Has anyone here done PCP before what happens at the end if you trade for the same car but new, do you have to put a big lump sum deposit down again?

I've never done one but can explain it as thus;



The Guaranteed Minimum Future Value (GMFV) is approximately 80% of the Glasses guide price for the car given the mileage/ spec you are looking at, so at the end of the term you have the following options, some of which are not described in the bumf;



1) Give the car back and walk away - nobody ever really does this as the dealer will mark down every dink, mark, scratch and mile over the agreed amount and hit you for it.



2) Buy the car for the GMFV and keep it.



3) Trade it against another from the same manufacturer - they will offer you the Glasses valuation so you have approximately 20% 'equity' in the car - so imaging the GMFV you agreed to was £4,800 they'd expect to be able to offer you £6,000 so that's £1,200 to put into the next car as the deposit - they are keen to do this as it creates a pipeline of revenue for the rest of your driving career and people I know who use PCP's like this; the fact you've been building that up and paying interest on it for three years doesn't seem to bother people. Also, in this case so long as all four wheels point in the same direction the dealer won't care much about the condition.



4) Trade it against another car from a different manufacturer - they will, in order to get your busienss, offer you the Glasses price pay off the finance (GMFV) and use the equity in the same way as described above; people don't always think of this as an option though.



5) Buy it and sell private - this is the best way to get money back and can pay real dividends; the GMFV is £4,800 but you could sell private for £2,000+ more, a bit of work but worth it.



What most people don't realise is the equity being built-up gives them a chunk towards the deposit; most people could find an extra £1,000 to get on the merry-go-around again but nearly £2,500 feels sharp.



Personally, I can't get my head around paying for something I'll never own which is why I've always done cash or a bank loan (based on circumstances at the time) but somebody cleverer than me once said 'own assets, lease liabilities' and cars are not assets but depreciating lumps of metal so fall into the latter catagory. My wife's cousin gets a new Audi before the service is due on each car (the last car he serviced was a 2005 '05 Passat 2.0TDI which he kept for three years...), he just budgets £450 per month and then does a deal every 12-18 months, the 'equity' he has in the car defines what car he moves into (currently he is in an A4), it doesn't bother him that he doesn't own it as he can drive a car that he otherwise couldn't afford but I'd hate to think of the money he's spent over the years, but then the depreciation I've wasted is fairly large too. I just prefer saving and paying cash.

 

Hi,

It really depends on the deals being offered at the time you change your car as to the amount but generally yes you do need to put a deposit down again to secure another deal of any sort. This could be a low deposit of £500 or so or alternatively, if you want to reduce the monthly payments, makea larger deposit. Most large dealers offer flexible deals now. Good luck.

 

Cheers frank, I will speak to them. I suppose if I am not intending to keep the car it does not matter. But I guess it does mean your stuck with that particular manufacturer.

Has anyone here done PCP before what happens at the end if you trade for the same car but new, do you have to put a big lump sum deposit down again?

 

So do you have to keep paying that for the entire time you have the vehicle? Also what would happen if you wanted to sell or do pcp with another dealer etc?

I think you need to sit down with the dealer - I did post about this elsewhere on the forum but ostensibly the option where you never own the car is an opening lease - it is not a PCP in the traditional sense. Operating leases get tax benefits but the person taking the lease can never own the asset for this breaks to apply; it's how most company cars and lease cars are procured. Peugeot do offer a proper PCP but you pay more for this and have the chance to own the car as it is a form of financing lease which doesn't attract the tax breaks. The operation lease (passport I think bits called) is not designed for people who want to own the car. The examples in adverts and on the Peugeot site do make this clear but I fear people pay more attention to the colour and monthly payment rather than the 'value'...

 

You be best to goggle it for all the details, i am not a expert in this field.

 

So do you have to keep paying that for the entire time you have the vehicle? Also what would happen if you wanted to sell or do pcp with another dealer etc?

 

It's true on leases a token payment is required to maintain the tax savings made by the seller on the lease.

 

Another quick question, a friend of mine told me today that if i get my car on peugeots pcp that even if i pay the final amount I will have to keep paying a lease every year is this true? I always thought that once you pay final payment the car is yours. Sorry if this is a stupid question but first time I will be doing PCP my previous car was on 0% HP.

 

Sounds like a good plan I hope it comes off for you, I am sure you'll be delighted with it. I tested the diesel and it is a very good engine but I just prefer petrol. As to the new 1.2 Turbo I wish that been available to order but it was not to be. Although I prefer to have a well tried and tested engine if this new one as good as Ford's 3 cylinder turbo it will be great.

 

Well I took one for a test drive but they only had the diesel and I was very impressed with the car and I am going to purchase one. I am going to wait for the 1.2 turbo though as even the dealer said it would be best to wait because will prob get that sooner due to a 8-10 week waiting list for 1.6 vti lol. Must be selling like hot cakes.

