Hi Guys   :clap: 

 

I have had a great offer for a new Yeti on PCH. However, I was made aware that the vehicle’s V5 document will be in Skoda’s name and not mine for the duration of the “hire”.  It appears there is not an option to purchase in the case of PCP as there is with PCP. Other than that information, I have had no experience with PCH or PCP and wondered if fellow Briskodians could offer words of advice / experience.

 

Contemplating another Yeti as “Tigger” is coming up to six years old now.

 

The deal I have been offered is almost too good to be ignored.

 

Best wishes to all...............Tony

Edited 3 June, 201610 yr by Damo
Asked to edit by OP

Hi Tony

 

My 2p... if the deal you have been offered is almost too good to ignore, I'd go with it

 

Cheers

 

Damo

Edited 3 June, 201610 yr by Damo

If you had a car on PCH then you don't have any part exchange to worry about. You've hired a car for the duration of the deal, not bought it and paid it off. Essentially, come the end of the PCH period you give the car back to its owner (the lease company) and have nothing left for the money you've paid for all that time.

Some of the PCH deals are amazing at the moment especially those advertised by a certain Northern Dealer.

 

If you keep your cars in good condition without scrapes, dings and kerbed wheels then a PCH/PCP can be a good option. Just expect to pay for any damage at the end of the term if there is any.

 

According to the info on the dealers website there could be a purchase option on PCH but not for the lease holder. You'd have to get your wife to buy it.

 

Providing they are not the hirer or lessee named in the contract an individual may be able to purchase the vehicle at the end of the contract period. If a member of your family or a colleague is interested in a purchase price then please call us on 0844 579 0212 and select option 2

Lee

Seeing as no names seem to be quoted, I will stick to general guidance.

PCH is personal contract hire, that is you rent it and at end hand it back. If no damage then that's it, but if exceed mileage or have some damage will have to pay.

PCP is purchase, normally optional purchase, can treat as above and hand back, or can buy it. The amount to pay at end to buy is sometimes known as a balloon payment. It gives you flexibility to choose if you keep it later, but normally the extra flexibility means it costs more than PCH

Sometimes particularly good deals turn up, if you get a good deal and it is genuine, then go for it, they often disappear quite quickly as others will use up the quota as well. Once target volume has been reached deal might be pulled.

Thanks to everyone for the info so far! Some good thoughts and information there - Please keep it coming. 

 

What really concerned me was the fact that the V5 is not in my name. I wondered what implications that has? I did try my insurers in case it had insurance implications - They really were quite unconcerned that the registered keeper would not be me! Surly it cannot be just so simple can it?

 

Not having had anything to do with PCH / PCP before is making me quite cautious, hence the plea for help. Thank you all again, I really apreciate your effort on my behalf ............................Tony

 

PS. Many thanks for the edit Damo. Much appreciated........T

Edited 3 June, 201610 yr by Great Yeti

The name of the registered keeper would only bother me if I owned the car it is otherwise of no significance the liability for VED is that of the keeper but any parking or speeding tickets would find you as Skoda or VW finance would immediately provide your details to the relevant authorities

Although I have no real experience of lease cars (PCH) or the PCP deals, I believe that the dealers have to stick to the BVRLA guidance that sets out what is acceptable as wear and tear and what isnt.

 

http://www.gecapital.co.uk/en/docs/BVRLA_FWT_GECapital.pdf

Do good ones ever go to auction and does anyone have experience going that way?.

Other down sides to PCH are that if you plan to take the car out of the country for a motoring holiday you need the lease companies permission. You are also tied in to the lease period (or would have a substantial penalty to get out of it) whereas with PCP you can sell up at any time and pay the outstanding finance. So - if your circumstances change you can find yourself stuck.

If you miss any payment you have no rights in terms of repossession like you do with PCP/HP.

That isn't to say PCH is a bad thing, just far less flexible.

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Edited 4 June, 201610 yr by Falmouthboy

As JCP says, any motoring offence liabilities (e.g. speeding) will be passed on to you via DVLA but will probably include an administration fee, maybe £30 per occasion - only saying.

I've had my yeti on lease since January but now I'm out of work. I can afford to keep paying every month at the moment but where would I stand if I wanted to end the agreement.

Easy or big hassle ?

As JCP says, any motoring offence liabilities (e.g. speeding) will be passed on to you via DVLA but will probably include an administration fee, maybe £30 per occasion - only saying.

