PCP and Equity.
- Thread starter Clearcut
- Start date
Just took out pcp on a 4 year old car so can confirm it's a thing... Depands on the dealer
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It's fairly popular for manufacturers approved used cars.
100% positive. I did it with my 530d last week.
Soldato
Its 50% of the total amount payable, which includes the end of lease balloon, the interest etc
https://www.thecarexpert.co.uk/car-finance-voluntary-termination-pcp-hp/
Excess mileage also covered
https://www.thecarexpert.co.uk/car-finance-voluntary-termination-pcp-hp/
Excess mileage also covered
It’s 50% of the amount payable, yes.
Excess mileage is not payable for voluntary termination. At least not with Black Horse.
Soldato
yeah was replying in general not specifically to you.
The site I linked is really good, there is often incorrect advice in things like newspaper reports.
Like everything its all about knowing your rights before you start, signing pickup documentation etc can mean you just accepted the potential charges.
I suspect a lot of the time they go after people once the car has sold at auction and they know they made a loss. If they dont lose they just dont bother as plenty will research and then not pay up.
On a 4 year PCP you tend to hit the 50% mark sometime in the 4th year.
Caporegime
Can’t see this ending well for my mate, the pcp was based on 32k miles over 4 years, he’s done at least 119k to my knowledge and therefore surely the car is worth a lot less.
Say he’s over 50% of the cars value paid back and hands it back I can’t see how it won’t result in a large bill for their returned asset which is worth considerably less than the gfv due to his excess miles....
Fair enough.
If it’s in a good condition then he’ll be fine. They can’t charge him for excess miles (although they’ll try) but they can charge for damage/poor condition.
Pretty much the reverse - and then some - of a friend of mine, took out a pcp on a 320d a few years back, budgeted for 32k miles over the term and it’s due to go back next February, due to a few somewhat major circumstance changes the car is currently nearing 120k miles....
Well someone is either keeping the car or getting rinsed
All of the Leases Ive seen state excess mileage charges? Is PCP much different
Surely is the car is at almost 4x the mileage he said he woudl do and the impact on value this will have then they will haev some comeback due to it
Id say you are wrong unless he keeps the car he will be paying a lot extra.. That's a hella lot of extra miles as well.. Hope he really wants to keep the car!
Excess mileage charges apply if you give the car back at the end, not if you voluntarily terminate before the end.
As above, it needs to be in a good condition, though. When I VTd my 530 the finance company were really transparent in stating that they won’t charge excess mileage, however far over I am (I recorded the call, just in case)
They are talking about doing a voluntarily termination of the agreement not just finishing the lease nornally. This is a statutory right.
Do the research, they can’t charge him for the extra miles, but they can charge him if it’s not in great condition.
Ah so a bit different then, but surely the car value will be affected notable by the mileage?
Would they have a comeback on that?
OK you right, but dealer never gonna give you pcp again, nor the credit company I'm sure you will get snotty letters for the next 10 years . If I was the dealer I'd set a solicitor on you and take it as far as possible (even if its just threatening letters)
Also a bum move though others might not care screwing a big company (not sure who takes the hit dealer or lender)
Soldato
This is exactly what they do. A lot depends if your the sort of person who can handle the letters etc for years.
There was (maybe still is) some talk of tweaking the rights as some people taking advantage of this, there was some industry pressure to deal with this. Or eventually we will see changes to PCP for all. I must admit I also did my bit for change, I took the large manufacturer deposit and then withdrew from the agreement (14 days) so i never in effect had the finance. Again its a statutory right. I do expect there could be some come back if I try to get PCP from VW group again (so Seat, VW, Audi, Skoda)
The lender takes the hit btw, the dealer is still selling the car once you sign the PCP. Its the lenders car at that point.