First timer PCP query

[NX01]

Hi

 

Test driving a Kodiaq on Saturday and if all goes well am planning on placing an order.

 

Can someone explain the process for me so that I know what happens as I have never had PCP before.

 

The last time I ordered a new car from Skoda I paid £500 and then the balance when it arrived.  It was a living inheritance so was a cash payment.

 

What will happen on Saturday, I understand I need to pay £500 and then hand my current car over when the new one eventually arrives. But I am confused about how to apply for the PCP, what happens.  Do I need to take with me documents to prove income etc for a credit check on Saturday, presumably they need me to sign a finance contract at some point.  Is it easy to be approved?

 

Apologies for what must seem stupid questions but I am struggling to find the answers online and the dealer has not requested I take anything in with me.

 

Thanks

 

Paul

[EnterName]

12 hours ago, NX01 said:

Hi

 

Test driving a Kodiaq on Saturday and if all goes well am planning on placing an order.

 

Can someone explain the process for me so that I know what happens as I have never had PCP before.

 

The last time I ordered a new car from Skoda I paid £500 and then the balance when it arrived.  It was a living inheritance so was a cash payment.

 

What will happen on Saturday, I understand I need to pay £500 and then hand my current car over when the new one eventually arrives. But I am confused about how to apply for the PCP, what happens.  Do I need to take with me documents to prove income etc for a credit check on Saturday, presumably they need me to sign a finance contract at some point.  Is it easy to be approved?

 

Apologies for what must seem stupid questions but I am struggling to find the answers online and the dealer has not requested I take anything in with me.

 

Thanks

 

Paul

Never used PCP to buy a car.

When I was young and foolish I took out loans or used HP, then I wised up and saved up for them. (Probably why I only change cars every 10 years or so. 😄)

But to answer your question, this web page has a lot of useful info on PCP purchases. Good luck!

https://www.moneysavingexpert.com/loans/personal-contract-purchase/

 

I would hedge your bets and take a couple of recent payslips in, proof of ID, and proof of residency at your stated address, such as a utility bill.

I would also look more into your PCP T&Cs to make sure you fully understand what you're getting into. There's a lot of opportunity for smoke and mirrors financial malarkey with those things, IMO.

Edited 24 February, 2023 by EnterName
Forgot I used Hire purchase, so added that.