End of PCP? Are Ford offering any discounts on balloon

[wenklaw]

Just thinking aloud really, has anyone come to the end of their PCP and been able to negotiate the balloon? I have another 3 years and its extremely unlikely I will be paying the balloon as 1) I dont think a 4 year old Mach E will be worth the anywhere near £27k and 2) I will probably just hand back and take out the lease/income tax free scheme my employer offers on whatever EV is the best deal.

Just interested really as Ford are just going to flood the used market making matters worse with used Mach E's that dealers realistically wont be able to shift for anywhere near that balloon figure.

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[Teslaeata]

End of PCP? Are Ford offering any discounts on balloon

Why would they? Thats the contract! Would you offer to pay a higher balloon?

 

[wenklaw]

End of PCP? Are Ford offering any discounts on balloon

Why would they? Thats the contract! Would you offer to pay a higher balloon?

Fully aware thats the contract mate and dont fully understand your would you offer to pay a higher balloon statement, a tad pointless remark.
My point is that Ford are going to get a lot of Mach E's handed back, although I suspect generally people hand PCP financed cars back anyway, so my question is maybe a moot point I agree, however what i was asking was has anyone come to the end of the PCP and been offered a lower purchase figure, probably not I guess but i dont know and neither do you.
Ive heard of some EV's coming the end of lease agreements (and before you jump on that, I know a PCP isnt the same as a lease contract) and people being offered to purchase for extremely low figures, trade values as clearly they dont want them back

Just a question pal to those who may have come to the end of the PCP.

 

[AKgrampy]

Fully aware thats the contract mate and dont fully understand your would you offer to pay a higher balloon statement, a tad pointless remark.
My point is that Ford are going to get a lot of Mach E's handed back, although I suspect generally people hand PCP financed cars back anyway, so my question is maybe a moot point I agree, however what i was asking was has anyone come to the end of the PCP and been offered a lower purchase figure, probably not I guess but i dont know and neither do you.
Ive heard of some EV's coming the end of lease agreements (and before you jump on that, I know a PCP isnt the same as a lease contract) and people being offered to purchase for extremely low figures, trade values as clearly they dont want them back

Just a question pal to those who may have come to the end of the PCP.

In the US it appears there are some potentially lucrative incentives if you trade in and lease a new Ford. No penalty for excess mileage and a few others. I did not see any reduction in balloon however.

 

[BigG’s Mach e]

Just thinking allowed really, has anyone come to the end of their PCP and been able to negotiate the balloon? I have another 3 years and its extremely unlikely I will be paying the balloon as 1) I dont think a 4 year old Mach E will be worth the anywhere near £27k and 2) I will probably just hand back and take out the lease/income tax free scheme my employer offers on whatever EV is the best deal.

Just interested really as Ford are just going to flood the used market making matters worse with used Mach E's that dealers realistically wont be able to shift for anywhere near that balloon figure.

It's an interesting question and one that doesn't just effect Ford. I read an article of a Taycan owner that wanted to trade it in for a 911 (wanted to go back to ICE) and Porsche wouldn't buy it back as they already have too many Taycans in stock (in the UK) with a new model coming out. Net result was a £25k loss in the finance deal to get out of the contact early.

It will be really interesting to see what happens to the price of a new MME and the resale value of them as PCP and lease deals come to the end.

 

[g8mb1t]

I believe with PCP, if you have paid off 50% of the original value including interest you could just give the car back without waiting for the term to end and then the final settlement, which would be way under current market value

 

[wenklaw]

I believe with PCP, if you have paid off 50% of the original value including interest you could just give the car back without waiting for the term to end and then the final settlement, which would be way under current market value

Not really what I was getting at. Plus the 50% also includes the balloon so in the case of a Mach Es large balloon you wouldn’t hit 50% until pretty much month 48 of a 4 year PCP so voluntary termination as it’s called is pretty useless if you wanted to get out early.

Anyway that’s really off topic.

