My wife recently signed a PCP contract for a new car and paid a £1000 deposit. We were told that the car will be a 2018 model year and therefore will not be built until August at the earliest for a possible delivery date in September, but we have now found the car cheaper at another dealership. Since I have a VW up! , it seems like I have to «downgrade» the cars and bet on a more expensive deal. I`d love to get your opinion on a new PCP with Mazda that I`m looking at right now. About 10 months before a 42-month PCP on my old Mazda and have some fairness in the car (after making a lump sum payment some time ago, so only the GFV or the «last balloon payment» is overdue). The new PCP has a duration of more than 37 months (36 monthly payments followed by the final payment) and costs 0% interest. After reading the previous articles and your comments about the low chance of getting a lot of fairness at the end of a PCP deal, I was wondering what you thought of 0% PCPs? If you have paid less than half of the PCP price of the car, you can terminate your contract and return the car, and you only owe the difference between what you paid and half of the PCP price of the car. You do not have to pay half the price of the PCP to the finance company before terminating the agreement under the half rule. However, you will have to pay the difference between the payments you have made so far and half the price of the PCP. You are also responsible for the cost of all necessary repairs. I am coming to the end of a 3-year PCP contract with Ford and I still have 3 payments to make (the deal ends in May) I just signed a new car and PCP contract with VW and the seller says he can have the new car by early March The seller recommended me to make a VT for my current PCP contract, so that I can return the car to Ford earlier and select the new car in a few weeks.
Would this hurt any possible financing with Ford in the future? I don`t want to do a VT if it puts a black mark on my credit history. Hi Christine. If your DPF system is clogged and failing without warning lights, this is likely a problem with the vehicle that should have been detected during its first warranty coverage. Is the car still under warranty? I guess not as they are now asking you for £1500. A DPF system should give you two warnings when the filter fills up (click here for more information). This should also have been explained to you by the dealer when selling the car. Try again with Nissan UK headquarters to see if they can/will help. A PCP is more than just renting a car – it`s more like a pure interest mortgage. You have the logbook, not the finance company. A lease (or contractual rental) is simply to rent the car.
After having the car for two years, you cannot return it under the Sale of Goods Act, but you can sell the car and manage the PCP contract (click here). If you have repaid more than 50% of the total amount due (which is different from 50% of the amount borrowed), you should be able to return the car to the finance company using your voluntary termination rights. We have a total of four cars, three are fine without any problems. The problem car is a Range Rover Velar, which has many electrical problems that affect the daily use of the vehicle. I don`t feel like it`s good value for money, so it would be a good argument to start the process of terminating the Hi James contract. You are talking about both a CPAP and a lease; It will be one or the other and they are different things. If it`s a PCP, you should consider a voluntary termination, but the finance company will likely come after you to pay for the damage to the vehicle. There are no easy options that allow you to leave without paying anything. Hi, I both have a car with a PCP loan 6 months ago; but the ecar is not what I expected and I am no longer satisfied with it.
Can I exchange my car with someone else and keep my existing PCP loan or do I have to wait until the end of the 36 months? Thank you very much. Monica On the other hand, brokers are able to provide financing through a variety of lenders. Even if you don`t have a good to excellent credit score, a broker could still find a suitable financing agreement for your car. In addition, they will not be limited to offering cars from a single manufacturer, as a dealer would. You will be able to find PCP agreements for most manufacturers and models. Personal purchase contracts work in the same way as mobile phone contracts – the difference is that ownership of the car is not automatically transferred once payments are made. Monthly payments are made over a set period of time (typically 24 to 36 months), but they are designed to cover the depreciation of the vehicle during the term of the agreement rather than transferring its equity. There are several options at the end of the contract, including purchasing the car or entering into a new PCP agreement for a new car. Talking to the debt agency will not help you as they will only be responsible for collecting the money and will have no interest in anything else.
Has the finance company explained why you can`t just return the car in accordance with your PCP agreement? If the car has lost much more value than expected at the beginning of the deal, the most sensible option might be to simply return it. However, this option may come with potential additional costs: Hi Graham. Short answer = no, you will not be charged. The billing number/balloon/GMFV set at the beginning of the contract is the amount you owe at the end of the contract for the purchase of the vehicle. If this is your plan, mileage is irrelevant, as is vehicle condition or maintenance history. It only matters if you ask the finance company to take the car back. If you don`t want to keep the car, you can probably contact the finance company and ask them to recalculate your remaining payments based on your increased mileage. You should be able to adjust the GMFV and increase your payments to cover the increased depreciation. If so, check if there is a fee for it.
At the end of your PCP, you can – switch to a new car (with a new PCP contract), keep your current car (make the final payment) or simply return the keys (without further payments). It`s often assumed that you can finish your financial contract once you`ve covered half the way, but that`s not true. The same goes for hire-purchase (HP) financing offers. Hi Stuart, I intend to sign a PCP agreement, but I am trying to understand how this agreement will affect the amount I can borrow for a mortgage. If the CAR PCP financing is £20,000, will that financing be recorded as a loan and deducted from the potential amount of my mortgage? Or will they just look at the monthly payment and deduct it from my monthly disposable item? Hi Oliver. Different financial companies have different policies about the age of a car at the end of the PCP term. If the car is only two years old, you can probably get a four-year PCP. Some financial companies have a six-year limit at the end of the deal, so if it was three years old, you could only get a three-year PCP. However, this varies from one financial company to another. Sales of PCP cars have come under scrutiny in Ireland since 2014, with customers believing that efforts to ensure they were fully informed of all the details of the PCP agreement were insufficient. [9] Can I sell my car, which is the subject of a PCP contract, to another company, and they pay the settlement amount. So that I can buy one of their cars.
One of the disadvantages is that in the end you can coke to a brand and the dealer turns out to be difficult Yes, you are right. If you pay your financing contract early, you save the interest due on the remaining term of the loan. However, most financial companies charge you a fee to settle quickly, so your interest savings will be affected. If you make an overpayment, they may or may not charge you a fee, so it`s best to check it out. If your plan is to change the car prematurely, then you can either overpay now to reduce the number of billings in a few months, or charge everything now and have a greater number of billings. It won`t make much difference – you`ll pay more now or later. This is a very useful article. Can I just ask, let`s say I`m now grabbing a PCP and using an exchange as a deposit. Pay the 36 monthly payments. Then the three years are over and I decide I want to upgrade to a newer model.
Obviously, the rest of the funding is exceptional. I understand that I can return the vehicle to pay for the financing of the existing PCP contract. But does that mean I need to save the deposit for the new vehicle right now? Or is the vehicle of the old PCP the deposit of the new PCP? Some of the ads aren`t particularly clear – they almost make it feel like you can leave in a new car in 3 years without having to put in any money, which I think could be the case.. .