A slightly less vague Spec Me

Its got more freedom than a lease, but its more difficult to get online quotes, presumably because its credit and requires a credit check, rather than a lease where there is no credit, its just a hire agreement, so they can advertise the actual price.

The Volvo lease deals were very competitive, but there PCP was not. On the flip side Mercedes look to be pushing PCP as their preferred finance option. The Kia second hand deals are HP, and something like a Focus would be a loan, so it seems I have all bases covered :p.
 
[TW]Fox;24651413 said:
It's essentially HP with a huge chunk offset to reduce the monthly payments at the cost of a significant final payment.
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Which, depending on the GFV can work out in your favour IF (and only if) you don't want to keep it at the end of the term.

Assuming you don't only just scrape under the allowed mileage in your terms, and your GFV exceeds your "final payment" value, then you either walk away with £x, or you put £x towards your next car as a deposit.

You'll also find that most PCP terms offer you the ability to just "drop and run" when you get 50% through.
 
On the flip side, your looking at ~£3000 deposits on a PCP compared to <£1000 for a lease.

Once I get details of the options I will have to do some number crunching and cross reference the quality of the car. At the moment the only proper numbers I have are a selection of lease quotes from Volvo, and whatever I can find online for leases for other cars. All the advertised PCP deals are representative examples.
 
Skeeter said:
On the flip side, your looking at ~£3000 deposits on a PCP compared to <£1000 for a lease.

Once I get details of the options I will have to do some number crunching and cross reference the quality of the car. At the moment the only proper numbers I have are a selection of lease quotes from Volvo, and whatever I can find online for leases for other cars. All the advertised PCP deals are representative examples.
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The PCP can be had against just about any car be it new or used, so you need to decide roughly on the car you want and go and talk to the dealers about it. You also get standard discounts etc and a lot of the manufactures are offering a deposit contribution at the moment for PCP.
 
rodenal said:
In fairness to Jez, whilst I don't think the interior of the focus is the worst I have ever seen the general quality of the inside of the mk3 is crap.

Cheap looking screens, cheap looking seat fabrics, cheap handles etc and rubbish steering and pedal feelvmean the slightly better handling can no longer put it up at the top of the class....IMO.

I'd be very, very surprised if it was anywhere near the Volvo in terms of interior look and feel. I personally think the ceed is a better car too, though its now priced appropriately.

That doesn't .mean the focus is a bad car, its just not any better than the rest...imo
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Whilst I do think Jez is being a tad melodramatic, the mk3 Focus has taken a regressive step with regards to interior quality, sadly. :(

I wouldn't tar all Fords with this brush though, they're, IMHO, generally better-built than Vauxhalls, Kias/Hyundais, Fiats, Nissans, most French stuff, etc. They're quite high up the "regular everyday brand" ladder IMHO.
 
Not sure I agree but it depends how you define well built.

Again I don't think fords are bad, I just think almost all modern cars are pretty deceent. Ford definitely aren't preceptibly better than kia, Hyundai or vauxhall for me in Focus class and up. The fiesta is still a good bit "better" feeling than most cars in its class though, polo/fabia/A1 excepted and the French always seem to get something very wrong!
 
I have strong negative opinions on Vauxhall so we'll have to agree to disagree on that one. :)

Let's face it, a lot of this is just, by the very definition, opinion, and how it all fits the purpose for the individual.
 
Have a play with this to see what sort of numbers you end up with.

http://www.capitalcarfinance.co.uk/

Lease purchase has a final payment which isn't a guaranteed value is just a final payment, PCP has a guaranteed future value of the vehicle. Not recommending the company just something to play with and see what you get.
 
Cheers.

Is there any reason to finance it that way over using a bank loan? Other than reducing the amount you need to borrow? A £10k Focus has a £3k final payment, so its basically a £7k loan at 7.4%.
 
paradigm said:
Which, depending on the GFV can work out in your favour IF (and only if) you don't want to keep it at the end of the term.

Assuming you don't only just scrape under the allowed mileage in your terms, and your GFV exceeds your "final payment" value, then you either walk away with £x, or you put £x towards your next car as a deposit.
Click to expand...

The GFV *is* the final payment value. You dont get a pile of money back at the end - you get a choice, either:

a) Walk away with nothing to pay and hand the car over
b) Pay the GFV and retain the car, even if the car is worth £8k and the GFV is £10k its £10k you pay to own it, just as if the car is worth £12k and the GFV is £10k it's still £10k you pay to own it.
c) Trade the car in against another on the same scheme and receive the difference between the cars tradein value and the GFV (if its worth more) as deposit.

You don't get a rebate. It isn't your car, if you don't want to pay the GFV the fact it's worth more than the GFV benefits the owner of the car and not you unless you are taking out a new PCP.

The only 'wow, that was lucky I took a PCP' situation with a PCP is when the car is worth less than the GFV. Thats the sort of scenario under which you'd be very glad to have taken it on a PCP. But lots of finance companies got burnt very badly here in 2009ish, so these days GFV's tend to be low enough to avoid this risk.
 
I was having that argument with someone elsewhere, they were convinced that after three years they could take their now three year old Golf back to VW, and if it was worth £2000 more than the GFV then VW would give them £2000 'cash in hand' pretty much as they handed the car back.

I said no, that won't happen, the best you'll get is that value as a deposit contribution if you take out a new PCP.

It wasn't ever really explicitly defined beyond 'nothing to pay' if you handed back, nothing about what happened if the car was worth more than the GFV.
 
If the car truly is worth £2k more at the time of return though, it wouldn't be difficult to take out a personal loan for the GFV, sell the car for that value + £2k (or just sell before the date and repay early), repay the loan with minimal penalty/cost and have the remainder for extra deposit on your next ridiculously high apr vehicle.

So it is possible....but the dealer obviously is not going to give anyone any cash - I don't doubt that it's sold to some of the more gullable in society like that though.
 
Yes, that was my argument, he would have been perfectly entitled to buy it at GFV and sell it and keep the change but no chance he would be getting a wad back from the dealer just for throwing the keys back on their desk.
 
Though in fairness I got the pug dealer we picked up the Mrs 107 from to give me a grand back out of the civic, cash then keep the rest of the equity from the trade in value to put into the next car

Different situation though
 
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