Member Since: 21 Feb 2006
Location: Leicester
Posts: 806
PCP confusion
OK, I don't claim to be a financial whizz, but I'm getting confused.
Figured the difference between year old used cars and discounted new cars was so small it would be worth considering a new vehicle on PCP deal.
I have the following two quotes - first from LR dealer, second from online broker who supplies through LR dealer.
1) Term 36 Mileage 36000
DISCOVERY 2.7 TD V6 S 5DR AUTO
Total Deposit £10,250.00
Rental£370-380 pm
Final Payment GMFV of £16136
2) Term 36 Mileage 36000
OTR Price£30,260.00
DISCOVERY 2.7 TD V6 S 5DR AUTO
Total Deposit £10,000.00
Rental £246.10 pm
Final Payment £15,640.00
Both are stating 7.9% APR.
Why are there such big differences between the two monthly payments?
Also, does this look like a good deal? - higher spec vehicle, lower deposit, again through same broker
Term 36 Mileage 36000
OTR Price £34,710.00
Vehicle Description DISCOVERY 2.7 TD V6 SE 5DR AUTO
Total Deposit £5,000.00
Rental £480.11
Final Payment £18,094.00
Thanks
Si. (the confused).
24th Mar 2006 10:45 am
Tiger
Member Since: 13 Mar 2006
Location: Wales
Posts: 490
Does the Land Rover one have payment protection on it?
If I were you, I would look into the costs of a straight 5 year deal on a new car without a baloon payment. You might get a nice surprise.....
24th Mar 2006 11:30 am
SN
Member Since: 03 Jan 2006
Location: Romiley
Posts: 13710
The only problem is that most lenders only offer upto £25000 unsecuredSteve N | 21MY Defender | 08MY Discovery 3 (history) | 06MY Discovery 3 (ancient history)
24th Mar 2006 12:39 pm
simkna
Member Since: 21 Feb 2006
Location: Leicester
Posts: 806
5 years is a bit too long for me anyway TBH.
I'm more interested in whether people think the broker prices are good deals, and what they think to the balloon figures - will probably hand car back at end of 3 years, hopefully making some of deposit back?
Si.
24th Mar 2006 12:45 pm
CFB
Member Since: 02 Dec 2005
Location: Bradford, West Yorkshire
Posts: 6100
Re: PCP confusion
simkna wrote:
Both are stating 7.9% APR.
Why are there such big differences between the two monthly payments?
If you work out the total amount payable, there is a difference of £5k over the term. One of these deals has to be incorrect (i.e. not at the same APR) Have you checked to see if the final payment is a Guaranteed Future Value and not just a baloon as this affects things. I bought my D3 for £27k with a 3k deposit and £394 a month over 4 years with a deferred amount of £11k which is what I owe and not a gauranteed value.2020 BMW X1 18d XDrive X-Line Auto
24th Mar 2006 12:46 pm
SN
Member Since: 03 Jan 2006
Location: Romiley
Posts: 13710
Re: PCP confusion
simkna wrote:
1) Term 36 Mileage 36000
DISCOVERY 2.7 TD V6 S 5DR AUTO
Total Deposit £10,250.00
Rental£370-380 pm
Final Payment GMFV of £16136
Don't know how you got 7.9%. I think insurance must be in there because you numbers should be similar to mine - I put down £10500 on an identical vehicle with identical term and mileage and with 9.9% and £1000 deposit it was £265 pmSteve N | 21MY Defender | 08MY Discovery 3 (history) | 06MY Discovery 3 (ancient history)
24th Mar 2006 12:51 pm
simkna
Member Since: 21 Feb 2006
Location: Leicester
Posts: 806
These figures were pulled directly from an email sent to me be the LR dealer.
S.
24th Mar 2006 1:00 pm
NookZ
Member Since: 22 Feb 2006
Location: Suffolk
Posts: 26
Maintenance?
Hi,
Seeing as the first quote is for rental, does it include a full maintenance package at all?Always forgive those who p*ss you off, but never forget their names......
24th Mar 2006 1:14 pm
NookZ
Member Since: 22 Feb 2006
Location: Suffolk
Posts: 26
That's a very expensive deal if you ask me!Always forgive those who p*ss you off, but never forget their names......
24th Mar 2006 1:18 pm
adam
Member Since: 20 Sep 2005
Location: Home and Happy
Posts: 6917
Some banks do HP with a baloon - allways cheapest way of finance plus no mileage worries
Total cost of mine = £46K over 4 years for a £41K carNow Golf GTI PP, 7 speed DSG.
Ex D3 and D4
26th Mar 2006 5:50 pm
notquite
Member Since: 02 Oct 2006
Location: London
Posts: 5
You'll love this
Hi there - this is my first post - sorry for my newb questions.
I wanted to share this insane PCP quote I was given by Dovercourt Land Rover in Wandsworth (new dealership) on Saturday ...
Based on only 24,000 miles over 36 months
Standard HSE spec
£ 6,000 deposit
They quoted £929 per month!
That's £39,444 BEFORE we even look at the balloon payment. I was so shocked I had to ask them if they heard me when I said PCP!
When I balked at the price and said I was expecting something not too far over 500-600 a month they then stated that that was totally unrealistic and refused to quote the APR or the final payment!!! They also tried to screw me for £1,000 on my trade in vs what I had been quoted elsewhere and refused to knock more than £1,500 off the list price even with finance. I walked out. They were insulting my intelligence.
Can anyone work out what that APR must be?
Can anyone shine a light on why that monthly payment was so high? I read above that they could be putting in payment protection / gap insurance and they may also be calculating the final value in a way that builds in a deposit for the next PCP deal but surely that doesn't explain the ridiculous price they quoted.
What would be a realistic dealer offer for a PCP on an HSE in your experience?
What is the catch with the Motorlogix online PCP estimate? Why is it so so much better than what the dealer offered me? Plus, has anyone done a PCP with them or another broker and if so, did they offer you the same rate they offered online?
Please help because I more or less abandoned all hope of getting my dream car on Saturday because of this. Am I being unrealistic?
Sorry for all the questions
2nd Oct 2006 7:24 am
Gareth Site Moderator
Member Since: 07 Dec 2004
Location: Bramhall
Posts: 26772
Are you sure that was not for 24000 per annum over 3 years? and did it include maintenance?
2nd Oct 2006 3:41 pm
notquite
Member Since: 02 Oct 2006
Location: London
Posts: 5
Thanks for the reply Gareth -
Yes, I'm quite sure on the mileage point. We discussed 8,000 miles per annum - I only presented the number like this for comparison with the other people who had posted.
Sure it may have included a maintenance contract but he didn't mention it when I challenged him and what could difference could maintenance make -- GBP50pcm at the most surely?
I got the feeling that they had met their targets and frankly didn't want the custom and / or felt they could afford to play silly b*ggers.
It's hardly a good starting point for negotiation when Motorlogix are offering GBP519! I was expecting him to try and push GBP750 with a 6k deposit but not GBP929!
2nd Oct 2006 10:01 pm
Gareth Site Moderator
Member Since: 07 Dec 2004
Location: Bramhall
Posts: 26772
Ok, well when I bought mine I picked 4 independant lease companies, and presented them with my requirement of Silver HSE with tow pack, 25k miles per year non maintained, 10k deposit.
The winner was Total Lease, at 609 per month 16k final payment.
I know that there are better deals now, but I was phoning around in the 1st week of November 04 just after the launch and D3's were rarer than a poultry dentist! The fact that the best deal also had one for immediate delivery helped my decision
I never even asked Land Rover as there predicted delivery was about 5 months.
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