Jaguar PCP query
Discussion
Hi all.
I have an iPace, bought using a PCP through Jaguar finance, as there was various incentives included.
I usually to HP though, so unsure about what happens at the end,
Sorry if it's a silly question, Looking at the website, there's the option to keep. Paying the balloon, give it back, or PX. Is that to use the remaining value of the car to part exchange for another car in the dealer network?
I have an iPace, bought using a PCP through Jaguar finance, as there was various incentives included.
I usually to HP though, so unsure about what happens at the end,
Sorry if it's a silly question, Looking at the website, there's the option to keep. Paying the balloon, give it back, or PX. Is that to use the remaining value of the car to part exchange for another car in the dealer network?
Auto810graphy said:
As long as the value of the car is more than the GFV (balloon) you have equity. It’s up to you where you PX the car or what you do with it.
And if you find yourself in negative equity, i.e value of vehicle is below GFV, are you liable for the remaining balance? Or is the GFV actually guaranteed as per the label on the tin and you don't owe anything and hand it back if you choose? jamesbilluk said:
Hi all.
...or PX. Is that to use the remaining value of the car to part exchange for another car in the dealer network?
Just some example figures to help out, hopefully:...or PX. Is that to use the remaining value of the car to part exchange for another car in the dealer network?
Purchase price: £50k
Optional Purchase Price (Or GFV): £25k
If the value of the car at the end of the deal is deemed to be £30k then, in theory, they pay off the £25k finance that's outstanding and you can use that £5k of equity to PX against another car.
If, as is likely with the iPace, the value is deemed to be lower than the GFV then you have negative equity and so you simply hand the car back and if you want to move in to another car you will need to fund the deposit from your own pocket.
The £25k is merely the remaining finance, given that a 2 year old HSE can be had for <£30k now it's very unlikely you'll find any positive equity in an iPace
chunkyjh said:
Auto810graphy said:
As long as the value of the car is more than the GFV (balloon) you have equity. It’s up to you where you PX the car or what you do with it.
And if you find yourself in negative equity, i.e value of vehicle is below GFV, are you liable for the remaining balance? Or is the GFV actually guaranteed as per the label on the tin and you don't owe anything and hand it back if you choose? J1990 said:
Just some example figures to help out, hopefully:
Purchase price: £50k
Optional Purchase Price (Or GFV): £25k
If the value of the car at the end of the deal is deemed to be £30k then, in theory, they pay off the £25k finance that's outstanding and you can use that £5k of equity to PX against another car.
If, as is likely with the iPace, the value is deemed to be lower than the GFV then you have negative equity and so you simply hand the car back and if you want to move in to another car you will need to fund the deposit from your own pocket.
The £25k is merely the remaining finance, given that a 2 year old HSE can be had for <£30k now it's very unlikely you'll find any positive equity in an iPace
Sorry for the late reply. Purchase price: £50k
Optional Purchase Price (Or GFV): £25k
If the value of the car at the end of the deal is deemed to be £30k then, in theory, they pay off the £25k finance that's outstanding and you can use that £5k of equity to PX against another car.
If, as is likely with the iPace, the value is deemed to be lower than the GFV then you have negative equity and so you simply hand the car back and if you want to move in to another car you will need to fund the deposit from your own pocket.
The £25k is merely the remaining finance, given that a 2 year old HSE can be had for <£30k now it's very unlikely you'll find any positive equity in an iPace
Thank you for that
Yes, looks like the value will continue to drop it think.
My plan is to get out of the deal, and get something cheaper to buy and run now.
I'll be selling the GTV as well.
Just my thoughts and one element of my jobs is reviewing commercial / contractual agreements, so perhaps I understand the contractual documents a bit more than a lot of people.
James, or anyone else, please don't go down the PCP (or any other finance / leasing) route without fully understanding what you are signing up for, and / or the options available at the end of the agreement, including things like excess mileage and fair wear and tear... and what happens to the original 'upfront' payment you made.
I'm not anti PCP but don't just focus on the monthlies, look at what you are getting into...!
Apologies, not a lecture, I was just surprised that a PCP had been signed up for without understanding the options at the end...
James, or anyone else, please don't go down the PCP (or any other finance / leasing) route without fully understanding what you are signing up for, and / or the options available at the end of the agreement, including things like excess mileage and fair wear and tear... and what happens to the original 'upfront' payment you made.
I'm not anti PCP but don't just focus on the monthlies, look at what you are getting into...!
Apologies, not a lecture, I was just surprised that a PCP had been signed up for without understanding the options at the end...
66HFM said:
Just my thoughts and one element of my jobs is reviewing commercial / contractual agreements, so perhaps I understand the contractual documents a bit more than a lot of people.
James, or anyone else, please don't go down the PCP (or any other finance / leasing) route without fully understanding what you are signing up for, and / or the options available at the end of the agreement, including things like excess mileage and fair wear and tear... and what happens to the original 'upfront' payment you made.
I'm not anti PCP but don't just focus on the monthlies, look at what you are getting into...!
Apologies, not a lecture, I was just surprised that a PCP had been signed up for without understanding the options at the end...
I must admit, I do wish I had thought more about it. I've done HP before, but not PCP, I don't think I'll do it again. James, or anyone else, please don't go down the PCP (or any other finance / leasing) route without fully understanding what you are signing up for, and / or the options available at the end of the agreement, including things like excess mileage and fair wear and tear... and what happens to the original 'upfront' payment you made.
I'm not anti PCP but don't just focus on the monthlies, look at what you are getting into...!
Apologies, not a lecture, I was just surprised that a PCP had been signed up for without understanding the options at the end...
It seems like companies like carwow, can pay of the PCP, or dealerships.
loskie said:
so you have taken out the finance without understanding it???
Why?
Were you not given ample opportunity to ask questions so you fully understood?
Jeez.
Why is PH full of comments like this? Who hasn't got themselves into something that later they wish they had researched better at the outset? Why can't people simply answer the question posed by the OP who accepts he should have known more at the outset?Why?
Were you not given ample opportunity to ask questions so you fully understood?
Jeez.
jamesbilluk said:
My plan is to get out of the deal, and get something cheaper to buy and run now.
If you mean to cancel the PCP agreement early, do look carefully at how much in total you'll end up paying to give the car back now, vs letting the agreement run to term. You may find that you've effectively already paid the majority of the money for the minority of the ownership period. I.e. work out how much you'll actually save by exiting, and how that stacks up against the cost of getting something else for the rest of the period.samoht said:
If you mean to cancel the PCP agreement early, do look carefully at how much in total you'll end up paying to give the car back now, vs letting the agreement run to term. You may find that you've effectively already paid the majority of the money for the minority of the ownership period. I.e. work out how much you'll actually save by exiting, and how that stacks up against the cost of getting something else for the rest of the period.
At the moment, the settlement figure isn't as bad as I thought it would be. The cars going in to Listers on Thursday to have some faulty cells looked at (I imagine it will be with them for a number of months!) I do have someone on the iPace Facebook owners page who wants to come and view it, the price they're offering is not far off the settlement.
At the moment, the settlement figure isn't as bad as I thought it would be. The cars going in to Listers on Thursday to have some faulty cells looked at (I imagine it will be with them for a number of months!) I do have someone on the iPace Facebook owners page who wants to come and view it, the price they're offering is not far off the settlement.
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