pcp balloon payment

[garyboy]

letter says ..

" .. if you haven't settled your agreement by (balloon date) .. we'll arrange for the vehicle to be collected and you'll be liable for any fees, depreciation, condition, or excess mileage charges"

[dibbs]

letter says ..

" .. if you haven't settled your agreement by (balloon date) .. we'll arrange for the vehicle to be collected and you'll be liable for any fees, depreciation, condition, or excess mileage charges"

lol... better start looking at the Tesco deal then!!!!!!

Thanks for clearing that up

[garyboy]

info got on letter (£)

collection .. 180
damage … ..
excess mileage ..
expired mot .. 75
no log book .. 235
no service book .. 25
no service history .. 300
no key ..
no manual .. 10

[Africa John]

There is a way out. Have the cash in your bank. Do the finance deal after establishing the 'cooling off' period. Immediately you take delivery of the asset, cancel the finance and pay off the balance. they can't take the 'deposit contribution' back. You can get £2k off the cost of a new car like that.

My boss just suggested this to me this week to not be precious about my Skoda and get a replacement car this way

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[johnnyboxer]

Ahhh Ye Olde savings!!!! what are they?????? ok so if i don't have savings, and if i have CCJ's as long as your arm so cannot get a personal loan, but still want to keep the bike and have not missed any payments to Honda, can they legally make me give it back or do they have to legally continue financing it to me? this is what i was getting at..........

I guess it's at Honda's discretion

Did you get the ccj 's before or after taking out the Honda Finance for the ATwin?

If after - a recent credit search may make you get a refusal

Can you get the ccj's 'satisfied' ???

Are they recent ?

[johnnyboxer]

Greetings,

'Cash' might not be King anymore when bargaining for a new purchase but it is still the safest option.

TTFN

Hugh.

Ain't that the truth !!!!
I would never take Finance for a bike
I have a bit of HP (not a bloody PCP) on my truck (only on 50% of its cost when new) as I can put it through my Ltd Co and claim all the interest against tax and write down the asset as a capital allowance - so it makes financial sense
However I have the cash to pay it off, should I fall on hard times or the truck can be sold for much more than is owing

Private vehicles - Pay cash from savings and buy used nowadays

[johnnyboxer]

just my opinion .. I dont think they have any legal obligation to re-finance you (or me or anyone else)
.. they are not `continuing` to finance you
.. they financed you up to the balloon time
.. then it is up to you
.. they `may` re - finance you though




what my letter said .. .. ..

"If you'd like to own the vehicle, but want to spread the cost of the balloon payment:
it may be possible to re-finance the balloon figure and repay it over a period that suits you.
You can find out whether you're eligible to do this through us or another finance provider, that's completely up to you.
Once you've repaid the balloon amount in full, you'll own the vehicle,"

Thanks Garyboy that makes sense, however what if due to current ccj's Honda (and any other finance company) wont re finance you, then can they MAKE you give the bike back?

Yes they can
It's their bike and NOT yours

[Richard Simpson Mark II]

PCP is just a magic trick that enables you to run a vehicle you can't afford until the end of the agreement...at which point you realise that you can't afford it.
In effect, both you and the finance company take a gamble that it will have a residual value higher than the final payment when the agreement ends.
This depends not only on there being strong demand for the vehicle type at the end of contract, but also it having being kept serviced, in good condition and not having exceeded a set mileage, which is usually pathetically low for motorcycles. If these conditions have not been adhered to, extra charges are applied.


One old sage in the truck market said to me..."Leasing is how we manufacture used trucks!"

It can make sense in business where costs are offset against income for tax purposes, but it's not a route I'd advise for private vehicles.

But then, I don't have any neighbours to impress, and any car I buy would be covered in mud after a week here.

[Tonibe63]

Private vehicles - Pay cash from savings and buy used nowadays

That's the way I've always done it by buying private but with full service history and some manufacturers warrenty still in place. These days because of many new cars/bikes being on pcp's the vast majority of quality used vehicles are found on dealer forecourts with a higher price than if buying private ...... the control of the market is with the dealers who also control the price.
I also get the feeling that everybody is scared of 'dieselgate' wiping out any residual value if they bought a car outright, atleast with pcp you know what your financial commitments are for the life of your contract.

[Africa John]

Must admit if "diesel gate" has tanked used diesel car prices I'll just by a used Skoda diesel estate to replace this


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