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PCP Finance

39K views 91 replies 19 participants last post by  SurudRump 
#1 ·
If anyone is looking to buy their car through PCP finance I have managed to get a decent deal with a prestige car finance company. Spoke to my LR dealer and they couldn't move on the monthly payment at all - what it shows online on the build configurator is what it is. No negotiation at all! On my payments I have saved at least £60 per month and they are still trying to get me a better deal! Not a massive amount but saving over £700 for the year so adds up to a decent amount. (pays for the insurance!) Residual value is the same so its just that they are working on a better APR than the 6.9% with LR/Blackhorse. If anyone wants to know the details of my client manager then let me know and i'll PM the details over.
 
#52 ·
bazzert9 said:
Completed all my finance today with Oracle must say very easy to deal with everything very clear great communication & saved just over £60 a month on the JLR finance.

If anyone wants my fellas contact no let me know
Well done. Mine all sorted too.
 
#53 ·
Although I am not using it, I checked my online banking app and noticed that Bank of Scotland are offering finance (HP leading to actual ownership at the end of the term - remember that old fashioned concept?) at just 3.5% on their product.

Alternatively, the APR is 5.5% on PCP up to 36mths and 5.6% through to 48mths. Of course, with PCP, the assessment is a bit more complex because the projected residual value will vary between lenders. This affects your decision about whether APR is of paramount importance, low repayments or the final balloon payment etc.

The whole process is managed online, their offer is guaranteed for a year and it looks pretty swish. So, if you're a customer of Lloyds Bank, Halifax Bank or Bank of Scotland then it is worth a look.

I might be a bit of a financial simpleton, but why anyone would choose to pay 6.9% through JLR Finance on a straightforward HP product when their bank is offering 3.5% perplexes me. I quite understand why folk might choose a PCP product with a higher APR though because, if this is your preferred product, there are more variables to consider.

Personally, I am of the generation that likes to own something rather than lease it. Whether it's my music collection, cars or house..... I am old school. In a few years I will probably have a set of brown envelopes with labels like Gas Bill, Groceries and Milkman written on them - stuffed under my bed full of cash!

Just joking, in case anyone is thinking of breaking in!!! No cash, tools or valuables are stored overnight in this house!

Arianne
 
#55 ·
JKVelarF1 said:
VelarMan said:
I have emailed my guy and asked him why this differentiation - let's see if he responds :)
Have you had any response from your man?
He passed on my number to one of the directors who called me up to explain how every credit application is different blah blah. I asked how he could explain the difference in our quotes on option to buy £1 v £90 and the arrangement fees of £195 v £295 and he said it depends on the finance company - I think that is incorrect as an arrangement fee is what the name says - a fee charged by Oracle to arrange the finance for us!

Still not impressed tbh.

They did tell me they are reading this as someone on here alerted them to my comments :D

Hey ho - I did not tell a lie and said it how it was :)
 
#56 ·
Just completed my finance with Oracle, used them for my two previous purchases as well and never had any problems, they are however only a credit broker and not a lender so there will be inconsistencies between different peoples quotes as each quote is dependent on your personal credit score.
 
#57 ·
BobH said:
Just completed my finance with Oracle, used them for my two previous purchases as well and never had any problems, they are however only a credit broker and not a lender so there will be inconsistencies between different peoples quotes as each quote is dependent on your personal credit score.
Absolutely correct however things like arrangement fees and fee to buy are set by the broker and not the lender....and that is where there was huge disparity.

APRs can differ due to credit scores but not the above as they have nothing to do with a credit score ;)
 
#59 ·
Hello all

I am a Senior Account Manager at Oracle finance and I would be happy to address some of the issues being raised in this forum to hopefully provide some clarity and understanding.

It's great to see that a number of our customers have commented on here and are delighted with the service we have provided but I also appreciate some of the frustrations expressed by others.

In no particular order:

We are a finance broker for 15 different lenders. Each of our lenders have a number of different products, each with different rates and terms. Our goal is to try and match our customer's requirements with the lender and product that 1. most meets our customer's requirements and 2. is most likely to approve our customer's application.