 

I agree Tempest if you do not do lot of miles a diesel is almost pointless. I would only go for another diesel (used to drive a Passat TDI) if i had to lots of load carrying.

 

No, the DW6 is the 1.6HDi - they defecate turbos if not serviced on the dot in the correct manner. It has a very small sump (3.5L) and a recessed plug both of which mean if the oil isn't changed properly too much remains and, eventually, destroys the turbo which ends up with a £2,500 bill to replace and clean everything properly (strainers, filters, turbo, feed pipes etc.).

I think the 1.2e-THP will be lovely - if peugeot had bothered keeping customers informed we might have waited...

Ty for the info. I keep swaying from going with the 1.6 vti or waiting for the 1.2 turbo lol its a nightmare as not sure how soon its coming and our local dealer could not confirm price either.

 

No, the DW6 is the 1.6HDi - they defecate turbos if not serviced on the dot in the correct manner. It has a very small sump (3.5L) and a recessed plug both of which mean if the oil isn't changed properly too much remains and, eventually, destroys the turbo which ends up with a £2,500 bill to replace and clean everything properly (strainers, filters, turbo, feed pipes etc.).

I think the 1.2e-THP will be lovely - if peugeot had bothered keeping customers informed we might have waited...Edited by: Frank Bullitt

 

Another point is Geoff the hdi engine was designed and developed by Peugeot and is used by many manufcturers to power their cars including Ford, Vuahall, Volvo, BMW and others so that engine is also well tried and tested.

Just don't google 'DW6' (what the engine is known as) and 'turbo' unless you have the constitution of an Ox...



If anyone doesn't get there car serviced annually and within 12,500 miles they only have themselves to blame...

So maybe the normal 1.6 vti is the way forward , if i understand you are believe there will be problems with the turbo 1.2?

 

Another point is Geoff the hdi engine was designed and developed by Peugeot and is used by many manufcturers to power their cars including Ford, Vuahall, Volvo, BMW and others so that engine is also well tried and tested.

Just don't google 'DW6' (what the engine is known as) and 'turbo' unless you have the constitution of an Ox...



If anyone doesn't get there car serviced annually and within 12,500 miles they only have themselves to blame...

 

Another point is Geoff the hdi engine was designed and developed by Peugeot and is used by many manufcturers to power their cars including Ford, Vuahall, Volvo, BMW and others so that engine is also well tried and tested.

 

I must confess I tend to agree with Kitchendave.... I like tried and tested. Perhaps that's why my wife's 307 which is 6.5 years old has lasted so well. Regular services and an exhaust were our only expense. Let's hope the 2008 HDI lasts as well.

 

If it's any help the 1.6vti Peugeot/BMW engine is a tried an tested engine used in the Peugeot Citreon models and the Mini range, the new turbo could be an unnown quantity not tried and tested so would reliabiltybe a problem???

 

Cheers Geoff I will check it out

 

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Thanks for all the advice guys.

I just need to find time to test drive one as i could not get to the local garage on tuesday =C. Still cant decide if I should wait until the new 1.2 turbo comes out but might be more expensive i guess.

Has anyone ever used carbuyer to buy a car? I did a qoute and they are selling the 1.6 Allure for just over 15k but it such a big saving I wonder if its too good to be true.

 

I would have ordered the petrol version as well but as my own car is diesel and I fill them both with fuel, I've had a couple of close calls nearly mis-fuelling, so I ordered the diesel.
I don't know if anyone else had done it but I did a cost analysis on my own car looking at fuel cost and service costs and found the petrol marginally cheaper to run. However the residual on the diesel is always far higher.
Enjoy your new 2008 as I'm sure my wife will when we get ours later this week.

 

The noisy start up is due to being direct injection - it's a common trait as the fuel is injected straight into cold cylinders, it sounds like old-school 'knock' but it's nothing to worry about. Our old A2 1.6FSI (Direct injection an lean burn) sounded like a diesel on start-up (shame it wasn't as reliable as one...).

The upside is cleaner emissions and better economy along with sharper performance!

 

I also have a 1.6vti and also dislike the engine rattle when cold but this is the technology of the engine and that is why the performance is so good and the economy is good. I have just done journey to Leeds from Surrey, good runs as well as sitting in very slow moving traffic and the car returned 44.5 miles to the gallon, very respectable and the drive superb even at speeds over 80. Would highly recommend this model (Alure 1.6vti)

 

The 1.6vti I have is quite refined. I find it reasonably powerful with a couple of niggles. Bit noisy on startup for 30seconds ish, you would think it was a diesel 'till the rattling quietens. Also flaps quite badly at 80mph. Other than that, smooth like chocolate. I can recommend.