Very helpful to see finance options for a used car set out clearly. It certainly clarifies which is cheapest if you want to keep the car, but also highlights what you'd pay if you weren't planning on keeping the car. This is where the PCP looks better than HP.
Useful info. As you say personal circumstances will pay a big part in the rates on offer. Believe you are correct re FCA and inducements. I think that with PCP and possibly HP there is also added protection like being able to hand back with no penalty after 50% of the debt is cleared. TBH I think they should teach this stuff in school. I sat my boys down when they started looking at cars and we knocked up an excel sheet to show how the total cost varied. Was an eye opener!
This last couple of weeks has been murder so hoping things pick up soon or that 20k might not be until next Christmas :) Thanks for watching and commenting!
Good video content. The FCA would look very poorly on a company inducing a customer to take a specific finance product, as you suspect. FCA will give you a wooly response. The customer must always be offered the best rate available in the dealership to that customer.
Yes, I have a lot of experience with them having previously held control functions so expectations are low. Seems like a blatant unfair inducement to me.
The disadvantage of PCP that as a dealer it’s nearly impossible to dig them out the the negative equity until very near end of agreement, even then it’s normally a hand back - lots of dealers use to sell cars by saying to customers you can hand car back - customers totally unaware that is was a PCP but without hand back so customer retention was not a priority for main dealers - specially ones with three letters lol
It is also very common when you have handed car back once or twice and it’s been buried in neg et - the next PCP will have no hand back rights not disclosed by Main Dealers and ultra prone customers I have also been declined for PCP.
Great and informative Jim. In the case of new cars, I've seen huge PCP "Manufacturer Contribution" of figures up to £4000! as an incentive (some may say inducement) to go with the deal. The last time I bought a new car (six years ago) I went with PCP to benefit from a kick back of nearly £3000 but paid it back after a month - I had lots more dosh in those days! Not sure if you can still do this?
Yeah, there are still ways very often. Dealer incentive is an awful case of smoke and mirrors, you’ll usually get a better deal buying via carwow or something similar and just using your own finance method.
@@clewis5220 Yes indeed. That’s where I saw it. I think that model has been recently face lifted if only modestly. I’m surprised they are putting 4K into the deal especially with the supposed supply issues. Maybe they offer 4K but you can’t get one anyway! Lol
Hi. Or personally but a friend of mine has done it several times. I don’t think there’s any issue with it but best to ask at the time of taking out the loan. 👍
I had a Zoe on a PCP deal and was stressed every time there was a mark etc on it. When I handed it back the inspector came in torrential rain and reported "dirt in the paint work" . No idea what he was talking about but they wanted £700 to pay for it. I challenged it for obvious reasons and didn't pay anything. However put me completely off PCP.
😂 sounds like he was taking the p#%s. I just sent a Touran back after a 4 year lease with some genuine damage that would have cost me £450 to repair. VW charged me £260.
Im paying about 85% intrest on my car finance. Absolutely shocking. Noticed how unwilling they we're to discuss rates when i was taking out the finance. Zuto by the way. Absolute clowns.
@@DefinitelyNotAGuru im hoping to pay a big chunk off in the next 3 months. Can't stand the thought of paying that much intrest. My credit score isn't that bad, i was just desperate for a car at the time. Won't be using them again.
Was this not detailed on the agreement you signed - total amount payable and rate ? If it was I am sorry unless a gun was put to your head not so sure it’s Zutos fault ? Might be wrong ?
@@msjcars2317 ultimately my fault of course, but they we're very reluctant to talk about anything over the phone and trying to read through lots and lots of small print on a mobile was painful tbh. I will be far more cautious next time.
@@DefinitelyNotAGuru thanks Jim, I have never put a deposit on PCP as I find it a waste of money as u are just handing the car back anyway each to there own I guess.
👍👍👍For some unfathomable reason RUclips in its infinite wisdom has chosen to change the name shown when I leave a comment from Pete Ty to @1orbicularis. 😨😲😭???
☕𝗕𝘂𝘆 𝗠𝗲 𝗔 𝗖𝗼𝗳𝗳𝗲𝗲 : ko-fi.com/notaguru
✅ 𝗩𝗖𝗵𝗲𝗰𝗸 (𝗖𝗮𝗿 𝗛𝗶𝘀𝘁𝗼𝗿𝘆) : www.vcheck.uk/?aid=31442
Very helpful to see finance options for a used car set out clearly. It certainly clarifies which is cheapest if you want to keep the car, but also highlights what you'd pay if you weren't planning on keeping the car. This is where the PCP looks better than HP.
Thanks 👍 Much would obviously depend on the residual values but for me PCP almost never works.
Great video, no one seems to talk about how good bank loans are. Everyone seems to just take the dealers finance.
👍👍👍
Useful info. As you say personal circumstances will pay a big part in the rates on offer. Believe you are correct re FCA and inducements.
I think that with PCP and possibly HP there is also added protection like being able to hand back with no penalty after 50% of the debt is cleared.
TBH I think they should teach this stuff in school. I sat my boys down when they started looking at cars and we knocked up an excel sheet to show how the total cost varied. Was an eye opener!
Same here, school teaches kids to pass tests but there seems to be very little in the curriculum to actually give them basic economical life skills.
Thanks, Jim. Very clear comparison. 👍
👍
Great video and keeping us all upto date with prices also getting very close to 20k now!!
This last couple of weeks has been murder so hoping things pick up soon or that 20k might not be until next Christmas :) Thanks for watching and commenting!
Thanks for you efforts Jim, very informative as usual!
Thanks Maurice
Useful video. Many thanks.
Glad it was helpful!
Simple explanation and well presented.
