bealine

PCH is not all it's cracked up to be. When you hand the car back at the end of the term, a fine toothcomb may be used to pick up on every little stone chip, every little stain on the upholstery etc. There is a BVRLA guide on "Fair Wear and Tear" but it's a lot easier to avoid the hassle by not getting involved with Contract Hire or Leasing in the first place. PCP means that, provide your mileage estimate was reasonably accurate, your vehicle should be worth the GFV, or even slightly above, hopefully providing something towards your next deposit. http://www.bvrla.co.uk/service/fair-wear-and-tear-guides

I think a lot depends on individual preferences as well as the reason why we go down the PCP route. Without doubt, the most cost-effective motoring is to pick up a bargain at auction providing you know what you're doing and what you're looking out for. I don't, and we don't have anyone in our family who knows much about the mechanical aspects, so we could easily be fooled by sawdust keeping the gearbox quiet etc, so we need to be able to buy with confidence. 25 years ago, we first entered the PCP arena. We knew it was an "expensive" way to buy a car - for a start, buying brand new means a good quarter of the price disappears in tax and depreciation as soon as you wheel the car out of the showroom - and then there are interest, dealer margins etc. but, what it does is put everything on to a monthly budget. You pay your mortgage, council tax, water rates, electricity, gas etc monthly from your salary, why not your motoring costs too? For a fixed monthly payment, you have a car with a warranty for the life of the PCP deal - you either have "free" servicing factored in or if you buy a VAG car, the dealers offer fixed price servicing plans which you can add to your PCP payment. The only time you have to stick your hand in your pocket is to buy tyres (in our case, usually one set after the first two years), windscreen wash, de-icer and car shampoo. In fact, SEAT and Skoda now offer low deposit PCP options which make our monthly budgetting so much easier. The initial deposit is the same as the first month's payment. As long as you are reasonably accurate with your mileage forecast, there's no earthly reason why anything can go wrong. Even if the car is in negative equity at the end of the agreement, you have a "Guaranteed Future Value" which means you can walk away and leave VAG to swallow the loss (although they will have made a profit from the original deal). The used Mercedes option looked attractive initially but the warranty is only for a year (and many Mercs/BMW's tend to be treated like the company Cortina's of old), they are looking for high deposits and buying used from a dealer means the screen price is closer to the "top end" of Glass's Guide. I think when Roger Rapid's deal ends, it will be either another Rapid or a Seat Toledo. I fully agree with RapidPaul's comment about the Rapid being the unsung hero - I have been very pleased with mine!

A lot depends on the dealer. We had a Renault which we handed back with about 400 miles over the agreed mileage figure. The dealer not only tried to "sting" us for the excess mileage (despite the car being in immaculate condition) but also attempted to charge us for non-existent damage to alloy wheels and scuffs and scratches to the doors. Fortunately, the collection driver had exclaimed what perfect condition the car was in and given us a signed sheet with no entries and I had photographs of each wheel and the car from all angles date and time stamped. We referred the matter to Renault Finance and sent a cheque to settle the Excess Mileage stating that in our letter that agreement was with them and not the dealer. Renault Finance refunded our excess mileage payment and told us there was nothing outstanding. A few weeks later, that Renault Dealer was stripped of its franchise - apparently they had been up to all sorts of dirty shenanigans. Our Volkswagen dealer, on the other hand, couldn't have been nicer. When my wife took early retirement, she decided to manage without a car to start with and we took our Touran back at the end of its PCP agrerement. The dealer's sales manager was astounded that we just wanted to hand the car back and hang on to our Polo - he told us we had over £1700 equity (we had paid £1500 deposit initially) so what he did was give us a credit note of £1700 valid for 5 years (which could be redeemed at any VAG dealership) for when the Polo needed replacing or if we decided we wanted a second car.

