stevie_350z Posted May 24, 2008 Share Posted May 24, 2008 Hello all, At the end of this year my PCP is up on the Zed. Three years, two Wales trips and countless meets under the (ever growing) belt, time to decide. I am still looking for my PCP contract but could have sworn that the guaranteed future value was pretty low, something around 12K - or was that a "minimum number" and the real number is something far higher and worse... ...until I find the damn contract, has anyone else willing to share what their GFV is? I'm hoping to keep + customize the car, but who knows what will happen... TIA Steve Quote Link to comment Share on other sites More sharing options...
Sarnie Posted May 24, 2008 Share Posted May 24, 2008 Call me an idiot (idiot) but whats the benfit of having a car via the pcp system? Quote Link to comment Share on other sites More sharing options...
stevie_350z Posted May 24, 2008 Author Share Posted May 24, 2008 If you have an aversion or inability to put big amounts of cash into a car, you get it on a cheapers monthly than a loan because you defer a sum of money to a future point - ie. the GFV. So if the car is priced @ 30K and the 3 year GFV is 12K then you just pay the equivalent of 17K + interest over three years. Therefore, you get to use a better car over three years than if you were using a bank loan / HP. It suited me fine and I would do it again - anyone else out there doing it, feel free to PM me to help out... I'm off to see the dealer next week so will update what I find from a settlement fee. My Z is a 55 plate and has done 35K miles, so if I call Nissan GB up then they should be able to tell me if there's value in the car, or if I owe them money etc. Quote Link to comment Share on other sites More sharing options...
steviesZ Posted May 25, 2008 Share Posted May 25, 2008 Hi, I have just got a decent PCP quote from my local dealer in Folkestone Kent. It's for a brand new non-GT with extras. All finance approved, have one more test drive booked on Friday before paying my deposit and joining the ranks of the 'OMG petrol is expensive' brigade PCP as below (10,000mile pa). Total cash price £26,678 Deposit (my car plus £550) £6,750 Amount of Credit £19,928 Total charge for credit £4,444 Monthly Payment 36 x £363.51 Guaranteed Future Value £11,065 Basically at the end of the 3 years you have 3 choices. Give the car back. Pay off the GFV and its yours. PX it. The The figure they give you is guaranteed (as long as you are not over your allowed annual mileage) but it should be worth a bit more. If its worth a bit more you can put the difference towards a new purchase. Hope this helps PS the reason for a second test drive is the Nissan head office is sending down a 'Select' vehicle. A GT model with all the toys, like sat-nav, only 6 months old with 4,000miles on the clock and £2K cheaper than the new non-GT. Should be a no brainer but i still like the idea of being that first owner and knowing the car hasn't been caned for its first 4K miles. Quote Link to comment Share on other sites More sharing options...
Dicky Posted May 25, 2008 Share Posted May 25, 2008 Hi, I have just got a decent PCP quote from my local dealer in Folkestone Kent. It's for a brand new non-GT with extras. All finance approved, have one more test drive booked on Friday before paying my deposit and joining the ranks of the 'OMG petrol is expensive' brigade PCP as below (10,000mile pa). Total cash price £26,678 Deposit (my car plus £550) £6,750 Amount of Credit £19,928 Total charge for credit £4,444 Monthly Payment 36 x £363.51 Guaranteed Future Value £11,065 Basically at the end of the 3 years you have 3 choices. Give the car back. Pay off the GFV and its yours. PX it. The The figure they give you is guaranteed (as long as you are not over your allowed annual mileage) but it should be worth a bit more. If its worth a bit more you can put the difference towards a new purchase. Hope this helps PS the reason for a second test drive is the Nissan head office is sending down a 'Select' vehicle. A GT model with all the toys, like sat-nav, only 6 months old with 4,000miles on the clock and £2K cheaper than the new non-GT. Should be a no brainer but i still like the idea of being that first owner and knowing the car hasn't been caned for its first 4K miles. Can I just clarify this a little.I’ve heard of this method of buying a car but never got to find out how it works? To own the car for 3 yrs costs you:- £6750 deposit + £13086 ( £363.51 x 36) = £19836 then at the end of 3yrs you get £11065 back so it cost you £8771 Is that right? Or have I failed my basic maths yet again! Quote Link to comment Share on other sites More sharing options...
steviesZ Posted May 25, 2008 Share Posted May 25, 2008 Nearly but at the end of the 3 years you still owe the £11K so you pay that to keep the car. So the car with the interest will cost you £30K. Or you just give it back and it has cost you £19K over the 3 years. It should be worth more than the £11K so its not advisable to give it back. The 3rd option is to px it. The dealer will probably give you another couple of grand for it so that (the £2K) can go towards your new purchase. A bit confusing but a good way of being able to drive a car you probably wouldn't normally be able to afford. Quote Link to comment Share on other sites More sharing options...
