Anyone bought a car they initially PCP'd?

[clk208]

Just wondering..

A family member had a C-Class on PCP a few years ago on a 2 year deal. 2 years came to an end and the car was handed back. They enquired as to whether it would be possible to buy the vehicle but due to the terms/how PCP works I understand the finance company aren't allowed to sell the car directly to the person who hired it.

However, they were willing to provide the name/date of the auction where the car was being sent and you would in theory be free to go bid on it. In this case the person wasn't overly bothered.

But some of the crazy cheap deals on new CLSs sub £300 a month earlier this year made me think. If you had the car from new and really liked it, it might kind of make sense to buy it at auction as you know the history of the car and any niggles etc and it could make decent financial sense.

Anyone actually done this?

 

[EClassy]

They more than likely had the car on a lease and not PCP. PCP gives you the option to make a balloon payment at the enf of the term and own the car. This is the guaranteed future value you would have been given when you took out the deal.

I bought my car at the end of my PCP. It involved nothing. All I had to do was make sure I had enough money in my account and MB just took out the GFV with my final DD.

 

[clk208]

Wine o' clock alert -sorry, my bad.

Where I wrote PCP should have said Contract Hire..

Do these rules still apply where you are unable to purchase directly a car you have had on Contract Hire?

 

[Bobby Dazzler]

I just took out a contract hire, and one of the two brokers I contacted advertise on their website that it may be possible to buy the car from the finance company, depending upon which finance company it was.

I probably wouldn't want to buy it from the finance company by pre-agreement, but I'd really like to know which auction it will be at

 

[Benzowner]

The "correct" way, is to trade the car in to a friendly car dealer, who will pay the last payment to the finance company, then you buy it back from your friendly dealer with enough left over for a couple of drinks. Unless the finance company is Mercedes, should work ok.