PCP help

spongebob59

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Looking to trade in and get a newer,/new car.
Doesn't see to much I want in the used market so was thinking of taking the plunge into the new market but having never bought on
pcp so I've got a few questions if someone could help.

If I take out the PCP deal what happens to the trade in cash, does it come off the total of the loan taken out ?
Is the car owned by the finance company until the deal ends and transferred ownership if you make the balance payment.
Who pays the road tax ?
Can you put a personal plate on the car ?
Assume owner is responsible for servicing ?
Currently looking at Mazda's through carwow are there any other recommendations ?
If I take out a deal with a franchise that's not local, can I make any warranty claims at a local dealership ?
If I decided to buy thencar outright at the end of the term how do you calculate if its a good price ?

Mazda dealers offering a 0% pcp deal for two years but I guess then initial purchase price will be higher ? Can you negotiate this initial price ?

Thats alm for now ?
 

GreiginFife

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Looking to trade in and get a newer,/new car.
Doesn't see to much I want in the used market so was thinking of taking the plunge into the new market but having never bought on
pcp so I've got a few questions if someone could help.

If I take out the PCP deal what happens to the trade in cash, does it come off the total of the loan taken out ? Yes, used to reduce the balance and therefore the payments.
Is the car owned by the finance company until the deal ends and transferred ownership if you make the balance payment. Owned by you, you are responsible for the finance but it is marked as a debt against the vehicle (should you default for example)
Who pays the road tax ? You do, you own the car.
Can you put a personal plate on the car ? Yes
Assume owner is responsible for servicing ? Yes
Currently looking at Mazda's through carwow are there any other recommendations ? Can't help on that. Depends what kind of car you want and price etc.
If I take out a deal with a franchise that's not local, can I make any warranty claims at a local dealership ? Not sure for the specific brand but I can take my BMW to any authorised dealer.
If I decided to buy thencar outright at the end of the term how do you calculate if its a good price ? Hard to say, the residual price will be fixed and the "value" of the car will be determined by mileage, servicing and condition.

Mazda dealers offering a 0% pcp deal for two years but I guess then initial purchase price will be higher ? Can you negotiate this initial price ? The price should be the price, the value of the car shouldn't be affected by the percentage. The dealer still gets the sale price, it's the finance company that loses on the interest. Usually low interest offers attract lower discounts initially but the £30k price tag is still £30k for example.

Thats alm for now ?
 

KenL

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Looking to trade in and get a newer,/new car.
Doesn't see to much I want in the used market so was thinking of taking the plunge into the new market but having never bought on
pcp so I've got a few questions if someone could help.

If I take out the PCP deal what happens to the trade in cash, does it come off the total of the loan taken out ?
Is the car owned by the finance company until the deal ends and transferred ownership if you make the balance payment.
Who pays the road tax ?
Can you put a personal plate on the car ?
Assume owner is responsible for servicing ?
Currently looking at Mazda's through carwow are there any other recommendations ?
If I take out a deal with a franchise that's not local, can I make any warranty claims at a local dealership ?
If I decided to buy thencar outright at the end of the term how do you calculate if its a good price ?

Mazda dealers offering a 0% pcp deal for two years but I guess then initial purchase price will be higher ? Can you negotiate this initial price ?

Thats alm for now ?

I've had a few pcp so will do my best. Hopefully our car dealer friend will be along.

You can trade the car in and that will form a deposit on the pcp. Consider looking to sell your current car as that might get more than a trade in.
Like any hp style purchase you do not own the car until you have paid it ofRoad tax - you pay.
Servicing - you pay.
Personal plate - don't have one but that should be fine.
To buy the car at the end of the term you pay the price outlined in the finance agreement.
Oh yes! Make sure you go in with price quotes from the likes of carwow.
 

PJ87

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Looking to trade in and get a newer,/new car.
Doesn't see to much I want in the used market so was thinking of taking the plunge into the new market but having never bought on
pcp so I've got a few questions if someone could help.

If I take out the PCP deal what happens to the trade in cash, does it come off the total of the loan taken out ?
Is the car owned by the finance company until the deal ends and transferred ownership if you make the balance payment.
Who pays the road tax ?
Can you put a personal plate on the car ?
Assume owner is responsible for servicing ?
Currently looking at Mazda's through carwow are there any other recommendations ?
If I take out a deal with a franchise that's not local, can I make any warranty claims at a local dealership ?
If I decided to buy thencar outright at the end of the term how do you calculate if its a good price ?

Mazda dealers offering a 0% pcp deal for two years but I guess then initial purchase price will be higher ? Can you negotiate this initial price ?

