I can't help thinking, to get your full and complete attention, this meeting would have been better filmed in these chaps offices, especially as both partners could then have been present to best advise you? But as always Pete, many thanks for the video!
@PetrolPed
5 жыл бұрын
I know, sadly that wasn’t possible and we worked with what we had 😥
@teggsy2165
5 жыл бұрын
@@PetrolPed No stay away from an office and stay in that 2 seat Mini of yours because you can not sign any money away while driving ie both hands on the road you know and sitting on your wallet? And you will stay richer for Xmas,and still own Ruby who one day will be a rare thing. But all jokes aside it is very easy to buy on HP you find out the trade in price,the total end of term cost and the cost of the car you are buying. And last of all put as big a deposit as you can afford to reduce the HP interest and never buy a new car unless it is 0% interest and you just have to have a brand new car or like you said certain options may dictate new or used. And always walk away and think over the deal away from the seller if possible ((they all tell you the deal will not be there next day unless you take it today)so you can do your home work on used and new car you are buying. I say all this because i have changed my car every year now for the last 5 years (late life crisis before you die kinda thing)and traded them all in and i have never payed above 7.5% interest if you keep the HP term low as you can.never more than 3 years in my case and all were used i bought,but i bought on a whim first time. And if no test allowed i walk away,and i always explain i want 30 mins drive at least,and if your worried about the cars lights ask for a test drive when its dark too if possible as some cars just have rubbish lights. And this is my last main point i always ask the sales person to write down the trade in price offered on my car and warranty free service or anything we agreed on,new car reg OFC,get the HPI check off them too and Any past service history and Mot data they may hold,and any promise to to tidy the car up you agreed in writing because things become vivid and sales people seem to lose their memory as well as you about what was really agreed if they will not outline in draft or scrap paper even the verbal deal and sign it i walk away,and i am sick of after service phone backs from dealers they never get back to you once you bought the car and they say they are prepping it or servicing it once they got you to sign on the line you join the wait list and BS list of service people then.
@highgate14
5 жыл бұрын
Depends what type of car owner you are. If you rarely change your car then buy it outright. If you like to drive a new car every 3 years and do reasonably high mileage, then financing is the best option.
@ozodyssey5528
2 жыл бұрын
Really interesting catching up on this 3 years later with an almost inverted market (i.e. used prices higher than new). Still sound advice though, the basics of checking the APR and not focusing on the monthly payment. Interesting to see how finance companies are calculating the post-PCP GMFV in the present climate. Seems they dont think this inflated used car market will last long!
@PetrolPed
2 жыл бұрын
👍
@yellowa4725
5 жыл бұрын
I agree totally with what's been said. We see so many people who are sold a vehicle solely on a monthly payment, especially on new vehicles and are left in a massive hole. Finance can work so well for people if they understand what they are doing or have it set up and explained well by the good sale person. A decent dealer will want to give you a package to suit you because they want to be able to do business with you in the future, if your left in high negative equity 75% of the time it will be because the people selling you the car weren't interested in you! I personally would never buy a brand new vehicle unless it was something in short supply and likely to stay close to or rise above list price. There are so may cracking deals available on vehicles 3 to 36 months old. Good advice
@PetrolPed
5 жыл бұрын
Cheers 👍 Glad you agreed with what was being said 😎
@garrymatthews4430
4 жыл бұрын
Having worked with the military, serving and non serving this is a great a great way of making sure they are recognised for everything they have given to us. I am sure you will enjoy, and probable be scared shitless, but still very worth while. Have a great time
@jonscoupe
5 жыл бұрын
Excellent video Peter. I think the answer is, don't get out of your depth. Most car lovers buy with their heart and not their head. That's why so many cars are on finance. I love cars and have always managed to keep my budget under 10 grand and I always get what I want whether its fast, prestigious or just practical and save up a few quid a month towards the next car. Cheers, Jon.
@PetrolPed
5 жыл бұрын
👌
@nickhastings6705
5 жыл бұрын
I’m a big believer in financing tbh. If I had the cash to buy say an i30N new, I still wouldn’t. Not only is it a depreciating asset that will drop a lot in value, you aren’t guaranteed any future value. There’s also better areas to put your money in. On the other hand, finance rates can be stupid. E.g. a demo Golf R at my local dealer that was priced at £36K; with the interest rate they wanted (10.9%) , over 4 years, you would have ended up paying £45K. That’s £10k in interest and a car that’s now more expensive than a brand new car and is just daylight theft. The best side to finance is either 0% or low interest rates. I don’t pay any interest on my 308 GTi which means all I’m paying for is the car. But also being on pcp it gives me the chance to just hand it back in at the end of the term. Yes so I don’t have ‘anything to show’ for the money I’ve spent (deposit and around 30 months of payments), but I also have been left with the rest of the cash to invest in an appreciating asset to not only get a return but would also cover the cost of the car by itself. People just need to be careful.
@PetrolPed
5 жыл бұрын
Sometimes a lower APR can be hidden in the balloon ;-)
@rscholey85
5 жыл бұрын
Bank loan or save up buy it out right far simpler to understand lol, you don't have to deal with any dealer being sly then either 😹
@deadkemper
5 жыл бұрын
I've always done that.. Saved for toys...loan for work
@regriviera3765
3 жыл бұрын
Agree with that, if you have a good credit rating, personnal loan, best way, dont buy brand new, huge depreciation, better deals to be found, 18 months, 2 years old, if you dont like the 2 year old plate, buy a personnal plate, you can always sell the car and pay off the loan if times get hard, I would never PCP, your giving the dealer even more money and losing out on the deal.