This was one piece of advice I listened to on my Speed Awareness Course - use 3rd gear as your "driving" gear around town in 20 or 30 mph limited zones, and 2nd as your "hazard" gear and you'll find in almost impossible to speed. The increase in fuel burn is negligible, but keeping the car under control is much easier. The funny thing is, since following this advice, I haven't been nabbed by a single camera! :D

Before doing anything hasty, check whether there might be some equity in the car. Undoubtedly, your GF will have paid a deposit and if the car is in mint condition (and 3,500 miles says it probably is) then the car will be worth more than simply "handing it back". If she doesn't want another car right away, the least the dealer could do is give her a voucher to use towards the deposit of a future car purchase in the next five years. It's definitely worth ringing the finance company for the "settlement figure" and then looking at one of the on line car valuation sites (like webuyanycar.com) to see what sort of difference there could be.

I was comparing a second hand Mercedes versus a brand new, never previously registered Skoda. The 5 year old Mercedes C Class retailing at at £12,950 is higher on PCP monthly payments than a brand new Skoda Octavia retailing at £20,619 and that is what I was having difficulty getting my head around.

Interestingly, I rang MB Finance this morning to enquire why their interest rates are so out of kilter and they blamed it on "Brexit" and the poor Foreign Exchange rates. As we all know, the business transacted in Britain props up an ailing European motor trade which would really struggle without us. Funnily enough, I think they must be having a review because now if I try to bring up PCP rates opn the MB site, there is a message to say that PCP rates are currently unavailable.

Interesting, but the first thing that I noticed was that Mercedes Finance HP runs at 6.1% and PCP at 6.11% whilst the "Offers" run by VW/Seat/Skoda Finance at the moment not only give a deposit contribution but also offer PCP at 0% APR. I also think Offski is right. Although Mercedes have always been beautiful cars, there is a glut of second hand ones on the market thanks to their popularity with the taxi/airport limo businesses (which also indicates hard wear and tear and possible inaccuracies with odometer readings and service records). Whilst the cars are built to last, there is a question mark over how easy and 8 - 10 year old car would be to shift when we finished with it! On retrospect, I think Mercedes-Benz are trying their luck at both ends of the spectrum - fully loading the retail price and charging high interest rates. There's the old adage the police will always tell you "If something sounds too good to be true, it probably is.................."

For about the last 25 years, we have had our cars on PCP finance - we started out with Renault, but saw the V.A.G. lights burning bright from the 2nd PCP car onwards and have enjoyed cars from VW, Seat and latterly from the Skoda stable. On the last occasion, Mercedes-Benz almost won me over when advertising their C class on LBC radio "from only £220 a month" (when the Skoda dealer was trying to get me into a Rapid Sport at £220 a month). However, once I started talking to the Mercedes dealer, the "from" £220 a month was clearly the sprat to catch the mackarel and "realistically" we would be looking at about £280 a month. Inevitably, we walked away from that just as Skoda introduced a really good offer on the Rapid which included 3 years free servicing - as the avert said "No Brainer". Now, as we approach the time when we should be looking at changing the Rapid, Mercedes are at it again........this time, making wonderful claims about their "Approved Used Cars" which include outstanding warranties - even guarantees that if an MOT fails, they will cover the cost of putting the car right to get it through and give you a replacement car if yours is ever in for warranty repair. The offers really sound too good to be true - and maybe they are. The typical 5 year old "C" class is retaling at between £10.500 and £12,500 according to style, engine and mileage. However, the PCP offer (with a £2,000 deposit) is about £260 a month. When you compare that with a V.A.G. car retailing at £17,000 (£3,500 deposit) with a PCP monthly payment of about £170 a month, it looks like Mercedes are in rip-off country. Is Mercedes finance operating at a very high interest rate or is the residual value of an older Merc rubbish? Anyone know why there is such a disparity?

