G N K
RMS Regular
Bet he didnt tell his YouTube 'fans' it was on monthlys.
Hire Purchase is what you would typically associate with finance. IE a loan against the car for its value over a set period to cover the cost of the car with interest and at the end you own the vehicle.
PCP is different where you put down a deposit and then pay a monthly price. However at the end of the set period you either have to return the car, trade it in or pay the balloon payment which will then make it yours.
PCP is cheaper monthlies as you arn't borrowing on the full value of the car and the finance company will provide you with a value of what the car is worth at the end of the deal. At the end of the deal if you wished to own the car you would need to pay that amount to the finance company or if you choose to trade the car in you can use any equity in the car to put towards your next car. For example lets say the final value is set at £9000 but the car is worth £10500 you can use the £1500 towards the next car.
The future value is set on a number of factors which is stipulated in the initial contract such as you will return the car in good condition and will not exceed the miles you stated you would do in the car as a car with 50k miles on it will be worth more than a car with 90k miles on it. And if you told the finance company you will return the car at the end of the deal with 50k on it but it has 90k on it they will apply a penalty at a certain price per mile to make up the difference.
This is where BMW will have the issue as in the PCP contract on that M4 he would have agreed to return the M4 in good condition and with the amount of miles on it they would have agreed when setting up the finance. So for example BMW would expect at the end of the deal a 4 year old M4 with 40,000 miles on it so they can predict what that car will be worth when it is returned.
However due to him modifying it so heavily they now may be faced with being handed a 4 year old M4 with 40,000 miles on it which has had major modifications carried out and would be unclear what stresses that would put on the engine and it is less desirable therefore is worth less than the value they predicted at the start of the agreement
Thanks for this. So while HP/Finance gives you ownership at the end of the contract, it's still technically the financer's car until then.
Whereas, if you were to take out a personal loan, the car is yours right off the bat while you make repayments to the loan company?
He did. 2 mins in.Bet he didnt tell his YouTube 'fans' it was on monthlys.
Why do so many take pleasure in his predicament? Has nobody here ever modified a car on finance?
Why do so many take pleasure in his predicament? Has nobody here ever modified a car on finance?
My first car was on finance, a corsa TD. Back in 1999. I had it colour coded, body kit, wheels, exhaust, springs, pump screwed out. I blew it up and had to get its engine rebuilt but I was still able to hand it back after half of the term no questions asked and not a mention of any of the mods. Granted that was 20 years ago but not being able to mod it never crossed my mind the way it would now.
Why do so many take pleasure in his predicament?
He's gone beyond "normal" modifications, if there is such a thing. I would be concerned about the warranty more than anything, if something like a M4 goes wrong I would expect it to be serious money to put right.
I think he has to expect ramifications based on how far he has gone with the modifying and the fact he doesn't in theory own the car.
Why do so many take pleasure in his predicament? Has nobody here ever modified a car on finance?
Don't necessarily take pleasure in it, but have you seen his videos? He drives about like an utter plum on public roads
Really. I'd be interested in seeing a video of him speeding, so please post one...
I have made use of 0% finance on parts though as it makes it easier to stomach some of the spending!