PCP and Mods

[SteveyB]

Seen a lot of questions about insurance companies reaction to modifications but has anyone asked the question of their dealer as to how mods affect PCPs?
Do dealers expect to get an unmodified car returned to them at end of contract or does it not matter that mods have been made?
How do the mods affect the agreed residual value and do all p!banned mods have to be declared at start of contract?

Sponsored

 

[kapiteinlangzaam]

Seen a lot of questions about insurance companies reaction to modifications but has anyone asked the question of their dealer as to how mods affect PCPs?
Do dealers expect to get an unmodified car returned to them at end of contract or does it not matter that mods have been made?
How do the mods affect the agreed residual value and do all p!banned mods have to be declared at start of contract?

They will expect an unmodified car back.... at least thats been the case with every lease car ive had.

 

[Heretian]

I called Ford finance to inform them of my stripe. They didn't care but noted that it needs to be returned without it and undamaged from removal or I will faces charges etc. They also will only approve engine and exhaust mods supplied through Mountune but again if you return it without them then I can't see how they can comment. Basically if you want to do something you can't reverse then call them to ask. Otherwise I don't think it matters much as they get their money. Your PCP document will say they can cancel the finance if you mod without approval and also any mods become their property if not removed and return time or are permanent.

I've changed my exhaust today and not told them yet. I probably will do Monday though just for cover.

I also don't intend to return it so it matters little to them. I'll trade in or buy it after 3 years.

For reference when I called about stripe they did note it on the account but the guy said as its cosmetic only they didn't care and just to call about performance mods.

 

[DaBigGinger]

I would have thought after removing a stripe which had been fitted for a few years, there would be a noticeable difference in the paint colour.

 

[car_ter2903]

Depends what you plan on doing and the end of your term. Bear in mind that PCP is not a lease, it's hire purchase so it's your car and you can do what you want with it. Ford finance do not have to know what you are doing with the car.

So, if you part-ex or take on your final payment then modifications make no difference (you part-ex value will be lower than a standard car though). But, as quite rightly pointed out above, if you plan on handing the car back and walking away at the end of your agreement term you are likely to incur charges.

This is my 3rd new Ford (:ford: FTW) on PCP and every time I've part ex'd a modified one I've had no issues.

 

[SteveS]

Thought with HP you don't own the car til its fully paid?

 

[McXtravert]

I would think it is your to do with as you please (legally of course!) but they may get hung up if you start going down extreme weight reduction steps. So long as the car is returned to stock when handing it back they won't have many issues - very black and white I would imagine.

 

[Leeroy]

Thought with HP you don't own the car til its fully paid?

That's true, but the key thing is the car doesn't have to be returned to ford finance, as would be required in a contract lease. I have done a load of pcp's over the years and not once have I returned the car to the finance company. I have always just traded in for a new car with a dealer who will value your car in the normal manner

 

[car_ter2903]

I guess in the same way you don't own your house until you've paid off the mortgage. If you look at it that way then yes it's not technically yours!

 

[SteveS]

That's true, but the key thing is the car doesn't have to be returned to ford finance, as would be required in a contract lease. I have done a load of pcp's over the years and not once have I returned the car to the finance company. I have always just traded in for a new car with a dealer who will value your car in the normal manner

We own the Mustang however my wife has a Nissan on PCP and its our first so a bit new to it. So when the term is up we can trade this in with any dealer (Mini, for example)? Or does it have to be Nissan?

 

[tooley]

Lease, PCP or HP, you don't own the car in any of them. Only when you've made the final payment in HP or PCP is it yours. Default on any of them and they can have the car off you.

Technically you're modding the finance company's car so they will want to know about it. Doesn't mean they won't let you do it but read the small print....

 

[SteveyB]

Lease, PCP or HP, you don't own the car in any of them. Only when you've made the final payment in HP or PCP is it yours. Default on any of them and they can have the car off you.

Technically you're modding the finance company's car so they will want to know about it. Doesn't mean they won't let you do it but read the small print....

I posed this question and your answer would be my interpretation too but at the start of a PCP they give you a guaranteed residual value at maturity and this is based on returning exactly as purchased. My question really is has anyone at the outset declared their intent to mod and then been given a reduced residual value? If so by how much?

Sponsored