I thought that these websites like Cinch etc all have guarantees so it’s no different to buying from an approved dealer?
If it arrives and it’s nothing like what was depicted or described (unlikely) you can return it for free. Then, you get the same cooling off period where you can return it within X weeks with no hassle and any issues you find in the short term all get fixed under warranty too.
I’ve never used one personally and I’d still feel a little uneasy about it myself - but I think it’s mainly because it’s a new concept when in reality it’s not much different to a normal car buying process from any reputable place.
In the case of PCP the “balloon payment” at the end doesn’t typically apply. So the settlement figure will be low. The payment only really applies if you get to the end and want to keep it really, which no one does.
I hadn’t ever thought to use it but circumstances (someone hit me head on and wrote my car off) I hadn’t much choice.
It was a great experience. The car you see is the actual one you get and they go into real detail on any marks etc.
It’s a bit strange just having a car turn up (you do get a tracking status) and you can actually refuse it there and then if you don’t think it’s as described. If not a 14 day period with a 250 mile limit applies.
Overall a great experience and I would definitely buy from there again.
I did that… paid back the PCP and got a better new car for less monthly than i was already paying. That was when the second hand prices were at their peak… doubt I could pull that off now.
1.5k positive equity doesn’t sound a lot to me but I guess it depends what the cost of the replacement car will be…
I guess it really depends what you’re looking for. I found that Cinch / Cazoo tended to be more expensive than dealer approved used.
We bought a second car a fortnight ago approved used. I know full well I paid over the odds vs Autotrader or a random second hand car salesroom, but we got the warranty, FSH, new tyres, full year MOT, all advisories fixed ahead of purchase etc. Overall I don’t feel shortchanged, I know I’ve paid extra for peace of mind, and I’m okay with that. Online salesrooms are similar. You’ll be fine.
Where are you getting that from? The settlement figure is just the remainder of the loan. It’ll logically be higher than the balloon which is just the remainder left to pay at the end of the load period. There’s no magic here… PCP is just a way of structuring hire purchase to lower the monthly payments, with the final payment (theoretically optional, but the way these things are usually structured you’d be silly not to pay it even if you immediately flip the car).
I sold my old car through We Buy Any Car when second hand prices were peaking and they paid much more than the market average and settled the outstanding PCP for me. Paying the balloon then immediately selling wouldn’t have made any difference. Plus I would have struggled to have found a private cash buyer for a car worth around 20k - it really needed to go to BCA / a dealership.
I’ll only PX if the maths works… it did on my last car because it was the same brand so they were offering over market rate for something they could sell themselves. That’s a rare exception IME. Mostly they lowball it.
going used I could even get some of those lovely driver convenience features back that I missed