What you said is true but you forgot to mention the interest APR. when you take finance you lose in depreciation and interest, if you pay cash is only depreciation. That is an importantdetail i think. Thanks for the video anyway.
If you can not afford to buy a car out right and still have money left over to invest in something that will gain you equity then clearly you are punching above your weight. It’s all good having a shiny new car on PCP but at the end of it you are renting a car based on half the cars value, with the option to possibly buy which more then likely won’t make any sense and you will end up constantly be in a roundabout situation. This is why so many people own a nice car and no house or if they do own a house they can’t invest in anything that will make them money. She’s highlighting the glory side of things. PCP only make sense if it matches your disposable income after other equity finances have been taken care of. So more then likely this would only be suitable for the elite of society. The car dealers and manufacturers are the real winners. They sell a rental vehicle to you at full cost of the RRP guaranteeing a future value, that they can sell back to you at a guaranteed additional cost if you wish to keep the vehicle and add a additional finance package with additional interest. 🤣in my opinion people don’t think long term with such deals! Anyone notice no mention of interest rates🤣🤣🤣never think a global corporate company is doing things to benefit the customers first before their pockets.
Exactly. Very good point. A confusing point which many don't understand. I've been quoted the interest rate in the past only to find that this was the FLAT RATE and generally, the APR can be twice this. For example "we can sort you this agreement at 3%" and then you check the paperwork after signing and it's 5.9% APR for example.
Whether you pay by cash or by PCP you are buying/financing a depreciating asset. Even if you choose a very-low risk form of investment (say, premium bond) you will be making money on that plus what you save in financing the car. Note that when financing by PCP, you are financing all of the car, after deposit - simply that the financing comes to an end when you choose to give the car back. Ever been misold a product?...it's the next PPI waiting to happen.
Nice video, but I feel that some of this is a little misleading and could confuse the average customer. You are financing the entire amount on a PCP (less the deposit). So in the example, the amount financed is £30000, NOT £15000. Whether you pay the GFV at the end doesn't affect the amount borrowed initially. Check your credit file, the amount shown (in this particular example) will be £30000 + CHARGES, not £15000. So, the customer is still paying interest (unless it's a 0% APR agreement) on the full £30000, not the difference between the initial amount (less deposit) and the GFV. I think many people taking out a PCP think they are only financing the difference between purchase price (less deposit) and the GFV when this isn't correct. People often also think that the VT point on a regulated PCP is halfway through the term and not when half the amount is repaid. Obviously on a PCP, the VT point can fall almost right at the end of the agreement. PCP can work but I still think people are often unsure as to exactly what they are agreeing to. Many thanks though, a useful video.
Your videos are great they have become my Mercedes-Benz information resource. Do you think maybe in the spring or summer you will do a video like a testing Launch control feature.
Of course car sales people do want you to tie up all your hard earned cash on a car. That's because she forgot to mention that the sales person earns commission so it also benefits them if you take out finance with them. Look for 0% finance deals and you only need 50% deposit.
Firstly great video. Can I give you an sinario. So looking to pcp an brand new ducati v4s valved at £24k .. but I do not want a 24k loan. So you go in and you say the the sales man I do not want to pay 24k I want 10% off. He agrees. You work out how much you want to pay ie £300 and the deposit is £2.5k .. I want an apr of 5.9 or 6%apr. You get the deal. The pcp valve after the 3 year term is 12k . If you have done under the stated milage can I just say ok I will have that bike here is 12k or will they want to see the bike . But then might say you have low milage the value is more. ? Surely it's all set. As Ducati rearly loose too much you could if wanted and looked after it buy and sell and make money. People always say well you cant keep it. But surly if the rate is low and the initial price is low it's a win win. Do you have the ability to change the apr or is yours set.?
If you choose to keep the bike you don't do anything and they take the balloon payment at the end unless you say otherwise. Over the term you paid full price+ interest over the agreed term after this the bike is all yours. I did a PCP in 2014 I still have the bike and it has 1330miles on it now. And I didn't bother getting it serviced every year either.
So Jp is bad, because at the end you own it and have capital in it if you want to part x for a new car or just keep it. Cash is bad because you own it and don’t have anything else to pat. But pcp is the way to go, pay a deposit then low monthly repayments until the end of term. With a large balloon payment at the end which they rely on you not having, so you hand back and repeat or take out hp to pay the balance off costing even more money. Oh and I forgot if you go over the mileage you agreed then pay some more money. 🤔..........😂🤣😂🤣😂 no thanks I don’t like renting cars!
Brilliant video. You're great at explaining it all,I honestly didn't have a clue. 🙂👍
What you said is true but you forgot to mention the interest APR. when you take finance you lose in depreciation and interest, if you pay cash is only depreciation. That is an importantdetail i think. Thanks for the video anyway.
Thanks, you've helped me decide on how to purchase mine.
Of course she wouldn't mention that....
Thank you for your effort to explain us this info. Very useful 👍
How can you explain about car finance and there is not one mention of APR or Flat rate over an amount of time ?
Terry loved you in come dine with me 🤪
Or that interest is chargeable on the GFV as well and technically you are financing this amount too.
