Interesting.
All new to me so just looking how for information atm.
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PCP or PCH car leasing?
- Thread starter Lemon7277
- Start date
All new to me so just looking how for information atm.
SiMCFC
Well-Known Member
Try CarWow app and have a play around with what you want as well, I personally do that then ask if local dealer can beat it, not got one that hasn't yet.
BlueMoonday
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Try CarWow app and have a play around with what you want as well, I personally do that then ask if local dealer can beat it, not got one that hasn't yet.
The car wow app is great, it will help you to avoid having to waste weekends visiting different dealerships trying to get the best offer. The app allows dealers to send you their best offer/monthly payments for the car you want.
PCP is pretty long term rent unless you agree to pay the baloon payment after the term.
The youtube channel is good as well for car reviews.
They will do a credit check when taking out pcp.A brief question to those in the know. My daughter is looking at changing her car.....She's got a bob or two saved up for a deposit for a house and I've told her not to touch it for the sake of a car. Is there any way that she could get a car ( new or decent second hand ) on some sort of deal whereby it wouldn't show up on a credit check when she goes for a mortgage.
I got 10800 for my car when I part ex it recently. They had it on the website for 12800.Mrs H just changed her 7 year old Mini for a 3 year old Merc A Class. Dealer offered 5300 for her car after I said we were looking for 5700, the price Autotrader recommended. It needed a bit of remedial work so we took the offer with a 100 extra. Imagine my surprise when Mrs H's old car went up for sale at the Dealership, 8,100, charlatans.
It did have a couple of scratches that they sorted and alloys needed a going over. They will also need to pay tax on the sale as well as commission to the salesperson, cleaning it every few days etc.
denislawsbackheel
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And offer a warrantyI got 10800 for my car when I part ex it recently. They had it on the website for 12800.
It did have a couple of scratches that they sorted and alloys needed a going over. They will also need to pay tax on the sale as well as commission to the salesperson, cleaning it every few days etc.
10800 + 20% VAT = 12960.
They are selling at a loss!
manclad
Well-Known Member
No such thing as a deposit in any type of leasing or contract hire agreement.I would not advise anyone putting in a large deposit on a PCP.
A PCP is designed to change your car every 3/4 years. So be mindful that the deposit you put in only affects the monthly payment and not a further deposit when it’s time to change. Many customers get confused with this and ask where has my deposit gone? The simple answer is that it’s given you lower monthly payments for your car for the past few years of owner ship.
The reason you shouldn’t put a large deposit is that when you come to change again, if you want a similar payment like you had previously then you will need to find the same deposit as last time, hence the reason finance companies only allow up to 35% deposit.
It’s also very rare to find equity at the end of a PCP as the GFV (guaranteed future value) is what they anticipate the car will be worth which is also dictated by the mileage you set.
Also do not set your mileage perimeters lower than you are actually doing as this will also affect you when you change.
A PCP is only suitable for people with low deposits and want to change every 3/4 years.
It's an initial payment/rental, followed by the number of monthly payments as stated on the agreement.
Only Hire Purchase agreements have a deposit.
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manclad
Well-Known Member
The dealer only pays VAT @20% on any profit they make when sell the car.And offer a warranty
10800 + 20% VAT = 12960.
They are selling at a loss!
No VAT is payable when buying a used car privately.
Kippax.
Well-Known Member
No such thing as a deposit in any type of leasing or contract hire agreement.
It's an initial payment/rental, followed by the number of monthly payments as stated on the agreement.
Only Hire Purchase agreements have a deposit.
I was talking about PCP, never touched base of Lease or CH so pleaase dont confuse the OP
You CAN put a deposit down of HP and PCP correct. 35% on a PCP
That was my point
Kippax.
Well-Known Member
I got 10800 for my car when I part ex it recently. They had it on the website for 12800.
It did have a couple of scratches that they sorted and alloys needed a going over. They will also need to pay tax on the sale as well as commission to the salesperson, cleaning it every few days etc.
Car Sales is very simple
Purchase a car for £10800
Advertise for £12790?
Profit £1658.33
Warranty cost £100 (3 month min for a used car site) warranry cost will differ as most main dealers offer a min of 12 months, I work for a main dealer and I am paying upto £1000 on a 12 month warranty on some of our more expensive cars.
Prep £500 (Again differs depending if its a main delaer or used car site or supermarket) If you are at a main dealer most have to use a approved bodyshop meaning costs are a lot higher. for eg a small repair scuffed front bumper that a "chips away" business charge £70 for a minor repair, the job would be ok however you wont get a 12 month warranty on the repair and the job would be noticable to a trained eye. However main dealers would take them to an approved bodyshop where the cost are a lot higher.
With a main dealer they have to also cover cost which are called a house charges and provision cost on each sale
the house charge is around £335 which covers anything like, HPI check costs, electric for the building etc
Provision is for any issue cars that may go overage.
so the cost will differ from a main dealer to a used car plot.
So for a main dealer on the above car the following is broke down
£1658.33 profit (Metal profit)
Prep £500 (May include service and a minor repair)
Warranty £300 (12 months)
House Charge £335
Provision £200
Total Profit £323.33 (GP) (Metal Profit)
*Finance income will be separate.
however then you have to pay the sales exe so the Direct profit will be less.
thats why dealer prices are higher than an average used car pitch.