@michaelcameron2292
3 жыл бұрын
Mix of savings and bank loan everytime then you dont get ripped off
@KewlBee
5 жыл бұрын
6 - 18 months old seems to be the sweet spot for nearly new cars. When I was looking for a new car earlier this year I went to a site and used the configurator. My perfect car with all the options I wanted was £63,000, but by going to a well known "buy your new car through us" site, that went down to £55,000. Instead I looked at nearly new and got an 18 month old almost perfect (only had 2 zone climate control instead of my desired 4 zone) car for £34,000, which also came with a 2 year warranty. And it's red!
@Bryan-fg3ey
5 жыл бұрын
I can fully understand that,slap on a £399 ' private plate' and the whole world assumes you have a new car
@PetrolPed
5 жыл бұрын
Nearly perfect then 😜😂 Great deal though 👌
@jajarvis1980
5 жыл бұрын
Proper buyer. Well done
@nohedes
5 жыл бұрын
Driving a nice car is expensive - don’t try and rationalise it with ‘man maths’, you only live once!
@KewlBee
5 жыл бұрын
@@nohedes Oh I bought it! And drove through France, Switzerland and Italy during the summer 😬 . 2500 miles of pure joy, without a moments worry. Through the Grand St. Bernards Pass...
@damindra
5 жыл бұрын
Chris and Michael are brilliant as my current car and my dad's car were bought with their help, I am in a 6 series msport gran coupe and dad is in a Audi sline plus Q3!!
@PetrolPed
5 жыл бұрын
Thanks for this. That is great to hear 👍
@damindra
5 жыл бұрын
@@PetrolPed I got my car 2017 october!! I got in contact with Chris after your video with Chris in 2017!! sort me out of a rubbish deal with VW!!!
@chrissharman9169
5 жыл бұрын
Good advice Pete. So important to look at all aspects ie monthly payment, final balloon and apr for the overall cost inc dreaded interest.
@PetrolPed
5 жыл бұрын
👍
@geofo60
5 жыл бұрын
I wish you luck Peter, finance is a mine field that I have never walked into ( mortgage being the exception & that’s almost at an end - phew !). Maybe it’s because I’m a bit “old school” & something my grandparents told me at a young age; Never a borrower or lender be. I have seen so many friends & family fall foul of finance deals, something unexpected happens and it’s ended in tears. I am sure you will get the best advice you can & at the end your dream will become reality. Good luck mate & look forward to seeing the process over the coming days, weeks. Cheers Geof
@PetrolPed
5 жыл бұрын
I totally agree mate. We are lucky to not have loans (apart from two mortgages which sadly aren’t nearly finished 😂). A car loan is a big thing for me 😳
@jonmorris1999
3 жыл бұрын
Best piece of advice I can give is don't borrow the money from the dealerships. 2.8 - 3.5 % apr is available at most UK banks. Don't buy extended warranties or gap insurance
@MrMondeoST220
5 жыл бұрын
Great video, very useful to have PCP explained in basic terms. Looking forward to seeing your shortlist of cars!
@PetrolPed
5 жыл бұрын
I test drive the first one in next Fridays video 😜
@andysmyth44
5 жыл бұрын
Contrary to what was discussed, if you are able to put down a larger deposit the interest that you will pay will be less. Your monthly payments will also be less and by saving the difference in monthly payments between the two deposit levels you will accrue a decent balance with interest earned at the end of the term to help with paying any balloon payment or contributing to the next deposit. The example used was a deposit of £20000. Against a £50k car this could reduce your monthly payments from £550 monthly to less than £200 monthly. If you can afford £550 monthly, then you could be putting away £350 a month providing a healthy £16800 at the end of a 4 year term. Just a thought!
@PetrolPed
5 жыл бұрын
Not necessarily Andy. I have just had two quotes done for a car. One with a 13K depoist and one with an 8K deposit. The 13K option had monthly payment that were more but they both had nearly identical Total Cost of Ownership over the 4 years of the deal !!
@andysmyth44
5 жыл бұрын
Petrol Ped with the same APR and balloon payment?
@TheTechnician44
5 жыл бұрын
Bmw do 0% finance now. M4 competition is one of them on that offer..... no brainer
@philipparkes5079
5 жыл бұрын
Hi Ped Very informative. Have to agree with you on not buying new. Our current 3 moderns were purchased, two at 12 months old, the third @ 2 yrs old, mileage 7k, 10k, 10k, all with warranty and total saving in excess of £37k on new price! And superb specs as a bonus, and have proved to be excellent buys.
@PetrolPed
5 жыл бұрын
That is what we have always done too 👍
@antkew23
5 жыл бұрын
Tried HP, PCP, whatever you want to call it. My last few cars have been financed with a personal loan. All other options are making someone else money and personal loans are the best APR. Plus a loan gives the best flexibility and my current loan is 3% APR. If you buy a good car, that doesn’t depreciate too much this will always give you a good deposit at the end of the loan. Car dealers make their main chunk of money from finance they sell.
@HamJumbo3
5 жыл бұрын
Just save up seems to work for me..... pay in cash & haggle, dont trade anything in neither.... the golden rule... i keep Cars for years tho last one was 10yr old & current one bought at 9months old saved a load makers ex demo car just like Brand New. nearly 4 years in & no regrets
@PetrolPed
5 жыл бұрын
👌
@99crossy
5 жыл бұрын
Found myself really excited to follow this car acquisition journey! Can’t wait to see what you end up with! The 4C guys are great! :-)
@PetrolPed
5 жыл бұрын
I’m excited too. Glad you are enjoying it 👍
@obg6446
3 жыл бұрын
My wife and I ordered a new car as a car that was 1 year old was only 5£ a month cheaper, we have no intention of getting rid of it so for us the mini finance was the best deal. We ordered a clubman s sport and hopefully it will arrive in March
@PetrolPed
3 жыл бұрын
👍
@terryboy1235
5 жыл бұрын
A unique insight into buying a car and how to simplify financing one,cheers got that Ped great video looking forward to what cars they bring to the table!👍🏻
@PetrolPed
5 жыл бұрын
Cheers 👍
@rickh1634
5 жыл бұрын
Just got my S4 with a 2.9% bank loan - shopped around for a while to get the right spec (full select and sports diff) but that was it, no middle man, no weird contract, no balloon or deductions for “damage” and very little interest to pay - money is so cheap right now and will be for a long time.
