PCP Financing Advice

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  • DrEskimo
    DrEskimo Posts: 2,348 Forumite
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    Oh and in terms of setting the PCP up, I just asked for the shortest term, with the highest deposit and the highest mileage limit (to get the lowest GFV). But it was all academic as I cleared it soon after.

    Alternatively you could make an overpayment and leave a very small amount for 6months and then settle. That was my original idea but I just settled....
  • AdrianC
    AdrianC Posts: 42,189 Forumite
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    bpk101 wrote: »
    Yes, so long as you stay on the PCP for a minimum 6 months.
    There y'go, then.

    Pay a chunk up front, pay 6 x monthlies, pay off on day 180ish.
  • sheslookinhot
    sheslookinhot Posts: 1,977 Forumite
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    PCP for 6 months Could be over £1,000 in interest. Get a settlement fee at end of the 6 months. It will surprise you about the interest cost. May not be worth it taking a PCP.


    Try your own settlement calc using this.

    http://www.financecalcs.co.uk/Calcs/Settlement.php
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  • AdrianC
    AdrianC Posts: 42,189 Forumite
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    sheslookinhot wrote: »
    PCP for 6 months Could be over £1,000 in interest.
    Unlikely, given he was looking at ~£3k+ for 4yrs for a 40% more expensive new one. Although, granted, we don't know the APR on this, and used car APRs do tend to be higher, but...
  • penguineater
    penguineater Posts: 125 Forumite
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    JackeeBoy wrote: »
    I was very much a novice when buying my first car (and still am to an extent) but one thing I did know was what I wanted the car for. Not too fussed about the badge, I wanted something I was comfortable in and was somewhat future proof when it came to size as I planned to drive it as long as possible. I purchased a nearly new Ford Fiesta.

    Less than 6 months old and under 2,000 miles on the clock, I saved thousands off the price. In addition to this, I took out finance through Ford so got a bigger discount but just paid it off straight away so kept the price deal and avoided finance. Tax, insurance, service, tyres and a replaced clutch aside, I've paid around what equates to £110 a month for the car over the past 7 years.

    Though the new car smell was nice, I could have saved a lot more if my car was a little older (but still the same model) and after driving this car for 7 years and doing about 70,000 miles, it's given me more comfort about buying an older vehicle as mine seems to be doing just fine.

    So, my recommendation to you....

    1. PCP is just a loan. Taking out a bank loan will be cheaper or take out the PCP, get all the benefits and just pay it off straight away.
    2. Buying the same model car, even less than a year old, will save you thousands.
    3. Buying the same model car, even less than a year old, will save you thousands.


    You can buy new car smell in a bottle https://www.amazon.co.uk/Meguiars-G4216EU-New-Scent-Protectant/dp/B06WD54H9B


    :j
  • sheslookinhot
    sheslookinhot Posts: 1,977 Forumite
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    AdrianC wrote: »
    Unlikely, given he was looking at ~£3k+ for 4yrs for a 40% more expensive new one. Although, granted, we don't know the APR on this, and used car APRs do tend to be higher, but...
    Nissan finance rate is 9.9%.
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  • bpk101
    bpk101 Posts: 430 Forumite
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    sheslookinhot wrote: »
    Try your own settlement calc using this.

    http://www.financecalcs.co.uk/Calcs/Settlement.php

    Good shout, so the calculators suggesting if i settle at 6 months i'd have paid a total of £16,621 versus £16,959 if i buy the car cash and pay for the additional extras individually.

    So a potential saving of £300 if i opt into the PCP. Also there's the possibility the Ts&Cs don't mention the 6months clause and i can settle up the next day.
  • sheslookinhot
    sheslookinhot Posts: 1,977 Forumite
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    Watch out if you cancel PCP, they will withdraw services, 1 year warranty and 1 year roadside assistance. I’m sure the T’s & c’s will mention 6 months. The 6 month period is there to make the salesman his commission from selling a financial product.

    If you cancel and remove his commission he will be motivated to ensure, as you have broken agreement, you do not profit from it.
    Mortgage free
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  • DrEskimo
    DrEskimo Posts: 2,348 Forumite
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    sheslookinhot wrote: »
    Watch out if you cancel PCP, they will withdraw services, 1 year warranty and 1 year roadside assistance. I’m sure the T’s & c’s will mention 6 months. The 6 month period is there to make the salesman his commission from selling a financial product.

    If you cancel and remove his commission he will be motivated to ensure, as you have broken agreement, you do not profit from it.

    Then don't cancel it, settle it in full.

    I would bet my house that there is no mention of minimum periods on any PCP agreement in order to benefit from any deposit contributions or additional extras. I can see why a dealer would want to suggest there is though....

    These incentives tend to come from the finance house, not the dealership directly.
  • bpk101
    bpk101 Posts: 430 Forumite
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    I've been through the Ts&Cs and low and behold, no mention of the 6 month clause.

    Can Nissan still revoke the benefits though given they warned me about them via email, or does it need to be in the contract?
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