The registered keeper will receive a "notice to owner" which on pain of prosecution requires them to provide information as to the driver if an offence is believed to have occurred. I would decline to pay an admin fee to cover their costs in obeying the law unless it was a clear term of a contract I had agreed to in advance.

With a PCP, don't forget you don't own the car until until you've paid all of the agreed monthlies and the balloon payment at the end. It is technically illegal to sell a car that has outstanding finance on it, though it isn't illegal to arrange the sale. If you decide to sell before the end of the agreement, just need to be a bit careful as to how you sort the handover of monies.

 

I've got my Yeti on a PCH and I thought very long and hard before I went with it, simply because I don't like the idea of not owning a car. The more I look at PCP's (we have our Citigo on one) the less difference I see between them and a PCH. With contract hire, the terms of the agreement are very clear cut: You pay a deposit up front followed by x number of monthly payments. You aren't liable for road tax, but are for insurance, any reparations deemed necessary at the end of the agreement (the terms of which are all very clearly laid out in the BVRLA documentation) and depending on the type of PCH you take out, servicing and tyres. For most deals you won't have to bother about an MOT as the term is less than 3 years. When I took up the Yeti deal, I added everything up, allowing for one service and a couple of thousand miles in over-mileage. The prices quoted by the Certain Dealer In The North West are all inclusive of VAT, so that's taken care of. The also explain what will happen regards speeding/parking fines (if you're a bad boy) when you collect the car. You are committed to that total from day one, so make sure you can afford it there and then. As an amusing sideshow, divide that total by the number of days in the agreement to give you a price per day; then go online and see how much it would cost you to rent the car from, say, Hertz. Insuring the PCH Yeti with Admiral was no problem at all, as long as I had at least 6 months(?) left on the agreement. The dealer said that taking the car abroad is no problem as long as I inform them beforehand.

 

With a PCP, things are a little different. They are more of a gamble than a PCH to my eyes, as you are having a punt on what the car will be worth at the end of the agreement. If (as it seems will be the case with our Citigo, unfortunately) the MGVF turns out to be more than you could buy an identical car for on the open market, you'd be a mug to buy it (unless it is of the precise specification that you want and you value the fact it has a known history). So if those exceptions don't apply to you, then in effect although you've taken out a contract purchase, you have only rented it in terms of what you're left with at the end of the agreement. If you hand the car back and walk away, you have no asset (just as with a PCH) and you are also liable for any reparations deemed necessary (just as with a PCH). The mother of a good friend of mine has just been hit with a bill for £1,500+VAT when handing back her Mercedes B Class at the end of her PCP. The MGVF on it was way more than the car was worth, so she was trapped by the deal. Funny enough, I talked her into a PCH on a Yeti, because she's had enough of haemorrhaging losses on a succession of three B Class's on PCP. Even allowing for a similar amount on body repairs for the Yeti, her annual costs will be half of what the last Merc has cost her. The list price of the B Class (that was) and the Yeti are within £2k of each other

 

So, do the sums for the PCP deals you're looking at, just as I outlined for the PCH, then compare the two. But look at the PCP figure in two ways - a) if you keep the car at the end of the agreement, or b ) decide to hand it back and walk away. You can also elect to voluntarily terminate the agreement before the end of the term without penalty, but in most cases you have to be a long way through the deal before you can do this and again you will have no asset to hand. That option isn't available with a PCH.

Edited 5 June, 201610 yr by Citigopher

 

Our previous cars that we've handed back on PCP we've taken to a local specialist who does smart repairs prior to handing back lease or PCP vehicles.

 

Our last BMW had a couple of chips done on the front, small dent above rear arch repaired, a couple of light scratches buffed out, one wheel repair and a smart repair to one of the door cards at a cost of £150. Would probably been closer to £1000 if we'd not had them done.

Never hand a car back with damage as they charge you main dealer prices for repairs and replacements.

 

Lee

Edited 5 June, 201610 yr by logiclee

My L&k 1.8 comes to the end of it's finance deal next may and the final payment will be less than 3k for what will be a 20ish k mileage with no significant faults. I will snap it up.

WOW……….

 

First! A BIG thanks to all who have responded and the time you have taken in formulating your replies and taking the time to reply.

 

What an amazing amount of information, and that together with the experience of some participants in this post gives us (swMbo & I) great confidence in going forward and making a decision.

 

After trawling the internet in search of information and taking all of your comments on-board. We have decided that PCH is the way for us and will probably be signing up for a “deal” in the next few days.