Thats alm for now ?

Can service local
You have to service
You tax it
You can personal plate (even on a lease car)
They own it until you pay
The price is agreed before hand called the balloon payment
 

Miller

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At the end of the pcp agreement, you can either pay off the lump sum or hand the car back.

What I’ve done a couple of times is take the car into a dealer at the end of a PCP deal and see what the trade in value. If this value is more than the settlement figure, then it makes sense to just use it as a normal trade in and let the dealer sort out the PCP deal. Usually, this ends up with close to zero outlay and is a lot more straightforward than the hassle of handing your car back to BCA (or wherever you take the car at the end of the PCP).
 

Piece

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To be clear, you don’t own car until you settle all outstanding finance. During the PCP, you are the registered keeper only, responsible for its servicing, insurance and tax. The finance company is the owner, not you.
 

GreiginFife

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If you agree to say 8 k miles a year, do they check this yearly or at the end of your agreement ?

End of the agreement, if it's 3 years then its 24000 miles. That's the figure than matters. However, if you decide to change early just be aware that any overage can affect value at trade or sale point. Or if you choose to VT then any overage against pro-rated mileage will affect it.
 

GreiginFife

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To be clear, you don’t own car until you settle all outstanding finance. During the PCP, you are the registered keeper only, responsible for its servicing, insurance and tax. The finance company is the owner, not you.

It's kinda like a mortgage on the car. You can modify the car if you want and you can sell it if you want, just as long as you settle the finance.
 

PJ87

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If you agree to say 8 k miles a year, do they check this yearly or at the end of your agreement ?

At the end

Also if you go over just check the cost it's sometimes not much at all so can be better to agree 8k miles do 12k and then pay the fee

Also if you buy the car at end doesn't matter and just sell it
 

GreiginFife

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But, under the terms of the agreement is it allowed?

There is nothing in the finance agreement aboit modification. Only how much I owe them, how much I agree to pay, how often and for how long.

Modification affects warranty not finance. If you buy the car cash outright then mods will have the same effect. But thats the trade off. In my case trading off better braking performace against the brakes being warranted.
 

KenL

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There is nothing in the finance agreement aboit modification. Only how much I owe them, how much I agree to pay, how often and for how long.

Modification affects warranty not finance. If you buy the car cash outright then mods will have the same effect. But thats the trade off. In my case trading off better braking performace against the brakes being warranted.

https://garagewire.co.uk/news/bmw-d...owner-breached-pcp-contract-by-modifying-car/

Worth a read.
 

KenL

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Not the experience I personally have had with both BMW and Mercedes.
Having read the PCP there is not specified prohibition.
Currently have AC suspension and Dinan exhaust and its just been through the service and inspection.

Hopefully all will be fine. Do you return to standard at the end of the agreement or if trading in?

Like how you are into your cars. I have a Fiesta ST, brilliant car as the handling is unreal. No interest in modifying myself but plenty people are.
 

Piece

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There is nothing in the finance agreement aboit modification. Only how much I owe them, how much I agree to pay, how often and for how long.

Modification affects warranty not finance. If you buy the car cash outright then mods will have the same effect. But thats the trade off. In my case trading off better braking performace against the brakes being warranted.

Modification clause depends on the finance agreement T&Cs and also what you do at the end of term. In *my* agreement, it is clear than any modification is not permitted unless written permission of the owner is given. If given and the car is returned at PCP end, it would have to be returned to stock.

Having said this, if you mod the car and you know for definite that you will keep the car by paying off the finance totally, then no one will check and you can modify relatively risk free.

With a new car, modification affects manufacturer’s warranty, and in *my* agreement, that’s a no.
 

GreiginFife

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Hopefully all will be fine. Do you return to standard at the end of the agreement or if trading in?

Like how you are into your cars. I have a Fiesta ST, brilliant car as the handling is unreal. No interest in modifying myself but plenty people are.

No, not returned to standard. When I traded my C43 in it still had the Bilstein B14 coilovers on it, the Brembo drilled/grooved discs and the Miltek exhaust. No issues, no fuss and it was up for sale on Merc's website 3 days later for £8k above what they gave me.

I think most M340i that I have seen around (not many granted) have all got at least 1 mod (usually suspension as the new M adaptable dampners are shocking (excuse the pun).

I hated the trapezoid exhaust that they used on the 340 so fitted the quad Dinan system in its place. It's a higher quality part than is on there stock so they get an upgrade from it.

ST is a decent car, nippy and handles well. Just not big enough for me. Test drove the Focus ST and the word "sterile" came to mind.
 
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