[Finance] Pcp - Page 2

Chris_J · 28th April 2008, 23:37

Chances are that's never really going to be much then I guess.

illegalhunter · 29th April 2008, 07:26

PCP AKA Angel Dust i tought it was a car site. lol

NH Dan · 29th April 2008, 09:14

Quote:

Originally Posted by Chris_J

Chances are that's never really going to be much then I guess.

Depends what you mean by much, i've renewed Jazz deals lately and some have had £1500-£2000 equity in them. All depends on the condition and mileage of the vehicle in question.

Contrary to popular beliefs, the car doesnt have to be in showroom condition as obviously fair wear and tear is expected.

kharmael · 4th May 2008, 11:50

I'm on PCP, it's working out fine for me. I am paranoid about my car anyway so hopefully not much wear and tear will happen, plus I am looking foward to getting a new (fancier) car in 2 1/2 years at similar repayments!

Chris_J · 4th May 2008, 21:35

What gets me though, is say you chop your old car in for £6k, and then payments worked out etc etc, for arguements sake you're paying £250 a month. Now chop this car in at the end of 3 yrs, and the difference between value and GMFV is say £1,500. If you got that same car but brand new again, doesn't that mean you only have £1,500 deposit this time and hence higher payments?

kharmael · 5th May 2008, 08:34

I whacked a £4650 deposit in initially and the GMFV for my 1.8EX is somewhere in the region of £7487 (Off the top of my head).

OTRP = circa 18,930

- 4650 = 14,280

37 * 250 = £9250 total repayable (excluding deposit) with either a final payment of £7552.39 OR the MGFV of £7487.39 which would be the value of the deposit for your next car.

Robbieee · 5th May 2008, 11:01

Quote:

Originally Posted by Chris_J

What happens at the end of the deal with the trade in? If Honda guarantee x amount and then say well it's worth more than that, do you get the difference towards your next pcp deal or the amount the say it's worth at trade in?

Yep you get the extra back. Well you do in my PCP deal (its not with honda).

cb550 · 5th May 2008, 14:18

Quote:

Originally Posted by kharmael

I whacked a £4650 deposit in initially and the GMFV for my 1.8EX is somewhere in the region of £7487 (Off the top of my head).

OTRP = circa 18,930

- 4650 = 14,280

37 * 250 = £9250 total repayable (excluding deposit) with either a final payment of £7552.39 OR the MGFV of £7487.39 which would be the value of the deposit for your next car.

If i'm reading this right,after 37 months you have to purchase the car for £7552.39, or return the car-if its valuation equals its MGFV you owe 65 quid,if it exceeds it by more than 65 pounds you keep that remainder towards your next deposit

NH Dan · 5th May 2008, 14:53

Quote:

Originally Posted by kharmael

I whacked a £4650 deposit in initially and the GMFV for my 1.8EX is somewhere in the region of £7487 (Off the top of my head).

OTRP = circa 18,930

- 4650 = 14,280

37 * 250 = £9250 total repayable (excluding deposit) with either a final payment of £7552.39 OR the MGFV of £7487.39 which would be the value of the deposit for your next car.

Nope. The difference between the value at that time of your car and the MGFV is your equity. So, say the car is 'worth' £8487.39, you'd get a grand back.

Chris_J · 5th May 2008, 21:44

So that would be a grand deposit if you got another car on PCP? So in my poor

example above, your payments next time around would be higher?

NH Dan · 6th May 2008, 10:48

Quote:

Originally Posted by Chris_J

So that would be a grand deposit if you got another car on PCP? So in my poor

example above, your payments next time around would be higher?

Yes, because you would have put in a smaller deposit, £6k first time round vs £1k second time.

19 milano · 6th May 2008, 12:51

Whilst PCP's suit some people, my general advice is STAY AWAY. They often allow people to buy cars they can't afford. But that's exactly the problem, they can't afford it! This country is in massive amounts of debt because of people buying things they can't afford!

Anyway rant over and down to the facts.