If you can not afford to buy a car out right and still have money left over to invest in something that will gain you equity then clearly you are punching above your weight. It’s all good having a shiny new car on PCP but at the end of it you are renting a car based on half the cars value, with the option to possibly buy which more then likely won’t make any sense and you will end up constantly be in a roundabout situation. This is why so many people own a nice car and no house or if they do own a house they can’t invest in anything that will make them money. She’s highlighting the glory side of things. PCP only make sense if it matches your disposable income after other equity finances have been taken care of. So more then likely this would only be suitable for the elite of society. The car dealers and manufacturers are the real winners. They sell a rental vehicle to you at full cost of the RRP guaranteeing a future value, that they can sell back to you at a guaranteed additional cost if you wish to keep the vehicle and add a additional finance package with additional interest. 🤣in my opinion people don’t think long term with such deals! Anyone notice no mention of interest rates🤣🤣🤣never think a global corporate company is doing things to benefit the customers first before their pockets.
It's all about keeping up appearances. Never buy new the depreciation is eye watering.
By the time the car has been on PCP for 4 years and a loan for another 5 years it will be worthless @ 9 years old
What’s the FLAT RATE APR???
nothing mentioned about that
Exactly. Very good point. A confusing point which many don't understand. I've been quoted the interest rate in the past only to find that this was the FLAT RATE and generally, the APR can be twice this. For example "we can sort you this agreement at 3%" and then you check the paperwork after signing and it's 5.9% APR for example.
Whether you pay by cash or by PCP you are buying/financing a depreciating asset. Even if you choose a very-low risk form of investment (say, premium bond) you will be making money on that plus what you save in financing the car. Note that when financing by PCP, you are financing all of the car, after deposit - simply that the financing comes to an end when you choose to give the car back.
Ever been misold a product?...it's the next PPI waiting to happen.
Gr8 explanation, Does Mercedes offer 0 apr?
Nice info thanks. As below said no APR mentioned but this can vary with finance company to finance company or dealer to dealer.
Nice video, but I feel that some of this is a little misleading and could confuse the average customer. You are financing the entire amount on a PCP (less the deposit). So in the example, the amount financed is £30000, NOT £15000. Whether you pay the GFV at the end doesn't affect the amount borrowed initially. Check your credit file, the amount shown (in this particular example) will be £30000 + CHARGES, not £15000. So, the customer is still paying interest (unless it's a 0% APR agreement) on the full £30000, not the difference between the initial amount (less deposit) and the GFV. I think many people taking out a PCP think they are only financing the difference between purchase price (less deposit) and the GFV when this isn't correct. People often also think that the VT point on a regulated PCP is halfway through the term and not when half the amount is repaid. Obviously on a PCP, the VT point can fall almost right at the end of the agreement. PCP can work but I still think people are often unsure as to exactly what they are agreeing to. Many thanks though, a useful video.
Just been to a Mercedes dealer said is 10.9 % interest why so much a bank loan is only 3.1% why can't you match or be more competitive
On used yes not on new or pre registerd.
I was told you could negotiate the apr as long as it's under 3 months old
Your videos are great they have become my Mercedes-Benz information resource. Do you think maybe in the spring or summer you will do a video like a testing Launch control feature.
How much Commission to the dealership get on these PCPs
You didn't say what is the interest rate and how much interest i have to pay over 3 or 4 years. If i pay cash i save that interest.
What a the scenario where someone wants to buy a car but keep it for a long time beyond the HP or PCP term?
She answered that situation.
Why not lease instead of take a pcp?
Less options and no chance of equity at the end or whenever you decide to change.
PCP is fine for cheaper cars like Dacia,MG and the new e C3 EV or any new car below £25,000. I wouldn’t by used cars with PCP.
Of course car sales people do want you to tie up all your hard earned cash on a car. That's because she forgot to mention that the sales person earns commission so it also benefits them if you take out finance with them. Look for 0% finance deals and you only need 50% deposit.
Pretty sure she didnt mention anything about the dreaded baloon payment
Surely the most asked question every day is are you single😍
Firstly great video. Can I give you an sinario. So looking to pcp an brand new ducati v4s valved at £24k .. but I do not want a 24k loan. So you go in and you say the the sales man I do not want to pay 24k I want 10% off. He agrees. You work out how much you want to pay ie £300 and the deposit is £2.5k .. I want an apr of 5.9 or 6%apr. You get the deal. The pcp valve after the 3 year term is 12k . If you have done under the stated milage can I just say ok I will have that bike here is 12k or will they want to see the bike . But then might say you have low milage the value is more. ? Surely it's all set. As Ducati rearly loose too much you could if wanted and looked after it buy and sell and make money. People always say well you cant keep it. But surly if the rate is low and the initial price is low it's a win win. Do you have the ability to change the apr or is yours set.?
If you choose to keep the bike you don't do anything and they take the balloon payment at the end unless you say otherwise. Over the term you paid full price+ interest over the agreed term after this the bike is all yours. I did a PCP in 2014 I still have the bike and it has 1330miles on it now. And I didn't bother getting it serviced every year either.
This is so misleading lol
So Jp is bad, because at the end you own it and have capital in it if you want to part x for a new car or just keep it. Cash is bad because you own it and don’t have anything else to pat. But pcp is the way to go, pay a deposit then low monthly repayments until the end of term. With a large balloon payment at the end which they rely on you not having, so you hand back and repeat or take out hp to pay the balance off costing even more money. Oh and I forgot if you go over the mileage you agreed then pay some more money. 🤔..........😂🤣😂🤣😂 no thanks I don’t like renting cars!
Sorry hp not Jp, barn auto correct 😂
Lmao darn not barn 🤦🏼
could you remove this video rebecca . you have it at the beginning of the playlist . thanks
Very beautiful eyes
Typical salesperson 👩💼
To much flicking of her hair i had to turn off