 

If you will allow, I shall sum up some of your comments:

 

 

• Differing price between PCH & PCP: A big difference! In our case, a massive increase in the cost for PCP. The decision is a no brainer really and handing back at the end of two years really leaves me free to do what I [we] want.​​

 

• V5 Document: Yes, it is retained by, and in the name of, the lease provider [Škoda finance]. Standard industry practise for Personal Contract Hire (Lease).​​​

 

• Vehicle Insurance: Whilst insurance was not mentioned in the “post”. I did contact my insurer and the reply was, “It’s just a standard lease agreement – No Problem, no increase in premium” and that not being the registered keeper did not present any problem whatsoever​

 

• Motoring Fines etc: The lease provider [Škoda Finance] are legally obliged to pass on the details of the lessee [me] to the police etc, and would forward the relevant documentation to me for action. It would appear that ONLY if they, as the lease provider somehow eventually have to pay any fines that incur would there be any “admin charge”. One of the sales team who has a vehicle on PCH had recently had a parking fine and that Škoda took no action other than forwarding the paperwork to him, and he had no charges to pay other than the fine itself.

 

• Holidaying abroad: No problem, just need to notify them and have the relevant insurance that covers you abroad etc.

 

• Damage to vehicle: Again, not really a problem. Just need to ensure that any damage is repaired prior to handing back the vehicle. The Link to the BVRLA document was most enlightening and this is the standard that Škoda adhere to. The comment about having “Smart” repairs done was, in my opinion, a very worth while one and one I shall definitely bear in mind. Though in the event that anything, other than a minor dink / scratch etc, will be done via the main dealer, then if, there is any problem over the repair, I would let Škoda fight it out amongst themselves!

 

 

In conclusion, we are most grateful to all who have replied and contributed their time, knowledge and experience to this plea for help! It never fails to surprise me [us] what an amazing bunch of people we have here at Briskoda and the lengths they will go to to help others……………Take a bow folks  :clap:

………..Tony  

Edited 5 June, 201610 yr by Great Yeti

With a PCP, things are a little different. They are more of a gamble than a PCH to my eyes, as you are having a punt on what the car will be worth at the end of the agreement. If (as it seems will be the case with our Citigo, unfortunately) the MGVF turns out to be more than you could buy an identical car for on the open market, you'd be a mug to buy it (unless it is of the precise specification that you want and you value the fact it has a known history). So if those exceptions don't apply to you, then in effect although you've taken out a contract purchase, you have only rented it in terms of what you're left with at the end of the agreement. If you hand the car back and walk away, you have no asset (just as with a PCH) and you are also liable for any reparations deemed necessary (just as with a PCH). The mother of a good friend of mine has just been hit with a bill for £1,500+VAT when handing back her Mercedes B Class at the end of her PCP. The MGVF on it was way more than the car was worth, so she was trapped by the deal. Funny enough, I talked her into a PCH on a Yeti, because she's had enough of haemorrhaging losses on a succession of three B Class's on PCP. Even allowing for a similar amount on body repairs for the Yeti, her annual costs will be half of what the last Merc has cost her. The list price of the B Class (that was) and the Yeti are within £2k of each other

Genuine question - how did your friend's mother end up paying money out for handing the car back if she was at the end of her PCP? According to the Skoda agreement if you simply hand the car back at the end then there should be nothing to pay. Was her car damaged in any way?

Yes. That's what 'reparations'are - repairs. She had a dented wing, scuffs on the back bumper & some interior & exterior trim that was deemed "in need of replacement". All at main dealer Mercedes prices. She didn't twig that she could have saved herself a fortune by doing what logiclee advises until it was too late.

This highlights another difference in the way that you can perceive a PCP. If you intend to pay the MGFV at the end of the contract and keep the vehicle then these type of repairs are of no consequence (as long as you are happy to live with the damaged parts). If however you decide to hand the keys back & walk away, you are in the same boat as someone on a PCH - but you will have paid out a shed load more in monthlies in the interim.

My L&k 1.8 comes to the end of it's finance deal next may and the final payment will be less than 3k for what will be a 20ish k mileage with no significant faults. I will snap it up.

I take it you put down a quite big deposit though?

 

 

After trawling the internet in search of information and taking all of your comments on-board. We have decided that PCH is the way for us and will probably be signing up for a “deal” in the next few days.

 

 

 

If you are phoning that certain North West dealership ask to speak to Matt Holmes. He's been great dealing with us. 

 

Saying that the whole team Matt, Tom and Linda have been great I've spoke to them all.

 

I've already ordered one Yeti and I'm ringing to order another for my Dad tomorrow.

