StevoD Posted November 5, 2014 Share Posted November 5, 2014 Just curious on people views what the point on spending the money on parts if A the car isnt ever going to be yours B you plan on handing it back in 36 months Quote Link to comment Share on other sites More sharing options...
Ekona Posted November 5, 2014 Share Posted November 5, 2014 Either write off the cost, or make sure you can put it back to stock. I've done both options in the past (911 and 350Z respectively). Quote Link to comment Share on other sites More sharing options...
Paddy78 Posted November 5, 2014 Share Posted November 5, 2014 Basically the maths here is: £4000 + (£600 x 36) = £25,600 So at the end of the finance term you will have spent >£25,000 and have nothing to show for it. As long as you're OK with that, then go for it. 2 Quote Link to comment Share on other sites More sharing options...
sipar69 Posted November 5, 2014 Share Posted November 5, 2014 (edited) Just curious on people views what the point on spending the money on parts if A the car isnt ever going to be yours B you plan on handing it back in 36 months For the sheer enjoyment of it. If I hadn't spent money on my exhaust, for example, I'd be driving around for at least three years in a car that i wouldn't be happy with the sound of. And don't forget that PCP doesn't mean you can't own the car outright if you want to - if I get to the end of my deal, i could refinance the balance or pay it off as a lump sum. I doubt I'll do that because I'll probably want something else by then but it's an option. (And a lot of parts can be taken off and sold on). I'd say PCP is a good option if you have a good income and like to change your car quite regularly. You get stuffed on all finance deals - as has been said they're there to make money. Edited November 5, 2014 by sipar69 Quote Link to comment Share on other sites More sharing options...
StevoD Posted November 5, 2014 Share Posted November 5, 2014 when you say refinance the the balancee im guessing that would be via a loan from the bank or would a stealership do that for you?? Quote Link to comment Share on other sites More sharing options...
Paddy78 Posted November 5, 2014 Share Posted November 5, 2014 Dealers would be more than happy to do that for you! Means they get to sell another finance deal! 1 Quote Link to comment Share on other sites More sharing options...
sipar69 Posted November 5, 2014 Share Posted November 5, 2014 I think you can do either. Stealership or loan. Quote Link to comment Share on other sites More sharing options...
StevoD Posted November 5, 2014 Share Posted November 5, 2014 (edited) Just read this on PH regarding PCP "The main issues raised here are entirely focused on the GFV and any equity left over at the end. This demonstrates that folks are missing the point. I have sold lots of PCP packages, and every time, wether negotiating the deal up front, or negotiating for the replacement at the other end, folks are obsessed with 'how much' it is worth in relation to the GFV. They are also overly concerned with how much it costs new as well, folks still have this 'The new one costs X' and at three years old 'It is worth X but, the GFV is X'. The customer wants the dealer/finance house to take any risk of loss, hence a GFV, but doesnt want them to keep any surplus. And therein lies the mistrust of PCP. Forget all about what things cost or what they are worth, if thats your bag, get plain old fashioned chucky. If you go to buy in the US, nearly everyone is on a PCP, and all they talk about is 'rental'. No one gives a hoot what the cars costs and what it will be worth and the GFV. All that matters is the payment, or rental. The salesman will ask 'Whats your current rental and how much you want to spend on rental?' and what you look at and buy is based on rental, what the sticker price is and what the residuals are hardly rate a mention. If you are comfortable with the rental to drive car X is all that matters. In fact you sometimes wont even get prices on the cars, just typical rentals because they have become the principal price issue. Best way to approach a PCP is as if you were paying a visit to Avis for a three year rental rather than to a showroom to buy. As soon as you get bogged down in 'how much' at the end, you have missed the point. If you dont want the dealer to get any benefit out of any suprplus, you have to take ownership. But ownership means you have to take responsibility for any loss too. PCP isnt about any of that. It is rent and repeat, rent and repeat." Edited November 5, 2014 by StevoD 2 Quote Link to comment Share on other sites More sharing options...