@rickh1634
5 жыл бұрын
👍 I also have a pristine M3 CSL in a storage facility in the NW. If you wish and we can work out how to do it (no tax, MOT etc) you can have it to review. There’s not enough level-headed (warts and all) reviews on them unfortunately.
@wag-on
3 жыл бұрын
Have you ever considered what happens if your vehicle is stolen and on finance? I ask because insurance companies will only pay out current market value and not showroom prices. You might want to look into GAP insurance which would make up the difference. I know someone who had bought a brand new Mercedes Sprinter for around £30,000, it was stolen less than a week later and the insurance company eventually offered something like £22,000. You still owe the finance company!
@PetrolPed
3 жыл бұрын
Yep 👍
@nonamenameless5495
4 жыл бұрын
There s simply next to no scenario I could think of making me see car financing an option. However there are exceptions such as you really need a car whilst lacking funds to buy one in the first place AND not having one would strap you from income OR you can seal a deal on whatever car that will not see a higher depreciation than the inflation rate making that car an investment. It s simply a bad idea per se but yes, some car financing companies certainly offer better deals than certain banks but regardless, it still remains a deal ppl should avoid. Debt is fine when it goes with the idea of investment or is being made up for by opportunity costs but other than that, just nope...
@gzk6nk
3 жыл бұрын
I've always bought new cars for cash and negotiated a discount with the dealer. But now, PCP has buggered that up. The dealer makes almost all his money on the PCP deal - there's not much mark up on the car so not much margin to negotiate. So what you do is take a PCP deal with a sweetener from the dealer / manufacturer (Mazda give you £2K for instance if you take out PCP) but cancel it within the 14 day cooling off period, paying the outstanding balance and interest only on the days the PCP ran for. It's a silly system, but so is PCP, designed for people to buy stuff they really can't afford.
@GRfourfun
5 жыл бұрын
I just used a mortgage broker to find me the best deal on my new house and liaise with the solicitors etc, I was happy to pay the minimal fee for the time it saved me and their expertise, so I understand you doing the same for your new car. Exciting times. Can’t wait to see what you get Peter!
@PetrolPed
5 жыл бұрын
Good analogy :-)
@bishy33
5 жыл бұрын
I only ever pay cash for a car and buy what I can afford, unless it's zero % finance then it's a mugs game IMO
@jord9261
4 жыл бұрын
Not really because if you buy something with delivery mileage on, or a pre-reg they've normally deprecated 20-40% off their value. 10% apr adds a few thousand back on the car but a 30k car could be had for sub 20k. Or if you're willing to go slightly second hand (up to 5,000 miles on the clock) 35k cars can be 20k. There's a fine balance so long as you aren't hellbent on a brand new car.
@stuartcooper3670
3 жыл бұрын
You clearly don't understand how financing works
@downshiftpedal
5 жыл бұрын
Best way to get a Porsche is leasing one because of their very high resale value monthly rate is lower than financing and you don’t pay a penny at the end of lease.
@noshism
5 жыл бұрын
Apologies if you received negative comments from me, my account was hacked a few days ago - late last week Fri & Sat I think. Enjoying the content, keep up the good work!
@PetrolPed
5 жыл бұрын
Didn't notice so no worries :-)
@andyross37
5 жыл бұрын
Brilliant video Pete, very interesting. Great advice and pretty much sums up what I've been thinking. When I bought my JCW it was one of the first F56 JCW's so I had no choice but to buy brand new and I admit I did put almost every extra on it, and I was fortunate that when I wanted to get rid of it a Mini dealer was very very keen to buy it. I'm going to save up over the next year and was thinking of putting a big deposit down on my next car.......now I understand 10% is sufficient and I'll probably buy a 12-18 month old car. Thanks to advice in the video. Appreciated as always!
@PetrolPed
5 жыл бұрын
Glad to have saved you some money 😜😂
@andyross37
5 жыл бұрын
@@PetrolPed LOL. I'll only spend it on something else Pete! At the end of the day, it's only money, but money I get to spend on something else........what will I buy though.....
@ChrisFEJackson
5 жыл бұрын
It made sense to me....I bought my 2nd VXR J Astra fully loaded with all options as an ex demo with 2k on the clock for £25K, full price £38K+ car was less than 6 months old, oh I financed half of it through a bank loan from my bank wich had the lowest apr than any finance company. Oh my first brought brand new with 0% apr lol.
@alexmalcmac
5 жыл бұрын
The other way of financing is to get a loan over an extended period, keeping the payments low like a pcp and the interest rate is often a lot lower. If you look at Sainsbury’s you can get £25000 at 2.9%apr and over 7 years it’s about £330 a month. You can pay off more if you like and also it makes it easier to decide what to do if you decide to change your car after 2 years. You can sell the car, settle the loan and take out the equity or top the loan up, trade the car in with extra cash.
@PetrolPed
5 жыл бұрын
The risk here is you end up with changing circumstances and a car worth less than you owe and load payments still due.
@slainetheking5521
5 жыл бұрын
Alexmalc Mac This is what I normally do. Usually a maximum 4 year loan thru my bank, at 3%. Finance thru the dealer is often expensive and balloon payments are calculated in a complex way like the guy said.
@alexmalcmac
5 жыл бұрын
Petrol Ped with a normal dealer finance rate of over 6%, yes I would agree you could be left in negative equity in the car, but at 2.9% you are repaying loads off the car from the word go. The negative equity situation normally occurs when you only put in a small deposit down, which is say less then 15% of the value. If you plan to keep the car, this is ok, but if you like to change your cars less than 2 years, then it wouldn’t be enough realistically. Admiral also do PCP’s on cars believe it or not. Magnitude finance also has some good rates. Good luck with the hunt for the next car.
