Anyone on a PCH deal

[Richf]

Indeed with a PCP it is technically speaking your car all the while you continue to make payments; its basically HP with the majority of loan payment held to the end with the same consumer protections in place like VT etc.

 

 

 

Its technically your car when you have made the last payment and not before , if you read the T&C's of the VWFS agreement there are lots of restrictions on what you can do to the car and how you must treat it, as already mentioned you cant change the plate without authority, you dont own it you merely rent with an option to buy. 

[ednmra]

Its technically your car when you have made the last payment and not before , if you read the T&C's of the VWFS agreement there are lots of restrictions on what you can do to the car and how you must treat it, as already mentioned you cant change the plate without authority, you dont own it you merely rent with an option to buy. 

Yes, no good using PCP if you want to play around with it. I'm happy with it exactly as supplied and with the freebies that came with it.

Whether I'll buy it after 3 years depends what else is on offer at that time.

If you get used to the monthly payment going out, it is nice to have a permanently warranty car on free servicing, free AA etc., if in fact that is a deal again at that time.

[Rutty555]

Do you get AA on pch?

[Irfan]

Do you get AA on pch?

yes you do 

[Rutty555]

yes you do

Exellent. Thanks Irfan

[Richf]

Yes, no good using PCP if you want to play around with it. I'm happy with it exactly as supplied and with the freebies that came with it.

Whether I'll buy it after 3 years depends what else is on offer at that time.

If you get used to the monthly payment going out, it is nice to have a permanently warranty car on free servicing, free AA etc., if in fact that is a deal again at that time.

Same here , the interest was so low it made more sense to "rent" than to buy , at the three year point i'll decide on keeping it or not , but i expect I will keep it for a few more years 

[pipsyp]

Its technically your car when you have made the last payment and not before , if you read the T&C's of the VWFS agreement there are lots of restrictions on what you can do to the car and how you must treat it, as already mentioned you cant change the plate without authority, you dont own it you merely rent with an option to buy.

PCP is just glorified HP with a baloon payment on the end.

It is your car, you are borrowing money to pay for it on the promise of paying it back in full by some means....until you default on a payment or two and they seize it but this would happen with HP too. The car is security in the event of non payment.....but then a car bought on a defaulted bank loan would likely meet the same fate.

Something you are missing (and I know you are an advocate of leasing as you have a leased Golf R do you not?) is that with HP/PCP you are the registered keeper on the V5 document....which is about as close as you get to owning a car to be frank rwgardless of its finance status. Also if it wasnt your car you would not have the option to sell it, which you can do quite readily without permission so long as you clear the outstanding finance.

Ive also not known it be necessary to gain permission to fit accessories or private plates to a HP/PCP financed vehicle...I believe because you are the registered keeper and not VWFS.

Where perhaps matters get confused....you can PCH via VWFS....this is different and will undoubtedly have a different rule set as they are the registered keeper of the vehicle not you....you are truely renting/borrowing a PCH vehicle. IMHO its not quite the same deal with a PCP other than the condition/mileage stipulations which only come into force if you hand the vehicle back...in the case of PCP you do not "have to" do this as you can sell it or trade it also.

They are two v different means of sourcing a car and under the surface are not that similar is the point I am really trying to make.

[pipsyp]

PCP...Personal Contract Purchase.....as the name suggests you are entering into a contract to buy and "own" the vehicle. They call the monthly payments "rentals" as what else would you really call them.

The handback option really has nothing much to do about ownership of the car...its just a means to offer buyers more flexibility around buying a car rather than having be responsible for paying back the full loan amount over the term (inherrently reducing monthly payments and making most vehicles much more affordable than on HP).

Its all a bit of a gamble and rather depends on the state of the used market and whether the finance house guestimates the GFV well but in most cases the finance company win.....you pay for the car you complete the finance term and the finance house are quids in (with the 0% deals the dealer network have already subsidised VWFS with quite some percentage of the vehicles sales margin so are still quids in).....if you return the car they "should" make more selling it on than the outstanding payment so do well again...also where they can they will charge excesses for mileage/damage and wear and tear and probablh over the odds so probably make money there too.

Regardless of all the terminology do just think of PCP as a rear-loaded HP package with some other options available to get out of the car early, thats all it really is. Definitiely not a rental like PCH.

[themanwithnoaim]

It really depends on the level of future finacial risk you're comfortable with, PCH most risk, PCP some risk, full purchase no risk.

 

You pays your money and takes your choice

 

Other than that it comes down to the best offers available, of acceptable cars, when its your time to change and thats always gonna be the biggy WHATS ON OFFER WHEN I WANT IT.

[Richf]

PCP is just glorified HP with a baloon payment on the end.

It is your car, you are borrowing money to pay for it on the promise of paying it back in full by some means....until you default on a payment or two and they seize it but this would happen with HP too. The car is security in the event of non payment.....but then a car bought on a defaulted bank loan would likely meet the same fate.

Something you are missing (and I know you are an advocate of leasing as you have a leased Golf R do you not?) is that with HP/PCP you are the registered keeper on the V5 document....which is about as close as you get to owning a car to be frank rwgardless of its finance status. Also if it wasnt your car you would not have the option to sell it, which you can do quite readily without permission so long as you clear the outstanding finance.

Ive also not known it be necessary to gain permission to fit accessories or private plates to a HP/PCP financed vehicle...I believe because you are the registered keeper and not VWFS.

