Car financing

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safcsafc said:
As part of your pcp agreement the finance company have to include a voluntary termination clause. This comes in to play once you've paid off half of total amount borrowed (including any interest). They dont want you to do this but it's a legal requirement they have to give you.

We bought a one year old car so by that time the warranty will have ran out. We could hand it back and start again with a newer car so it doesn't make sense to me to keep it any longer. The only draw back is the finance company may refuse to offer you finance on your next car. That's not really an issue though. There's loads of finance companies out there so the dealership can just use another one.

That's my understanding of it anyway.
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aye that's the same way the sales lad sold it to me aswell when i was looking at 3 or 4 year PCP deals

i just get the feeling it's not that simple
 
Pacific said:
aye that's the same way the sales lad sold it to me aswell when i was looking at 3 or 4 year PCP deals

i just get the feeling it's not that simple
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They ask what your willing to pay a month then Taylor the balloon payment /deposit to suit .
 
Pacific said:
aye that's the same way the sales lad sold it to me aswell when i was looking at 3 or 4 year PCP deals

i just get the feeling it's not that simple
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Its all in my copy of the finance agreement they gave me. Even says the date I can terminate the agreement and hand the car back with no penalty. Just need to write to them at that point. Ill give them the option of either picking the car up or ill drop it back off where it was purchased from. Providing its in good order and under the agreed annual mileage I'm not sure what else they could do.
 
If you buy a new(ish) car on a lease deal I assume that major repairs are accounted for in the warranty?

You still pay for servicing?
You still pay for minor damage/dents etc.?

When you hand the car back in e.g. 2 years how does the real owner appraise that the car is in the condition that it’s expected to be in?

The best thing to do would be to buy one of these 2-3 year cars that have been handed back? Especially if it is a Kia with a 7 year warranty on new cars.
 
Stevie Freestein II said:
If you buy a new(ish) car on a lease deal I assume that major repairs are accounted for in the warranty?

You still pay for servicing?
You still pay for minor damage/dents etc.?

When you hand the car back in e.g. 2 years how does the real owner appraise that the car is in the condition that it’s expected to be in?

The best thing to do would be to buy one of these 2-3 year cars that have been handed back? Especially if it is a Kia with a 7 year warranty on new cars.
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The appraisal is done by an independent company as far as I'm aware and not the finance company. They do it with you when they pick the car up. You can get a copy before they come out if you wanted to go over it before they do.

Servicing and minor repairs are your responsibility though.
 
safcsafc said:
The appraisal is done by an independent company as far as I'm aware and not the finance company. They do it with you when they pick the car up. You can get a copy before they come out if you wanted to go over it before they do.

Servicing and minor repairs are your responsibility though.
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Thank you. We were considering it but the Mrs has a tendency to play bumper cars with her motors.

For our next nearly new car we’ll go for 0% finance on a used car, and leave our savings in high interest accounts.
 
Stevie Freestein II said:
If you buy a new(ish) car on a lease deal I assume that major repairs are accounted for in the warranty?

You still pay for servicing?
You still pay for minor damage/dents etc.?

When you hand the car back in e.g. 2 years how does the real owner appraise that the car is in the condition that it’s expected to be in?

The best thing to do would be to buy one of these 2-3 year cars that have been handed back? Especially if it is a Kia with a 7 year warranty on new cars.
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That's what I'm doing, but I think "best" is down to the individual though. Mine is a 16 plate, about 60% off new list price or thereabouts.
 
Stevie Freestein II said:
Thank you. We were considering it but the Mrs has a tendency to play bumper cars with her motors.

For our next nearly new car we’ll go for 0% finance on a used car, and leave our savings in high interest accounts.
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Any inspection from a reputable lease company will normally be done by someone such as British Car Auctions and will be assessed on the BVRLA guidelines (fair wear and tear guidelines published by the BVRLA).

Always check the lease company follow these standards and you can’t really get stung.
 
Goat Eyes said:
Any inspection from a reputable lease company will normally be done by someone such as British Car Auctions and will be assessed on the BVRLA guidelines (fair wear and tear guidelines published by the BVRLA).

Always check the lease company follow these standards and you can’t really get stung.
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Mannheim did my last vehicle inspection. Depending on the lease company and who is selling it will depend on the level of scrutiny. Mannheim werent doing the auction, therefore arent audited by the lease company for compliance so he just ignored the few chips and scratches which were outside of BVRLA guidelines
 
pavarotti1980 said:
Mannheim did my last vehicle inspection. Depending on the lease company and who is selling it will depend on the level of scrutiny. Mannheim werent doing the auction, therefore arent audited by the lease company for compliance so he just ignored the few chips and scratches which were outside of BVRLA guidelines
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How old was the car that was going to auction please? Are there still bargains to be had?
 
Copacabana said:
Stocks and Shares ISA's are doing very well at the minute.
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Excellent. I'll have some money to put in one now I've paid my car finance off early and even more once I've made my mortgage overpayments :)
 
Stevie Freestein II said:
I’ve had a few emails from ventu Honda, not just restricted to Honda either.

Edit might be vertu not ventu.

https://www.vertuhonda.com/used-cars/5-years-0/
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They simply inflate the price of the cars a few weeks before hand to cover the subsidy they are charged by the finance company.

Also you can only have a certain amount over certain time periods.

in the case of 0% someone has to pay for it and this is a way of covering the cost
 
Langleyparkmackem said:
They simply inflate the price of the cars a few weeks before hand to cover the subsidy they are charged by the finance company.

Also you can only have a certain amount over certain time periods.

in the case of 0% someone has to pay for it and this is a way of covering the cost
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Yeah fair point, so someone has to make £££ out of any other means of car finance.

Maybe the best way is to save up the cash and buy a 3 year old car.
 
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