PCP Deals in the UK

[DJP31]

I've got the car on order so trying to find a 3rd party PCP supplier - I have a quote from Oracle Finance, but the major issue with it is that there is no GFV on the car, so I have to decide if the balloon payment they have given me (approx. £28,000 after 4 years @ 10K) is going to be more than the value of the car and I have a hole to get out of) - my initial thought that the car only depreciating £5K a year is very optimistic

What is your intention at the end of the 4 years? If you want to hand the car back a high GFV is perfect, you walk away and the finance company have the problem. If you want to keep the car then why do PCP in the first place, a traditional loan over a longer period aka HP would be a better option.

If you are somewhere in the middle and aren’t sure then the PCP can work providing you can find the GFV at the end (and decide to keep it of course). That could be by saving up or refinancing the GFV - or a combination of course.

 

[DaveW]

I don’t think the Oracle deals are PCP, so you can’t just hand it back sadly

 

[Groover]

No you

What is your intention at the end of the 4 years? If you want to hand the car back a high GFV is perfect, you walk away and the finance company have the problem. If you want to keep the car then why do PCP in the first place, a traditional loan over a longer period aka HP would be a better option.

If you are somewhere in the middle and aren’t sure then the PCP can work providing you can find the GFV at the end (and decide to keep it of course). That could be by saving up or refinancing the GFV - or a combination of course.

No unfortunately you cant just hand the car back - in effect they give you a loan for the full amount of the car, and for 4 years you only pay back a % - a bit like PCP. However, with no GTV, at the end of it, it is your problem. You basically owe them £28,000 and not the car and thats the crux of it. If the car isnt work £28K, thats your issue and you have to plug the gap

I dont want the car more than 4 years - especially in the electric climate. 4 years away and cars will probably do 6000 miles on a 2 min charge

 

[Tony Hoyle]

If you genuinely don't want to keep the car lease it.

PCP is really useful keeping the monthlies down.. HP maxes out at 5 years whereas a PCP + a loan for the GFV can be stretched over 7 years or more, plus the option of handing back with no penalty of course. But you're saying you don't need the flexibility so there's no need to use something like that.

 

[Peteski]

No you


No unfortunately you cant just hand the car back - in effect they give you a loan for the full amount of the car, and for 4 years you only pay back a % - a bit like PCP. However, with no GTV, at the end of it, it is your problem. You basically owe them £28,000 and not the car and thats the crux of it. If the car isnt work £28K, thats your issue and you have to plug the gap

I wouldn't touch a deal like that. It's just delaying the pain of paying for the car, while at the same time adding to the total purchase cost. PCP with a generous GMFV is much better, providing the interest rate is sensible. Tesla had some great PCP deals on S/X models in the past, but they've all dried up now. If I finance a Model 3 I will probably just do it on straight HP to spread the total cost over 4 or 5 years. But i would prefer PCP providing the residual is strong.

 

[DJP31]

No unfortunately you cant just hand the car back - in effect they give you a loan for the full amount of the car, and for 4 years you only pay back a % - a bit like PCP. However, with no GTV, at the end of it, it is your problem. You basically owe them £28,000 and not the car and thats the crux of it. If the car isnt work £28K, thats your issue and you have to plug the gap

I dont want the car more than 4 years - especially in the electric climate. 4 years away and cars will probably do 6000 miles on a 2 min charge

I'd be running away from that deal as fast as my legs could carry me. I'd also like to see the FCA's view on how that comes close to responsible lending. Jeez.

I agree about the 4 years too, sounds like a standard lease is only option at the moment.

 

[Tony Hoyle]

PCP apparently available from tesla now (I can't check the truth of it as I completed the 'next steps' and am locked out of finance options), but no details as to the APR/GFV/etc. yet.

 

[DaveW]

I can't see it online when I check?

 

[Groover]

If you genuinely don't want to keep the car lease it.

PCP is really useful keeping the monthlies down.. HP maxes out at 5 years whereas a PCP + a loan for the GFV can be stretched over 7 years or more, plus the option of handing back with no penalty of course. But you're saying you don't need the flexibility so there's no need to use something like that.

Issue with HP is that it seriously hikes the price - if you look at the HP on the tesla site on the Long Range, £6K down over 4 years and you are looking at nearly £1K a month. I can PCP a Model S for less than that!!

On a side note - I just looked at the Long Range Model 3 has gone and it looks like the performance version base price doesnt include the performance pack and you have to add it on. Cheeky buggers!

 

[DJP31]

PCP apparently available from tesla now (I can't check the truth of it as I completed the 'next steps' and am locked out of finance options), but no details as to the APR/GFV/etc. yet.

It's not an option in the Design Studio as yet. Perhaps a third party offering.

 

[Groover]

PCP apparently available from tesla now (I can't check the truth of it as I completed the 'next steps' and am locked out of finance options), but no details as to the APR/GFV/etc. yet.

Ive just checked my account and there is now an option for Barclays, although the link seems broken. This really gets on my nerves. Either Tesla employees are told to lie or they just to provide no information. I literally spoke to them yesterday and they said PCP would not be available in the foreseeable future - 1 day later..... what they cant see that far ahead???

 

[dazjdash]

For those who haven't completed the 'next steps' process I've heard it kind of appears on the Manage page.

