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[Viral_Jim]

I've been looking at model S again (I know, I know) but it raised an interesting point with wider relevance.

Looking at a 48 month PCP on a (nearly new) model s, a £70k car, its £10k down  and 48 months at £596 so £38,608 on a 10k p.a. pcp. But if I took that deal and walked away after (say) 44 months, having done 150,000 miles in the car I'd have paid £36,224 total, so more than half.

Do I have it right that I could just walk away from this and theres nothing the finance company could do as long as I've paid for 50% of the car, and take reasonable care of it?

[Field Marshal Dr. Opti]

I've been looking at model S again (I know, I know) but it raised an interesting point with wider relevance.

Looking at a 48 month PCP on a (nearly new) model s, a £70k car, its £10k down  and 48 months at £596 so £38,608 on a 10k p.a. pcp. But if I took that deal and walked away after (say) 44 months, having done 150,000 miles in the car I'd have paid £36,224 total, so more than half.

Do I have it right that I could just walk away from this and theres nothing the finance company could do as long as I've paid for 50% of the car, and take reasonable care of it?

Tesla?

[Field Marshal Dr. Opti]

I believe Al will have the answer.

[STEMO]

I've been looking at model S again (I know, I know) but it raised an interesting point with wider relevance.

Looking at a 48 month PCP on a (nearly new) model s, a £70k car, its £10k down  and 48 months at £596 so £38,608 on a 10k p.a. pcp. But if I took that deal and walked away after (say) 44 months, having done 150,000 miles in the car I'd have paid £36,224 total, so more than half.

Do I have it right that I could just walk away from this and theres nothing the finance company could do as long as I've paid for 50% of the car, and take reasonable care of it?

You'd owe them a ton of money for excess mileage...

[Viral_Jim]

Yes.

An itch I will just have to scratch, I fear.

Need a new mortgage soon though, selling the house next year and I don't want that kind of money showing up on my monthly outgoings until the deal is done.

That said, I'm curious as it seems like an anomaly in the terms of the pcp finance agreement. For high mileage users such as myself it seems, at first glance a way to "beat the house" and run any car, for any number of miles for 50% of its purchase price over 47.9 months or less. 

[Viral_Jim]

You'd owe them a ton of money for excess mileage...

That's the point Ste, i don't think you do, under voluntary termination rules you only need to take reasonable care of the car. The sources I've read make no mention of the excess mileage clause. Only that you can terminate if you pay 50% of the total balance owing.

I agree, I dare say Al will have the answer

[STEMO]

You'd owe them a ton of money for excess mileage...

That's the point Ste, i don't think you do, under voluntary termination rules you only need to take reasonable care of the car. The sources I've read make no mention of the excess mileage clause. Only that you can terminate if you pay 50% of the total balance owing.

I agree, I dare say Al will have the answer

Can't see it, Jimmy. Every plan I've looked st has had an excess mileage clause.

Anyhow.... just imagine if you spent the next four years driving around in cars such as the one you have now. After that time, if you made yourself bank the money instead of using it for pcp payments, you'd have a good wedge to spend/use as a deposit.

[Viral_Jim]

True, the Model S is like any super saloon, however you power it it isn't about economics. It was just where I first came across the idea.

What I was thinking about was the same idea for (say) a hyundai ioniq, £25k new, so, with the above in mind, you could drive around for nearly 4yrs and do 150k for £12.5k plus finance costs (4.9%), which would be considerably less than the diesel cost I incur now on the Turnip, and I'd never have to lie under the thing on a cold saturday morning in november.

My real point wasn't about the S, but rather about the anomoly in the halves and thirds rules. TBH I blame the premier inn, I there was more to do, or even p)rn on the telly, I wouldn't be forced to think about things like this 

[Sir Tigger KC]

TBH I blame the premier inn, I there was more to do, or even p)rn on the telly, I wouldn't be forced to think about things like this 

Go and chat to the girl in the bar.    You're clearly in there! 

[Field Marshal Dr. Opti]

True, the Model S is like any super saloon, however you power it it isn't about economics. It was just where I first came across the idea.

What I was thinking about was the same idea for (say) a hyundai ioniq, £25k new, so, with the above in mind, you could drive around for nearly 4yrs and do 150k for £12.5k plus finance costs (4.9%), which would be considerably less than the diesel cost I incur now on the Turnip, and I'd never have to lie under the thing on a cold saturday morning in november.

My real point wasn't about the S, but rather about the anomoly in the halves and thirds rules. TBH I blame the premier inn, I there was more to do, or even p)rn on the telly, I wouldn't be forced to think about things like this 

This seems reasonable. Jaguar charge an uncompetitive 7.9% for their PCP deal.

'Just do it', Jimmy. You know you want to.

[Doctor Gollum]

You'd owe them a ton of money for excess mileage...

That's the point Ste, i don't think you do, under voluntary termination rules you only need to take reasonable care of the car. The sources I've read make no mention of the excess mileage clause. Only that you can terminate if you pay 50% of the total balance owing.

I agree, I dare say Al will have the answer

PCPs, being a form of leasing, have crippling mileage charges... On a £70K car, I would expect these to be around 35ppm

Best bet would be £1,000 deposit, or more, but your only throwing any extra away when you return it, and 48 months straight HP. Once you have made the 24th payment, ring the finance company and ask them to collect the car as you wish to voluntarily terminate the agreement as per your right. They can only charge you a penalty if the car has damage/not been serviced/is full of river water/not roadworthy. Expect to spend a few quid removing any sign of the mileage- broken/damaged trim/wheel refurb/proper Valet. Stone chips proportionate to mileage are fine, busted undertrays and barely legal tyres are not.

If you put down £40k and HP the rest over 48 months, you would end up paying £55K plus interest at the 24 month point, whereas with £1k deposit, would see around £1,500 per month, leaving a halfway total of around £38k. Do the maths... Higher monthlies vs greater deposit and place the order accordingly. 

Incidentally, you can return the car at any point before halfway but you are liable for halfway less sum paid... Equally you can return without prejudice at any point after halfway, although doing this will cost you the residual value. Fine if you're talking mainstream hatchback, but Tesla residuals are strong (hence the favourable lease/PCP rates).

Remember also that the residual value only becomes real money when you sell it, assuming of course that the finance is clear.

[Doctor Gollum]

To be clear, only PCP if you are drunk or someone else is paying.

[Field Marshal Dr. Opti]

TBH I blame the premier inn, I there was more to do, or even p)rn on the telly, I wouldn't be forced to think about things like this 

Go and chat to the girl in the bar.    You're clearly in there! 

Being a northern girl there will none of this 'shaved pussy' crap. Full bush only up north.

[Doctor Gollum]

Incidentally, https://www.tesla.com/en_GB/model3

Just saying

[Viral_Jim]

Incidentally it looks like I'm right, there's no excess mileage if you voluntarily terminate the agreement. So you can sign up for a 5k p.a. PCP and do 50k/yr and as long as you've paid half you can walk away from you 150k car you agreed to do 15k in.   . That said you'd need to fight for it.

http://www.thecarexpert.co.uk/car-finance-voluntary-termination-pcp-hp/2/

In this scenario PCP seems to have the edge because under HP you reach 50% paid after 2yrs 1 month (ish) and 83k miles (assuming 40k/yr). Whereas for the same 50% of the purchase cost you could run the car for 3yrs 11 months and 157k miles.

The only thing you would have to do is tweak the PCP such that you have *just* less than 50% of the car's value left after 48months. Seems like a good option for putting 180k on a Model 3 over 4yrs for £18-20k