Porsche Financial Services (VW Financial Services) PCP vs Hire Purchase

[frensham]

hi Guys
i need some real help; i'm looking and discussing a car which the dealer has given me a quote for PCP (or thats what i asked for (£x down, off the purchase price over 3 years at 10K per mile and it shows a final payment at 35 months. but when i look at the actual formal paperwork, there is nothing about GFV or "ability to hand it back"; even the heading on the agreement says Hire Purchase Agreement regulared by consumer credit Act 1974. - it does not SAY Porchse Solutions Contract Purchase (PCP).

Can any one do me a favour and pm me - i need to know what others have on their paperwork that differentiates between a HP and PCP.

i'm going down the PCP route as i dont want to deal with a 3yr old EV that has "old" battery technology by then and am getting nothing serious back on it".

Dave

Sponsored

 

[TAYC4S]

hi Guys
i need some real help; i'm looking and discussing a car which the dealer has given me a quote for PCP (or thats what i asked for (£x down, off the purchase price over 3 years at 10K per mile and it shows a final payment at 35 months. but when i look at the actual formal paperwork, there is nothing about GFV or "ability to hand it back"; even the heading on the agreement says Hire Purchase Agreement regulared by consumer credit Act 1974. - it does not SAY Porchse Solutions Contract Purchase (PCP).

Can any one do me a favour and pm me - i need to know what others have on their paperwork that differentiates between a HP and PCP.

i'm going down the PCP route as i dont want to deal with a 3yr old EV that has "old" battery technology by then and am getting nothing serious back on it".

Dave

This is normal for Porsche paperwork. The difference is the final payment balloon which indicates whether your agreement is HP or PCP. They do not explicitly state PCP on the paperwork but if you have a final ballon then this is it. It’s also the FGV but hopefully the car has more equity in it than that.

 

[Persuader]

A PCP is HP just with a delayed capital repayment and the option to return car instead of making the delayed final capital repayment. So it can still be called HP.

 

[frensham]

Thank you very much.

 

[GlasgowTaycanCT]

hi Guys
i need some real help; i'm looking and discussing a car which the dealer has given me a quote for PCP (or thats what i asked for (£x down, off the purchase price over 3 years at 10K per mile and it shows a final payment at 35 months. but when i look at the actual formal paperwork, there is nothing about GFV or "ability to hand it back"; even the heading on the agreement says Hire Purchase Agreement regulared by consumer credit Act 1974. - it does not SAY Porchse Solutions Contract Purchase (PCP).

Can any one do me a favour and pm me - i need to know what others have on their paperwork that differentiates between a HP and PCP.

i'm going down the PCP route as i dont want to deal with a 3yr old EV that has "old" battery technology by then and am getting nothing serious back on it".

Dave

My commercial bank manager (Bank of Scotland) quoted me finance which was much more competitive compared to Porsche finance. This has always been the case for my previous cars.
Unless you are wanting into the "good books" of your dealer, I would say there's no need to use Porsche finance.

 

[Nipri]

If you use VW Financial Services than APR is 5.99%. Lombard Financial is 4.99% without mileage restrictions.

 

[frensham]

Hi glassgowtaycanct
I assumed I can only get a pcp from the dealer but HP was available from any finance company as it meant in just buying something over a period of time.
I need the ability to hand back the car.

 

[GlasgowTaycanCT]

Hi glassgowtaycanct
I assumed I can only get a pcp from the dealer but HP was available from any finance company as it meant in just buying something over a period of time.
I need the ability to hand back the car.

My bank manager is giving me "Hire Purchase but with a balloon payment" at 2.85% flat rate interest.

So lower monthly payments due to the balloon payment ..just like your dealers PCP.

The way it works out for me is that the monthly payments are pretty much the same whether from Porsche or from my bank...BUT, after the 36 months term.... the difference is £13K !!!

I would owe Porsche £13k more than the bank.

So its a no brainer for me.

 

[Persuader]

Hi glassgowtaycanct
I assumed I can only get a pcp from the dealer but HP was available from any finance company as it meant in just buying something over a period of time.
I need the ability to hand back the car.

You can get PCP elsewhere. Lloyds Bank for example do PCP on Taycan at 4.5%APR.

 

[Braveheart]

My bank manager is giving me "Hire Purchase but with a balloon payment" at 2.85% flat rate interest.

So lower monthly payments due to the balloon payment ..just like your dealers PCP.

The way it works out for me is that the monthly payments are pretty much the same whether from Porsche or from my bank...BUT, after the 36 months term.... the difference is £13K !!!

I would owe Porsche £13k more than the bank.

So its a no brainer for me.

Hi

I am Glasgow based and bank with Bank of Scotland both personally and via my business
Can you send me details of who you dealt with as sounds much better than Porsche/VW finance

Thanks

 

[GlasgowTaycanCT]

Hi

I am Glasgow based and bank with Bank of Scotland both personally and via my business
Can you send me details of who you dealt with as sounds much better than Porsche/VW finance

Thanks

I just sent you a direct message . cheers

 

[Markc]

Please can anyone confirm whether we could finance with a PCP and put it through a limited company. Our accountant has emailed to say he doesn’t think we can fund it this way. If not, how readily available are the HP deals with a balloon at the end as described above (to guarantee the future value). Many thanks Mark

 

[frensham]

You can. I’ve just done it.

I don’t know about these accountants! They are suppose to know stuff? I see so many pieces of differing advice from accountants on FYA, leases and tax and I can’t understand why diff accountants have different understandings.

I’m about to pcp a demonstrator and intend to do FYA on the purchase price against this years CT Tax.

How many of you have been told you can’t?

 

[GlasgowTaycanCT]

Please can anyone confirm whether we could finance with a PCP and put it through a limited company. Our accountant has emailed to say he doesn’t think we can fund it this way. If not, how readily available are the HP deals with a balloon at the end as described above (to guarantee the future value). Many thanks Mark

I am doing hire purchase with balloon payment with my bank through my company.

It is frustrating that the advice from different accountants seem to vary. Goes to show how complex our tax system is.

 

[frensham]

Hi All
it seems i'm being led up the garden path! and now bloody confused.
I've got a quote for a PCP from the dealer; it says as i previously mention Hire Purchase Agreement regulared by consumer credit act 1974.
THe agreement quote is in my name but i expect the finance will be in my company ltd name.

someone has now mentioned (not the dealer) when it is in a LTD name, it becomes an unregulated agreement and this has a bearing on the interest that is returned / recalculated if i trade in/settle the car before the end of the 36 month term.

really confused.

Sponsored