Kev Posted November 5, 2014 Share Posted November 5, 2014 Finance from dealers is a joke. BMW want between 7.7% and 10% apr on a new M4! Quote Link to comment Share on other sites More sharing options...
sipar69 Posted November 5, 2014 Share Posted November 5, 2014 Just read this on PH regarding PCP "The main issues raised here are entirely focused on the GFV and any equity left over at the end. This demonstrates that folks are missing the point. I have sold lots of PCP packages, and every time, wether negotiating the deal up front, or negotiating for the replacement at the other end, folks are obsessed with 'how much' it is worth in relation to the GFV. They are also overly concerned with how much it costs new as well, folks still have this 'The new one costs X' and at three years old 'It is worth X but, the GFV is X'. The customer wants the dealer/finance house to take any risk of loss, hence a GFV, but doesnt want them to keep any surplus. And therein lies the mistrust of PCP. Forget all about what things cost or what they are worth, if thats your bag, get plain old fashioned chucky. If you go to buy in the US, nearly everyone is on a PCP, and all they talk about is 'rental'. No one gives a hoot what the cars costs and what it will be worth and the GFV. All that matters is the payment, or rental. The salesman will ask 'Whats your current rental and how much you want to spend on rental?' and what you look at and buy is based on rental, what the sticker price is and what the residuals are hardly rate a mention. If you are comfortable with the rental to drive car X is all that matters. In fact you sometimes wont even get prices on the cars, just typical rentals because they have become the principal price issue. Best way to approach a PCP is as if you were paying a visit to Avis for a three year rental rather than to a showroom to buy. As soon as you get bogged down in 'how much' at the end, you have missed the point. If you dont want the dealer to get any benefit out of any suprplus, you have to take ownership. But ownership means you have to take responsibility for any loss too. PCP isnt about any of that. It is rent and repeat, rent and repeat." I agree with that and what SMD and Ekona said about the value of the Nismo at trade in. If you go into it thinking you'll do well at the end it's not worth doing. It's for people who have some disposable income and don't worry about the idea of handing the car back and getting a new one at the end of the deal. It works fine for me. (My experience with dealers has been that if you are buying your next car from them they will be a bit more generous with estimating the final value of the old car - as a way of hooking you into a new deal.) Quote Link to comment Share on other sites More sharing options...
JoshC Posted November 5, 2014 Author Share Posted November 5, 2014 Right, I finally had the email with the quote from the Nissan dealer (Desira in Norwich) and somewhere along the lines there was a miscommunication. When I spoke to him over the phone he said it was a PCP quote but looking at the pdf he sent me it's actually a hire purchase quote with a final payment for £15k. Now obviously I don't want that. I'm going to go into my local Nissan (Wessex in Cardiff) later to have a chat in person and get a proper quote. I think the reason there is such a difference between your quote and that which your mate got in BMW is the interest. That dealer is charging around 12% APR which is ridiculous when there are 0% deals available. When I last looked at getting a Nismo I was quoted £370 per month, 0% APR with a £7k deposit and £15k GFV. Although you've put down more deposit than I would that's far more like the sort of deal I was hoping for. Can I ask what dealer that quote was from and when? The interest on the hire purchase quote was 4.89% btw! Quote Link to comment Share on other sites More sharing options...
StevoD Posted November 5, 2014 Share Posted November 5, 2014 hire purchase finance done have final payments you have set number each month and thats that Quote Link to comment Share on other sites More sharing options...
WINKJ Posted November 5, 2014 Share Posted November 5, 2014 hire purchase finance done have final payments you have set number each month and thats that A much higher monthly payment that is.... Quote Link to comment Share on other sites More sharing options...
Bodyboarder81 Posted November 5, 2014 Share Posted November 5, 2014 Trust me, I have definitely thought that there are a few cars I would prefer for the same money or less. I've looked at the GTR's under 40K and I love them, I've even looked at far less sensible options such as Noble's Problem is though, I don't have £40k burning a hole in my pocket. Having just bought my first house the only way I could afford a 40K car would be on finance and you won't find many deals to finance a 5/6 year old GTR etc... Plus, depreciation isn't really an issue as at the end of the term you just hand the car back for the guaranteed value and get a new one Having said all that, I'm not looking to change anytime soon, especially if the monthly paymets are more than my mortgage, as i've been quoted already . Just looking to suss it out and possibly change sometime next year. If you've just bought your first house my advice would not to commit to a finance option on a car . Pay as much extra off your mortgage as you can .... As my guess is the rates are gonna go up soonish . 2 Quote Link to comment Share on other sites More sharing options...
Daveyboy11 Posted November 5, 2014 Share Posted November 5, 2014 I'm afraid your 'you don't own the car' wind up wouldn't bother me at all. It wasn't a 'wind up' at all. Quote Link to comment Share on other sites More sharing options...
spursmaddave Posted November 5, 2014 Share Posted November 5, 2014 No wind ups, if you can afford to take the hit on a new car, either cash or PCP then go for it, either way it makes for more 2nd hand bargains for the rest of us 1 Quote Link to comment Share on other sites More sharing options...