Guest prescience Posted May 25, 2008 Share Posted May 25, 2008 I can see some logic in this, but does the car ever feel like its yours, I don't think it would to me? Quote Link to comment Share on other sites More sharing options...
stevie_350z Posted May 25, 2008 Author Share Posted May 25, 2008 Hey prescience, the car does feel like yours (you have the V5, unlike HP) but if you are a mod addict like Jay and Tim, then it probably isn't for you I don't think it's quite the same as when you've bought it outright, but then again I would never have been able to afford a new Z outright so I didn't have the luxury. My mate is getting a new 911 C2S on PCP, putting only a couple of grand in and ponying up a huge monthly. It works for him and there is no way he could afford (or want to put the cash up) in one lump, even if that might "feel" better @ Dicky - think of a PCP as deferring the purchase cost of a car you can't afford right now, until some future point, and that you pay for it in three parts: 1. You pay a deposit YOU feel happy with (usually 10%, but can be more) 2. You pay a monthly charge for the sum of money that is $LIST PRICE - $ DEPOSIT - $MGV (e.g. 18K) 3. At the end of 3 years, you pay the MGV (or hand keys back, or PX). BTW, you also agree an annual mileage (e.g. 10K) and if you go over that there is often a per-mile charge (e.g. 6p) at the end of 3 years. Quote Link to comment Share on other sites More sharing options...
steviesZ Posted May 25, 2008 Share Posted May 25, 2008 Don't forget there is no extra pence per mile charge if you decide to buy the car. So if you know you are going to keep it then go for a low annual mileage as this will keep the payments down. I also got a quote for 6K per annum and it brought the payments down by about £15 per month. Quote Link to comment Share on other sites More sharing options...
Digsy Posted May 25, 2008 Share Posted May 25, 2008 I had a couple of previous cars on PCP and it worked very well. I'd put in a deposit of about £2.5k and at the end of the deal I was able to trade in/sell for about £2.5k more than I still owed in the final balloon payment, giving me the deposit on the next car. It was effectively like a private lease for me but I owned the car and, like others have said, allowed me to own a new car at a time when I could not have afforded one on regular HP or normal loan payments. The cars felt like mine because they were. Only downside for someone who gets bored easily like me as that it was prohibitively expensive to get out of the deal until you got towards the end of the term. Alliance & Leicester used to do a loan which was very similar in that there was a large balloon payment at the end to keep the monthly payments down but as it was just a loan you could chop and change cars as much as you liked. Quote Link to comment Share on other sites More sharing options...
polarbear Posted May 25, 2008 Share Posted May 25, 2008 On my 2nd Z PCP now. Traded in the '55 for a '57 after 2 years and ended up with ~£2.5k towards the new car. Reason I'm not buying is that I'm on 20k miles pa and I don't want to own it when the warranty runs out. Probably works out a bit expensive overall, but I get a nice car with no warranty issues for a minimal deposit and low(ish) monthly outlay. And yes...judging by the amount of time I spend with the Dodo Juice it does feel like my car Quote Link to comment Share on other sites More sharing options...
Dicky Posted May 25, 2008 Share Posted May 25, 2008 Hmmmm, I took early retirement, end Feb so this may be something I could try. Now how do I convince the wife Quote Link to comment Share on other sites More sharing options...
Zummertor Posted May 25, 2008 Share Posted May 25, 2008 Never done a PCP myself but then we all manage our money in ways that suit us each. I can see the attraction in that it gets you into a new car when you don't have the cash but in my mind you are still funding the money with interest in a different way so if you wish to borrow money there are probably better ways to do it or at least have ready as a bargaining chip with the sales guy as they usually make commission on financing deals as well so should compete. I know a few people that do this with Porsche's which may work well with their lower depreciation and that they do such a low mileage. Will be interesting to hear what they come up with. As for retiring, I think you deserve a present to yourself for whatever you did before Quote Link to comment Share on other sites More sharing options...
