I was just looking at the Renault clio for £99 per month and it seems very good deal. Just a few questions about pcp as i have never done it before. who is responsible for servicing/tax/mot/repairs/tyres etc of the vehicle and is it at my expense? As it is a 4 year deal, do i have to keep it for that term or could it be handed back , say after a couple of years?
Edited by Pugugly {P} on 10/02/2008 at 19:12
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who is responsable for servicing/tax/mot/repairs/tyres etc of the vehicle and is it at my expense?
You are, at your own expense. You can probably buy a maintenance package up-front on a monthly basis though.
>>As it is a 4 year deal do i have to keep it for that term or could it be handed back say after a couple of years?
You could hand it back, but you will have to pay extra if the outstanding finance is greater than the value of the car. At two years old this will almost inevitably be the case. Don't bother signing up for a 4 year deal unless you intend seeing it out (or buying it out with a lump sum at some point).
Also note the MGFV (minimum guaranteed future value) is based on the condition of the car being good. If after four years you decide to hand it back (ie not paying the MGFV to keep it) and it is in sub-par condition (dents, skipped services, excess mileage) you will have to pay extra fees. Bear this is mind especially if you are signing up on a low miles-per-annum basis. Your circumstances (eg job commute) could change a lot in 4 years so you may be hit with the excess miles part, best to build in a little contingency.
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Ive actually signed up for this same deal. You will get the first years tax in the deal but after that youre on your own. Im sure that you could buy a maintenance package but it shouldnt involve more than an annual service for years 1 and 2 if your mileage is low and there will be a warranty. Therefore a maintenance package is very unlikely to be economical if more than about £12 per month. Tyres are quite expensive though - budget £60 a corner (!) and probably six tyres in four years if you do 10k pa.
Ive run the figures and amounts outstanding will be approximately:
Year 1 - £5,200
Year 2 - £4,350
Year 3 - £3,300
Id be confident of a private sale value exceeding those figures but it may be difficult to get that on a trade in, particularly in years 1 and 2. By year 3 the car, even with 80k up, ought to exceed MGFV but there are of course no certainties; certainly itd be cheaper than paying the excess mileage as by that point MGFV would be zero at 6ppm.
(Apologies for the lack of apostrophes - that key is broken on my laptop!).
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Id be confident of a private sale value exceeding those figures but it may be difficult to get that on a trade in particularly in years 1 and 2.
I think those figures are very full. It's a moot point as you can't sell it anyway as it isn't your car.
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I know someone who took a PCP (could have been a type of personal lease) and estimated mileage as reasonably high too... at the end the excess miles were so high he basically had to buy it. Cost of excess miles did not make it economical not to. But at four years old it had high miles - and he still has it years later.
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mileage is not a problem for me as i probably wouldn't exceed 5000 a year. i would most probably buy the car after the term is up and then sell it on, or just take out a new term on another car.
I have never had a new car and like the thought of having one, and i think at £99 a month plus £30 insurance it is not a bad deal.
i Have always had old cars/bangers that i get rid of after about six months, and there is always some sort of work to be done on it. At least with a new car i probably would never have to worry about a thing, apart from servicing and tyres.
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