Lotus Finance offers

ewanrw · Post by **ewanrw** » Thu Mar 09, 2006 6:16 pm

Does anybody know if the finance offers on the Lotus website are PCP offers ?

PCP - Personal Contract Purchase where the buyer has 3 options at the end of the term;

1. Hand the car back to the finance company and don't pay final payment.
2. Pay final payment and keep car.
3. Trade car in and have finance cleared.

(Where the final payment is the Gauranteed Minimum Future Value of the car.)

Coz if it is a PCP, they're fricken good offers.

ewan

mac · Post by **mac** » Thu Mar 09, 2006 6:35 pm

Not sure - I know when I bought mine it had a ballon payment at the end.

At the time the S2 residuals were sufficient that I could have handed the keys in and it would have paid of my old car and been the deposit on a new one.

Phone MMC - they'll give you the lowdown - Pauline could maybe advise but I think she down south.

Mac

Lawrence · Post by **Lawrence** » Thu Mar 09, 2006 7:03 pm

I have no idea what a PCP is however

there seems to be 2 offers as I understand it

1/ deposits of between 6k to 10 k (or current car) and pay £300 for 36 months leaves £13-16k to pay off depending on deposit and model selected

2/ £3.2k less of a deposit and pay £400 for 36 months leaves £13-16K or so to pay off

offer varies with model of course and best deal is for the basic model that nobody ever buys

Graeme will explain all

Andy G · Post by **Andy G** » Thu Mar 09, 2006 8:02 pm

Its is a PCP, and looks pretty sweet.

Finance subsidised by manufacturers to encourage sales often works well at typically dead times of year.

The example that show in the advert, shows the ballon payment, depsoits etc, with apr at a typical 3.9% i think

ewanrw · Post by **ewanrw** » Thu Mar 09, 2006 8:03 pm

With a PCP, the value of the car at the end of the 36 months is gauranteed to be at least the value of the final payment.

If its not a PCP you run the risk of owing more on finance than the car is worth at the end of the term.

Is a 3 year old Exige/Elise going to be worth £16k ? Probably yes but 3 years is a long time in the motor industry.

As I'm changing jobs its not viable for me just now, but if there are similar offers in September then its a no brainer

ewan

Just seen Andy Gs post. Its fricken good deal in that case.

Andy G · Post by **Andy G** » Thu Mar 09, 2006 8:09 pm

remember the residual or balloon payment can be used to reduce your monthly payment, but decrease your likely equity in the car.

I'll check it again to ensure I'm right. I think its only valid till March 31st though for now!

Indeed, its PCP, hence why they use "optional final payment". i.e. if its worth less hand back the keys and walk away!

ewanrw · Post by **ewanrw** » Thu Mar 09, 2006 8:15 pm

With a PCP the best thing to do is pay the minimum deposit (to suit your monthly payment) and keep the final payment as big as possible as this means all the risk lies with the manufacturer - Helped the downfall of Rover.

Can you tell I was selling cars until last month

ewan

ewanrw · Post by **ewanrw** » Thu Mar 09, 2006 8:17 pm

With a PCP the best thing to do is pay the minimum deposit (to suit your monthly payment) and keep the final payment as big as possible as this means all the risk lies with the manufacturer - Helped the downfall of Rover.

Can you tell I was selling cars until last month

ewan

Lawrence · Post by **Lawrence** » Thu Mar 09, 2006 9:04 pm

Andy

I don't see the term "optional" with final payment

Ewan

The last 3 or 4 years have all had January to March special offers and it is indeed good to see so many new cars appearing. So presumably the offer works for lots of buyers

I'll wait for the Europa tho'

ewanrw · Post by **ewanrw** » Thu Mar 09, 2006 9:09 pm

due in july isn't it. september offers ?

Out of interest, does it use the VX turbo enine ??

ewan

The_Rossatron · Post by **The_Rossatron** » Thu Mar 09, 2006 9:53 pm

ewanrw wrote:With a PCP the best thing to do is pay the minimum deposit (to suit your monthly payment) and keep the final payment as big as possible as this means all the risk lies with the manufacturer - Helped the downfall of Rover.

Can you tell I was selling cars until last month

ewan

I thought it would be best to have a low final payment, say the final payment was 12k and the car was worth 16k are you not sitting on 4k of positive equity? I've never sold cars

so I have no idea it just confuses me a lot please explain

Lawrence · Post by **Lawrence** » Thu Mar 09, 2006 10:49 pm

Out of interest, does it use the VX turbo enine ??

Yeah of course

It is an S2 VX220 after all with the correct badge

ewanrw · Post by **ewanrw** » Thu Mar 09, 2006 11:57 pm

[quote="The_Rossatron]
I thought it would be best to have a low final payment, say the final payment was 12k and the car was worth 16k are you not sitting on 4k of positive equity? I've never sold cars

so I have no idea it just confuses me a lot please explain[/quote]

Yeah, having equity would be better, but having a larger final payment with the minimum deposit would mean you pay less via monthly payment. e.g £20k car with £5k deposit with £5k final payment means you pay £10k on finance.

OR

£20k car with £5k deposit and £8k final payment means you pay £7k on finance. Higher chance of equity at the end of the term but your monthly payment will be significantly higher.

Also, and this is FACT, you can buy a Renault on a PCP and it works out cheaper than a cash deal, and thats after final payments etc because Renault subsidise it so much

hope this helps

ewan

The_Rossatron · Post by **The_Rossatron** » Fri Mar 10, 2006 12:11 am

Cheers Ewan. Am I right in saying that you don't "borrow" the final payment i.e you don't pay interest on it? or am I way off.

Ah if only I wanted to buy a Renault.

ewanrw · Post by **ewanrw** » Fri Mar 10, 2006 12:20 am

Yes and no, it depends on the manufacturer, but generally the final payment is interest bearing (at a low rate).

Basically the aim of the PCP is a "cost effective" way to get a new car every 3 years. And it promotes repeat custom

Its nice to go to a dealer and blow £25k (or more) cash on a car, but if you had the sensible head screwed on, you'd go for the PCP. Wish I did that with my Impreza.

ewan