I'm sure it does,although I wondered if it was the shape he didn't Like? I've come to the same view as you 're pcp. never considered it. now sold(ha) on it.is that what they do even on a 4 year term. Don't know if I'll want to part with jasper in 2yrs!
Well the manager who was sorting all the final stuff out, and the dealer himself, both mentioned me being called in two years to two and a half years time to bring in the car for a brand new one. They did use the term "might" so I imagine it's likely to happen unless everyone suddenly doesn't want 2-year old MINI's and they end up with a surplus they can't shift?
Hello.
I'm on PCP. We had agreed my spec and monthly payments, but when I went back to add Rear Sensors & Black Stripes the monthy payment went down because of it. Go figure. Added value they said....should of done more!
Oh wow, really? I added them by default, kinda interested as to how much I've saved.
What is the difference between this and leasing for you?
That sounds EXACTLY what PCP is over here.
The easiest way for me to explain it is after deposit, what you owe on the car is split, one part becomes your finance, which you pay off monthly during the contract, the rest is the Estimated Final Value. At the end of the contract, you can either use the car as deposit to get another new car, hand the car back, or pay the Estimated Final Value and then the car is yours.
So if you buy a car for £20,000, pay £5,000 deposit leaving £15,000 left, that £15,000 is split, where you pay finance on £10,000 over the duration of the contract, and the remaining £5,000 is deferred to the end of the contract.
Most people on PCP contracts get a phone call from their dealer when the car is at it's highest market value for used cars (usually 2 years), offering them another brand new car in exchange for their old one. The owner gets a brand new car, the dealer makes money both on what you paid for the car whilst you had it, and on what they sell it for to the next buyer.
The only other options are finance (or hire purchase), where you pay the entire balance (less a deposit) over monthly payments, with no final payment at the end to pay and no mileage restrictions. Your monthly payments are usually higher because a chunk of what you owe is not deferred till the end of the contract.
The final option is leasing, where you hire the car for as long as you want, but don't have any ownership/responsibility of it. The bonus of this is if you don't want to worry about servicing and repairs, the dealer has to pay for these as the car belongs to them.
Yes, the final payment should be less than the actual value of the car. That way you have a deposit towards the next car.
I actually did not know that. That's awesome. I plan on saving up as much as possible over the time I have this car so if and when they call me back to swap for a new car, I'll have a massive deposit.