This topic contains 9 replies, has 2 voices, and was last updated by Maxwell 1 year, 4 months ago.
- 2 September 2016 at 12:18 pm #94554
Looking for some advice on PCP, I have some knowledge as have colleagues who have similar deals, but just need some further clarification
My situation is I take a car allowance instead of company car and I pay benefit in kind tax against my private use fuel (via monthly return)
At present I have bought and own a car which is now a 10 plate and done approx. 120k so looking to change. I work in construction an loosely based around the midlands so my annual mileage can change vastly from 15k to 27k
I’m looking at a Range Rover Evoque as I spent a fair bit of time in the car so want something comfortable and i’m looking at a PCP instead of buying outright as it would tie up quite a lot in capital.
I have considered a 14 plate version with finance but would soon be out of warranty and with those mileages could have issues which I would need t pay for. I’m hence now thinking a PCP may suit me.
I should always have a car allowance so im quite happy to always have a deal going on as would not be much difference than paying the tax man.
I would take a 4 year deal on PCP and put in some deposit (2k ish)
However the question starts at mileage; ive been told that as I would be looking for another deal after this, to take a 4 year deal and wait for them to call me after 3years with an offer and then take that.
I am being advised that doing this will mean any mileage is null and void and to therefore base the PCP on 10K a year although I will be doing more.
I don’t want to buy vehicle after so don’t have to wait until the end of the period.
am I right in what I am being advised? I know it may not be a moral thing to do, but im not concerned about this as finance companies don’t look at things that way either.
Any advice from people who have done similar things would be appreciated or who have vehicles with JLR
- 2 September 2016 at 2:02 pm #94560
Hi Dale. Don’t make that assumption. Yes, the dealer will almost certainly call you early – even before three years – with an invitation to ‘upgrade’ you car. But that doesn’t mean their offer will cover your finance settlement.
For more information, have a read of our article on the early upgrade myth.
- 3 September 2016 at 12:17 pm #94693
Hello I placed a PCP order on a new car two weeks ago and paid £1000 deposit. I was told the car will be ready sometime in October and will be informed when a build date is known. As I am eager to get this car I keep checking the manufacturers website and just noticed they will be offering a £1000 deposit contribution next weekend on the same car I ordered. I now feel I haven’t been given a good deal as the car is quite expensive. What are my options?
- 4 September 2016 at 4:01 pm #94864
Hi Maxwell. In theory, you have no right to demand a better deal – you have made a commitment to buying the car at that price.
However, in most cases the dealer/manufacturer will give you the new offer if you ask for it (they are unlikely to volunteer to give you a better deal, so you may have to push for it).
- 5 September 2016 at 10:07 am #94883
Thanks Stuart for your response. I know in theory that offer wasn’t available when I ordered but I have asked the question anyway and awaiting a response. Thank you.
- 10 September 2016 at 11:05 am #95205
The dealer honoured the new promotion which resulted in a £25 reduction in monthly payment. Thanks
- 11 September 2016 at 10:27 am #95303
- 13 September 2016 at 9:13 am #95556
I have another question if you don’t mind. As part of the PCP agreement I agreed a price of £5000 for my current car to use as part exchange. I am expected to bring the car in for a second appraisal when I collect the new one and provided there isn’t additional damage or excess mileage before that time the price should be the same.
My question is do I have to give them the car as agreed or can I sell it off privately and settle the dealer the £5000 as I believe I can get a little more selling myself?
- 15 September 2016 at 5:59 pm #95692
If you have signed a contract which includes your current car, the dealer has the right to expect you will supply the vehicle as per the contract.
In practice, the dealer may or may not be happy for you to sell the vehicle yourself. It will depend on whether they think they have undervalued the car. If they think it’s actually worth more than £5,000 then they won’t be happy if you try to take it out of the deal. If they think it was only worth £4,000 but they agreed £5,000 just to get the deal done, they’ll be happy not to have it.
- 16 September 2016 at 1:47 pm #95740
Thanks for your response Stuart. I will ask the dealer to see what they