Where perhaps matters get confused....you can PCH via VWFS....this is different and will undoubtedly have a different rule set as they are the registered keeper of the vehicle not you....you are truely renting/borrowing a PCH vehicle. IMHO its not quite the same deal with a PCP other than the condition/mileage stipulations which only come into force if you hand the vehicle back...in the case of PCP you do not "have to" do this as you can sell it or trade it also.

They are two v different means of sourcing a car and under the surface are not that similar is the point I am really trying to make.

 

 

You dont own the car you dont have legal title to it , a distinct but nonetheless important difference, whose name is on the V5 has no bearing on who legally owns the car , it even says so at the top of the V5

 

As you point out you cant sell the car without having paid off the finance , because its not your property , you do not have clear title to it

 

In the VWFS agreement it clearly states "While WE own the vehicle you must:"

 

If it was YOUR car you could do what the hell you like with it but according to the Finance agreement

 

You cant take use the car for racing , time trials or rallying and you must allow VWFS to inspect the car AND any premises where it is kept (Section 3.1)

 

Section 8 says if you wish to change the reg number you must inform them immediately and pay £50 admin charges , this new registration will belong to the vehicle

 

So I'm not missing anything , I actually read my contract !

 

No I dont have a leased Golf R

[cortina63]

you can change the reg plate yourself if its on pcp as the registration doc is in your name, with pch they want admin fee each way, unless the dealers will register the car with the plate, which vwf are made nominee, they have told me that they have no interest in private pates, and have advised me to remove it 3 months before the agreement ends, i have been using my personal reg for over 12 yesrs on pcp cars and there was never any issue

[randomeclipse]

The salesman himself informed me that I could sell the car privately, just prior to contract end, pay off the remaining finance and keep any additional money. On PCP.

[pipsyp]

You dont own the car you dont have legal title to it , a distinct but nonetheless important difference, whose name is on the V5 has no bearing on who legally owns the car , it even says so at the top of the V5

As you point out you cant sell the car without having paid off the finance , because its not your property , you do not have clear title to it

In the VWFS agreement it clearly states "While WE own the vehicle you must:"

If it was YOUR car you could do what the hell you like with it but according to the Finance agreement

You cant take use the car for racing , time trials or rallying and you must allow VWFS to inspect the car AND any premises where it is kept (Section 3.1)

Section 8 says if you wish to change the reg number you must inform them immediately and pay £50 admin charges , this new registration will belong to the vehicle

So I'm not missing anything , I actually read my contract !

No I dont have a leased Golf R

Sorry RichF, I humbly apologise for aome some of the incorrectness in my earlier response. on paper I am sure most if not all of the points youve made are 100% correct and valid...perhaps i should have read the contract before replying ina smart-alec tone (that'll teach me).

I have to say though, the fine print vs what is acceptable real world are two v different things. I personally have never treated any PCP'd car differently to a car I have purchased outright or on HP...perhaps other than being slightly mindful of keeping it in good nick in the event I want/have to hand it back at the end of the term.

VWFS in reality arent really bothered about modifications, they dont police it and I suspect the only time such a thing would become contentious is if you'd done something pretty dreadful/tasteless to it that cant be easily reversed without significant cost and then hand it back at the end of the term.

With regards to the racing/rallying issue...lots of people take PCP'd cars on track days etc and VWFS would be none the wiser on most counts. They are probably playing it safe as to do so invalidates the warranty and also renders most if not all regular insurance policies null and void so are endeavouring to protect the vehicle from having its warranty voided or becoming a total loss......but they cant stop people doing it if they are silly enough to (or have enough money not to particularly care either way).

I see it like this.....as you say the car is not legally yours until the final payment is made and that is absolutely correct. A house on a mortgage is much the same....and whilst there are probably bits of small print most of us either dont read or ignore these dont stop us adding extensions, making internal changes, painting the exterior a daft colour (unless local planning restrictions prevent it). Ive just spent a good 2.5k having my driveway and perimeter fencing redone and didnt tell my mortgage provider (who own my house) and cant imagine it would ever become contentious.....similar is it not?

Edited 17 June, 2015 by pipsyp

[Richf]

VWFS may often not check , hell they probably dont know unless anyone tells them, I removed my private plate and re registered my Fabia before trading it in , prior to paying off the last of the HP , they didnt find out and I didnt pay any fees but if it goes wrong it can go VERY wrong

 

For example - It can go wrong like this

 

http://www.briskoda.net/forums/topic/352392-modifying-horror-story-on-seat-forum/?hl=+horror%20+story

 

SNIP - Seat owner modified the car , Seat refused to repair under warranty due to the modifications and ordered the remainder of the finance to be paid in full . same thing has happened to an Audi owner who remapped his car and at least one Golf R owner that I have heard of.

 

Repeating what a salesman told you is irrelevant if you have entered into a contract with VWFS you are bound by ALL of its conditions, like most things in life you can break the terms but there may be a price to be paid

[ednmra]

PCP...Personal Contract Purchase.....as the name suggests you are entering into a contract to buy and "own" the vehicle.

They call the monthly payments "rentals" as what else would you really call them.

I suppose you could call them instalments !?

Edited 18 June, 2015 by ednmra

[ednmra]

Just got an email from Skoda UK that the 0% APR  PCP deal is back again, until Sept 30th.

[SBN]

Just got an email from Skoda UK that the 0% APR PCP deal is back again, until Sept 30th.

Just had the same email.