2 main problems:
1. With most loans you will pay interest on any outstanding balance. On HP in month 36 you only owe 1 payment so that is all you pay interest on. Throughout a PCP the interest is calculated on your outstanding loan AND you final lump sump (often £5000 or more). For 3 years you pay interest on the lump sum even though most people have no intention of ever paying it. If you compare the overall cost to buy the same car on HP and a PCP, PCP costs more (often by thousands).
2. If you put down a decent deposit for a car, say £5000, then eventually you decide you no longer want 2 trade your car in with this company (it WILL happen!), with a PCP, you can just walk away . However if you don't pay that final lump sum (as most people don't) you walk away with nothing or maybe a few hundred pounds, but definately not you original £5000.

The moral- buy HP and buy what you can afford.

E.G. I sold an old 306 for £2000. Put this deposit down on a Civic Executive. Sold that after 3 years. As I owned it outright through HP, I kept the whole of the £8000 I made. I put this down on my current FN2 and I am still paying the same monthly payments. In 2 years I should get in excess of £11000 when I sell this car.
It took 3 years from selling a banger, to own a Type R. I couldn't have done this on a PCP. HP allows you get get a better car every 3 years without altering your monthly payments.

2 other tips are to ask your dealer to increase the amount of months you are repaying the loan over. I have a 37 month loan and this kept my payments the same (an extra month or 2 is no great hardship!). Also find a cheap bank loan (hard at the moment I know) and tell your dealer you are going to use it. They make money from finance deals, so they lowered my interest and with it my monthly payments.

Sorry for the massive post, but I hope this converts somebody!

Chris_J · 9th May 2008, 06:09

Totally agree that a cheap bank loan is difficult. I tried a couple and the best rate I got was 9.4% for 12,500. They must be s******g a brick at the moment or on serious commission, as they are trying extra hard to push for the loan protection. How are you going to pay for this how are you going to pay if that???

I'm going with the dealer HP as it worked out a better deal monthly at the moment.

dorsetlad · 9th May 2008, 14:45

Just got mine with the AA @ 6.9% Fixed

ahar · 12th May 2008, 06:48

Never really liked the whole PCP thing as if you can't afford the big whack at the end you give the car back. Of course you can do PCP again and carry on with the payments but it's almost like a mortgage then - no payments no car!

I always try to buy things with cash (except the house

) - that way I always know I can afford it!

19 milano · 12th May 2008, 17:14

Quote:

Originally Posted by ahar

I always try to buy things with cash (except the house

) - that way I always know I can afford it!

here, here. save and own. less stress, no debt!

angie4m · 12th May 2008, 17:19

I've never considered buying on the Never, never as my Mum calls it. I can tell all the folks round by me that do it. Always get a new car every three years and usually the same make and model.

But that suits some people, but I also couldn't be bothered with paying out every month on a car loan/deal.

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This thread is about: [Finance] Pcp, it's in Buying, Dealers and Servicing at the Honda Civic forum Civinfo; Chances are that's never really going to be much then I guess....

28th April 2008, 23:37	#21 (permalink)
Chris_J Wheelnut Join Date: 25th April 2008 Location: West Mids Posts: 61	Chances are that's never really going to be much then I guess.

29th April 2008, 07:26	#22 (permalink)
illegalhunter TYPE R GT (R-8130) Rocketship door handle Join Date: 10th May 2007 Location: In the woods armed to the teeth Posts: 1,327	PCP AKA Angel Dust i tought it was a car site. lol

4th May 2008, 11:50	#24 (permalink)
kharmael Slick Valve Cap Join Date: 2nd March 2008 Location: - Posts: 13	I'm on PCP, it's working out fine for me. I am paranoid about my car anyway so hopefully not much wear and tear will happen, plus I am looking foward to getting a new (fancier) car in 2 1/2 years at similar repayments!

4th May 2008, 21:35	#25 (permalink)
Chris_J Wheelnut Join Date: 25th April 2008 Location: West Mids Posts: 61	What gets me though, is say you chop your old car in for £6k, and then payments worked out etc etc, for arguements sake you're paying £250 a month. Now chop this car in at the end of 3 yrs, and the difference between value and GMFV is say £1,500. If you got that same car but brand new again, doesn't that mean you only have £1,500 deposit this time and hence higher payments?

