retired
Member Since: 18 Feb 2006
Location: Surrey
Posts: 158
  
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Question about what to do at the end of a PCP contract.
Let’s say the GFV is 20k and the car is worth, at that time, 25k then it’s a bit of a no brainer: pay the 20k.
But what if the car is only worth 15k at the end with a GFV of 20k. Why would I pay 20k for a car worth 15k? If I hand the car back then the finance organisation has to sell it, and they will get less than 20k, so will they be open to an offer to sell me the car for, say, 16k?
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 24th Oct 2007 5:37 pm |
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Bodsy
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Member Since: 06 Nov 2006
Location: In the Clubhouse
Posts: 21361
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You don't know unless you ask.......
Some are open to this & others are strictly by the agreement. Bodsys Brake Bible
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| 24th Oct 2007 6:56 pm |
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cheddarwards
Member Since: 07 Aug 2006
Location: Somerset
Posts: 169
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As Bodsy says ask the question they might say yes & then you've had a great bargain. It may help if you're not dealing with a large faceless corporation & actually dealing with somebody with a sensible head on.
A word of warning however, if the finance company thinks it's going to take a bath on the GFV they will strictly enforce the return conditions on the PCP agreement (these should refect current BVLRA guidelines), this in itself could end up costing thousands if the car is over mileage/not up to the required standard.
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| 24th Oct 2007 7:04 pm |
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retired
Member Since: 18 Feb 2006
Location: Surrey
Posts: 158
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Thanks for the replies.
It's not a situation I'm in now but I am considering changing cars (D3 of course) and am wondering how to pay, cash, pcp etc.
Thought that the pcp route might give me some protection against 4 x 4 depreciation which I suspect will get worse over the coming years.
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| 24th Oct 2007 9:24 pm |
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DiscoDunc
Member Since: 08 May 2006
Location: Bristol
Posts: 16390
  
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Ive had a few PCPs.
My advice is :
take a PCP on a very low mileage (less than you expect to do) over as long a period as possible (ie 4 years) with a maintenance contract.
Then after about two year, trade it in for another PCP etc etc. you'll get current market value for your car against another PCP and youll have kept the payments as low as possible. For some reason, the finance company ignore the excess mileage charge so you cant loose.
Ive done this for the last few cars and have had a new car every two years with no adverse effect on my pocket 
I had a PCP over 4 years with an annual mileage of 20,000. I did 40,000 per annum and changed after 2 years with no financial penalty Duncan
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If I'd known I was going to be so thirsty this morning I'd have drunk more beer last night.
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| 24th Oct 2007 10:04 pm |
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Bodsy
Site Sponsor
Member Since: 06 Nov 2006
Location: In the Clubhouse
Posts: 21361
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mmmmmmm that may be a way to go Duncan Bodsys Brake Bible
D4/D3 Remote FBH heat kits
BAS Remaps/ EGR Blank
Transmission Flush
Software updates/enabling
Clock/ SNOTM /3Flash / 4x4Info /BT Update /Service Reset/Error Codes / Gearbox Reset
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| 24th Oct 2007 10:17 pm |
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kam100
Member Since: 27 Jan 2006
Location: Midlands
Posts: 265
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Want to see some other options?
Drop me a line, we don't reccomend pcp's unless you need that future guaranteed residual.. (doing high miles etc).. be happy to help.
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| 25th Oct 2007 4:44 pm |
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Gareth
Site Moderator
Member Since: 07 Dec 2004
Location: Bramhall
Posts: 26701
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Reading this thread with great interest!
The big FP (final payment) day is at the end of this month. I have GFV (payment) of £16250. However, I think I have shafted myself by going 15k over mileage. I have not got the papers here and cannot remember the penalty per mile.
Whats the value of a 54 plate HSE, 90k? recent enquiries would suggest more than the GFV I was offered?
I still think its worth paying the FP, and hanging on to it for a while. Any opinions will be appreciated
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| 7th Nov 2007 11:34 pm |
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Bodsy
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Member Since: 06 Nov 2006
Location: In the Clubhouse
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mileage overpayment for individuals has generally been between 9 and 15p from what I remember of the ones I've had. Business buyers tend to get better rates for that. so do you factor in the extra 2250 you'd maybe have to pay in mileage penalties & put the cash payment down on a new one then pay off the rest over the next three years....?
Both work if the cars been reliable then the question is if you NEED to change or if you just WANT to change..... Bodsys Brake Bible
D4/D3 Remote FBH heat kits
BAS Remaps/ EGR Blank
Transmission Flush
Software updates/enabling
Clock/ SNOTM /3Flash / 4x4Info /BT Update /Service Reset/Error Codes / Gearbox Reset
See It Here
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| 8th Nov 2007 9:00 am |
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adam
Member Since: 20 Sep 2005
Location: Home and Happy
Posts: 6917
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Gareth
Are you going for an extended warranty?
Mine is 3 years old in March
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| 8th Nov 2007 9:01 am |
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Gareth
Site Moderator
Member Since: 07 Dec 2004
Location: Bramhall
Posts: 26701
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No warranty Adam. I took the view that it was expensive, and having read the small print it excluded most things that had ever gone wrong with my car!
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| 8th Nov 2007 10:03 am |
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adam
Member Since: 20 Sep 2005
Location: Home and Happy
Posts: 6917
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Food for thought - do you know of any LR specailists in the area that you would trust?
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| 8th Nov 2007 10:32 am |
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Gareth
Site Moderator
Member Since: 07 Dec 2004
Location: Bramhall
Posts: 26701
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Yes I do. When I ran my D2, I used High Peak 4x4 in Chapel-en-le-Frith, they were really good and not too expensive.
If there was a new/updated engine available now, I would chop it in without hesitation. I think LR have missed a trick by not having an update available to tempt the early purchasers of the brand into a new vehicle at 3 years.
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| 8th Nov 2007 10:43 am |
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RPJ
Member Since: 05 Mar 2007
Location: Puzzleopolis
Posts: 473
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The only time miles come into play on a pcp
is if you hand it back (under pcp terms) at the end of a contract
much like an APR is the true cost of borrowing over a given period of time (if you settle early it meens nothing)
ie you have to keep it till the end for it to be an issue if you px not a problem if you sell it before the final payment not a problem.
or if you borrow less than 25K you may still have the good old consumer credit act to fall back on 
But if you do hand it back every stone chip, scratch, mm of tyre wear will be charged to you even no stamps in the service book are on the check list  Ha Ha This a way!
Ha Ha That a way!
Ha Ha This a way!
My oh My!
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| 8th Nov 2007 10:45 am |
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adam
Member Since: 20 Sep 2005
Location: Home and Happy
Posts: 6917
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Gareth
Agreed - why change now for slightly better leather and other trim?
I want to keep mine for another 2 years until rumored 2009 model (Twin Turbo V6? + Facelift) comes out
At this rate she'll have less that 100K on the clock
I'll bear Chapel in mind - guy down the road bought a 110 Defender from them a while ago
Thanks
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| 8th Nov 2007 10:53 am |
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