I wanted to buy the wife's new Fabia Vrs on Skoda solutions but wanted to pay more in than the maximum permitted deposit, 30% i think.

X deposit, xx per month, xxx final payment

I wanted to give the dealer a cheque for £5K then take out skoda solutions to reduce the payments and Intrest charges. He said a "no no " it's Illegal

Surly so long as I pay for the car in full at the price agreed how can it be Illegal ???

WHY????

Why do it that way instead of straight up finance? remember your paying intrest on that whole lump sum final payment. Ok the monthly payments are more but it costs you less in the long run

WHY????

They obviously know you :p

was it a fake cheque

They obviously know you :p

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hi, i'm not sure if its illegal or not tbh, the guy might just have been looking for an excuse for you not being able to pay more than the 30% deposit. I know with TFS (Toyota Financial Services) that 30% is the maximum deposit you can pay as well. This is so that there is a minimum amount of money that you have to borrow from the finance company to make the deal worth doing. It also means that you cant have a really low monthly payment as well. However i know now with TFS that you can make part payments on your finance agreement. So in theory you can take out the agreement with the maximum 30% deposit, then ring up the finance company the deal is through and pay off a large some of it. This will either reduce your monthly payments or it will reduce your balloon payment at the end of the agreement. I think that this is available with all finance companies and is to do with some rather boring new european consumer credit something or other (I kinda tuned out during my training!)

my only word of advice with taking anything on a PCP agreement is that you make sure you understand how they work properly. If you are paying a £5k deposit into this agreement, then you need to have the same amount of equity in your car at the end of it, to put in your next car to get the same payments. so if your car is worth £6k and your final payment is £5k then you are £4k less than when you took out this one, so you either have to face payments which shoot up loads, or put another £4k in again.

Sorry if this sounds preachy or complicated, just see it all the time with people who are on PCP's and end up upside down with their finances.

hope this helps

Would agree with the last poster about initial deposit. PCPs are not really set up for that kind of deal. What they really are is a way for the manufacturer to ensure a sale in 3 years time. On the advice of a dealer mate I always go min deposit and 10k mileage. Always consistently end up with more deposit at the end of the deal period even if I am over the miles. Final payment is always set up low, that way punters endup building cash into their next purchase through payments without realising it. How many people have you heard say I got a better car for the same payment?

If you have 5k invest it something else or finance the balance some other way, pcp is not the way.

Would agree with the last poster about initial deposit. PCPs are not really set up for that kind of deal. What they really are is a way for the manufacturer to ensure a sale in 3 years time. On the advice of a dealer mate I always go min deposit and 10k mileage. Always consistently end up with more deposit at the end of the deal period even if I am over the miles. Final payment is always set up low, that way punters endup building cash into their next purchase through payments without realising it. How many people have you heard say I got a better car for the same payment?

If you have 5k invest it something else or finance the balance some other way, pcp is not the way.

Totally agree, PCPs work fine if you have no or little deposit and plan on changing your car every 2/3 years. If not always go for hire purchase.

I've sorted it, Paid 50% and the rest on very low finance over 2 years.

Would agree with the last poster about initial deposit. PCPs are not really set up for that kind of deal. What they really are is a way for the manufacturer to ensure a sale in 3 years time. On the advice of a dealer mate I always go min deposit and 10k mileage. Always consistently end up with more deposit at the end of the deal period even if I am over the miles. Final payment is always set up low, that way punters endup building cash into their next purchase through payments without realising it. How many people have you heard say I got a better car for the same payment?

If you have 5k invest it something else or finance the balance some other way, pcp is not the way.

Not sure if I follow! I am looking to put a £5k deposit down on a vRS so it's best to pay min required deposit and say milage will be 10K a year? Why? Sorry finance never makes complete sense to me!

Not sure if I follow! I am looking to put a £5k deposit down on a vRS so it's best to pay min required deposit and say milage will be 10K a year? Why? Sorry finance never makes complete sense to me!

Minimum deposit with a PCP tends to maximise the equity left in the car at the end of the agreement so you will have more money available to roll over as a deposit on your next motor.

If you want to put down a large deposit then its better to go regular HP route I think.

It's not illegal as far as I know but part of the terms of the Solutions agreement is that maximum deposit is 30%. If you've got a substancial deposit it is possible worth considering taking out the finance on HP as the rate is lower on HP compared to PCP. But PCP will have lower monthly payments.

One reason that high deposits aren’t liked with PCPs, is when you sell/trade the car the car, you wont get anything like your deposit back. This leads most people to think they got a rotten deal :(

But the advantage with a PCP, is there is often manufacturer based support and hence you might get a contribution from them which doesn’t come out of the dealers margins. This means you can still haggle as normal (sorry James). I have gotton my last few cars on PCPs