5th May 2008, 08:34	#26 (permalink)
kharmael Slick Valve Cap Join Date: 2nd March 2008 Location: - Posts: 13	I whacked a £4650 deposit in initially and the GMFV for my 1.8EX is somewhere in the region of £7487 (Off the top of my head). OTRP = circa 18,930 - 4650 = 14,280 37 * 250 = £9250 total repayable (excluding deposit) with either a final payment of £7552.39 OR the MGFV of £7487.39 which would be the value of the deposit for your next car.

5th May 2008, 21:44	#30 (permalink)
Chris_J Wheelnut Join Date: 25th April 2008 Location: West Mids Posts: 61	So that would be a grand deposit if you got another car on PCP? So in my poor example above, your payments next time around would be higher?

6th May 2008, 12:51	#32 (permalink)
19 milano Valve Cap Join Date: 19th February 2008 Location: UK Posts: 24	Whilst PCP's suit some people, my general advice is STAY AWAY. They often allow people to buy cars they can't afford. But that's exactly the problem, they can't afford it! This country is in massive amounts of debt because of people buying things they can't afford! Anyway rant over and down to the facts. 2 main problems: 1. With most loans you will pay interest on any outstanding balance. On HP in month 36 you only owe 1 payment so that is all you pay interest on. Throughout a PCP the interest is calculated on your outstanding loan AND you final lump sump (often £5000 or more). For 3 years you pay interest on the lump sum even though most people have no intention of ever paying it. If you compare the overall cost to buy the same car on HP and a PCP, PCP costs more (often by thousands). 2. If you put down a decent deposit for a car, say £5000, then eventually you decide you no longer want 2 trade your car in with this company (it WILL happen!), with a PCP, you can just walk away . However if you don't pay that final lump sum (as most people don't) you walk away with nothing or maybe a few hundred pounds, but definately not you original £5000. The moral- buy HP and buy what you can afford. E.G. I sold an old 306 for £2000. Put this deposit down on a Civic Executive. Sold that after 3 years. As I owned it outright through HP, I kept the whole of the £8000 I made. I put this down on my current FN2 and I am still paying the same monthly payments. In 2 years I should get in excess of £11000 when I sell this car. It took 3 years from selling a banger, to own a Type R. I couldn't have done this on a PCP. HP allows you get get a better car every 3 years without altering your monthly payments. 2 other tips are to ask your dealer to increase the amount of months you are repaying the loan over. I have a 37 month loan and this kept my payments the same (an extra month or 2 is no great hardship!). Also find a cheap bank loan (hard at the moment I know) and tell your dealer you are going to use it. They make money from finance deals, so they lowered my interest and with it my monthly payments. Sorry for the massive post, but I hope this converts somebody!

9th May 2008, 06:09	#33 (permalink)
Chris_J Wheelnut Join Date: 25th April 2008 Location: West Mids Posts: 61	Totally agree that a cheap bank loan is difficult. I tried a couple and the best rate I got was 9.4% for 12,500. They must be s******g a brick at the moment or on serious commission, as they are trying extra hard to push for the loan protection. How are you going to pay for this how are you going to pay if that??? I'm going with the dealer HP as it worked out a better deal monthly at the moment.

9th May 2008, 14:45	#34 (permalink)
dorsetlad Supporter Valve Cap Join Date: 27th September 2007 Location: Bournemouth UK Posts: 24	Just got mine with the AA @ 6.9% Fixed

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12th May 2008, 06:48	#35 (permalink)
ahar Supporter Valve Cap Join Date: 23rd March 2008 Location: London, UK Posts: 19	Never really liked the whole PCP thing as if you can't afford the big whack at the end you give the car back. Of course you can do PCP again and carry on with the payments but it's almost like a mortgage then - no payments no car! I always try to buy things with cash (except the house ) - that way I always know I can afford it!

12th May 2008, 17:19	#37 (permalink)
angie4m You know you want too Rocketship door handle Join Date: 28th September 2007 Location: Edinburgh Posts: 1,670	I've never considered buying on the Never, never as my Mum calls it. I can tell all the folks round by me that do it. Always get a new car every three years and usually the same make and model. But that suits some people, but I also couldn't be bothered with paying out every month on a car loan/deal.