PCP - do all dealers of Mini offer the same PCP deals?

iwb100

Mini website in their pcp offers section. Under JCW all bar the top manual and convertible have a deposit contribution from mini.

motorguy

iwb100 said:

Mini website in their pcp offers section. Under JCW all bar the top manual and convertible have a deposit contribution from mini.

Ah.

I see what you're doing.  You've went in to JCW and thats the Countryman not the hatch variant.

The problem is the deposit contribution is on the Countryman and Clubman (typically the slower sellers in the range), not on the hatch (or convertible) variant.

So in actual fact its not "all bar the top manual and convertible have the contribution", its "the Clubman and Countryman variants have a £1500 deposit contribution but the 3 door hatch and convertible variants dont".

Most of the Clubman and Countryman range have finance contributions.

I'm almost certain the O/P is talking about the 3 door hatch variant, thus thats why he/she and i arent seeing the contribution because its not on the hatch.

iwb100

motorguy said:

iwb100 said:

Mini website in their pcp offers section. Under JCW all bar the top manual and convertible have a deposit contribution from mini.

Ah.

I see what you're doing.  You've went in to JCW and thats the Countryman not the hatch variant.

The problem is the deposit contribution is on the Countryman and Clubman (typically the slower sellers in the range), not on the hatch (or convertible) variant.

So in actual fact its not "all bar the top manual and convertible have the contribution", its "the Clubman and Countryman variants have a £1500 deposit contribution but the 3 door hatch and convertible variants dont".

Most of the Clubman and Countryman range have finance contributions.

I'm almost certain the O/P is talking about the 3 door hatch variant, thus thats why he/she and i arent seeing the contribution because its not on the hatch.

Ah fair point. I missed the clubman. It’s  a pretty confusing website. Though I’m certainly no fan of minis so missed that it’s only the silly versions that come with contributions. 

I’d still take a PCP and pay off with a personal loan as it will probably be easier negotiating a discount with the dealer. 

Bolt1234

Thanks all, I am a female and am looking at the 3 door hatch! 

Btw - Mini seemed very reluctant to quote for a personal lease as opposed to a PCP.  I like a lease because the road tax is included and on a JCW it’s £1k over 4 years.

I don’t ever want to buy a car.  I have had company cars for years and have had a PCP and a lease before.  Do the Mini dealers get more commission on a PCP.  Mini told me they get first dibs on any new stock whereas someone like Select Leasing will be at the back of the queue.  Is that really true?  Certainly the lead times at Select are March 2023 for a JCW!  Mini say it’s 6 months for them.

iwb100

Bolt1234 said:

Thanks all, I am a female and am looking at the 3 door hatch! 

Btw - Mini seemed very reluctant to quote for a personal lease as opposed to a PCP.  I like a lease because the road tax is included and on a JCW it’s £1k over 4 years.

I don’t ever want to buy a car.  I have had company cars for years and have had a PCP and a lease before.  Do the Mini dealers get more commission on a PCP.  Mini told me they get first dibs on any new stock whereas someone like Select Leasing will be at the back of the queue.  Is that really true?  Certainly the lead times at Select are March 2023 for a JCW!  Mini say it’s 6 months for them.

Main dealers are incentivised by pcp so if they even offer leasing it will be hard work and in the current climate very hard. 

As for priority Mini will prioritise cars they make the most profit on which I suspect will be main dealer pcp efforts. So leasing companies will be back of the queue o suspect. 

motorguy

iwb100 said:

Bolt1234 said:

Thanks all, I am a female and am looking at the 3 door hatch! 

Btw - Mini seemed very reluctant to quote for a personal lease as opposed to a PCP.  I like a lease because the road tax is included and on a JCW it’s £1k over 4 years.

I don’t ever want to buy a car.  I have had company cars for years and have had a PCP and a lease before.  Do the Mini dealers get more commission on a PCP.  Mini told me they get first dibs on any new stock whereas someone like Select Leasing will be at the back of the queue.  Is that really true?  Certainly the lead times at Select are March 2023 for a JCW!  Mini say it’s 6 months for them.

Main dealers are incentivised by pcp so if they even offer leasing it will be hard work and in the current climate very hard. 

As for priority Mini will prioritise cars they make the most profit on which I suspect will be main dealer pcp efforts. So leasing companies will be back of the queue o suspect. 

Yes, where previously manufacturers could offload excess stock to leasing companies the reverse is the case now, so they're just not offering them out to them.

