I do not want to borrow money. I`m thinking of getting an MB a year at about 20k. MB, however, suggests I`m for a car for about 32k (newer, fewer miles and more ex-demonstrator spec) and finance it on PCP. Hey, Charlie. Yes, you`re absolutely right. The term “deposit” is a wrong word; Rather, it is a down payment. You can reduce your deposit and pay a higher monthly amount (more than 3 years, reduce your deposit by 1000 euros, increase your monthly deposit by about 30 euros), but look at any money you pay the trader/financial company to be gone. If you`re lucky, you may have a small amount of equity at the end of the agreement, but it`s unlikely to be as much as $2,000 (i.e. – you probably won`t get $13,000 for that at the end of three years).
Hello Stuart, with my partner now pregnant, we need to find a home and my PCP car prevents this, because mortgage lenders do not like. My car value currently leaves me with about 3k of negative equity and I have to get rid of the PCP. However, I need a car for work, so my father agreed that he would take over a PCP on my behalf (new or present). How can I make the most of this situation? I was offered a car with lower specifications (annual mileage allowance increased by 8 km of PA) and I would have to pay $1700 on bail. It doesn`t look very attractive. You can pay the current financing at any time, which avoids all your interests and of course, you always benefit from the contribution. Of course, the sooner you do it, the more you save. Even if you terminate the financing contract within 14 days of activation, you will still receive the deposit fee. The percentages of cars purchased on PCP vary considerably between new and used cars and brands.
But most manufacturers push PCP financing because it suits them, not because it`s a wonderful deal for the customer. It is important to remember that financial service providers have lines of liability under the law if things go wrong. Repairs do not have to be done by the dealer, but they must use approved parts. They do not need to report the repair to the financial company, as they are only interested in the condition of the car. If it has been properly repaired, there should be no problem asserting the GMFV at the end of the agreement. Say after 3 years that I would separate my car with Audi for a new one, I actually lost the deposit of 5000 dollars and then would only be worth the difference between the cars and the company GMFV is given. For z.B, I sell the car for 13,000 dollars and the GMFV was 11,000 dollars, I will only have 2000 dollars to enter the next agreement? I get what you want to say about the financial company element, but if I pay almost all of the car in the month 2 payment wise (using a 0% credit card for some of them) and have only a minimum payment per month, then it certainly means that the interest to say in total over 4 years drops from 3400 dollars to about 500 dollars, since I paid it immediately and I have access to the contribution they give me? Even the media are routinely stumbled upon to explain how PCPs work when reporting car finance problems, and confuse a PCP with a leasing contract or other forms of financing, which certainly does not help consumers understand what is really going on. Like a traditional rental sale or a mortgage on your home, a PCP is a guaranteed financing contract. This means that your debts are protected against the car, so that the financial company actually remains the owner of the vehicle until the last penny is paid.