@lydiagould3090
5 жыл бұрын
Great video as usual,Ped. I learnt a lot .I think the HP with the balloon payment should come with a health warning. The lower monthly payments are attractive, because hopefully they won`t compromise your lifestyle .The balloon payment is a distant tanker on the horizon, that you can ignore for 4 years.Your car is gone and you are in negative equity, looking for a 2nd hand Renault Clio!
@PetrolPed
5 жыл бұрын
You can pay off an HP with balloon early and you don’t have to pay the outstanding interest 👍
@chrisbowring4767
5 жыл бұрын
That's exactly what we would advise to ensure against.
@lydiagould3090
5 жыл бұрын
@@chrisbowring4767 Yes , I m quite naiive and not very streetwise. I was too attracted by the low monthly payments, and did not think about the cost I might end up with. Very good advice on here. Thanks.
@19markz67
5 жыл бұрын
In the U.S. We just have a monthly with no balloon at the end. I think that is correct. I am not a financial wizard. The balloon seems like a big nut to crack.
@markmanning8714
2 жыл бұрын
Some good points there, definitely changed my approach to finance in the future. thanks
@PetrolPed
2 жыл бұрын
Great 👍
@markmanning8714
2 жыл бұрын
@@PetrolPed I bought a JCW clubman after watching your reviews. It’s everything you said it was 👍🏽
@bbd777
5 жыл бұрын
great vid as always and im interested in the next chapter talking fiancials
@PetrolPed
5 жыл бұрын
Hard to talk too much about specifics due to FCA regulations 😥
@yvesklein669
5 жыл бұрын
🤞 I think you're going to have a good experience using 4C. Can't wait for the next car!
@PetrolPed
5 жыл бұрын
👍
@bigdavesnokia
5 жыл бұрын
Prefer a low rate personal loan and a bit of savings. (Current one is 2.9%) and buy cars of 1-3 years old. Means you can flog it/change without ending up in negative equity, or pay off the whole term and have something to show for it at the end.
@PetrolPed
5 жыл бұрын
Sounds like a good plan :-)
@frasermacleod7642
5 жыл бұрын
Excellent video. Really good to get more in depth info and advice from this type of financial expert.
@PetrolPed
5 жыл бұрын
Cheers Buddy...still on your binge ;-)
@frasermacleod7642
5 жыл бұрын
Petrol Ped 😁😉
@brad146
5 жыл бұрын
Nice and informative. You didn't talk about Bank loans. Your description of your perfect car sounded a lot like an S6 avant to me 😉😉 Sports exhaust ✅ Sports seats ✅ Panoramic roof ✅ Twin turbo V8 😉 Room for the bike in the back 😉 Good luck with the search. It's the part I always like doing. 👍👍
@PetrolPed
5 жыл бұрын
Stay tuned to the channel Buddy. You are very close to something, but it's not my car ;-)
@paulverney4753
5 жыл бұрын
Great informative video Pete. I appreciate the comments regarding the finders fees made by some, but I guess these guys get access to cars/deals us members of the general public don’t? I also assume they’ll find finance quotes against cars you find yourself? So it comes down to having choice, which can’t be a bad thing. Getting out of my lease car in 6 months and will definitely be giving these guys a call. Thanks and keep the videos coming.
@PetrolPed
5 жыл бұрын
The finders fee is only £600 and yes, they are getting me access to deals I would not be able to find myself. The finance is independant of the car sourcing. If you find a car yourself they are more than happy to help check it and provide the finance. Well worth having a chat.
@powellj27
5 жыл бұрын
Great to see a video on information about car finance. Ideally buying a car cash is cost effective but how can most of us do this with the cost of living rising all the time. I’m happy with my finance and I am aware of my ballon payment. Finance allows me to spread the cost of ownership over the 4 years, I’m lucky as my car continues to increase in value so I’m not in negative equity, however should I win the lottery, yes I would pay the finance off. 🙂
@PetrolPed
5 жыл бұрын
What car have you got ? Intrigued as it’s going up in value 👍
@jamiecox2506
5 жыл бұрын
VW/Audi/Skoda rejected our 1.9% finance deal in Australia because my wife is pregnant. We're lucky that we could pay cash for the car anyway because we live within our means. Booo to VAG but the point is, do not get something on credit that will only lose value over time. We only looked at the 1.9% deal because our savings earned more in the bank.
@mattx4253
5 жыл бұрын
He just said a big GFV is bad. Well it's not because you can hand it back and walk away with lower payments. APR in the 20s lol who gets that kind of credit and if they do shouldn't be buying expensive cars. Negative equity can be VT if it's that bad. Personal loans can be 3% apr up to 25k. My advice is to get a car that you can build some equity up in. For me that limits me to a car of 35 to 40k but ideally I'd want a car no more than 30k if I can help it. Never tried a balloon HP so I dunno about them
@harewood1988
5 жыл бұрын
I think it would be worth explaining the pro and cons if you need to get out of a finance deal early. I change my car ever 6 months to avoid depreciation.
@PetrolPed
5 жыл бұрын
The benefit of HP with a balloon over PCP is that if you exit mid term then you won't be charged the outstanding interest :-)
@leebottrill4044
5 жыл бұрын
Low interest bank loan on a used car will see you best. Not secured against the asset. If your situation changes you’re free to sell the car and pay off the loan. Depending on what car you buy you will probably need to make a year or two of payments to see yourself break even.
@robjfrench1
5 жыл бұрын
Same for me. I'm on 3.9%, free to make over payments and no penalties for paying early.
@gavinivers8941
5 жыл бұрын
Very helpful, but need to watch this video a couple of times to help get you head around finance.
