Any tips on how early I should apply to replace my personal leased car when it expires? I would want its replacement delivered ideally the same day the old one is collected to avoid any days being without a car,
Car Leasing
- Thread starter Doug99
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I would have thought that the supplying garage or the finance company (who actually own the car) would be in touch in good time. If it's on a PCP scheme they'll give you the opportunity to buy the car, hand it in or preferably take out a new lease. The garage finance manager is your first contact.
John
John
There might be a Vauxhall Vectra fitted with a FIAT engine for sale here soon...
We don't have PCP but have been thinking about it but have a question, who contacts you at the end of the term to let you know it's coming to that time to give it back and walk away, buy it or trade it in and have another pcp
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Can't answer your question per se, but my sister in law has had a few pcp cars in recent years. With each one she has been phoned a early (maybe even a year early IIRC) to tell her it's the ultimate best time to trade for a newer car. Doing it early also means any excess mileage isn't charged as a pence pre mile at the end of her contract, but rather the car value goes as a current trade in value including current miles and condition.
for the dealer.
Also the GMFV, so if the car is worth more than they estimated then thats yours, not as cash in the hand but to put towards another car/deal but what if you were to walk away, what happens to that equity? On the flip side if the car is worth less than the GUARANTEED minimum future value who takes the hit you or the finance company?
I'd think if you return it at the end of the contract and walk away there wouldn't be any cash either way, except excess miles or damage.
Agreed
The guaranteed value is just what it says - I've never heard of it being negotiable!
If anyone is interested considering a PCP you only finance about half of the vehicles price - that's why they may seem attractive.
However, if you do the maths you'll see they aren't a good deal at all - you'll never own the car but at the end of the contract you'll have paid for most of it
Despite what people say....Joe Public never, ever gets one over the motor trade.
John
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Perhaps I am being dim, but I don't understand what point you wish to make with that.
If anyone is interested considering a PCP you only finance about half of the vehicles price - that's why they may seem attractive.
However, if you do the maths you'll see they aren't a good deal at all - you'll never own the car but at the end of the contract you'll have paid for most of it
So if your only financing half the vehicle effectively the depreciation over the term why do you then say you'll end up paying for it all? The maths do add up?
Take a look at this deal.....
Yes scary numbers but that particular car is around 55k + but will cost me 22k so that to me isn't 'paying for most of it' , it also includes the dreaded envy car tax for vehicles over 40k which is about £800 a year
I admit, that looks like a very good deal - I suspect there is a large manufacturer and dealer contribution to this one.
When car sales were at the usual level, taking this one over four years you’d normally be paying around the £40k mark.
There may be other clauses of course.....If you want to close the deal early or you can’t honour the deal then disaster looms.
PCP’s certainly aren’t for me but there again if I can’t afford the car outright then a 0% APR deal would be considered.
Dealers can also reel you in by offering an offer you can’t refuse on a replacement vehicle - so I’m told.
John
When car sales were at the usual level, taking this one over four years you’d normally be paying around the £40k mark.
There may be other clauses of course.....If you want to close the deal early or you can’t honour the deal then disaster looms.
PCP’s certainly aren’t for me but there again if I can’t afford the car outright then a 0% APR deal would be considered.
Dealers can also reel you in by offering an offer you can’t refuse on a replacement vehicle - so I’m told.
John
With a pcp you can walk away 'mid term' without penalty, I say mid term but its not say 2 years into a 4 year lease but rather if you have paid back half then you can hand it back and just walk away, however by the time your at the halfway point in terms of money you'd be somewhere near 3 to 3.5 years on a 4 year deal
PCP's arent for everyone I agree, I'm just weighing up the pros and cons upto know
PCP's arent for everyone I agree, I'm just weighing up the pros and cons upto know
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