Good morning! Just a few quick tips, please, on PCP contracts. I`ve already signed a PCP contract for my son – can I take another one out for my daughter, or can you just make a deal under one name? It will be by 2 different dealers. Is it difficult to get a PCP contract when the credit score is average? Every helper/advice is very appreciated. I`ve read your excellent articles on PCP, but I don`t see any information about it and auto insurance. My son made a PCP deal about 12 months ago, and he was involved in an accident last week when he slipped in the snow in the back of another car. Looks like his car needs to be depreciated. I am afraid that at the end of the day, he will receive less assurance than he has to pay under the PCP agreement. I`m so worried and I was hoping you could give some advice? Hello, Stuart I tried to finish/set the PCP on my new car after four days of collecting the house. When I had to contact the financial company, I was informed that the “cancellation” of the contract (within the 15-day cooling-off period) would be charged a fee of $150 or $443 in the event of a “count” of the agreement. One way or another, I would pay back the rest of the funding. Although I would naturally opt for the cheaper option, I was told that since the financing would never have been considered as ever, I would lose a number of important consumer protection rights, and it was even suggested that I lose the vehicle warranty! It seems to me that this cannot be the case, because in both cases, the net financial effect on the financial company is exactly the same. The financial company was very concerned about how royalties are justified in both cases and made a very unspecific reference to a provision of the funding agreement that I requested but did not receive.
In addition, I received a contribution of $1,000 for funding. I would appreciate it if you would have dinner with me on the best way to conclude the agreement. Thank you very much. Good morning, Alan. For your circumstances, the PCP only deserves reflection if you know that you will change the car at the end of the agreement. If you plan to keep it (and thus pay the number of GMFV/balloons), the higher APR means that you will end up paying more globally than you would with a personal loan. The distributor is partly right, because the two products work differently, but at the end of the day, the RPA will tell you how much interest you pay for the amount you finance.