A PCP question

Teddington Cuddlesworth · 29-01-2017 5:24pm #1

The other half has a Mini on PCP, it's her second.
The time to renew is coming up in the next few months.
She's not sure if she wants another mini so it'll mean forfeiting her deposit she paid up for the first mini if she changes car brand.
My question is, if anyone can help. She has her agreement with Frank Keane who use bmw bank. Could she switch over to a Frank Keane bmw, or VW, and use her mini as her deposit for the renewed pcp on the new car?

I know Frank Keane would be the one to go to too ask this to, but it being Sunday they aren't open, and I didn't have much joy googling.

Penalty · 29-01-2017 5:52pm

You could go to any dealer you want to - doesn't have to be Frank Keane, mini or BMW. They may even offer you a better deal to get you into their brand. Although it could be a messier process.

However you comment if forfeiting her deposit is worrying - if you think this you don't really understand PCP and maybe it's not for you.

Nonoperational · 29-01-2017 6:58pm

At the end of the agreement the car will be valued, either by the current dealer or the dealer of a different brand. If the car is valued more than the GMFV then that is equity that can be used as a new deposit.

If you go with a different brand, then you will settle the finance with the Mini dealer for the GMFV (provided mileage and condition is ok) and you will have the extra equity to use with the new dealer. For example, the GMFV is 12k. The BMW dealer values the Mini at 16k. You pay 12k to settle the Mini finance and have 4k to use in a new PCP agreement.

If you are settling early there will be a settlement figure in excess of the GMFV and you pay that.

MarkN · 29-01-2017 8:05pm

You are not tied to any brand or dealer. You are not going to lose your initial deposit unless you hand the keys back and walk away.

Just like any trade in situation, you will get more or less for your trade in price depending on where you go to.

Please understand PCP is a financial agreement with a financial institution, not a particular dealer.

Also, BMW don't have a bank. They use a company called Alphera for the most part. BMW finance is just a brand name underwritten by Alphera.

Teddington Cuddlesworth · 29-01-2017 9:19pm

Thanks for that, didn't realise you could go to a different brand dealer. I wasn't sure how it worked in regards to changing after the agreed time.

And to the somewhat snarky reply about not understanding pcp and maybe it not being for me, as I clearly stated in the original post it's not for me.

MarkN · 29-01-2017 9:56pm

Teddington Cuddlesworth wrote: »

Thanks for that, didn't realise you could go to a different brand dealer. I wasn't sure how it worked in regards to changing after the agreed time.

And to the somewhat snarky reply about not understanding pcp and maybe it not being for me, as I clearly stated in the original post it's not for me.

PCP especially when clearly it wasn't sold to you can be tricky to get your head around. Bottom line is, you are able to trade your car in where you like, PCP will be available no matter where you go

Teddington Cuddlesworth · 29-01-2017 11:23pm

The idea of not owning a car is alien to me. She loves it though, it suits her and she would happily never own a car.
Seeing as it's been nearly 6 years since she set up the initial agreement she couldn't remember how it worked in regards to changing.

Whereas 3 years ago they rang her to inform her that the end period was nearing and ask her would she go again. She went in with her dad who signed the papers with her and the car was ordered with her spec.
The day after she picked up that car her dad died suddenly and he was the one that went over the terms. She was focused on the shiny objects around her...

Thanks for the input everyone, again, pcp is not for me so I don't know anything about it.

A PCP question

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