RRSPORT.CO.UK

    Forum   Gallery   Shop   Sponsors
Home > Orders (L494) > Advice on PCP termination figures please
Post Reply  Down to end
Page 1 of 1
 
RRS-Si



Member Since: 24 May 2017
Location: North Yorkshire
Posts: 77

United Kingdom 
Advice on PCP termination figures please

Hi all I am hoping a few of you on here with some great knowledge of pcp agreements can shed some light for me.

On my pending pcp agreement for my new RRS in Sept I noticed on the termination figures section on the pcp agreement document the figure is set so if I wanted to terminate the agreement and exercise my rights to terminate the agreement early I have to pay at least half of the total amount payable.

In the past I have had many pcp agreements and the normal way to get to this terminate figure is you end up paying right up to the end of your term agreement more or less ie. over a 48 month pcp agreement you would pay 47.5 months and you should have reached the half way point.

However on my pending RRS pcp agreement based on my monthly payments if I was to terminate the agreement early due to financial reasons etc I would have to pay 56.5 monthly payments to reach the termination figure.

Not sure why this is set this way as the pcp agreement is set to 48 months so would end before I could terminate. If I wanted to keep the car I would then have to make I further payment which is the GFV.

Just so you are aware I am not looking to terminate my agreement, but want to ensure if I ever need to I am not shafted by LR Finance.

Does anyone else on a pcp calculate the same on their termination figures, often referred to as halves and thirds.

Hope this makes sense and sorry for long post.

Thanks in advance Thumbs Up

Post #530423 Sat Jul 15 2017 5:54pm
View user's profile Send private message View poster's gallery Reply with quote
m13lky



Member Since: 08 Aug 2016
Location: Scotland
Posts: 127

United Kingdom 

I've got my pcp with black horse aswell, the way mine reads is if I pay half the total figure including interest, I can hand it back with no penalties or black marks on your credit file, with my numbers my gfv is set around £3.5k below half the total pcp amount, so if in year 2.5 onwards I'm not getting offered around min £5k more than I owe I will either terminate early once I've paid the 50% & never have another RRS or buy outright & keep it for another few years, extending the warranty of course! By the way after various x5's & x6's I really like the RRS!

The way I see it I'm hoping I'll have around 7-10k equity in mine as currently 3 year old models with similar spec to mine & around 25k miles on are being valued by Cap for around £48k & retailing at around £53k. In my opinion brexit will have a big effect on things, similar to the 2008 recession, but I would say it will be the same with all prestige cars if things end badly for us in the U.K. Probably even worse with the German cars!

So if you are in the pcp club I suppose at least you know the worst scenario!

Post #530430 Sat Jul 15 2017 8:22pm
View user's profile Send private message View poster's gallery Reply with quote
RRS-Si



Member Since: 24 May 2017
Location: North Yorkshire
Posts: 77

United Kingdom 

Thanks m13Iky for the reply. It seems to me my dealer has set the GFV right to the bare bone as it's only a few pounds difference between the half way amount of my total amount payable and the GFV figure. I thought the GFV figures were set in stone and couldn't be changed to suit dealers. It seems odd you have different figures with a few thousand pound difference.

I really don't understand why it would take me 57 months nearly to reach the termination amount if I wanted to go down that route. The agreement is only over the maximum 48 months allowed from LR Finance.

The total amount payable is another way of screwing you over as it's the total cash price of the car plus credit charge giving you the total amount payable. Which is the figure they use to get to the "halves and third options". It doesn't take into consideration the deposit you pay in. The depoist paid only shows in the amount of credit borrowed?

It's no wonder pcp agreements are in the spot light at the moment with the financial services regulators.

Post #530436 Sat Jul 15 2017 9:03pm
View user's profile Send private message View poster's gallery Reply with quote
m13lky



Member Since: 08 Aug 2016
Location: Scotland
Posts: 127

United Kingdom 

I agree, I always put down a minimal deposit & pay as you go so to speak, if I can't afford the payments I don't have the car.

My RRS is a 66plate Hse dynamic 16.5my, I did notice when the 17my came out a few months later that the gfv was around 2k more than mine, another thing to remember is any extras which mine has around £9k's worth, don't add anything to the gfv, mine was specked close to an AB with stealth pack, I should have just bought an AB instead as the gfv is around £5k more & you get a better discount but you live & learn!

Sorry I meant to say my agreement is over 37 months which suited me at the time, if I did it over 49 months it was only £100 less a month and an extra £4000 in interest, just to remind you the figures can be altered right up to you take delivery or sign the agreement so might be worth getting them to give you a few more options!

Post #530439 Sat Jul 15 2017 10:29pm
View user's profile Send private message View poster's gallery Reply with quote
RRS-Si



Member Since: 24 May 2017
Location: North Yorkshire
Posts: 77

United Kingdom 

Thanks for reply again m13Iky. I have had a few different options on the finance terms etc. It's like you said it all come down to affordability etc. I did notice that by reducing the term by 6 months didn't reduce the monthly payments as much as you would think as the GFV didn't reflect the extra monthly payments.

All I did on the termination figures was look at what I was paying per month x by the length of the agreement ie 48 payment = ££££. I then looked at the termination figure on my pcp finance document and noticed the figure was nearly £6000 difference..... So effectively I would have to make 8 payments more if I wanted to terminate the agreement early at the 50% mark?

Another thing I have done this time round is to lower the mileage right down to as low as possible on the pcp, as I never keep the car till the end of term so the extra mileage charge won't kick in. This reduced the monthly payments further. However as this is a new thing for me I am not sure if by doing this I am creating problems further down the line??

The dealers only give you a trade price based really on age, miles and condition of car.

Like you said some extras do help a bit when selling on, but you will never recoup the full value of them again.

Post #530448 Sun Jul 16 2017 8:01am
View user's profile Send private message View poster's gallery Reply with quote
syl



Member Since: 10 Mar 2016
Location: Somerset
Posts: 62

United Kingdom 

The GMV is set at what the finance company believes the value will be in 2/3/4 years time. They usually add a small margin to be on the safe side. At the end of the contract you can either hand the keys back or pay the GMV and keep the car (or trade it in, the dealer paying the GMV to the finance company). To be competitive, the finance company doesn't want to add much of a margin or the monthly payment will go too high. Completely separately to this, finance law means that you can hand the car back if you have paid 50%. On a car that holds it's value well, like a Land Rover, you are unlikely to ever reach that figure. On some other cars, however.....

Post #530950 Sat Jul 22 2017 4:42pm
View user's profile Send private message View poster's gallery Post Reply
Post Reply  Back to top
Page 1 of 1
All times are GMT

Jump to  
Previous Topic | Next Topic >
Posting Rules
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum



Site Copyright © 2005-2017 Futuranet Ltd & Martin Lewis
RRSPORT.CO.UK RSS Feed - All Forums

Switch to Mobile site