Thank you
Thanks. Really well explained
Thanks 🙏
super helpful thank you
You're welcome!
Great job as always. Well done 👍🏾
Thank you 🤗
Good information and content thanks
Glad you liked it!
Really good video
Gracias
Thanks, an eye opening video.
My pleasure!
Good video content. The FCA would look very poorly on a company inducing a customer to take a specific finance product, as you suspect. FCA will give you a wooly response. The customer must always be offered the best rate available in the dealership to that customer.
Yes, I have a lot of experience with them having previously held control functions so expectations are low. Seems like a blatant unfair inducement to me.
Brilliant advice 👍
Thanks Paul
Good video! PCP appears so good because the dealer doesn't have to give the full VAT amount to the VATman until the opt final payment/actual sale.
👌
The disadvantage of PCP that as a dealer it’s nearly impossible to dig them out the the negative equity until very near end of agreement, even then it’s normally a hand back - lots of dealers use to sell cars by saying to customers you can hand car back - customers totally unaware that is was a PCP but without hand back so customer retention was not a priority for main dealers - specially ones with three letters lol
@@msjcars2317 that’s it, as it’s 50% of the total finance many people don’t get there during the initial term on a PCP do they?
It is also very common when you have handed car back once or twice and it’s been buried in neg et - the next PCP will have no hand back rights not disclosed by Main Dealers and ultra prone customers I have also been declined for PCP.
Great and informative Jim. In the case of new cars, I've seen huge PCP "Manufacturer Contribution" of figures up to £4000! as an incentive (some may say inducement) to go with the deal. The last time I bought a new car (six years ago) I went with PCP to benefit from a kick back of nearly £3000 but paid it back after a month - I had lots more dosh in those days! Not sure if you can still do this?
Yeah, there are still ways very often. Dealer incentive is an awful case of smoke and mirrors, you’ll usually get a better deal buying via carwow or something similar and just using your own finance method.
Yes I saw £4K manufacture contribution on a Lexus Ux250! Maybe as it’s going to soon be replaced by a facelifted version
@@clewis5220 Yes indeed. That’s where I saw it. I think that model has been recently face lifted if only modestly. I’m surprised they are putting 4K into the deal especially with the supposed supply issues. Maybe they offer 4K but you can’t get one anyway! Lol
Thank you for the video. The APR is that the same as Rate of interest ? Or is that an additional percent we’re required to pay?
It's Annual Percentage Rate of interest.
Top job 👍
Thanks Mate
Just had a look at loans from my bank, First Direct and they are offering 4.9%. Which is £2k cheaper than PCP at £9680.58.
👍👍👍👍
Hi jim. Im planning to part exchange my car. And as always can't decide if I'll go with Pcp or Personal loan. I have good credit score though.
Don’t get a PCP, why would you? HP is currently a decent shout, or get a loan or sell via WBAC and lease maybe.
Got it jim! Thank you! Better sell first the car then from that you can freely choose your next car isn't?
@@rivermoon9113 It's definitely worth considering selling first, yes. You may get more money and have more options that way.
Thank you jim! Now I have 85% decided. % left is to choose whats best Suv family car to get 😅
VW do a Deposit contribution . That is an incentive to take credit as well
Yeah, deposit contribution always winds me up as all it is in the discount you would get if using a car buying service.
Have you tried to pay off your personal loan early? Any Pros on doing that? Thanks for the vid!
Hi. Or personally but a friend of mine has done it several times. I don’t think there’s any issue with it but best to ask at the time of taking out the loan. 👍
Thanks Jim, another really useful video for us car guys. 👍
Thanks Alex 👍
I had a Zoe on a PCP deal and was stressed every time there was a mark etc on it. When I handed it back the inspector came in torrential rain and reported "dirt in the paint work" . No idea
what he was talking about but they wanted £700 to pay for it. I challenged it for obvious reasons and didn't pay anything. However put me completely off PCP.
😂 sounds like he was taking the p#%s. I just sent a Touran back after a 4 year lease with some genuine damage that would have cost me £450 to repair. VW charged me £260.
Sad Ken is a legend
He really is ;)
Sad Ken has been shot……and so has the jockey!
@@chazprouk They both will be sadly missed 😂
@@chazprouk Didn't even get out of the traps...
👍
👍👍
Im paying about 85% intrest on my car finance. Absolutely shocking. Noticed how unwilling they we're to discuss rates when i was taking out the finance. Zuto by the way. Absolute clowns.
That's insane! wow!
@@DefinitelyNotAGuru im hoping to pay a big chunk off in the next 3 months. Can't stand the thought of paying that much intrest. My credit score isn't that bad, i was just desperate for a car at the time. Won't be using them again.
@@jibbyjabby7499 good luck mate 👍👍
Was this not detailed on the agreement you signed - total amount payable and rate ? If it was I am sorry unless a gun was put to your head not so sure it’s Zutos fault ? Might be wrong ?
@@msjcars2317 ultimately my fault of course, but they we're very reluctant to talk about anything over the phone and trying to read through lots and lots of small print on a mobile was painful tbh. I will be far more cautious next time.
Had cars on PCP current is on hp, found hp to be more expensive per month as well.
Because PCP has a higher deposit and you’re only paying half the loan despite paying interest on it all 👍
@@DefinitelyNotAGuru thanks Jim, I have never put a deposit on PCP as I find it a waste of money as u are just handing the car back anyway each to there own I guess.
19th
👏👏👏👏
👍👍👍For some unfathomable reason RUclips in its infinite wisdom has chosen to change the name shown when I leave a comment from Pete Ty to @1orbicularis. 😨😲😭???
Looks like you're back Pete but now as pete Ty.