PCP warning

[ChrisB]

A close friend of ours died suddenly on Saturday morning. He has a BMW R1200RT on a BMW finance PCP deal which has now run for 23 months. Our local BMW dealer have not been too helpful, in fact they have been shite though BMW finance have been more assistance. My point is, please be aware of the small print and clauses BEFORE entering a PCP deal or any credit agreement for that matter. It is not just a case of handing back the bike should there be a need to cancel before the full term of the agreement.
On a positive note the BMW dealer was very quick to offer to value the bike and maybe buy it for his showroom, wonder why?

[Longtom]

very useful information, and I am sorry for your loss being the reason for being able to share it.

[O.C.]

very useful information, and I am sorry for your loss being the reason for being able to share it.

   

Bloody small print eh .....we all see it but probably don't all read it or fully understand its implications     

[PRD]

Keep away from PCP dreadfull thing.

[O.C.]

Keep away from PCP dreadfull thing.

Why ? 

[PRD]

Might I suggest to answer that question you read the Daily Telegraph  article entitled ' Is PCP finance a good deal in the long term' printed on the 10/3/2014.  It will explain everything to you.

[O.C.]

Thank you but I'm not a Telegraph reader, that article is somewhat outdated now...things may have moved on

I'll rely on my Motor trade knowledge/experience to guide me through   

[mikeyw64]

Thank you but I'm not a Telegraph reader, that article is somewhat outdated now...things may have moved on

I'll rely on my Motor trade knowledge/experience to guide me through 

Oddly enough there was a section about the problems with them (mainly in elation to wanting to get out of them early)  on Rip Off Britain on BBC1  one morning this week.

Or there's the Financial Times from March of this year

https://www.ft.com/content/0e651206-0ee1-11e7-a88c-50ba212dce4d

Policymakers in the UK are well aware of the risks. The growth of car leasing has contributed to a big rise in personal debt in the UK and prompted the Bank of England to keep tabs on the risks of a financial shock if conditions change. So far, UK used car values remain fairly stable. But some warning lights are starting to flash as thousands of vehicles sold from 2012 onwards come off lease and on to the used car market. Rupert Pontin, head of valuations at automotive data group Glass's, notes that supply of two or three-year-old city cars such as the Toyota Aygo or Volkswagen Up! rose by 80 per cent in 2016. "Crossovers" and small SUVs such as the Nissan Qashqai were up by 76 per cent.

"This is not causing a problem yet, because retail demand is strong enough to absorb the extra supply," says Mr Pontin. "But the data do suggest that at some point, in certain sectors, values will tail off. As we get to the point of saturation, more people may find that the trade-in value is now below the guaranteed future minimum value."

[PRD]

There you go OC that should bring you bang up to date.

[Lonewolf]

There you go OC that should bring you bang up to date.

Pete, the above feature earlier this week which Mikey just mentioned on Rip Off Britain still might be outdated for some pedantic people.

[mikeyw64]

Pete, the above feature earlier this week which Mikey just mentioned on Rip Off Britain still might be outdated for some pedantic people.

Found it

https://www.bbc.co.uk/iplayer/episode/b098p0gb/rip-off-britain-series-9-episode-20

[ChrisB]

I am not saying PCP is good or bad. It all depends on your own circumstances, wants, and needs. My point is make sure you are aware of the good and bad points and not to be tempted by the very low monthly payments alone. That said the BMW sales manager could not explain the detail and consequences of ending a BMW PCP deal early, before the end of the agreed term. AND HE SOLD THE F*****G thing to my friend 2 years ago. His knowledge of the credit agreement is dire and he actually thought the debt died with the consumer in the event of his death. What an absolute disgrace Wiliiams Manchester, bunch of +++++++.

[zedmeister]

It pays to know the product you are selling, product knowledge is everything the difference between a sale or rejection. I used to make sure all my sales exec's knew their product inside out and gave a fair representation of that product particularly the financial side of things, as incorrect information could turn and bite you where it hurts not to mention the business credibility.

[Charlie747]

It pays to know the product you are selling, product knowledge is everything the difference between a sale or rejection. I used to make sure all my sales exec's knew their product inside out and gave a fair representation of that product particularly the financial side of things, as incorrect information could turn and bite you where it hurts not to mention the business credibility.