 

Lee

Yes. That's what 'reparations'are - repairs. She had a dented wing, scuffs on the back bumper & some interior & exterior trim that was deemed "in need of replacement". All at main dealer Mercedes prices. She didn't twig that she could have saved herself a fortune by doing what logiclee advises until it was too late.

This highlights another difference in the way that you can perceive a PCP. If you intend to pay the MGFV at the end of the contract and keep the vehicle then these type of repairs are of no consequence (as long as you are happy to live with the damaged parts). If however you decide to hand the keys back & walk away, you are in the same boat as someone on a PCH - but you will have paid out a shed load more in monthlies in the interim.

Thanks very much, that's very helpful. I guess dealers/finance companies will always find a way to squeeze some extra money out of their customers in such situations.

Some smart repair people come to you at home or work, Will sort everything and know the requirements that are needed to hand back without an expensive repair surcharge.

Years ago we had a Mercedes A class and when that went back for a huge bill for 2 poor quality stone chip repairs. I phoned up and asked if they could be on a separate bill as they had been done by a smart repair at a main Merc dealer and I wanted to pass cost on. Took them off bill in seconds and asked that I didn't complain to Merc UK. Clearly is a double standards scam as they instantly became acceptable quality.

There is plenty on the Internet about 'acceptable' wear and tear when returning lease/PCP cars. The car isn't expected to be 'as new' and so unless there is clear damage you can argue the toss. There is even guidance on what is 'reasonable' stone chip wise. Of course, with PCP you can trade the car for what it's worth before the end of the term, so it's only an issue if the finance company has miscalculated the GFV (they normal err on caution) so it's financially better to hand it back. PCH doesn't give you that freedom.

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UPDATE!

 

Well we have been and done the deal! Yeti number two will shortly be on it's way to us. Estimated delivery 10 to 12 weeks, so just in time for a first of September registration and a MY 2017 to boot!

 

Again our sincere thanks to ALL who contributed to this "post" ! 

 

and for anyone remotely interested:

 

Our Specification:

Yeti Outdoor SE 1.2 TSI with DSG in Moon White (Pearlescent / Metallic) with two years Road Fund Tax + Full Warranty and Breakdown cover

 

The Deal (LINK):

A PCH deal from our local dealer, Simpsons of Preston, Lancashire. NOTE: This deal is on until the end of June unless withdrawn earlier (limited number of vehicles!). If you want to enquire, call Tom Whittle (Digital Sales) on 01772 325401

• Initial deposit of £2190
• 23 monthly payments of £99

Adding both together you effectively end up paying a little over £40 per week for two years. Taking into account, no road tax, only one service required and the car is under a full warranty / Breakdown cover etc means VERY cheap motoring in a new car. Basically, just insurance and fuel required from us. I reckon that the price paid is less than the depreciation you would have after two years if you had paid cash for it to begin with. For us it's a Win - Win situation. Handing it back at the end of two years in good condition presents no problems as I (we) would always have dinks / scratches repaired on any car we had. The ability to purchase the car on PCP and not suffer from a bill for minor damage, by retaining the car, would therefore not be of interest to us. The PCH deal won hands down!

 

Simpsons are our local dealer and have looked after us for the past six years. We did not purchase our current Yeti through them as we lived in Norfolk at the time. However, we moved North a month or two after we got the car and Simpsons have looked after us ever since.

I cannot speak highly enough of all their staff: Service reception are very knowledgeable and will go to great lengths to oblige; The Service manager, Sean, together with his team are amazing! If he does not know the answer (not very likely!) he is more than happy for his service Tech's or Master Tech. to come and talk to a customer.

When it comes to sales, (Digital Sales Dept! for PCH / PCP deals) Tom Whittle really knows his stuff!! - you hear horror stories, some here on Briskoda, of some dealers who have staff with no idea or knowledge about what they are selling. Not so here. His product knowledge was the best I have ever experienced. He really went out of his way to ensure we got exactly what we wanted at the best possible deal with: Part Ex - "No Problem" and Extras - "What do you want, lets do a factory order"!

(In addition to the standard deal we specified 1. Front parking sensors - 2. Heated front seats - 3. Spare wheel - 4. Mud Flaps. All these are extras which have a small uplift in the overall monthly cost)

 

What convinced us in the end to go with Simpsons, is the excellence of their customer service over the last six years, the courtesy of their staff in dealing with us and of course especially Tom's character, wit and knowledge (no relation! Honestly!) and the deal he did for us.

 

 

And so, the wait begins....................................Tony

Edited 8 June, 201610 yr by Great Yeti