Understanding Car Finance and PCP by Cheshire cars

Here David Bilsborough explains a little bit about car finance and fees then expands to talk about the more recently used personal car purchase or pcp for short.

Hello i’m david bills bread business owner here at cheshire cars based in crewe tricia cars are a used car respected retailer of very fine motor vehicles and have been for 24 years and in that time we get asked many many questions and gratefully asked for our advice and i wanted to reach out and today and explain a little bit in more detail of finance car finance

As a hot topic and i think rightly so people are confused at times about the options and what they should do with car finance so many many retailers will offer car finance what you may not be aware of is that the fca financial conduct authority is the association and regulates all financial interactions in the motor industry when there are a set of guidelines and

Rules and good standards a motor dealer any good mother should be upholding and certainly if the cheshire cars were very much prone treatment customer fairly so all our finance rates will be set currently at 8.9 apr and we don’t charge any fees because that’s another sort of an area that can cause consternation fees these can be as much as three or four hundred

Pounds and it’s not really there’s no benefit to that fee from the incident provider of the finance or the dealer so just obviously ask the question when you when your next step into a showroom do you charge fees with your father’s agreements and then you decide whether you’re acceptable it may be a lower rate in which case the theme may be acceptable but it may be

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In a rate get anywhere so if the rate is the same just coming to anywhere else and do think long and hard about accepting the document with fees on the next sort of consternation area you like his pcp that stands for personal contract purchase and that also can cause problems especially when you as a user have a restriction on the mileage that you can do in that

Car covering that car for a year so if you have a three year agreement on the pcp you would have a smaller monthly payment per month but to get the small monthly payment you’re offsetting the balance towards the end of the agreement and that’s called a gf v which is a guaranteed future value so guaranteed future value is set at the time you take the agreement out

And is based on some of the questions you answer such as how many miles you’re likely to be covering so i would always suggest and recommend that if you think you’re going to do ten thousand miles a year maybe going 12 to 13 thousand miles then it gives you a neckl bit extra so if one year you go a little bit higher you’re not going to be penalized at the end of

The agreement because there is a charge penalty charge to exceed in their mileage of the contract so that’s pcp and i think most people are understanding finance and i just covered that by giving you some some pointers with the with the fees or no fees so that’s david bill spread of cheshire cars hoping you found that look the informative and you can reach out to

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Transcribed from video
Understanding Car Finance and PCP by Cheshire cars By Cheshire Cars