Audi Finance

Probably opening a can of worms here, but PCP is generally considered the second 'most expensive' way of paying for a car, behind leasing, once you factor in deposit, cost of finance, depreciation, maintenance, damage charges, chance of negative equity at end of the term etc.

What issue is there for negative equity at the end of the term in a PCP deal? Just hand the car back in that instance and you dont pay it :confused:
 
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What issue is there for negative equity at the end of the term in a PCP deal? Just hand the car back in that instance and you dont pay it :confused:
Negative equity is your bill to pay under PCP. They will give you a guaranteed future value but it you go massively over the conditions e.g. mileage or condition, it's your bill. Unless you mean VTA it.
 
Negative equity is your bill to pay under PCP. They will give you a guaranteed future value but it you go massively over the conditions e.g. mileage or condition, it's your bill. Unless you mean VTA it.

Well now you're putting extra conditions in on the argument (mileage and condition) both of which nothing to do with negative equity of the vehicle within a PCP arrangement:

Mileage - Any excess mileage is paid back on a per mile basis (e.g. 10p/mile)
Condition - Any damage not commensurate with the age and mileage of the vehicle is chargeable

Both the above are still chargeable even if the car is NOT in negative equity (the car is worth more than the GMFV) e.g. Market value of car is £7000 and GMFV is £5000 but you have 10K extra miles and you drove through Gaza in it - you still pay for the mileage and damage.


If, on the other hand, you stay within your mileage limit and the car is in showroom condition yet the market value of the car is BELOW the GMFV then you simply hand the car back at the end of the PCP term e.g. Market value of car is £4000 and GMFV is £5000 - you dont pay the difference. The clue is in the term GMFV - Guaranteed Minimum Future Value - the finance company take the hit
 
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Well now you're putting extra conditions in on the argument (mileage and condition) both of which nothing to do with negative equity of the vehicle within a PCP arrangement:

Mileage - Any excess mileage is paid back on a per mile basis (e.g. 10p/mile)
Condition - Any damage not commensurate with the age and mileage of the vehicle is chargeable

Both the above are still chargeable even if the car is NOT in negative equity (the car is worth more than the GMFV) e.g. Market value of car is £7000 and GMFV is £5000 but you have 10K extra miles and you drove through Gaza in it - you still pay for the mileage and damage.


If, on the other hand, you stay within your mileage limit and the car is in showroom condition yet the market value of the car is BELOW the GMFV then you simply hand the car back at the end of the PCP term e.g. Market value of car is £4000 and GMFV is £5000 - you dont pay the difference. The clue is in the term GMFV - Guaranteed Minimum Future Value - the finance company take the hit
Fair, but never in my experience has the mileage rule made sense. The gmfv is geared so low there is almost always equity leftover. If you are below gmfv it's normally for massively exceeding the mileage or damage, and then the 10p rule may be less favourable to getting a quote for the vehicle 'standalone'.

You have right to exit the PCP by clearing the balance - you don't have to return it under the PCP wear and tear conditions.

And if you are massively below the GMFV you can also chance a lawsuit and VTA it (again, not in the core terms of the PCP).
 
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You must've passed the credit check for them to place the build order, perhaps they just didn't let you know as they didn't me when we ordered a new BMW last year, I just passed a comment and he said "Yeah absolutely no issue with the credit check" which I didn't expect there to be as I have a credit score checker on my Nat West app
 
went for the car yesterday and everything was sound few things to sign, but they didn’t seem to car out any credit check or anything! Just made sure that I lived at that address.
 
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