Long term car hire vs leasing vs buying
- Thread starter Pulsedriver
- Start date
Why are you still arguing? It's clear you are wrong, it's clear you haven't got a clue, and it's clear that yes, you can finish the purchase on a PCP, what's your point?
Your original point was invalid by highlighting the word purchase in HP. When the same word is found in PCP. And both are completely different. Since I though HP was affected by mileage, and PCP IS affected by mileage. Regardless of both being able to purchase at the end of an agreement
I've already admitted I got it wrong, so there was no need to have that childish remark of me not having a clue. But what I was trying to explain is that the wording of the agreement HIRE purchase, is kind of a misinterpretation of what the actual agreement is. You are not hiring anything at all.
Wanna get down from the high horse of yours and actually bring something constructive to the table?
Yes by paying the balloon at the end.
![[TW]Fox](/data/man-of-honor/2009.png){kind=avatar}
Of course you can, you pay the guaranteed future value at the end. You also don't pay the excess mileage charge if you do this.
[TW]Fox;23941357 said:
I think you are missing the point here. PCP is affected by mileage, we agreed that within 2 posts of this thread.
So now you are saying PCP is not affected by mileage?
Regardless of the purchase point (which I was being sarcastic about and not actually asking if it was possible to purchase on a PCP). The word HIRE is what got me on the original finance agreement, because you are not hiring the vehicle at all...
Mileage affects the balance of monthly price and balloon at the end. But it's only an issue (i.e they check it) if you want to hand the car back.
Ok for the more simple minded amongst us...
For a PCP the determining factors are
1, Cost of Vehicle
2, Period of Agreement
3, Expected annual mileage
The finance company determine the Balloon or Guarenteed Future Value of the vehicle based on the expected annual mileage x the period of the agreement (1st Point where mileage matters). They then from that figure determine what the monthly payment will be based on the Cost of the Vehicle, future value and period of the agreement. At the end of the agreement if you give them a cheque for the balloon the car is yours, if you hand it back they determine if the car has exceeded your projected mileage and charge you a fee based on the terms of the agreement for the excess mileage (2nd Point where mileage matters), or you PX the car and the dealer pays the balloon so you own the car and then can PX it to them.
Clear now??
For a PCP the determining factors are
1, Cost of Vehicle
2, Period of Agreement
3, Expected annual mileage
The finance company determine the Balloon or Guarenteed Future Value of the vehicle based on the expected annual mileage x the period of the agreement (1st Point where mileage matters). They then from that figure determine what the monthly payment will be based on the Cost of the Vehicle, future value and period of the agreement. At the end of the agreement if you give them a cheque for the balloon the car is yours, if you hand it back they determine if the car has exceeded your projected mileage and charge you a fee based on the terms of the agreement for the excess mileage (2nd Point where mileage matters), or you PX the car and the dealer pays the balloon so you own the car and then can PX it to them.
Clear now??
You are HIRING the vehicle as its owned by the finance company, the agreement covers the cost of the vehicle over the period of agreement, and that why there is usually a Optional Purchase Fee to cover the admin cost to transfer title to you at the end of the agreement.
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A PCP incurs no mileage penalty if you go over the agreed mileage IF you buy the car at the end. If you don't, then you do pay for excess mileage.
I really don't understand why this is difficult to grasp?
[TW]Fox;23941583 said:
It's no difficult to grasp, I fully understand this. But you are only NOT affected by mileage on a PCP if you actually pay the lump sum at the end of the 36 month agreement. If you don't pay the lump sum, then you are affected by mileage.
I don't understand how it's difficult to grasp what my main point here is...
At the end of the day, stop calling it HIRE purchase, and just call it plain finance...
Or just learn what each of them actually means?
I doubt I will ever need to know. But cheers for the lovely comment.
I'm done here, don't know why I bother having a discussion about things on here with some people. I feel sorry for the keys on your keyboard they are under some abuse.
The problem is, you didn't have a "discussion" you came in spouting false information, argued against the facts, and then tried to hide behind technicalities whilst trying to back pedal.
I hope for your sake you never finance a car (regardless of process), as you'll likely not know what you've actually signed up for.
Lol stop calling it hire purchase? That's exactly what it is and has been called by the motor trade since it's inception. The finance company retains ownership of the vehicle until the final nominal fee is paid after which there is a transfer of ownership. Before that point you are paying to hire the vehicle for a set period of time from the finance company. Anyway ross you have derailed this thread enough with this pointless argument.
Don't throw your toys out of the pram now.
You came in with a comment that mileage matters for Hire Purchase. You continued to argue that even when it was obviously wrong.
Accept that you didn't understand Hire Purchase and move on.
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So hey guys this has kinda gone off-topic just a bit... 
As mention by others, anything that requires a deposit is really a no-go, so it does appear the used car route is the better option, something that preferably does not really lose much value (due to it's age) on past experience a Focus or Golf is generally a safe bet it would seem...
As mention by others, anything that requires a deposit is really a no-go, so it does appear the used car route is the better option, something that preferably does not really lose much value (due to it's age) on past experience a Focus or Golf is generally a safe bet it would seem...
Caporegime
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