@PetrolPed
5 жыл бұрын
Me too 😂😂😂
@wordreet
5 жыл бұрын
I just borrowed the money from my sister. Thanx Sue! :¬)
@PetrolPed
5 жыл бұрын
😂😂😂
@wordreet
5 жыл бұрын
@@PetrolPed :¬) Well why not keep it in the family, interest free!
@SCYorks
5 жыл бұрын
Excellent video Pete very informative well done about time someone did an honest video on this subject.
@PetrolPed
5 жыл бұрын
Cheers 👍
@19markz67
5 жыл бұрын
What is the cost of his car finding service? My brother tried this and ended up not liking what was found for him. He ended up buying the original truck he found on his own and getting a better deal. Good luck Pedro!
@PetrolPed
5 жыл бұрын
Give Chris a call to chat about you requirements. There is a flat fee charge but you don’t have to buy the car if you don’t like it 👍
@chrisbowring4767
5 жыл бұрын
Nothing if we don't find what is wanted!
@justintrzcinski773
4 жыл бұрын
I thought that if the car was worth less than the balloon you could just hand keys in and walk away, so if you pay a very low deposit is with low monthly and plan to change anyway then pcp is the way to go to derisk. I have always purchased hp because I keep the cars for a long time and then bigger deposits and Apr are more important
@parky2310
5 жыл бұрын
New drinking game - Bottle of Tequila - Take a swig every time Pete says ‘Yep’! - Good Luck! 😂😂😂
@PetrolPed
5 жыл бұрын
You are likely to get very drunk...LOL !
@muckrakingmouse3146
5 жыл бұрын
Good but not totally correct regarding PCP. The most important thing to understand is that it allows you to drive a better, newer and safer car for less £££ than conventional hire purchase. That’s why it is so popular.
@PetrolPed
5 жыл бұрын
Yes, but the car still needs paying for at some stage. If you change cars regularly it can help you get into a better car. But ultimately you need to be able to pay it off or exit the agreement 👍
@teggsy2165
5 жыл бұрын
But that's wrong as new cars have recalls for faults,almost new and pre reg cars can be good deals too if still under manufacturers warranty!
@muckrakingmouse3146
5 жыл бұрын
Terry C yes they can as you can take out PCP on used cars as well, same rules apply.
@muckrakingmouse3146
5 жыл бұрын
Petrol Ped 99% of people won’t ever pay off the residual and keep the car, it’s better to upgrade into a newer vehicle. The deposit for a new deal is always less than paying of the GFV unless you are upgrading to a much more expensive car.
@chrisbowring4767
5 жыл бұрын
PCP is popular as that's typically the only thing offered. Equally, any deposit is lost so if the buyer knows that at the end they will likely have to hand the keys back and start again that's fine. But if you wish to exit early as life changes or want to protect your deposit there are better ways.
@HQBProductions
5 жыл бұрын
Now that was an interesting and very honest appraisal of car finance and the PCP fixation that has gripped 87% of car buyers. I was pleased to hear that the objections and figures which I had worked out tie in with the advice and warnings. I fear that so many will be in a bit of a problem when the contract ends having been sold only the “strap line” of “£199 down, £199 per month for three years then bring it back and swap it for a new one”. That is all people want to hear and do not read the small print. Your friends seem to be excellent advisors and will no doubt guide through the purchase carefully and for me, my 90 minute battle with the showroom PCP wrestler was worth it...I WON!!! Now your next car....a 66/17 plate Porsche Macan GTS or that A45 AMG might be on your list??? I’m looking forward to your actual choice and those pre purchase test drives!!! Richard
@PetrolPed
5 жыл бұрын
Cheers Richard. Both of those cars are on my list. First test drive drops this Friday at 6pm :-)
@HQBProductions
5 жыл бұрын
Petrol Ped Now those tests I am looking forward too!! Both were on my list but AMG Ride was too firm for my wife and I was on the way to try the Macan when I found the Discovery Sport which was a great deal cheaper...and I hope not for a reason! Roll on Friday!😎😎
@PetrolPed
5 жыл бұрын
Friday is a 718 Cayman S ;-)
@HQBProductions
5 жыл бұрын
Petrol Ped Good work!!!...go for the Miami Blue or Crayon with a dark red interior!!😎😎😎
@Pmjs
3 жыл бұрын
I would never buy a new car as you loose £1,000s just by driving off the Forecourt. I bought my 1st nearly new car a Peugeot 405 1.6GR in 1993.
@ghowells5433
5 жыл бұрын
Lots of really common sense points, great video. Interesting to see the scary balloon payments that some you tubers have across their car fleets.
@PetrolPed
5 жыл бұрын
I can only imagine 😳
@johnelt3278
3 жыл бұрын
Just catching up on your vlogs ( great by the way ) that is so interesting listening to Chris. I am thinking of changing my car and not sure whether px + cash, pcp, hp.
@DavidWhite-uz7ob
5 жыл бұрын
Would have been good to discuss leasing, this is very popular too and perhaps less costly, or at least more predictable.
@PetrolPed
5 жыл бұрын
Not an option I am looking at but maybe we should have mentioned it 😥
@ScenesThroughTravels
5 жыл бұрын
Very wise words from Chris , He certainly knows his stuff !!
@PetrolPed
5 жыл бұрын
He sure does :-)
@alexking3446
3 жыл бұрын
I have to say I think I’ll stick to a used car bought outright or finance a nearly new car. It’s just not worth losing all that money for a new number plate.
@Bryan-fg3ey
5 жыл бұрын
My guess ,based on peters wish list of 4 items is a Porsche macam.