Bolt1234

Mini told me today that I should get a 4 year PCP as after 3 years I can walk away without penalty.  They also said that putting say a 12 month deposit down doesn’t necessarily reduce the monthly payments £ for £.

is this right?? It doesn’t sound right.

iwb100

Bolt1234 said:

Mini told me today that I should get a 4 year PCP as after 3 years I can walk away without penalty.  They also said that putting say a 12 month deposit down doesn’t necessarily reduce the monthly payments £ for £.

is this right?? It doesn’t sound right.

You can walk away from a PCP deal after one day. You can do so at any point. By paying the settlement fee which will be the outstanding payments + the balloon payment - any interest not yet accrued.

So if your car is worth more than the settlement you can always leave by selling your car and paying it off. Or by paying it off with your own funds. And you can do so anytime. 

As for a deposit not reducing monthly payments - I’ve no idea what they mean.  But the only advantage of a large deposit on a PCP is reducing the amount you borrow on your credit file and giving you more equity up front potentially meaning you reach a point of positive equity faster. I’d say on balance large deposit PCP deals aren’t a great idea as you got cash you could invest and instead sink it into a depreciating asset. That doesn’t make much sense. 

DrEskimo

iwb100 said:

Bolt1234 said:

Mini told me today that I should get a 4 year PCP as after 3 years I can walk away without penalty.  They also said that putting say a 12 month deposit down doesn’t necessarily reduce the monthly payments £ for £.

is this right?? It doesn’t sound right.

You can walk away from a PCP deal after one day. You can do so at any point. By paying the settlement fee which will be the outstanding payments + the balloon payment - any interest not yet accrued.

So if your car is worth more than the settlement you can always leave by selling your car and paying it off. Or by paying it off with your own funds. And you can do so anytime. 

As for a deposit not reducing monthly payments - I’ve no idea what they mean.  But the only advantage of a large deposit on a PCP is reducing the amount you borrow on your credit file and giving you more equity up front potentially meaning you reach a point of positive equity faster. I’d say on balance large deposit PCP deals aren’t a great idea as you got cash you could invest and instead sink it into a depreciating asset. That doesn’t make much sense. 

Borrowing money to sink into a deprecating asset makes even less sense. You are going to suffer the same depreciation costs, all you are doing is adding additional interest costs on top.

Increasing the deposit reduces the amount borrowed, which decreases the interest the you are charged. Investing money when you have debt being charged at 6.9% is not sensible at all.

OP look at the actual cost of interest (not just the APR). Look how much you can save by going for a personal loan (even if the rate is similar). Increase the amount upfront or increase the amount you repay each month to save money on interest.

iwb100

DrEskimo said:

iwb100 said:

Bolt1234 said:

Mini told me today that I should get a 4 year PCP as after 3 years I can walk away without penalty.  They also said that putting say a 12 month deposit down doesn’t necessarily reduce the monthly payments £ for £.

is this right?? It doesn’t sound right.

You can walk away from a PCP deal after one day. You can do so at any point. By paying the settlement fee which will be the outstanding payments + the balloon payment - any interest not yet accrued.

So if your car is worth more than the settlement you can always leave by selling your car and paying it off. Or by paying it off with your own funds. And you can do so anytime. 

As for a deposit not reducing monthly payments - I’ve no idea what they mean.  But the only advantage of a large deposit on a PCP is reducing the amount you borrow on your credit file and giving you more equity up front potentially meaning you reach a point of positive equity faster. I’d say on balance large deposit PCP deals aren’t a great idea as you got cash you could invest and instead sink it into a depreciating asset. That doesn’t make much sense. 

Borrowing money to sink into a deprecating asset makes even less sense. You are going to suffer the same depreciation costs, all you are doing is adding additional interest costs on top.

Increasing the deposit reduces the amount borrowed, which decreases the interest the you are charged. Investing money when you have debt being charged at 6.9% is not sensible at all.

OP look at the actual cost of interest (not just the APR). Look how much you can save by going for a personal loan (even if the rate is similar). Increase the amount upfront or increase the amount you repay each month to save money on interest.

The interest saved will be so minimal on a PCP by throwing in a big deposit that it makes it not worth it since the max allowable deposit is set to restrict people from saving such interest. 

The point is that you can save the interest by paying it off with cash or a loan after taking the PCP with any benefits of doing so. 

If you listen to those expert in PCP they always caution against large deposits. Because PCP is a flexible lease in reality and that’s how it should be seen. Not as an investment. It’s leasing the car for 4 or 4 years with an option to buy or an option to trade any equity. That’s what you are paying for. Putting in a high deposit means you never see that again at the end in equity and frankly if you intend to buy the car outright then do so right at the start to save the interest payments. The thing that matters is that any deposit is merely paying off depreciation and not impacting the GFV so your equity in the vehicle almost certainly will end up being less, considerably less than a large deposit up front in a PCP.