RobD7 Posted May 25, 2008 Share Posted May 25, 2008 The only thing I'd warn you about PCP is the car has to be pretty much immaculate when you return it and definitely cannot be modded!! Quote Link to comment Share on other sites More sharing options...
polarbear Posted May 26, 2008 Share Posted May 26, 2008 The only thing I'd warn you about PCP is the car has to be pretty much immaculate when you return it and definitely cannot be modded!! Not true actually. They count the number of panels with damage and grade them - you can't expect a 3 year old car to be immaculate. I had a nasty ding in the top of the bonnet from a lump of wood on the M4 and they didn't bat an eyelid. Bodyshop wanted £300 to repair as it was on the double-skinned bit Plus all of your expensive moding goodies would come off anyway and on to the new car or eBay Quote Link to comment Share on other sites More sharing options...
Sarnie Posted May 26, 2008 Share Posted May 26, 2008 I can see some logic in this, but does the car ever feel like its yours, I don't think it would to me? +1 Quote Link to comment Share on other sites More sharing options...
GlenMH Posted May 26, 2008 Share Posted May 26, 2008 Plus all of your expensive moding goodies would come off anyway and on to the new car or eBay Careful with this! Only if the PCP company don't know about them! My agreement explicitly states that any accessories fitted to the car become the property of the leasing company... GFV for a Roadster in 14 months time is £13.5k. Looking at the way prices are moving at the moment, I will be handing the car back and walking away... Glen Quote Link to comment Share on other sites More sharing options...
stevie_350z Posted May 27, 2008 Author Share Posted May 27, 2008 If you're moving to Tokyo you'll be handing them back anyway? Quote Link to comment Share on other sites More sharing options...
GlenMH Posted May 27, 2008 Share Posted May 27, 2008 If you're moving to Tokyo you'll be handing them back anyway? True! I was just making the point that any mods may not be the OPs to sell.... The move to Tokyo has come around unexpectedly so we are currently looking at the least financially disasterous solution for the Z as there are still 14 months left on the contract: 1. Sell it back to the dealer and pay off the finance and make up the shocking amount of shortfall - getting any dealer to give us a price is proving to be a nightmare.... 2. If possible, sell it privately and make up less of a shortfall. 3. If the numbers for 1 and 2 above don't work (ie the shortfall is more than the payments outstanding + insurance + servicing and possibly storage), park it in a garage for a year and then hand it back when it is due. Trouble is, this is too good an opportunity to miss, much as getting rid of the Z is going to be a wrench! Glen Quote Link to comment Share on other sites More sharing options...
Digsy Posted May 27, 2008 Share Posted May 27, 2008 Plus all of your expensive moding goodies would come off anyway and on to the new car or eBay Careful with this! Only if the PCP company don't know about them! My agreement explicitly states that any accessories fitted to the car become the property of the leasing company... GFV for a Roadster in 14 months time is £13.5k. Looking at the way prices are moving at the moment, I will be handing the car back and walking away... Glen Of course that is only if you tell the leasing co about them. Quote Link to comment Share on other sites More sharing options...
Sarnie Posted May 27, 2008 Share Posted May 27, 2008 If you're moving to Tokyo you'll be handing them back anyway? True! I was just making the point that any mods may not be the OPs to sell.... The move to Tokyo has come around unexpectedly so we are currently looking at the least financially disasterous solution for the Z as there are still 14 months left on the contract: 1. Sell it back to the dealer and pay off the finance and make up the shocking amount of shortfall - getting any dealer to give us a price is proving to be a nightmare.... 2. If possible, sell it privately and make up less of a shortfall. 3. If the numbers for 1 and 2 above don't work (ie the shortfall is more than the payments outstanding + insurance + servicing and possibly storage), park it in a garage for a year and then hand it back when it is due. Trouble is, this is too good an opportunity to miss, much as getting rid of the Z is going to be a wrench! Glen Surely its simple? If 14 X your monthly payments is less than the shortfall you'd have to make up then you'd just keep it and hand it back in 14 months time? Quote Link to comment Share on other sites More sharing options...