@PetrolPed
5 жыл бұрын
Mmm...wait and see 😜
@blackflagpirate3444
5 жыл бұрын
Wish you luck with the new car and getting the wright deal Pete.Think the best Think is to buy a really good car and keep it as long as possible.Even wear and tear bills wouldn’t cost as much as finance.But Who what’s the same car for ten years.I suppose it depends on what you buy.I would be very happy keeping my TTs for ten years plus.Years ago people used to buy a car and kept it for ten years plus.HP could be at least £500 a month.If you bought a car from new and paid it of in three to four years,you be would free from paying £500 a month.The repair bills and maintenance on a ten year old car wouldn’t be £500 a month.Example if you paid £500 a month for a car on HP and paid it of in four year.Then you kept that car for another six years,that would be six years free of HP that works out at £36.000 you would saved not being on HP for those six years.Yes you would have to pay for getting the older car repaired but if you took of £5.000 for this you have still saved yourself £31.000 😊 So the simple maths is £500 per month x 12 for the year equals £6.000 x six equals £36.000 You could save that money yourself and buy a new car every six years 👍 All HP deals are bad from what I have just worked out.
@BV_Beve
5 жыл бұрын
Interesting video with lots of fairly obvious but good general finance advice. Couple of things not talked about, like how much would 4C Prestige charge for a preliminary meeting for an ordinary punter, am presuming you were not charged for this consultation. Also perhaps even more importantly how much are the total charges for 4C not only finding 'the car' but also 'the finance package' and just how that works out with the overall cost of the whole deal (am also assuming none of that is going to apply with your purchase?), so with the 4C deal is it actually really cost effective how much does it add to the cost of buying a car?
@terrymcdonagh5439
5 жыл бұрын
Interested in a reply to this - seems perfect but its like getting Phil and Kirsty to find my next house - they presumably charge a fee and arange the finance - margins are so tight these days that I assume the professional advise they give doesnt come free?
@PetrolPed
5 жыл бұрын
Firstly. Give Chris a call on the number below and just have a chat. That will cost you nothing. They do charge a flat fee for helping you to source a car but it’s not as much as you would think. Well worth it for getting access to the contacts they have and their finance is super competitive 👍
@PetrolPed
5 жыл бұрын
A friend of mine bought a 320d BMW through them and was delighted. It doesn’t have to be an expensive car 👍
@PetrolPed
5 жыл бұрын
See my reply. Give Chris a call for a chat. He won’t charge for that. There is a fee if the source a car for you but it’s not as much as you would think 👍
@chrisbowring4767
5 жыл бұрын
Great advice is always free and plentiful. If we actively source a car we charge a flat fee once car is secured.
@tonyrussell1026
5 жыл бұрын
20 years ago this Sept I was fortunate enough to buy outright a Honda S2000. I still have it. The car was circa £28k. If I was stupid enough to change this every 3 years for something similar for the sake of saying to my mates look at my new car I would have spent (wait for it) about £84000 .........for a car technically I still don't own. Finance acumen is key and young people today just don't have it. Get a bank loan, buy the right car and keep it. The fact that your mates might have a newer car , the reality is no one gives a shit. They might as well just set fire to the cash, that will actually be cheaper .
@PetrolPed
5 жыл бұрын
Loved my S2000 👌
@domd8589
5 жыл бұрын
My dad told me borrowing money for a depreciating asset is not a very sensible thing to do
@PetrolPed
5 жыл бұрын
Wise words :-)
@e1337prodigy
5 жыл бұрын
10:45 the problem with having a look at a car that is 5 years old is by the time your car gets to that age the price of that car will probably be even cheaper. I'll still never do finance, you're paying interest. So you're paying more than what the car is worth in the long run. Just crazy. I see absolutely no benefit to any finance deal. If it's because you can't afford to buy the car outright, then it's because you can't afford the car, so go for something you can afford.
@PetrolPed
5 жыл бұрын
I don’t disagree. I did that with my current car. That is why is did this video to understand the pros and cons of doing it a different way 👍
@ThatguyGears
5 жыл бұрын
So what if you're 25, in a good job and have just bought your first house but don't have the capital to pay for a 30k car outright what would you suggest then ?
@Tibs747
5 жыл бұрын
I'd say the majority of people finance their car and it works perfectly well as long as you do your homework and the monthly payments are reasonable in relation to your wage and lifestyle. You lose a big chunk of money if you buy outright as well in depreciation and resell value. It's really not rocket science!
@TheInfidel11
5 жыл бұрын
That's not true at all. Maybe you have never actually had the cash to buy a 30k+ car. Let me break something down for you chap. Let's say I have 40k to spend on a vehicle. I can pay cash and now i don't have 40k in my bank. The money is simply depreciating in my car. Or, I can negotiate a low APR to an organization willing to essentially give me 40k for 4% per year. Then I get the car, and still have 40k in the bank in which i can invest and easily make 6-8% on or more per year. Now i drive a car and my 40k is making me 2-4% and eats a piece of the depreciation. You "see absolutely no benefit to any finance deal" because you don't want to see any. Stop being lazy.
@e1337prodigy
5 жыл бұрын
@@TheInfidel11 actually I do have the cash to buy a £40k car that's why I don't get finance. What is the total you pay for that £40k car? Include all your deposit, monthly payments over years with the interest and then the final "balloon" payment?
@semperbauhaus
2 жыл бұрын
I’m not knocking car finance; to use the reasoning that car finance is fine because most people have it would be like saying cancer is fine because most people have it (were they to). Just because something exists or is in place does not make it right.
@TheBendalina
5 жыл бұрын
Bank loans are the lowest rates but when buying a car if you take the finance with the dealer normally price ends up better!? If your keeping car for 2/3 years leasing can be the cheapest way.
@PetrolPed
5 жыл бұрын
Indeed 👍
@davidkershner8642
5 жыл бұрын
great video ... thanks Pete
@PetrolPed
5 жыл бұрын
Thanks David, glad you enjoyed it :-)
@brickbat1966
5 жыл бұрын
Keep them coming Pete
@PetrolPed
5 жыл бұрын
Will do 👍
@baccattack
5 жыл бұрын
Anything in particular you don't like about red cars or is it just the colour? In which case why the red stripes on your current stead :p
@PetrolPed
5 жыл бұрын
My wife once had a very powerful premonition that she was going to die in a red car. She’s not been in one since 😂 I think the right red can look AMAZING 👌
@jamesarmitage8399
5 жыл бұрын
twist is tho, the audi s4 ends up going....for newer s4 model
@PetrolPed
5 жыл бұрын
That was a replacement to Mrs Petrol Peds car, not mine. 4C did provide the finance though. The search for mine continues and 4C have some very exciting conversations going on with manufacturers. Stay tuned.
