At The end Of The PCP Contract

[Everest]

Not sure about PCP

 

[tsedge]

Yes... but the missing piece in the jigsaw puzzle is at what price the lease companies are buying the cars, in bulk, from the manufacturer for - something we'll never know for sure. Traditionally (I heard from friend in the industry) it has been in the 40 - 50% discount range. But if some lease companies are getting (say) a 60% or more discount in poor market conditions, then they'll still be able to make a profit.

I presume this is why shopping around for a good lease deal is a good idea and can be better value than a PCP. With PCP, they are financing your individual deal, whereas the lease companies can get discounts individuals can't. Of course the downside is probably the best lease deals are on in-stock models where you don't get to choose colour or spec.

 

[JonnyG]

Yes, I've heard the phrase "shop the deal, not the car" quite a few times when it comes to advice on getting a good lease deal.

 

[Ferretusmaximus]

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.

Some six weeks after the vehicle was returned I received a letter from Santander stating that the handover process was complete and there were no outstanding monies due - which was nice.

 

[JonnyG]

Some six weeks after the vehicle was returned I received a letter from Santander stating that the handover process was complete and there were no outstanding monies due - which was nice.

Good news ! As a matter of interest how long was your PCP period and after how many months did they come to pick yours up. My PCP says 25 months but that included 24 monthly payments and 1 optional final balloon payment. If I request to return the car will it be after 24 months or 25 ?

 

[securespark]

Some six weeks after the vehicle was returned I received a letter from Santander stating that the handover process was complete and there were no outstanding monies due - which was nice.

That sort of scenario always sheets me up. You hand a vehicle back, then there is a delay before an inspection.

What's to say there is some damage not caused by you in the interim period? Without taking a great many detailed time stamped pictures, you could be in the mire.

 

[JonnyG]

I usually get my neighbour to come and witness the collection with me and point out the full condition while filminhg everything on a GoPro or Iphone (or both !!). I repeatedy state the BVRLA Guidelines on Fair Wear and Tear just to let them know ! It seems like we also need to add the underside as well now to show there is no damage to the battery cover on pickip.

 

[Ferretusmaximus]

Good news ! As a matter of interest how long was your PCP period and after how many months did they come to pick yours up. My PCP says 25 months but that included 24 monthly payments and 1 optional final balloon payment. If I request to return the car will it be after 24 months or 25 ?

Certainly was good news. The PCP was the same as yours - 24 payments starting a month after I got the car (July), so 25 months in duration followed by the optional balloon. I tried to return the vehicle in May as my new car came early and needed to sort out the remaining payments before I could start the returns process. Car went back early July after a few hiccups but suspect it would have been August if I had let the process take its course. Best to contact the PCP provider if you want to return early and engage them in the returns process - be ready to pay the outstanding instalments to get the process started. Good luck.

 

[Ferretusmaximus]

That sort of scenario always sheets me up. You hand a vehicle back, then there is a delay before an inspection.

What's to say there is some damage not caused by you in the interim period? Without taking a great many detailed time stamped pictures, you could be in the mire.

Agreed. I took plenty of pictures on the returns day as others have mentioned. I suspect the main issue is around how the return is processed. Mine was subcontracted so the driver did a microscopic inspection (with pictures) to protect himself (I didn't get a copy of the pictures though). If there was any significant damage the situation could become very murky (e.g., it fell off the trailer on the return journey or while it was parked at the returns depot). The returns driver explained that the car gets valeted on return so that could work either way (find damage, mask damage, cause damage) ... all a bit squeaky bum time. Ideal would be to personally return the vehicle to the PCP company's returns centre and get a receipt at the time, but that may be miles away.

 

[tsedge]

Did you complete the service before the car was returned? I ask as mine will be due the expensive 4th service when my contract is up and I am wondering if I need to budget for it?

 

[Ferretusmaximus]

Did you complete the service before the car was returned? I ask as mine will be due the expensive 4th service when my contract is up and I am wondering if I need to budget for it?

No. The service was due in June. As I started the returns negotiation in May it wasn't due at the start of the process and while in the middle of getting a return date it didn't make sense to book the service as it probably wouldn't happen (given there's usually a lead time of about a month at most dealers).

 

[JonnyG]

Did you complete the service before the car was returned? I ask as mine will be due the expensive 4th service when my contract is up and I am wondering if I need to budget for it?

I've always gone by the schedule (and dash readout if it counts down) when returning lease cars as some lease companies can charge a fair few £100's for a missed service.

If the service countdown shows on the dash on startup (not sure with the MG4 ?) take a video on collection day if its not due for a few weeks as proof .

With PCP it seems a bit different as the contract duration may be 25 months (or 37 or 49). I'm certainly not risking skipping my 2nd service just in case.

 

[tsedge]

Thanks, that's very helpful.

 

[Ferretusmaximus]

I've always gone by the schedule (and dash readout if it counts down) when returning lease cars as some lease companies can charge a fair few £100's for a missed service.

If the service countdown shows on the dash on startup (not sure with the MG4 ?) take a video on collection day if its not due for a few weeks as proof .

With PCP it seems a bit different as the contract duration may be 25 months (or 37 or 49). I'm certainly not risking skipping my 2nd service just in case.

Probably also depends on which service it is. My first service consisted of software updates so not really a service at all (unless you include the obligatory use of your car as a target for a cursory jet wash - usually just makes a clean car wet). I suspect nearly all ex-lease and ex-PCP cars go straight to an auction so the prospective buyer might be concerned but the price paid is determined by other factors than just service history (which you couldn't see as it's in the MG super hive-mind computer).