A couple of weeks ago, there was a comment that Oracle hadn't gotten residual values for the Velar yet. It was the case that some of our lenders hadn't released the balloons/residual values as the model was so new to the market. We hadn't actually funded our first Velar until last week. I am pleased to confirm now that all of our lenders have now released their balloons/residual values for the Velar so we should be able to provide a range of finance options.

Yes, our application process does require 2 credit searches. We undertake an in-house credit search to assess our customer's credit status and then the lender that we propose to will undertake their own credit search. This enables us to ensure that we are proposing applications to the most suitable lender who is most likely to approve our customer's application. Additionally, if we do notice any issues or irregularities with our customer's credit history, we can address these directly with the customer and, hopefully, mitigate these issues before we propose to a lender and so increase the chance of the customer being approved.

Some of our lenders require that a tracker is fitted but most do not. This is a lender policy stipulation and is not something that a customer's credit history has a bearing on. This is just the same as some insurance companies may want a tracker and some may not.

Sometimes we do request some additional/supporting information, such as 3 months bank statements. This is requested in order to assist with obtaining approval from a lender on the most competitive basis. Most applications are approved without the need for the customer to supply additional/supporting information but it is not uncommon for the lender to request such information before issuing an approval. Lenders have a duty to treat customers fairly and lend responsibly and sometimes additional information is required in order to ratify their underwriting decision.

Each of our different lenders has a range of different products and these different products have different arrangement fees and option to purchase fees. Exactly the same as when buying a property, you may explore different mortgage products with different fees, our lenders' different products have different fees also. Oracle do not charge a fee for our services and we do not determine what the arrangement or option to purchase fees are. It may sound misleading that it is called an arrangement fee and seem that presumably this is Oracle's fee but this is not the case.

All motor finance products regulated by the Consumer Credit Act have the same early settlement terms. In the event that a customer settles their finance agreement early, they receive a rebate of all of the future interest in the finance agreement, with the exception of 1 months plus 28 days. Therefore, inversely, the charge for early settlement is virtually 2 months interest. Each lender does not have the capability to determine their own early settlement charges for products regulated by the Consumer Credit Act, it is standardised in government legislation.

We pride ourselves in the level of service that we provide and we will do everything we can to assist our customers in all parts of the buying process and afterwards. As we act for our customer and have no affiliation to the dealership where the customer bought the car from, we do everything we can to assist our customer if they have any problems, questions or concerns before, during or after purchase. Having a dedicated Oracle Account Manager means that you can call in and speak to the same person, months or years after purchase, should you wish to explore options regards settling your finance agreement or changing your car. As mentioned previously in this forum, customers often return to Oracle to fund other cars for themselves and/or their family.

I do hope the above helps explain our processes more clearly and provides some clarity. I would be delighted to assist anyone directly, whether they are purchasing a new Land Rover or any car, new or used, purchased from any dealership, independent or franchise, or even being sold by a private seller. I am available directly on 01423 795800 or email oliver.clarkson@oraclefinance.co.uk

Thank you.
 
#61 ·
Oliver, that all makes sense. It's actually what I suspected anyway! But a good call to post your clear, concise statement which helps clear things up.

As I said, my financial management is heading towards basic piggy bank banking. But, if I was using a broker, your email would make me consider Oracle more now than having just seen your adverts alone.

Thanks.

Arianne
 
#62 ·
OliverOracle said:
Hello all

I am a Senior Account Manager at Oracle finance and I would be happy to address some of the issues being raised in this forum to hopefully provide some clarity and understanding.

It's great to see that a number of our customers have commented on here and are delighted with the service we have provided but I also appreciate some of the frustrations expressed by others.

In no particular order:

We are a finance broker for 15 different lenders. Each of our lenders have a number of different products, each with different rates and terms. Our goal is to try and match our customer's requirements with the lender and product that 1. most meets our customer's requirements and 2. is most likely to approve our customer's application.

A couple of weeks ago, there was a comment that Oracle hadn't gotten residual values for the Velar yet. It was the case that some of our lenders hadn't released the balloons/residual values as the model was so new to the market. We hadn't actually funded our first Velar until last week. I am pleased to confirm now that all of our lenders have now released their balloons/residual values for the Velar so we should be able to provide a range of finance options.