I can't see any reason why Barclays wouldn't finance similar to the S and X, which means 3 year residuals at 39% of the cash price, 4 year residuals at 32% and an APR of 5.4%. Considering I based my initial estimates on the old 49% residual value (after 4 years) the change makes the monthly payments approx 62% higher than they would have been before the PCP changes came into effect.

 

[Matt125]

Has anyone had any news on Tesla providing PCP?

I spoke to one of their sales people yesterday (after receiving a txt to go and update my reservation details online) and they told me that there are currently no plans for the immediate future for Tesla to provide PCP on the Model 3.

I have been looking around at finding a 3rd party provider and at the moment have an offer with



I assume this is a lease deal? not PCP? i.e. in 24 months you have no choice but to hand the car back?

Correct, a lease deal. I do not own the car and after 24 months I have to hand the car back. Would be annoying if I grew attached to it, but this is a Tesla, and Teslas improve year on year (but if I had the cash, I'd probably still buy one )

All in all I'm paying a lot of money to rent a car for 24 months with nothing to show for it at the end, but that is what renting is all about. Hopefully after the 24 months I'll have enough money for the initial rental on the next Model 3, which could have a 300 mile range...

 

[Peteski]

Issue with HP is that it seriously hikes the price - if you look at the HP on the tesla site on the Long Range, £6K down over 4 years and you are looking at nearly £1K a month. I can PCP a Model S for less than that!!

On a side note - I just looked at the Long Range Model 3 has gone and it looks like the performance version base price doesnt include the performance pack and you have to add it on. Cheeky buggers!

HP hikes the monthly cost, but is often cheaper overall than PCP (depending on APR etc) as you own the car at the end of the term so you get to offset its residual value against those higher monthly costs. PCP is great when the interest rate is subsidised and guaranteed residuals are high as was the case for S/X models until recently (I got mine at 1.5% APR and 50% 4 year residual). You just have to do the maths on the options available, decide how much monthly budget you have and how you are going to deal with moving the car on. PCP was a no-brainer on my Model X, but far from it on a Model 3 at this time.

The Performance version is now significantly cheaper even after adding back the performance pack and hugely cheaper without it - hence why they have dropped the LR AWD version.

 

[WannabeOwner]

it looks like the performance version base price doesnt include the performance pack and you have to add it on. Cheeky buggers!

Isn't that just the difference between the P- and P+ models (as they seem to be being referred to)? rather than being deliberately deceptive. That's not to say that some of Tesla prices aren't opaque -- like showing the car price including potential saves at an annual mileage that is same-for-all rather than your-actual-mileage, just as one example. Performance Models have always been available with optional "plus" version - the original Performance Model with "Insane" and "Ludicrous" option (just flash your credit card at any time for that upgrade ...)

if you look at the HP on the tesla site on the Long Range, £6K down over 4 years and you are looking at nearly £1K a month

But no Balloon at the end? So if they both go well on PCP you wind up with balloon=car value, and on HP you sell the car and pocket the balloon-equivalent ... so buying an M3 on HP is basically a savings plan

 

[DJP31]

I literally spoke to them yesterday and they said PCP would not be available in the foreseeable future - 1 day later..... what they cant see that far ahead???

Because they aren't told a damn thing by HQ. Welcome to the world of Tesla comms, it's as poor as the cars are good

 

[Tony Hoyle]

But no Balloon at the end? So if they both go well on PCP you wind up with balloon=car value, and on HP you sell the car and pocket the balloon-equivalent ... so buying an M3 on HP is basically a savings plan

That assumes infinite supply of cash, in which case you could argue pay 100% cash, no interest and you own the car instantly

Paying more over the period to pay less monthly is a perfectly sound judgement as long as you're aware that's what you're doing.

 

[Peteski]

I think it's fair to assume that PCP will be available for the sake of making sales. Without it, they are risking a LOT of lost sales. For me it's more a question of when not if and it sounds like the when might be today!

 

[Groover]

The Performance version is now significantly cheaper even after adding back the performance pack and hugely cheaper without it - hence why they have dropped the LR AWD version.

Agreed and tempted to change my order

however I just find it interesting they call it the performance version, and its the same price as the LR AWD and without the pack is no different to the LR AWD?

 

[WannabeOwner]

That assumes infinite supply of cash, in which case you could argue pay 100% cash, no interest and you own the car instantly

Paying more over the period to pay less monthly is a perfectly sound judgement as long as you're aware that's what you're doing.

Yup ... fully agree.

In my youth, when I was poor, I had balloon payments on car loans ... it seemed that the salesman for the next car always persuaded me to roll the previous balloon into the finance for the next car ... more commission for Salesman I suppose ... costs got progressively worse car-after-car ...

When Interest Rates are available at 1.x% it is nuts not to take them, but the rest of the time Bank Interest is usurious and parasitic. The things all of us could have done with all the money that we have handed over to the banks in our lifetimes ...

Mortgage for a house? That will be the price of the house ... and the same again for the bank Thank You Very Much

Nowadays I'm only doing it if finance is at 1.x%, or I am paying cash. Even for business the Accountant telling me that it can be straight-line amortised over X-Months is not attractive to me. Its still £20K on a £100K car purchase "for the privilege", and the blinking car is only going to be worth £50k at the end of it, so I would have to find the £50K AND the £20K interest ...

Hopefully my maths is not deceiving me there? ...