking but no harm in asking.