How do most owners buy their cars - Outright or PCP

[knfruitbat]

Was looking at the PCP deals to buy my new car. Asked a Skoda dealer he said makes no difference you own the car, asked the insurance company they said certainly does, they wanted to know about legal ownership status, and any Finance that is secured against the car. So even if you get a loan from the bank and secure it against the car, they want to know. Insurance broker said it may change which policy you end up with, but may make little or no difference to the cost of insurance, which is what we are really interested in, but needs to be legally correct otherwise, you giving them a get out clause. Sorry Sir/Madam your insurance is not valid, even if some idiot has just driven into your parked car.

 

Quote from back page of Superb Brochure.

 

PCP - Optional Final Payment. 3 options at the end of the agreement

Option 1. Part Ex, Option 3. Return Car (Summarised)

Option 2. Pay the optional final payment so that you own the car. See notes.

notes say you have to pay "Option to Purchase Fee"

 

So in black and white on Skoda brochure, and conflicting what the dealer said. You don't own the car until you finish your PCP agreement.

[Miller73]

I'm sure insurance companies only need you to be the "registered keeper" of the car for their cover to be valid, otherwise there will be millions of people driving on UK roads effectively uninsured.......

Edited 25 January, 2017 by Miller73

[SashaGrace]

8 hours ago, knfruitbat said:

Was looking at the PCP deals to buy my new car. Asked a Skoda dealer he said makes no difference you own the car, asked the insurance company they said certainly does, they wanted to know about legal ownership status, and any Finance that is secured against the car. So even if you get a loan from the bank and secure it against the car, they want to know. Insurance broker said it may change which policy you end up with, but may make little or no difference to the cost of insurance, which is what we are really interested in, but needs to be legally correct otherwise, you giving them a get out clause. Sorry Sir/Madam your insurance is not valid, even if some idiot has just driven into your parked car.

 

Quote from back page of Superb Brochure.

 

PCP - Optional Final Payment. 3 options at the end of the agreement

Option 1. Part Ex, Option 3. Return Car (Summarised)

Option 2. Pay the optional final payment so that you own the car. See notes.

notes say you have to pay "Option to Purchase Fee"

 

So in black and white on Skoda brochure, and conflicting what the dealer said. You don't own the car until you finish your PCP agreement.

This is the problem, like I said the dealer I bought mine from said the same but I have now amended my policy as I clarified it with the company and they have put me down as the registered keeper and VWFS down as the legal owner. Cost me £27.00 extra!!

[leckman]

Cannot see why your insurance should be increased just because you have the car on finance,another little trick the insurers use to rip the customer off.

[Huskoda]

Possibly because the vehicle is effectively a hire car which you don't have to care for in the long term so a lot of people will be less careful with it. Its a very easy issue to get tripped up on too. Also the other side of that is other people cannot drive your car under their 'drive other cars' clause on their insurance as they do not have the owner's permission.

[Kamalligator]

Do you ever really own anything? Life is temporary after all...

 

In my experience people who pay cash tend to feel they have more worth and expect special treatment. Knowing a few car salesmen they make little or nothing from cash sales and generally people who buy cash don't want any extras so they are making little money off it in that sense too. But they still want a discount for paying cash.

 

Buying cash or PCP out of ignorance is stupid either way. It always depends on the deal and your circumstances. Finance can be your friend or foe, the world has changed a lot and things are now more accessible and things that were deemed bad can now be used to your advantage. 

 

 

 

 

 

 

[fabiamk2SE]

I wouldnt tend to agree cash buyers think they have more worth. Certainly not. 

 

Just a more financially content feeling and maybe happier as a whole as theirs less monthly payments to keep constantly battling with