Fitting Tubes in Tubeless tyres is not specifically stated in law, neither is the reduction in Speed Rating. However, under "Construction and Use Regulations", the paragraph could be invoked. I would suggest using a vehicle on a motorway with a tube fitted to a tubeless tyre would violate paragraph (a): 27.—(1) Save as provided in paragraphs (2), (3) and (4), a wheeled motor vehicle or trailer a wheel of which is fitted with a pneumatic tyre shall not be used on a road, if— (a)the tyre is unsuitable having regard to the use to which the motor vehicle or trailer is being put or to the types of tyres fitted to its other wheels (2) Paragraph (1) does not prohibit the use on a road of a motor vehicle or trailer by reason only of the fact that a wheel of the vehicle or trailer is fitted with a tyre which is deflated or not fully inflated and which has any of the defects described in sub-paragraph ©, (d) or (e) of paragraph (1), if the tyre and the wheel to which it is fitted are so constructed as to make the tyre in that condition fit for the use to which the motor vehicle or trailer is being put and the outer sides of the wall of the tyre are so marked as to enable the tyre to be identified as having been constructed to comply with the requirements of this paragraph. (3) Paragraph (1)(a) does not prohibit the use on a road of a passenger vehicle (not being a bus) by reason only of the fact that a wheel of the vehicle is fitted with a temporary use spare tyre, unless the vehicle is driven at a speed exceeding 50 mph. (4) (a) Nothing in paragraph (1)(a) to (g) applies to— (i)an agricultural motor vehicle that is not driven at more than 20 mph; (ii)an agricultural trailer; (iii)an agricultural trailed appliance; or (iv)a broken down vehicle or a vehicle proceeding to a place where it is to be broken up, being drawn, in either case, by a motor vehicle at a speed not exceeding 20 mph. ( Nothing in paragraph (1)(f) and (g) applies to— (i)a three-wheeled motor cycle the unladen weight of which does not exceed 102 kg and which has a maximum speed of 12 mph; or (ii)a pedestrian-controlled works truck. ©Nothing in paragraph (1)(g) applies to a motorcycle with an engine capacity which does not exceed 50 cc. The area concerning reducing Speed Index and Load Index by one mark is the Tyre Manufacturers' recommendation (which, by the way, is universal among all main tyre manufacturers). Strictly illegal or not, the fact remains that fitting an inner tube to a tyre designed to be tubeless is a dangerous practise.

UK Law regarding Construction and Use states that "Speed Rating and Load Index must be the "equivalent or higher" than the manufacturer's original fitment. That is pretty definitive that you cannot legally change "V" rated tyres for "H". I'm pretty sure that in a major incident, tyres are one of the main factors the police would be focussing attention on. South Wales Police certainly did a few years ago when a car overturned on a dual carriageway thanks to a "cheap" tyre dealer having popped an inner tube into a tubeless tyre to cure a puncture - as I recall, the tyre dealer narrowly escaped jail time. If a tyre is punctured and the hole not plugged properly (ie) the fitter simply puts a tube in, then water gets into the hole every time it rains. Most tyres nowadays are steel belted and, like anything made of steel, the cords will rust and that happens pretty quickly in Britain's damp climate. When steel rusts, it expands and stresses the rubber compounds. The friction generated by berling along the road, and the extra friction of the tube rubbing the inside shoulder of the tyre, generates heat which causes the rubber compounds to tear themselves apart as has happened in the picture: http://previews.123rf.com/images/toa55/toa551311/toa55131100019/24065913-burst-tire-truck-Stock-Photo.jpg

https://www.tyre-shopper.co.uk/news/the-relationship-between-your-tyres-and-car-insurance-what-you-did-not-know

This is the section: "You must tell AAIS before you need the revised cover to start if: You change your car or wish to add an additional car; or any modification or engine conversion (from the manufacturer’s original specifications) is going to be made to any Insured Car or You wish to make changes to the Permitted Driver(s)." Changing the tyre fitment from the original manufacturer's specification is a modification unless you are retaining the original speed rating, load index and European certification (and "E" imprinted on the tyre wall, as well as violating EU Type Approval legislation and the British Law on "Construction and Use". Whilst insurance companies will not usually contest a minor shunt claim, the assessor will go over the vehicle with a fine toothcomb following a major accident and it is becoming increasingly likely that the insurers will pay the damage to the third party, but reject the claim for your own vehicle if there is adequate reason to do so. Assessors are paid on their ability to reduce the overall claim amounts! Contrary to urban myth, most insurance companies are making heavy losses out of their motor divisions and the heat is on to find ways of limiting the payouts - thanks largely to the "ambulance chasers" and the "where there's blame, there's a claim" dodgy solicitors.

