Which is best PCP deal?

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This topic contains 5 replies, has 3 voices, and was last updated by Stuart Masson Stuart Masson 2 years, 11 months ago.

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  • #37207 Reply

    billyb
    Participant

    Help!!

    I am in the market for a 7 seater car (smaller type) and I am thinking of a Kia Carens or a Ford C Max Grand. I have always bought cars using a deposit and loan and then kept the car for a number of years. I am thinking of changing this and I am considering a PCP deal. however I have no idea if I am being offered a good deal or not.

    The Carens deal is for a 14 plate, car value £15.8k and the deal is £800 deposit (part ex) then 48 payments @ £260 with a GMV of £5.5k.

    The C Max deal is for 13 plate, car value £14.2k and the deal is £1000 deposit (part ex) then 48 payments @ £260 with a GMV of £5k.

    Both are based on same mileage (8000 miles per year which is slightly more than I do normally). How on earth do I tell which deal is best? How do I know if GMV is good/bad for me.

    Thanks

    Billy

  • #37209 Reply
    Stuart Masson
    Stuart Masson
    Keymaster

    Hi Billy. As you can see from your own numbers, the cost to you is largely the same. What you are really considering is which is more important – the deal or the car?

    The Kia is offering a slightly better PCP deal (new/newer car of higher value, less deposit, same monthly payments), so the interest rate and/or deposit contribution is better. The Ford is probably the better new car, but you’re not looking at a new car. Buying a one-year-old car means a year less warranty plus the fact that the car is used (so it may well depend on condition).

    The first question is: Would you prefer a 14-plate Kia Carens or a 13-plate Ford Grand C-Max? There’s not much in the total cost to you, so which do you like better? I’d personally pick the Ford, but they’re both going to be good family vehicles.

    As to whether a PCP with a Guaranteed Minimum Future Value is right for you, it largely comes down to your budget and how long you plan to keep the car. If you plan to change it at the end of the 4-year agreement, then it’s probably a good thing. If you plan to keep the car for longer, it’s probably not as good as a Hire Purchase (HP).

  • #37213 Reply

    billyb
    Participant

    Thanks Stuart,

    Just wondering, why do you think the Ford is better new? Both cars seem to score well on numerous review websites.

    Also, I have just gone to the Kia website and they are offering a brand new Carens on PCP for £1800 deposit and 36 payments if £260 with a GMV of £7k. This seems much better than the deal above! What do you think? Am I missing something (I made sure my annual mileage was the same, is there any other catches to look out for?).

    Billy

  • #37214 Reply
    Stuart Masson
    Stuart Masson
    Keymaster

    Long term, I think the Ford is probably the better vehicle, but it should come down to how you and your family feel about the vehicle, and how it will meet your needs over the next 3-4 years. I haven’t driven either, but the C-Max range has had a pretty good history.

    I’m guessing that the Carens you were previously asking about was an ex-demo vehicle rather than brand new? If so, the difference is most likely that the interest rate/APR will usually be better on a new car than on a used one, so although the car is more expensive, you are paying less interest on your borrowing so your monthly payments may not be massively different.

    The GMFV is only really relevant if you are going to pay it out and keep the car. If you plan to change it at the end of the agreement, it’s not that important. You should expect that the car will be worth about the same as the GMFV, so you are not likely to get anything back.

  • #61453 Reply

    Dean Warren

    Hi there

    I took out a HP contract with Mitsubishi Shogan Finance and paid a set amount each month for 3 years and then I paid off the final ballon payment at the end of the contract, as I wanted to keep the car.

    I paid that off over a year ago and received aetter saying that the finance was fully paid off and the car was mine.

    Then this week I received a letter from them saying that “after a review of the annual statement of account that we sent you, we have identified that we did not remind you of your right to voluntarily terminate your contract before completion”

    They go on to say that as a consequence of there mistake they are not entitled to retain the interest paid by me after the first incorrect statement was due to be sent to me.

    They have since sent me a check for around half the whole amount of interest that I ever paid on the whole finance agreement!!!

    I’m not complaining as it was totally unexpected but I was wondering if anyone could give me some advice or have heard of companies giving customers money back under these circumstances?

    Because something tells me they may have sent this as a sweetener and maybe I’m owed more? I’m probably sounding ungrateful but you never know with these companies since the PPI scandal!!

    How would I find out if what they’ve sent me is the correct amount of what I’m owed?

    Wanted some advice before I phone them direct?

    Thanks in advance

    Dean

  • #61463 Reply
    Stuart Masson
    Stuart Masson
    Keymaster

    I haven’t heard of a finance company offering to give you a bunch of money back to a customer, but it may have come during an audit or something. You should be able to check what you should have paid from your original finance agreement, and compare it to what you actually paid, to find out what the difference is and whether they are refunding you the correct amount.

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