Getting the most out of a PCP agreement at the end of your arangement.

BOWFER

DrEskimo said:

My point was that it was being framed as a great benefit of PCP. It rarely is.

Who decides when a benefit becomes a great benefit?

Grumpy_chap

BOWFER said:

motorguy said:

The O/P didnt need to take ownership of the car, ownership went straight to the dealer, putting £2,050 directly in to the pocket on the way.

I'm not getting your point here.
Are you saying the dealer would keep quiet about the car being worth £2000 more than the balloon payment and let them walk away unaware?

I think many a Dealer would try and then simply pocket the £2k.  Especially as there are many consumers who do not know that other options exist, or are not that savvy so take the first answer they are given by the Dealer, particularly when simply weighing up "purchase" (which they can't afford) against "give back walk away".  Options to sell elsewhere and settle the finance and keep the surplus do require an element of thinking outside the box.

motorguy

Grumpy_chap said:

BOWFER said:

motorguy said:

The O/P didnt need to take ownership of the car, ownership went straight to the dealer, putting £2,050 directly in to the pocket on the way.

I'm not getting your point here.
Are you saying the dealer would keep quiet about the car being worth £2000 more than the balloon payment and let them walk away unaware?

I think many a Dealer would try and then simply pocket the £2k.  Especially as there are many consumers who do not know that other options exist, or are not that savvy so take the first answer they are given by the Dealer, particularly when simply weighing up "purchase" (which they can't afford) against "give back walk away".  Options to sell elsewhere and settle the finance and keep the surplus do require an element of thinking outside the box.

The dealer doesnt get the car back when you hand it back, the finance company does - its their car, not the supplying dealers.

Grumpy_chap

motorguy said:

Grumpy_chap said:

BOWFER said:

motorguy said:

The O/P didnt need to take ownership of the car, ownership went straight to the dealer, putting £2,050 directly in to the pocket on the way.

I'm not getting your point here.
Are you saying the dealer would keep quiet about the car being worth £2000 more than the balloon payment and let them walk away unaware?

I think many a Dealer would try and then simply pocket the £2k.  Especially as there are many consumers who do not know that other options exist, or are not that savvy so take the first answer they are given by the Dealer, particularly when simply weighing up "purchase" (which they can't afford) against "give back walk away".  Options to sell elsewhere and settle the finance and keep the surplus do require an element of thinking outside the box.

The dealer doesnt get the car back when you hand it back, the finance company does - its their car, not the supplying dealers.

Either way, I can imagine there are many Dealers that would not willing offer up the extra £2k of equity to the driver returning the end-of-PCP car.

I can also imagine there are a number of Dealers that would take the car back, settle the finance and then keep the car.  Same as the Dealer / WBAC buying the car, except the Dealer never offered the £2k up to anyone other than his own back pocket.

robson947

I'm not too sure if you all get notified of my reply?
Anyway, I appreciate all of your feedback, My partners car is very much her thing and her finance deal to go along with it (she's had that deal longer than we've been together).
I'd never heard of PCP, so using websites like this came very useful when researching what it was.
You could say we were very naïve to it all, the aim of the post was  to simply pass on a little bit of life experience, like I say, if it helps just one person, that'd be amazing.
Again, thanks for the positive feedback on my post. 

motorguy

Grumpy_chap said:

motorguy said:

Grumpy_chap said:

BOWFER said:

motorguy said:

The O/P didnt need to take ownership of the car, ownership went straight to the dealer, putting £2,050 directly in to the pocket on the way.

I'm not getting your point here.
Are you saying the dealer would keep quiet about the car being worth £2000 more than the balloon payment and let them walk away unaware?

I think many a Dealer would try and then simply pocket the £2k.  Especially as there are many consumers who do not know that other options exist, or are not that savvy so take the first answer they are given by the Dealer, particularly when simply weighing up "purchase" (which they can't afford) against "give back walk away".  Options to sell elsewhere and settle the finance and keep the surplus do require an element of thinking outside the box.

The dealer doesnt get the car back when you hand it back, the finance company does - its their car, not the supplying dealers.

Either way, I can imagine there are many Dealers that would not willing offer up the extra £2k of equity to the driver returning the end-of-PCP car.

I can also imagine there are a number of Dealers that would take the car back, settle the finance and then keep the car.  Same as the Dealer / WBAC buying the car, except the Dealer never offered the £2k up to anyone other than his own back pocket.

You're not reading what i'm saying.

You dont return the car to the dealer.  You return it to the finance company.  The dealer will never know / see / hear anything about it unless you give them the opportunity to buy the car.  They will buy the car at what they perceive it is worth, which in this case happens to be considerably more than the settlement figure.

And to make it crystal clear - the car isnt returned to the dealer, its not their car, the finance company will come and collect it.