http://www.parkers.co.uk/cars/advice/news/archive/is-your-insurance-valid/

There is nothing wrong with it legally, provided you are aware that the speed index is reduced by one letter. As car manufacturers usually fit the lowest speed index the model can get away with, in the majority of cases fitting a tube is both illegal and dangerous. However, putting a tube in a tubeless tyre is a very dangerous practice as South Wales Police found out a few years ago when a tube failed during a high speed pursuit - the heat generated between flexible tube and rigid tyre sidewall can be phenomenal at sustained motorway speeds. Example - my Rapid Sport has "V" rated tyres, which means it can withstand speeds of up to 149 mph for a short burst. If someone popped a tube in there for me, it would become "H" rated with a speed of up to 130 mph for a short burst. Now, just because I have no intention of ever taking Roger Rapid over 90 mph, let alone 130 mph or 149 mph doesn't mean I am permitted lower speed rated tyres than the manufacturer recommends. Skoda advise the fitment for the Rapid Sport is a "V" rated tyre so fitting below that, or effectively reducing it by putting a tube in, not only may invalidate the manafacturer's warranty (particularly on parts connected with suspension) but will most certainly invalidate your insurance. http://www.wheels.ca/news/installing-inner-tube-in-tubeless-radial-is-a-dangerous-move/

DonjSZ5, on 11 Feb 2016 - 06:14, said: +1 I broke out in a cold sweat too because I also care! How many people, I wonder, fit part worn tyres, stick a tube in a tubeless tyre with a puncture, ask for an incorrect load or speed rating or even ask for tyres that are not EU approved because they don't do long distances or drive fast. The trouble is a lot of fitting centres will carry out these requests to "keep the customer happy." Correct tyres should always be fitted - no matter what. Your driving may not require the performance, but how about the poor old bounder who buys your car 6 months down the line, loads it up to the gunwales and gives it a bit of welly for the annual family holiday? You could end up being responsible for killing them all and, even if that was never laid at my door, I couldn't live with myself knowing I'd sold a less than perfect car! As for Part-Worns - they should be a big no-no! Where do you think they have come from? Mostly from insurance write-offs and there are very few write-off shunts where the tyres haven't been subjected to huge stresses at the time of the collision. The internal construction will quite likely have changed due to the rapid build up of heat. Having sat in a scrapyard for a few months, before being stripped from the wheel rim and left on a huge sortation pile for another few months, deterioration will inevitable have set in. A quick lick of tyrewall black and the casing looks as good as new - but it isn't! http://www.simplemotoring.co.uk/tyres-2/part-worn-tyres-you-get-much-less-than-you-pay-for/#.VsGOE_KLSUk

At the time you take out the PCP, the percentage of the car you physically "own" is divided into equal monthly payments. Obviously, the closer you get to the end of the term, the less it will cost to get you into a new car. Dealers have a profit margin in the new car, and providing you've looked after your present car and the mileage is as expected or lower, a potential to make a profit on selling the used car. The dealer also earns a bit of commission from the financier and from any bolt-ons you take, such as GAP insurance, service contracts etc. That is where the dealer sharpens his pencil and brings out the abacus and the shrewd salesman and finance manager are able to put together an attractive package for you - the closer you are to the end of your term, the easier their job becomes!

I must be one of the few Rapid owners who cannot fault the car! I have one of the original Rapid Sports when Skoda intended only to make an exclusive edition - one per dealer, only in white and only in the saloon variant. Every day, the car makes me smile! I cannot fault it - it looks good, handles beautifully and is very well put together. The ride may be a little hard, but that is what you expect from a "Sport" version of a car anyway. It has enough extras to keep me happy. The car may be a "budget" brand, but there's nothing budget about it apart from the re-use of tool jigs and parts from other V.A.G. models as far as I am concerned. Maybe the dissatisfied customers have a "Monday morning built" car or a "POETS' day car"? I had a Daewoo once (now badged "Chevrolet") - now that was a budget car built on a shoestring! Comparing the Skoda to the Kia, it is clear that the Kia has inferior upholstery - the Skoda may be built to a budget, but the parts are quality.