stevie_350z Posted May 27, 2008 Author Share Posted May 27, 2008 If you're moving to Tokyo you'll be handing them back anyway? True! I was just making the point that any mods may not be the OPs to sell.... The move to Tokyo has come around unexpectedly so we are currently looking at the least financially disasterous solution for the Z as there are still 14 months left on the contract: 1. Sell it back to the dealer and pay off the finance and make up the shocking amount of shortfall - getting any dealer to give us a price is proving to be a nightmare.... 2. If possible, sell it privately and make up less of a shortfall. 3. If the numbers for 1 and 2 above don't work (ie the shortfall is more than the payments outstanding + insurance + servicing and possibly storage), park it in a garage for a year and then hand it back when it is due. Trouble is, this is too good an opportunity to miss, much as getting rid of the Z is going to be a wrench! Glen Surely its simple? If 14 X your monthly payments is less than the shortfall you'd have to make up then you'd just keep it and hand it back in 14 months time? DOn't forget to include the insurance in the "things I don't have to pay"... and who's going to look after it over 14 months? It needs to be driven, so think about that 1.25 a litre it cost me tonight! BARSTEWARDS! Quote Link to comment Share on other sites More sharing options...
paulroberts Posted May 27, 2008 Share Posted May 27, 2008 I had one of those Alliance & Leicester PCP's a few year back, it worked well for me but that was back in the days when loans were 12% APR and I couldn't afford to borrow the whole lot. They don't seem to do them now anyway so I looked at a PCP from my Nissan dealer but it actually worked out cheaper and more flexible for me to borrow the money from my mortgage. I've got one of those Woolwich OpenPlan offset jobbies and I can take a chunk out and just pay it back as I please. I've already overpaid the first months installment and hope to overpay the rest (but it's my choice whether I do so or not and could take a break for a month if I wanted to). The APR is over 1% cheaper than with the dealer's PCP, but the best thing is that because I effectively paid cash for the car there's no HPI outstanding, so I can sell it without having to clear the finance first. Of course this only works if you are EXTREMELY disciplined with the repayments - you do not want to be paying it back over 25 years! I aim to have the majority of the balance paid back in 2 or 3 years, so when I sell the car I'll be able to clear the oustanding balance and put down a deposit for something else. If you've got an offset mortgage it's worth considering, especially if it's a base rate tracker as it could be cheaper than a normal loan or PCP (assuming the base rate doesn't go up too much). Quote Link to comment Share on other sites More sharing options...
GlenMH Posted May 29, 2008 Share Posted May 29, 2008 If you're moving to Tokyo you'll be handing them back anyway? True! I was just making the point that any mods may not be the OPs to sell.... The move to Tokyo has come around unexpectedly so we are currently looking at the least financially disasterous solution for the Z as there are still 14 months left on the contract: 1. Sell it back to the dealer and pay off the finance and make up the shocking amount of shortfall - getting any dealer to give us a price is proving to be a nightmare.... 2. If possible, sell it privately and make up less of a shortfall. 3. If the numbers for 1 and 2 above don't work (ie the shortfall is more than the payments outstanding + insurance + servicing and possibly storage), park it in a garage for a year and then hand it back when it is due. Trouble is, this is too good an opportunity to miss, much as getting rid of the Z is going to be a wrench! Glen Surely its simple? If 14 X your monthly payments is less than the shortfall you'd have to make up then you'd just keep it and hand it back in 14 months time? DOn't forget to include the insurance in the "things I don't have to pay"... and who's going to look after it over 14 months? It needs to be driven, so think about that 1.25 a litre it cost me tonight! BARSTEWARDS! The PCP contract specifies that it must be comprehensively insured so we are factoring that in to the numbers. As for being driven - not often as we will be giving it back after the agreement has finished. Leave the battery with a charger/conditioner fitted and all should be well as we have some dry garaging sorted out. Need to try selling it first... Glen Quote Link to comment Share on other sites More sharing options...
tmJak Posted May 30, 2008 Share Posted May 30, 2008 If you're moving to Tokyo you'll be handing them back anyway? True! I was just making the point that any mods may not be the OPs to sell.... The move to Tokyo has come around unexpectedly so we are currently looking at the least financially disasterous solution for the Z as there are still 14 months left on the contract: 1. Sell it back to the dealer and pay off the finance and make up the shocking amount of shortfall - getting any dealer to give us a price is proving to be a nightmare.... 2. If possible, sell it privately and make up less of a shortfall. 3. If the numbers for 1 and 2 above don't work (ie the shortfall is more than the payments outstanding + insurance + servicing and possibly storage), park it in a garage for a year and then hand it back when it is due. Trouble is, this is too good an opportunity to miss, much as getting rid of the Z is going to be a wrench! Glen On the plus side, a brand new Zed in Japan is only about £6.50 anyway so the money you may lose will be offset with the money you save Quote Link to comment Share on other sites More sharing options...
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