Query re PCP balloon payments?

[mjheathcote]

Hopefully the £7k return is equal to or greater than the deposit you put in.
I've always thought if you 'buy' via PCP but either at the end of term you hand back or trade in, the maths work out better just leasing a car for the same fixed term.
Also unless buying new, with an attractive PCP low apr interest rate, PCP interest rates are shockingly high. But then if buying new with a low rate, the depreciation is high so they still win.

 

[Felonious Crud]

Of course what they really want is for you to use the 'equity' as a deposit on your next new car. This tends to be how they structure PCPs

Generally, but the new Vantage is being sold on PCP deals with an £84k final value. Given they’re selling barely used now for not far north of £100k that seems pretty optimistic. McLaren is doing the same with some cars, with buyers ordering on the expectation that at the end of the two year term they’ll just hand the car back and walk away.

Jon, good outcome with yours, and I’m sure you’ll have more bargaining power if you own it outright.

 

[iainw]

Do you think it’s too much or too little? This is what I have to pay them to keep the car, and to me it’s lower than I was expecting

No brainer. If you like it. Buy it. As Richard says- it was planned to be conservative trade money so they can get rid of it easily at auction. They don’t always let you buy it.

 

[Felonious Crud]

They don’t always let you buy it.

Isn’t that when you lease it? WIth PCP I think they have to let you buy it, if you want to. With HP you end end buying at the end with a mandatory final payment (unless you sell first).

 

[mjheathcote]

Isn’t that when you lease it? WIth PCP I think they have to let you buy it, if you want to. With HP you end end buying at the end with a mandatory final payment (unless you sell first).

Terminology confusion.
PCP is PCP, lease is lease, but the term 'PCP lease' was used incorrectly in the opening thread when it should have been just 'PCP'

 

[JonW]

Terminology confusion.
PCP is PCP, lease is lease, but the term 'PCP lease' was used incorrectly in the opening thread when it should have been just 'PCP'

Oops....

 

[mjheathcote]

Oops....

You are still at the end of the day 'renting'!!

 

[JonW]

You are still at the end of the day 'renting'!!

That’s true - my intention when I entered into the arrangement was not to buy the car at the end but just to hand it back and to start again. As such, I never really felt as though I owned the car or was partway through buying it.

This was good as it meant I was never bothered when the wife curbed a wheel, or some muppet banged a trolley into it at Sainsbury’s! Now that I’m going to buy the car those things will all need fixing before I either sell it or trade it in for the next one...

The only reason I’m not considering keeping the car long term is because it’s a diesel, so it may be we need to have a think about that a bit more...

 

[Oneball]

That’s true - my intention when I entered into the arrangement was not to buy the car at the end but just to hand it back and to start again. As such, I never really felt as though I owned the car or was partway through buying it.

This was good as it meant I was never bothered when the wife curbed a wheel, or some muppet banged a trolley into it at Sainsbury’s! Now that I’m going to buy the car those things will all need fixing before I either sell it or trade it in for the next one...

The only reason I’m not considering keeping the car long term is because it’s a diesel, so it may be we need to have a think about that a bit more...

Depending on how switched on they are they’d have charged you for the damage at the end of the PCP

 

[Davidt99]

WBAC never give the amount they estimate online for a car. They use the online estimate to reel you in and then expect that on the day you turn up you will take whatever the revised offer is.

 

[mjheathcote]

That’s true - my intention when I entered into the arrangement was not to buy the car at the end but just to hand it back and to start again. As such, I never really felt as though I owned the car or was partway through buying it.

This was good as it meant I was never bothered when the wife curbed a wheel, or some muppet banged a trolley into it at Sainsbury’s! Now that I’m going to buy the car those things will all need fixing before I either sell it or trade it in for the next one...

The only reason I’m not considering keeping the car long term is because it’s a diesel, so it may be we need to have a think about that a bit more...

Yes the diesel issue is a problem with future restrictions in some towns etc.
I said I would never buy a diesel again after buying my current BMW M140i a few years ago that can do very good economy when required.
Then I'm thinking of a Macan, but for the size a diesel fits well. Then I think am I making a mistake buying a diesel and in several years the anti diesel may make it difficult to sell on... the petrol versions are quite a bit more money and the economy will be down to less than 25mpg, not so good for business usage.

 

[safrane]

Face the same issue... purchase a four year old SUV intending to keep for ten years... but which engine is likely to get me barred from most city destinations???

 

[Felonious Crud]

Face the same issue... purchase a four year old SUV intending to keep for ten years... but which engine is likely to get me barred from most city destinations???

We sold our last diesel three years ago and I can't imagine ever buying another.

 

[mjheathcote]

Face the same issue... purchase a four year old SUV intending to keep for ten years... but which engine is likely to get me barred from most city destinations???

Exactly, especially for business, not now, but in few more years.

 

[outrun]

correct Ewan - it’s not really a profit at all, just a partial refund of some of the cash I’ve already paid in monthly payments over the last 4 years...

However, still a no brainer, and we can then either use the car as a deposit for the next one, or sell it privately.

Or you can refinance the balloon which, as it appears to be less than the car’s value, will likely lead to a decent finance deal. Keep it and enjoy it for less monthlies. Or just buy it if funds allow.

 

[Ewan]

Face the same issue... purchase a four year old SUV intending to keep for ten years... but which engine is likely to get me barred from most city destinations???

Jon is thinking of a petrol hybrid Rangie, which is a great car and should be fine for years to come. I’m not intending on changing my big Rangie for a while, but we will update my wife’s small Rangie soon, so that’s probably the way we’ll also go.

 

[JonW]

I spent my afternoon today on the Range Rover site...

Don't know if this will work, but this may be my new car

I'm one step closer to my perfect RANGE ROVER SPORT. See configuration.

RANGE ROVER SPORT

build.landrover

 

[outrun]

£110k for a Range Rover! Shut the front door.

Hello depreciation.

 

[rockits]

Stone the crows.....£110k. That is about the total value of all 9 of my cars I think!

Just buy one 5 years old for £25k

 

[jasst]

Just built mine!https://buildyour.landrover.co.uk/l...lws0209_vplws0211aam?utm_source=Shortened URL