Cmonyoureds
Active Member
It was in response to the OP who said he had settled his PCP in the first year ( turned out it wasn’t a PCP ) The first year of a PCP unless you pay a big deposit you are effectively in negative equity, the monthly payments based on a 3 or 4 year deal will not cover the depreciation in year one, so the shortfall will have to be paid back.Really? I’ve PCP’d cars and them sold them prior to the end of the initial term, or p/x’d them to a dealer. You get a settlement figure and you clear it. Never been any concept of a penalty nor an overly high settlement figure
Wind back to the 90s when leasing, especially personal leading wasnt a thing, car finance tended to come with a lower settlement figure if you took out another loan for the next car. Remember selling my 500SL to a Mercedes dealer who withheld about £1200 of the agreed price until I bought my next car as the settlemeng figure was dependent on my continued business