@ScenesThroughTravels
5 жыл бұрын
.......Chris reminds me of Judge Rinder !!
@PetrolPed
5 жыл бұрын
LOL !
@andysmyth44
5 жыл бұрын
In way of clarification, please see this worked real world example. All figures rounded down. Cost of car £50k, 4.9% APR taken over 47 months and a GFV of £26,307. Two deposit examples: a) £20k deposit with a balance outstanding of £30k, interest payable over 47 months of £5,416 providing new total outstanding of £35,416. Monthly payments of 47 x £190 totalling £8,930; final payment of £26,307. Total cost of car = £55,237 [£20k deposit. £8,930 total monthly payments plus final payment of £26,307}. Example b) £7,500 deposit with a balance outstanding of £42,500, interest payable over 47 months of £7,650 providing new total outstanding of £50,150. Monthly payments of 47 x £507 totalling £23,829; final payment of £26,307. Total cost of car = £57,650 [£7.5k deposit, £23,829 total monthly payments plus final payment of £26,307}. Difference between two total car costs equals £2,413 - plus higher deposit allows for greater saving over life of car earning interest rather than accruing interest charges. Of course there is also a positive interest benefit too of paying the small deposit if this allows you then to invest the difference in the deposits of £12,500. This might provide you with £750 at 1.5% per annum of 4 years. Not trying to be a smart **se here, merely offering a worked example which can make things clearer. When asking for finance ensure that the deal offered i.e. APR and GFV doesn't change depending upon your level of deposit.
@PetrolPed
5 жыл бұрын
Thanks for this Andy. Very interesting.
@carllynch8798
5 жыл бұрын
I’ve brought two cars new and I wouldn’t again. A3 and S3.
@stevecook706
5 жыл бұрын
*bought
@PetrolPed
5 жыл бұрын
😬
@neilsessions9744
4 жыл бұрын
with all the online services and google etc ,how difficult is it to find a car for yourself these days .rather than paying someone to do it for you
@PetrolPed
4 жыл бұрын
With their contacts these guys will find cars and deals that you won’t find in Google 👍
@neilsessions9744
4 жыл бұрын
@@PetrolPed cool ,I guess I only speak from my own experience ,I do enjoy your videos ,cheers
@neilhibbert5201
5 жыл бұрын
Great video good insight to car finance.
@PetrolPed
5 жыл бұрын
Cheers. Are you ‘Style’ Neil ? If so, Tracey says Hi 👋
@danryan574
2 жыл бұрын
What happened to the rav 4?
@PetrolPed
2 жыл бұрын
What do you mean ?
@davecoussens9801
5 жыл бұрын
Great video and very informative Pete 👍👍
@PetrolPed
5 жыл бұрын
Cheers David 👍
@truckerphil316
5 жыл бұрын
Hi great vid am really torn and finding it hard with the whole finance thing am looking at something special for my 40th would love my first brand new car like a ford mustang 2nd hand rs4 or c43 amg but every website I look at like redline £509 plus a month well I have a thing really about paying more than my mortgage for a car but what am not getting is bmw did me a deal 3.5 down 399 a month on a 40 grand car
@PetrolPed
5 жыл бұрын
What is the balloon with that BMW deal ? As Chris says, at some point YOU are going to have to pay for the car. Don't fall into the trap when a dealer says don't worry about the balloon !
@truckerphil316
5 жыл бұрын
@@PetrolPed off the top of my head can not remember I was going from a jag to series 1 bmw so the quality made me walk away. As I may of said to you in other vid's got a lease car now Golf R but it goes back about September want something special was hoping to get my first brand new car maybe a eco boost ford but first choice the GT/ Would it be worth hassling Chris saying what cars am looking at and what rough idea he can come up with got to think built in maintaince as well as you will now it's one thing buying a RS4 Mustang but another maintaining it so if a bit more means don't worry about brakes etc then be the way forward. And of course now more than ever want to be able to waik away after the contract ends as may go back to lease who knows at the min
@teggsy2165
5 жыл бұрын
What do you think about trading in high spec cars to dealers?do you ever get back anywhere near the options you payed for even on a used car the buyer must pay for fully loaded cars but do dealers give sellers bog standard book price as trade ins regardless of the fully loaded spec you may have?
@PetrolPed
5 жыл бұрын
I think there are plenty of options that will add little to the value of you car, but maybe you need to think about the desirability or saleability they will add ?
@teggsy2165
5 жыл бұрын
@@PetrolPed True but what i was thinking it is only the dealer that inherits from the options if you trade in or the new buyer and i see your point too about the resale factor with more options but most dealers will not give much more than stock value in most cases Ped? In my case my 2012 SLK has an estimated £16k worth of options so maybe a private sale would be best for this car now?
@claytonfarlow76
5 жыл бұрын
When I am stopped at the traffic lights and see the cars around me I don't see expensive flashy cars, I see car payments! Just search for Dave Ramsey on KZitem and see what he thinks of car finance.
@ginggur17
5 жыл бұрын
Very interesting.
@PetrolPed
5 жыл бұрын
Cheers 👍
@Classic_Vinyl_Only
4 жыл бұрын
Paying 10% is just throwing money away... pay as little up front as possible I say
@notroll1279
5 жыл бұрын
The only sensible financing for private cars is equity. Twenty minutes of lifetime saved.
