personal contract purchase FORD

Skynet-T800

Skynet-T800

Skynet-T800

Associate
Joined
16 Jul 2011
Posts
523
Location
Cumbria, Ambleside
Hi

My wifes car is up for renewal with Ford personal contract purchase, she wants the same car but will cost her £1000 extra for the same spec?

The APR has gone up from 4.9 to 6.9%
The credit fee has gone up from £450 to £1330?

Monthly payments will go from £118 to £151 for the same car?

The Guaranteed future minimum value they offered is "the minimum"
bringing it back with less than the agreed milage on?

Then they try to sell us cars that only are on the forecourt surley we have a choice on what colour we want etc..

What are peoples thoughts/tips on PCP?
We going to get shafted the longer we stay on this deal or what?
Can we go to another ford dealership if need be?

Any help/info would be great!
 
A PCP is rarely the cheapest way to buy a car, especially a car like a Ford Fiesta or Ford Focus.

Why would she want to change what she has now for the SAME CAR and pay a load more money to do so? Why not purchase the car from Ford and keep it? Then its yours.
 
As Fox says not a sensible deal not least if your dealer is trying to get you into a forecourt car. Be cheaper to buy the current car than start a new finance deal.
 
Sounds like a Fiesta deal I saw.

Get a quote from a couple of dealerships, preferably a different franchise. Then see what you can get. Be prepared to walk away at this - I wouldn't go for a PCP deal at 6.9%. Usually they're a much better proposition at 4.9%, as if you want hassle free car ownership for 2-3 years it's a known quantity with low interest and low payments. It's almost always better value (note, not cheaper) to buy the car outright, but for some that's not an option, or it may not suit their circumstances. Do your research on what offers you can get a decide what's best for you. Nobody here can tell you that unless you divulge more about your circumstances and financial information than anyone should feel comfortable about.

I'm pretty sure it was 4.5% APR for PCP last time I looked at Ford, and much higher for HP. If you have the cash, it's cheaper to buy or if you have the credit score, loan from the bank (depending on the rate). Then, however, you may have to settle for a cheaper vehicle as monthly payments are higher, depending on your situation.
 
If it's got lower than agreed mileage relative to the GFV and she is happy with the car (must be as she wants the same again) then it would make most sense to purchase it I would have thought - assuming of course you can obtain the cash/finance elsewhere at a reasonable rate.
 
Skynet-T800 - you need to learn to manage car dealers/sellers.
Their first instinct will be to give you the minimum and take the maximum from yourself.

Negotiate every thing down and don't be afraid to walk away if they wont budge.


BUT, like others have said; there is no point swapping your current car for the same car, but at a higher cost.
 
I will neogotiate, seems daft to get the same car for more?
Her PCP 24 month contract is almost up hence why we popped down to see whats what.

Not really in a postition to buy a car as such so we thought this would be a more affordable way of getting one but it's turning out not to be the case.
I'll post my findings when I question the dealer on monday - about the rates etc...
 
Check how much the payment to acquire the car would be (I think you have to add an admin fee of about £90 or summat as well for purchasing from when I looked at it a while back). Then you can look into alternative finance and see how that works out as a point of comparison - a quick look online indicated to me that you can borrow £7500+ for about ~5.2% if you have a good credit rating. It means when you go to talk with the dealer you can go armed with all the facts and alternatives which should put you in a stronger negotiation position than "erm, it looks a bit steep mate, can you knock a bit off please as we never used to pay this much?"
 
There is no purchase admin fee on Ford Options (PCP). I just bought the wife's Kuga which we financed using Ford Pcp 2 years ago. The GMFV will be the settlement figure. Its unlikely that the OP's wife's car is worth less than the GMFV and she should have some equity in it. Its easy to get a valuation online. Just put your reg number into We buy any car.com or look on autotrader to get an idea as to what its really worth.

The dealer is trying to take advantage of you here I suspect. APR will vary depending on the car and the price of the car. Fiesta, Ka will likely be more expensive as they have lower margin therefore finance income is more important. Having said that the Ford website is stating 4.9% and 750 saving plus £250 if you finance with Ford credit on all Fiestas.

I actually quite like pcp as a way of buyng a car but Ford has so much pre-reg stock at the moment that the dealers will be working harder to move it vs selling new unregistered cars.
 
Maybe it's changed then (or their website has dodgy info), Ford Options website (http://www.ford.co.uk/cs/ContentSer...NGInE/Article_C/ShowGlossaryNonJS&c=Article_C ) is claiming there is a purchase fee:
"If you choose to renew or retain your Ford at the end of the agreement, you'll need to pay the GMFV plus the purchase fee"

Elsewhere it says the "Option to purchase fee" is £95, but that is in the general finance FAQ so not sure if it applies here.

[Not saying it should sway the decision of course!]
 
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