At The end Of The PCP Contract

[Mr Smoggie]

I assume they're local to you? Unfortunately, I'm not sure that your car would necessarily be offered at auction there, would it? Especially since, according to an earlier post, Santander seem "reluctant" to say exactly where they would place it for auction.

No, they used to be just around the corner, but now nearest is about 50 miles away I think, logically u would think the collection company would take it to the nearest, but Santander aren't a big believer in logic.
Anyway it was more amusement than practical to have bought my same car back, although possibility of keeping it as 1 owner would be a bonus and the fact I'm getting back a reliable car, not a twinge in 2 years. I'll probably look for either a newer mg4 for the cash Id have saved, or something different.

 

[JonnyG]

Hi, I know your post is a year old but it was the only question I could find that was relevant to what I'm trying to find out, so I hope you don't mind me asking a question.
My mg4 trophy pcp ends next month, my balloon payment is £19k, but I can just hand the car back & get a similar one from auto trader for 17k. So I was wondering if Santander would be willing to negotiate the balloon payment down so I keep the car & they don't have the hassle of collecting/selling it.
So what conclusion did you come to from all the replies you got?

If you're still around on here I'd be interested to know how the process went with Santander. Did they contact you to arrange an inspection / collection etc... ?

 

[Ferretusmaximus]

If you're still around on here I'd be interested to know how the process went with Santander. Did they contact you to arrange an inspection / collection etc... ?

Having now completed PCP process and returned the vehicle I get the impression Santander aren't very flexible. I had to fight to get them to take the car back a little early. They give you a price for you to buy the car and suspect that's the limit of the negotiation. Their business model appears to work to a script. On return your vehicle will get a microscopic inspection and you are subsequently informed about the cost of making good any damage (down to the smallest scratch) ... if you buy the car rather than returning it you will probably get a far easier ride (and guarantee you get your car back albeit at slightly higher cost).

 

[Everest]

On return your vehicle will get a microscopic inspection and you are subsequently informed about the cost of making good any damage (down to the smallest scratch)

Are they reasonable costs, or do they take their pound of flesh?

 

[Ruislip Resident]

We have a way to go yet (3+ years) but already our MG5 is getting prices less than the guaranteed minimum price. Do MG allow negotiatio0n i.e. our guaranteed minimum value is £16k at 4 years and 24,000 miles. WBAC, Motorway and some others are only offering 13K now at 8 months and 3,500 miles. At the end of our years are MG likely to accept a lower figure as the balloon payment ?

Having now completed PCP process and returned the vehicle I get the impression Santander aren't very flexible. I had to fight to get them to take the car back a little early. They give you a price for you to buy the car and suspect that's the limit of the negotiation. Their business model appears to work to a script. On return your vehicle will get a microscopic inspection and you are subsequently informed about the cost of making good any damage (down to the smallest scratch) ... if you buy the car rather than returning it you will probably get a far easier ride (and guarantee you get your car back albeit at slightly higher cost).

Is the price to buy the car the originally agreed balloon payment or is it lower.

 

[tsedge]

It is common for companies to look to find faults to charge you on completion.

You don't have to accept their findings and you can, instead of paying them, fix it yourself.

My neighbour was told a missing chromed exhaust pipe cover would cost £600 to replace whe he tried to return his BMW X5. Instead of paying them, he got one from the breakers and fitted it himself for a fraction the cost.

If you are awkward and delay the return, you probably increase the chances they will deviate from the script.

 

[Davojoe]

Are they reasonable costs, or do they take their pound of flesh?

Spoke to Santander and as others have said not interested in any deal. So I had mine collected by the third party collection service and they quibbled over some very minor scratches that didn't penetrate the gel coat but they claimed went through to the primer. They are supposed to adhere to the British vehicle leasing code:

BVRLA Fair Wear & Tear

This sets out what is and isn't permitted - I just wanted rid so for that one panel - actually the bumper just behind the rear wheel they charged £50 so I let that ride - I was actually on a business trip at the time and she who must be obeyed was dealing with them. The biggest shock was when I received the email confirming the final costs, they wanted an additional £40,000 . The inspector had input the wrong mileage - it was actually well within my allowance, but that took 2 days to sort and although he was a nice chap he said it was my problem to solve. TBH with this hassle I won't get another PCP and I've gone out and bought an XPower - lets hope I don't regret that

 

[salty]

TBH with this hassle I won't get another PCP and I've gone out and bought an XPower - lets hope I dont regregt that

Very much doubt you will. Enjoy!

 

[Ferretusmaximus]

Is the price to buy the car the originally agreed balloon payment or is it lower.

The buy price was £17,700 compared to a balloon of £18,000. No idea why they're different.

 

[Ferretusmaximus]

Are they reasonable costs, or do they take their pound of flesh?

No idea, I await with some trepidation. The (subcontracted) driver collecting the vehicle made the inspection to cover himself. The car with be valeted and then reinspected to assess for damage and then I get to find out.

 

[JonnyG]

The buy price was £17,700 compared to a balloon of £18,000. No idea why they're different.

How did that compare to the Webuyanycar/Motorway price out of interest ?

That sounds like they offered to sell you the car at a lower price than the finance agreement price ?

 

[Ferretusmaximus]

How did that compare to the Webuyanycar/Motorway price out of interest ?

That sounds like they offered to sell you the car at a lower price than the finance agreement price ?

I looked at various sites (e.g., Arnold Clarke, CarSupermarket) and could find similar condition and aged vehicles selling for as little as £14k (the secondhand pricing is all over the place at the moment). Therefore the most you might expect to get is £12k. I was offered £12k (book price at the time) as part-exchange on a new vehicle. It wasn't a difficult decision to return the car.

 

[johnb80]

I had a conversation with Santander regarding the 'guaranteed minimum value' and what the car would be worth in 2 years time. They said they would be happy to negotiate.
Its currently 21 months old, agreed mileage 6000 per year, we havent done anything like that, WBAC offered £10,300 now, in another 27 months it will be a lot less than that. Santander have put the Guaranteed Minimum Value at £16000! Just after we boght ours, Perrys at leeds were selling them off brand new at less than £20,000, that really depressed prices on the secondhanded market. Im really glad we opted for the PCP because it would have cost us dearly if we'd bought it outright. When the 48 months is up, we wont be buying the car anyway, I'm favouring another brand, MG has been a disappointment in many ways, primarily around customer support and I think the corrosion protection leaves a LOT to be desired. Under our bonnet, the joins between the skin and the frame are rusting badly already, looking underneath doesn't fill me with confidence either. I think we will be heading down the Kia EV6 route, probably a 2 year old one bought outright. It would still have 5 years of warranty remaining and we would aim to keep it 3 years.