@PetrolPed
5 жыл бұрын
Not sure that is always the case ;-)
@speightman79
2 жыл бұрын
Hey Ped...what's wrong with Red mate
@jakehammond7972
4 жыл бұрын
Can car sourcers get cars before they reach forecourt?
@PetrolPed
4 жыл бұрын
These guys have great relationships with a range of dealers and brands. Worth giving them a call 👍
@leesmith9299
5 жыл бұрын
Surely motgage is the cheapest way to lend money. Increase mortgage(or get one) and increase mortgage payments. Simples. I assume Mr Ped owns his home.
@PetrolPed
5 жыл бұрын
Err...not a good idea 😮
@leesmith9299
5 жыл бұрын
@@PetrolPed any reason why? Or just a blanket dismissal with no logic behind it?
@PetrolPed
5 жыл бұрын
Lee Smith Based on the amount being added to the Mortage. It may be a low interest rate but that amount will sit there for the remaining duration of the mortgage, which could be 10-15 years. Maybe even 25. Certainly long after the car is gone 😥
@leesmith9299
5 жыл бұрын
@@PetrolPed that's why I said you increase the mortgage payments. You can over pay most mortgages by 10% of the outstanding balance per year. At that lower interest rate if you overpaid by the same amount as the PCP would have been the extra mortgage will be paid off quicker.
@CleanFinish2023
4 жыл бұрын
Great video but not one to be filmed in a car, I missed what the car was but you certainly need a new one, that one looked as though it was going to fall apart every time you went over a bump!
@Squirrel652
5 жыл бұрын
Like most of us, i struggle to understand PCP and how best to make it work me for me. This video certainly made it easier to digest, so thanks Ped for putting it together. Here's the "but". I can't help to think that i would be much better off putting a lump sum in and getting a loan with a low APR rate? i.e, on a 40k car, 20k up font, 20 loan at 3%. Over 4yrs it's something like £440. What are your thoughts?
@PetrolPed
5 жыл бұрын
It is certainly an option if you have the money to put in. In fact it is how we bought the Audi S4 Mrs PP drives. If you can't wait the save up the deposit then that is when the other options are good to consider.
@taxidmac5907
4 жыл бұрын
Great buying cars cash then keep for 5yr plus for me after 3yrs I will like a new car hp works for me low deposit monthly payment I can afford then after half payments made return car or trade and stay in same budget do not wish to be paying large Bill's for repairs down the road rather put it into a new car basically a form of renting
@j911k
2 жыл бұрын
You didn’t actually explain how hp with a balloon works 🤷🏻♂️
@TM-on4jl
3 жыл бұрын
Agh....enjoyed content,but road noise was crap......
@G1installs
5 жыл бұрын
Terrible mate. You can’t do an interview about technicalities of car finance while driving about on country roads in a mini. And you don’t even know what car you want? Wtf? 😬
@PetrolPed
5 жыл бұрын
I appreciate the audio wasn't perfect but it was the best we could do on the day. Of course I know what car I want...just not going to share it with you guys yet ;-)
@ABusAndBeyond
5 жыл бұрын
Don't listen to the haters Petrol Ped. It was a good video! Intrigued to see what car you go for
@deadkemper
5 жыл бұрын
Understand you want a last of the line omega 3.2 v6 ped....finance..cash! Only one on pistonheads 😂😂
@PetrolPed
5 жыл бұрын
I used to really like those although I'd prefer a Lotus Carlton :-)
@deadkemper
5 жыл бұрын
I just got shed of the week ! i recently was filling up in southend and i an old dude rolls up in a lotus carlton, we got chatting...he says "yer this is a bit rough but is my daily ..i got two " legend !
@VSS1
5 жыл бұрын
7:02 “if a cars 40k someone has to pay that 40k” fundamentally not true. Leasing companies and hire companies buy their cars with an up to 40% discount on them. I know of hire car companies that will buy cars with such a massive discount that after 10k miles they can sell the car for a loss of only 100s of pounds sometimes clear a bit of profit. This is usually down to economies of scale or the car just isn’t that desirable. Hence why you go to hire car companies and get a small executive car and hope you may get one of the display BMWs or VWs but end up with a Kia. They can buy and rent the car for a year or so and sell it for the same price they bought it for but make profit for the entirety of the rent and addons.
@jajarvis1980
5 жыл бұрын
Absolute, total and utter rubbish. 40% discount when the dealers only have 20. Don't be ridiculous
@jajarvis1980
5 жыл бұрын
I just read your comment again and can't stop laughing
@VSS1
5 жыл бұрын
@@jajarvis1980 Oh good God. I can't even recognise your levels of confidence when you're so very wrong. However, I'm pleased you can laugh.
@thomasreed9463
5 жыл бұрын
Just VT your loans after Half way through the term !
@jajarvis1980
5 жыл бұрын
No wonder the country is heading for ruin
@CJ0175
4 жыл бұрын
VT isn't half way through the term, it's paying half the amount borrowed (including the balloon). Typically, on a 48 month PCP, you'll get to VT in month 35-37ish.
@FarzadCheema
5 жыл бұрын
You did not have to make this video in your old and noisy car. The background noise is too distracting.
@PetrolPed
5 жыл бұрын
Sorry. We did actually as on the day we didn’t have another option 😥
@ginggur17
5 жыл бұрын
Evening pal.
@PetrolPed
5 жыл бұрын
Bon soir 👍
@ginggur17
5 жыл бұрын
Petrol Ped , yep shot me up the butt there, I sooooo should have listened in my French lessons up to the 3rd year at secondary school lol!!!
@volodymyrshoniia2424
5 жыл бұрын
Lotus Elise please 🙃
@PetrolPed
5 жыл бұрын
It has to be my Daily Driver :-(
@volodymyrshoniia2424
5 жыл бұрын
@@PetrolPed Maybe Evora then (400, 410, or whatever)? I think I'm going to get an Elise next and daily it.
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