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  • FIRST POST
    • bpk101
    • By bpk101 3rd Dec 19, 9:10 PM
    • 279Posts
    • 22Thanks
    bpk101
    PCP Financing Advice
    • #1
    • 3rd Dec 19, 9:10 PM
    PCP Financing Advice 3rd Dec 19 at 9:10 PM
    Hi,

    I'm looking to finance a brand new Nissan Qashqai Tekna and visited a local Nissan approved car dealership at the weekend. I'm based in London.

    For the car i want i was offered a PCP deal (i prefer the flexibilty of a PCP over a lease but realise it can work out a little bit more) for 48 months at 360 per month, i was told however that the price could come down once we were 'ready to make a deal'. The salesman was reluctant to issue a complete offer including Ts&Cs etc. with this reduced deal as he argued too many people take that deal away and use it to get more competitive deals elsewhere. To find out the reduced price i'd need to go back in store and sit down with finance with a view to signing something.

    Today i read a good tip that if you live in the south it's worth calling a few dealers in the north as you can often get a better deal. I picked a couple at random from the official Nissan website, called up and was offered the exact same car over 48 months for 300 per month, they are offering to deliver the car to London for 500 (or i can of course pop up on the train and collect for the price of a train ticket and the return petrol). I would however need to drop into a London based dealership to sign the finance agreement as it can't be done via email.

    I'm looking to move fairly quickly on a deal as i want the car before Christmas. This will be my first car purchase and i need a bit of advice...

    1. Does this deal sound too good to be true? Should i be wary of anything or are all authorised Nissan dealers (or any car manufacturer for that matter) listed on the official manufacturers website deemed legit?

    2. What should i expect the dealer based in the north to supply me with via email before i go in and sign any finance agreement in London, am i looking for any sort of deal in principle that covers any particular terms etc?

    3. Technically what does 'brand new' mean on a PCP deal. Straight out of the factory with 0 miles on the clock or can it still be classed as new if it was a used and returned car but still a 2019 model?

    4. Should i take this offer and use it to shop round for a better deal at the risk of leaving it too late to take delivery before Christmas or is this likely as good a deal as i'd get?

    5. Any other good tips or words of advice?

    Thanks.
Page 4
    • DrEskimo
    • By DrEskimo 7th Dec 19, 2:28 PM
    • 820 Posts
    • 590 Thanks
    DrEskimo
    It's absolute nonsense about needing to keep the finance for 6months. I got told 3 months, 6months and any other months in-between. I settled in 2 weeks and kept all of the perks.

    When you go through the process you realise that there is no way they can enforce any sort of minimum period. The deposit contribution just acts as a discount off the car.

    Looks through your T&C's and you will see no mention of a minimum period. Settle the next day and pay no interest.
    • DrEskimo
    • By DrEskimo 7th Dec 19, 2:30 PM
    • 820 Posts
    • 590 Thanks
    DrEskimo
    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
    • By AdrianC 7th Dec 19, 2:31 PM
    • 26,420 Posts
    • 26,386 Thanks
    AdrianC
    Yes, so long as you stay on the PCP for a minimum 6 months.
    Originally posted by bpk101
    There y'go, then.

    Pay a chunk up front, pay 6 x monthlies, pay off on day 180ish.
    • sheslookinhot
    • By sheslookinhot 7th Dec 19, 4:56 PM
    • 1,233 Posts
    • 819 Thanks
    sheslookinhot
    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
    Mortgage Free
    Planning for Retirement
    • AdrianC
    • By AdrianC 7th Dec 19, 5:13 PM
    • 26,420 Posts
    • 26,386 Thanks
    AdrianC
    PCP for 6 months Could be over 1,000 in interest.
    Originally posted by sheslookinhot
    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
    • By penguineater 7th Dec 19, 6:26 PM
    • 65 Posts
    • 16 Thanks
    penguineater
    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.
    Originally posted by JackeeBoy

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


    • sheslookinhot
    • By sheslookinhot 7th Dec 19, 8:48 PM
    • 1,233 Posts
    • 819 Thanks
    sheslookinhot
    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...
    Originally posted by AdrianC
    Nissan finance rate is 9.9%.
    Mortgage Free
    Planning for Retirement
    • bpk101
    • By bpk101 8th Dec 19, 11:19 AM
    • 279 Posts
    • 22 Thanks
    bpk101
    Try your own settlement calc using this.

    http://www.financecalcs.co.uk/Calcs/Settlement.php
    Originally posted by sheslookinhot
    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
    • By sheslookinhot 8th Dec 19, 12:16 PM
    • 1,233 Posts
    • 819 Thanks
    sheslookinhot
    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
    Planning for Retirement
    • DrEskimo
    • By DrEskimo 9th Dec 19, 12:39 PM
    • 820 Posts
    • 590 Thanks
    DrEskimo
    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.
    Originally posted by sheslookinhot
    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
    • By bpk101 9th Dec 19, 8:30 PM
    • 279 Posts
    • 22 Thanks
    bpk101
    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?
    • DrEskimo
    • By DrEskimo 9th Dec 19, 8:39 PM
    • 820 Posts
    • 590 Thanks
    DrEskimo
    Well any deposit contributions would be impossible to claw back. They would have to artificially increase the amount you borrowed (can't imagine that's legal...?) If you happen to settle in full within 6months. That or post you an invoice?

    Been 10months since I settled mine and no invoice yet!

    I've got to book my first service in Jan so that will tell me whether I've lost my 2 free services. Again, I have no idea how the dealer would keep track, determine that I personally settled the finance, and then tell RCI to tell all franchised dealerships that I no longer have the perk....I bought the car from a dealer the other side of London, so not even using them (ignoring the fact that they are different departments even if I did).

    As you can see, the logistics about how they could revoke anything seems beyond difficult!
    • bpk101
    • By bpk101 9th Dec 19, 9:09 PM
    • 279 Posts
    • 22 Thanks
    bpk101
    I think what i might do then is pay cash for the car and pay for the extra 12 months warranty and the 2 year servicing package on top, but leave out the Diamondbrite paint protection (295!)

    This will then amount to the same cost as going through all the hassle of signing the PCP agreement.

    I've heard the Diamondbrite deal is a bit of a rip off, and the products are available off the shelf for under a tenner.
    • DrEskimo
    • By DrEskimo 9th Dec 19, 10:36 PM
    • 820 Posts
    • 590 Thanks
    DrEskimo
    Yes don't bother with the paint protection.

    But why not at least try? Get it on PCP (it's really not much hassle...) and settle it the next day, and then if they withdraw the perks (they won't) then pay for them.
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