Question about PCP max deposit

Ailvz · 04-03-2023 8:28pm #1

Hi. Does anyone know if the car you’re trading in is valued at more than the max deposit of 30% for PCP, what happens? A garage today said they’d have to give me some money back, which they wouldn’t do. Not sure if it’s the same with all dealerships. Would anyone knows anything about this? Thanks.

mcburns07 · 04-03-2023 10:31pm

That’s a strange one, usually they just give you the balance if it’s greater than the PCP deposit limit. Is it worth a lot more? Are they taking you for an idiot and trying to drive down the trade in price?

colm_mcm · 04-03-2023 10:37pm

Is your car worth more than the deposit and all the monthly payments combined or something?

Killer K · 04-03-2023 10:37pm

What you have said sounds correct if you are going the PCP route and your trade in is above the max allowable deposit (30%). For trade ins the dealer/garage effectively buys that car off you. In this case you can't put all that money towards new car so the garage should be able to provide you with the balance. Are they trying to steer you in another direction re finance?

Have you looked at HP as an option if you wanted to leave a bigger deposit?

mcburns07 · 04-03-2023 10:38pm

https://www.boards.ie/discussion/comment/120314802#Comment_120314802

The poster’s issue is that the garage don’t want to take a trade in and give them the balance above the 30% deposit.

Killer K · 04-03-2023 10:42pm

https://www.boards.ie/discussion/comment/120314807#Comment_120314807

Thanks. Spotted that after rereading my post and have edited accordingly.

Ailvz · 05-03-2023 11:40am

Thanks everyone for your answers! They were trying to steer me into buying a more expensive spec model, as my trade in value wouldn’t go over the max 30% for PCP if I did. I just thought it was strange how they said the wouldn’t be able to give me the balance back if I went with the lower spec model. I thought maybe this wasn’t a common scenario, but that’s good to know that normally, they would just pay you back the balance! I did look at HP, but the repayments were too high.

bazz26 · 05-03-2023 1:21pm

HP monthly repayments will nearly always be higher than PCP repayments but just remember HP doesn't have a lump sum (GMFV figure) due at the end of year 3 unlike PCP. So you need to compare the two forms of credit against the entire amount you are borrowning and interest paid over both terms. Your still paying for the car, it's the structure of repayment and amount that are different.

Question about PCP max deposit

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