We ended up with a Citigo Black to replace the Seat Mii that was written off in a nasty accident recently. As far as we were concerned, the PCAP safety ratings of this car (VW Up/Citigo/Mii) are now proven! Alex Lawrie in Liverpool were doing an amazing deal on the pre-registered Citigo Black (in white) so it was a no-brainer! (£199 deposit and £99 a month for a PCP deal) "Roger Rapid" said it was well worth the 520 mile return trip to pick up "Charlotte Citigo" and bring her home! (Photo taken at Sandbach Southbound services)

This is the only point of contact between your car and the road, multiplied by four of course, but illustrates how reliant you are on having good tread in wet/icy conditions. You can see the effect of water being sucked from the road at the front and spat out again at the back of the tyre.

I remember, years ago (probably about 1990-91), being treated to a tour of the Good Year tyre factory and seeing a couple of promotional films at the R&D department. One of the films showed the dramatic deterioration of handling characteristics as the tyres wore beyond 4mm depth (they start at 8mm when new). All of us in the room expressed shock at the extra stopping distances required, especially in the wet (partially explained by the "sipes" having been worn away - "Sipes" are the little indentations, originally "S" shaped, that mop up water from the road surface leaving it dry for the 2 square inches of rubber compound actually in contact with the tarmac at any given moment.) We asked the Good Year reps why this video wasn't released to the public domain - the response was "because we're a tyre manufacturer with a vested financial interest, no one would believe us!" (Remember the "Monroe" shock absorber gaff when they said any car with 20,000 miles on the clock was sure to need all four shocks changing? Tyre fitters all over Britain and America were changing shock absorbers like it was going out of fashion!) It looks like RoSPA did its own research and the graph shows a very similar picture to the Good Year research, as well as 5th Gear. https://www.youtube.com/watch?v=SdPMRMUbMuE http://www.rospa.com/road-safety/advice/vehicles/tyre-safety-technology/tread-depth-wet-weather/

Holland has a much lower population, a much lower number of vehicles, dedicated cycle paths and the roads are in better condition. The roads without markings are only in rural residential areas whereas I am inmformed we are trialling them in city suburbs? Yes, they will make some of the more mature and sensible drivers slow down, but it will cause antagonism and road rage among the stressed out commuters struggling to get to work on time or to get home after a hard slog. I think, in Britain, we will see a sharp rise in accidents and, consequently, a sharp rise in insurance premiums.

If I look in my crystal ball, i can see a spate of shunts coming on..................... http://www.telegraph.co.uk/news/12137382/End-of-the-road-for-white-lines-on-highways.html

Thank you to all for your help. Just to update you, the car was indeed written off. The settlement figure is £5,700 and the insurance settled at £5,400 (originally trying their luck at £5100). With a £250 excess on the insurance, that means we end up losing £550 which is better than I feared TBH! We have always taken GAP insurance, but only for the first year, so now that we're off to Liverpool and Alex Lawrie Skoda today to pick up a Citigo Black Edition as a replacement, we have made sure we have GAP for 3 years on the new baby of the family! Because of Alex Lawrie's pre-registered deal, the PCP on this car actually works out £30 a month cheaper so we will have recouped our loss before two years is up in theory. It was very interesting that when I was trawling the internet and talking to various dealers about PCP deals, my wife only wanted an Up, Mii or Citigo. No other car got a look in! As far as she is concerned, that cheeky little car kept her from harm and that's why she wants another! So, we have learnt a lesson about Gap insurance, and another lesson about PCAP safety ratings!

Me - I hate pot holes and badly laid patches too! We always get the crap rules from the EU, never the good stuff! In Holland, Germany, Austria or Switzerland anyone working on the roads must put them back to the original condition afterwards - absolutely no patching allowed! That's how it should be here!