 

[nvabill]

Just thinking allowed really, has anyone come to the end of their PCP and been able to negotiate the balloon? I have another 3 years and its extremely unlikely I will be paying the balloon as 1) I dont think a 4 year old Mach E will be worth the anywhere near £27k and 2) I will probably just hand back and take out the lease/income tax free scheme my employer offers on whatever EV is the best deal.

Just interested really as Ford are just going to flood the used market making matters worse with used Mach E's that dealers realistically wont be able to shift for anywhere near that balloon figure.

I admit I don't know anything about this but seems to me you could negotiate when you turn the vehicle. Then if they don't play ball just tell them you will be back to buy the car at the much lower price when they put it back on the lot.

 

[Teslaeata]

I believe with PCP, if you have paid off 50% of the original value including interest you could just give the car back without waiting for the term to end and then the final settlement, which would be way under current market value

I doubt that!

Read the contract terms, I’d suggest.

They are binding.

The deal is probably calculated on basis you pay all the instalments though it is likely there be early settlement clauses setting out liabilities, penalties etc.

 

[wenklaw]

I doubt that!

Read the contract terms, I’d suggest.

They are binding.

The deal is probably calculated on basis you pay all the instalments though it is likely there be early settlement clauses setting out liabilities, penalties etc.

Its called Voluntary Termination and g8mb1t is correct, once you have reached 50% of total repayments you can in theory terminate a PCP early WITHOUT any penalties or it affecting your credit worthiness.
The problem is as I stated with large balloon payments you wont reach the 50% paid off landmark required until very late on in for example a 4 year PCP making it a pretty useless tool to use to get out of a PCP.

 

[Teslaeata]

Its called Voluntary Termination and g8mb1t is correct, once you have reached 50% of total repayments you can in theory terminate a PCP early WITHOUT any penalties or it affecting your credit worthiness.
The problem is as I stated with large balloon payments you wont reach the 50% paid off landmark required until very late on in for example a 4 year PCP making it a pretty useless tool to use to get out of a PCP.

In that case, I defer to your legal expertise.

 

[wenklaw]

In that case, I defer to your legal expertise.

Christ there is always one. You jump on a thread, try and shoot everyone down followed up by the above remark which clearly is useful in the context of this topic.

If you aint interested in it dont bother posting mate, looking for an argument, i suggest you find someone face to face to have one with rather than being a keyboard warrior.

 

[Teslaeata]

Christ there is always one. You jump on a thread, try and shoot everyone down followed up by the above remark which clearly is useful in the context of this topic.

If you aint interested in it dont bother posting mate, looking for an argument, i suggest you find someone face to face to have one with rather than being a keyboard warrior.

Woah, woah woah!

I just bowed to the superior knowledge you represent you have and gave you credit for it.

You’re very welcome?

You clearly know more than I thought I did having dealt with consumer motor & finance issues but am still always prepared to recognise there’s somebody out there who knows better than me.

 

[wenklaw]

Woah, woah woah!

I just bowed to the superior knowledge you represent you have and gave you credit for it.

You’re very welcome?

You clearly know more than I thought I did having dealt with consumer motor & finance issues but am still always prepared to recognise there’s somebody out there who knows better than me.

Sarcasm love it. Regarding VT if i am incorrect and happy to be corrected whats the deal then, high level summary?

 

[Teslaeata]

Sarcasm love it. Regarding VT if i am incorrect and happy to be corrected whats the deal then, high level summary?

?
I’m not a qualified advisor on such matters though have owned and operated an end of term de-fleet function dealing with c1,000 cars per month with a prestige manufacturer’s finance arm and my experience of the finance market is that if you wish to leave early you have to buy your way out and that might mean additional dilapidation penalties if there’s any non fair wear & tear damage/condition.

There are online facilities to test the possibility and cost where you can enter your own figures.

https://www.leasingoptions.co.uk/advice/pcp-other-finance/pcp-early-settlement-calculator

However, an early termination application on the actual vehicle made to the finance company involved is the only real way to be sure.

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