Ekona Posted November 5, 2014 Share Posted November 5, 2014 hire purchase finance done have final payments you have set number each month and thats that ^^^This. Quote Link to comment Share on other sites More sharing options...
sipar69 Posted November 5, 2014 Share Posted November 5, 2014 No wind ups, if you can afford to take the hit on a new car, either cash or PCP then go for it, either way it makes for more 2nd hand bargains for the rest of us Indeed BTW I think I was referring to you saying you wound up the guys on the jag forum. Quote Link to comment Share on other sites More sharing options...
spursmaddave Posted November 5, 2014 Share Posted November 5, 2014 No wind ups, if you can afford to take the hit on a new car, either cash or PCP then go for it, either way it makes for more 2nd hand bargains for the rest of us Indeed BTW I think I was referring to you saying you wound up the guys on the jag forum. Yeah I know, honestly like fishing with hand grenades really, far too easy to wind them up 1 Quote Link to comment Share on other sites More sharing options...
StevoD Posted November 5, 2014 Share Posted November 5, 2014 No wind ups, if you can afford to take the hit on a new car, either cash or PCP then go for it, either way it makes for more 2nd hand bargains for the rest of us Indeed BTW I think I was referring to you saying you wound up the guys on the jag forum. Yeah I know, honestly like fishing with hand grenades really, far too easy to wind them up Hmm maybe I should get a jag sounds like I would fit in well 1 Quote Link to comment Share on other sites More sharing options...
spursmaddave Posted November 5, 2014 Share Posted November 5, 2014 No wind ups, if you can afford to take the hit on a new car, either cash or PCP then go for it, either way it makes for more 2nd hand bargains for the rest of us Indeed BTW I think I was referring to you saying you wound up the guys on the jag forum. Yeah I know, honestly like fishing with hand grenades really, far too easy to wind them up Hmm maybe I should get a jag sounds like I would fit in well You would be as welcome as a ham sandwich at a bar mitzvah 1 Quote Link to comment Share on other sites More sharing options...
StevoD Posted November 5, 2014 Share Posted November 5, 2014 No wind ups, if you can afford to take the hit on a new car, either cash or PCP then go for it, either way it makes for more 2nd hand bargains for the rest of us Indeed BTW I think I was referring to you saying you wound up the guys on the jag forum. Yeah I know, honestly like fishing with hand grenades really, far too easy to wind them up Hmm maybe I should get a jag sounds like I would fit in well You would be as welcome as a ham sandwich at a bar mitzvah Is that cause Im one of them ghastly asda using youths Quote Link to comment Share on other sites More sharing options...
spursmaddave Posted November 5, 2014 Share Posted November 5, 2014 No wind ups, if you can afford to take the hit on a new car, either cash or PCP then go for it, either way it makes for more 2nd hand bargains for the rest of us Indeed BTW I think I was referring to you saying you wound up the guys on the jag forum. Yeah I know, honestly like fishing with hand grenades really, far too easy to wind them up Hmm maybe I should get a jag sounds like I would fit in well You would be as welcome as a ham sandwich at a bar mitzvah Is that cause Im one of them ghastly asda using youths Yep, if you think Dan & I are team M&S you wait until you meet the Harrods Posse 1 Quote Link to comment Share on other sites More sharing options...
WINKJ Posted November 6, 2014 Share Posted November 6, 2014 No wind ups, if you can afford to take the hit on a new car, either cash or PCP then go for it, either way it makes for more 2nd hand bargains for the rest of us Indeed BTW I think I was referring to you saying you wound up the guys on the jag forum. Yeah I know, honestly like fishing with hand grenades really, far too easy to wind them up Hmm maybe I should get a jag sounds like I would fit in well You would be as welcome as a ham sandwich at a bar mitzvah Is that cause Im one of them ghastly asda using youths Yep, if you think Dan & I are team M&S you wait until you meet the Harrods Posse Team m and s... Laughable! Quote Link to comment Share on other sites More sharing options...
spursmaddave Posted November 6, 2014 Share Posted November 6, 2014 (edited) No wind ups, if you can afford to take the hit on a new car, either cash or PCP then go for it, either way it makes for more 2nd hand bargains for the rest of us Indeed BTW I think I was referring to you saying you wound up the guys on the jag forum. Yeah I know, honestly like fishing with hand grenades really, far too easy to wind them up Hmm maybe I should get a jag sounds like I would fit in well You would be as welcome as a ham sandwich at a bar mitzvah Is that cause Im one of them ghastly asda using youths Yep, if you think Dan & I are team M&S you wait until you meet the Harrods Posse Team m and s... Laughable! Steves name not mine, I am more S&M than M&S Edited November 6, 2014 by spursmaddave Quote Link to comment Share on other sites More sharing options...
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