Yes, our application process does require 2 credit searches. We undertake an in-house credit search to assess our customer's credit status and then the lender that we propose to will undertake their own credit search. This enables us to ensure that we are proposing applications to the most suitable lender who is most likely to approve our customer's application. Additionally, if we do notice any issues or irregularities with our customer's credit history, we can address these directly with the customer and, hopefully, mitigate these issues before we propose to a lender and so increase the chance of the customer being approved.

Some of our lenders require that a tracker is fitted but most do not. This is a lender policy stipulation and is not something that a customer's credit history has a bearing on. This is just the same as some insurance companies may want a tracker and some may not.

Sometimes we do request some additional/supporting information, such as 3 months bank statements. This is requested in order to assist with obtaining approval from a lender on the most competitive basis. Most applications are approved without the need for the customer to supply additional/supporting information but it is not uncommon for the lender to request such information before issuing an approval. Lenders have a duty to treat customers fairly and lend responsibly and sometimes additional information is required in order to ratify their underwriting decision.

Each of our different lenders has a range of different products and these different products have different arrangement fees and option to purchase fees. Exactly the same as when buying a property, you may explore different mortgage products with different fees, our lenders' different products have different fees also. Oracle do not charge a fee for our services and we do not determine what the arrangement or option to purchase fees are. It may sound misleading that it is called an arrangement fee and seem that presumably this is Oracle's fee but this is not the case.

All motor finance products regulated by the Consumer Credit Act have the same early settlement terms. In the event that a customer settles their finance agreement early, they receive a rebate of all of the future interest in the finance agreement, with the exception of 1 months plus 28 days. Therefore, inversely, the charge for early settlement is virtually 2 months interest. Each lender does not have the capability to determine their own early settlement charges for products regulated by the Consumer Credit Act, it is standardised in government legislation.

We pride ourselves in the level of service that we provide and we will do everything we can to assist our customers in all parts of the buying process and afterwards. As we act for our customer and have no affiliation to the dealership where the customer bought the car from, we do everything we can to assist our customer if they have any problems, questions or concerns before, during or after purchase. Having a dedicated Oracle Account Manager means that you can call in and speak to the same person, months or years after purchase, should you wish to explore options regards settling your finance agreement or changing your car. As mentioned previously in this forum, customers often return to Oracle to fund other cars for themselves and/or their family.

I do hope the above helps explain our processes more clearly and provides some clarity. I would be delighted to assist anyone directly, whether they are purchasing a new Land Rover or any car, new or used, purchased from any dealership, independent or franchise, or even being sold by a private seller. I am available directly on 01423 795800 or email oliver.clarkson@oraclefinance.co.uk

Thank you.
Hi Oliver,
Thanks for the info. I also have been looked after very well and look forward to receiving my car with financing through Oracle. Im sure you will get lots more business from the forum when members see the benefit of saving money and not going direct with JLR/Blackhorse.
 
#63 ·
OliverOracle said:
Hello all

I am a Senior Account Manager at Oracle finance and I would be happy to address some of the issues being raised in this forum to hopefully provide some clarity and understanding.

It's great to see that a number of our customers have commented on here and are delighted with the service we have provided but I also appreciate some of the frustrations expressed by others.

In no particular order:

We are a finance broker for 15 different lenders. Each of our lenders have a number of different products, each with different rates and terms. Our goal is to try and match our customer's requirements with the lender and product that 1. most meets our customer's requirements and 2. is most likely to approve our customer's application.

A couple of weeks ago, there was a comment that Oracle hadn't gotten residual values for the Velar yet. It was the case that some of our lenders hadn't released the balloons/residual values as the model was so new to the market. We hadn't actually funded our first Velar until last week. I am pleased to confirm now that all of our lenders have now released their balloons/residual values for the Velar so we should be able to provide a range of finance options.

Yes, our application process does require 2 credit searches. We undertake an in-house credit search to assess our customer's credit status and then the lender that we propose to will undertake their own credit search. This enables us to ensure that we are proposing applications to the most suitable lender who is most likely to approve our customer's application. Additionally, if we do notice any issues or irregularities with our customer's credit history, we can address these directly with the customer and, hopefully, mitigate these issues before we propose to a lender and so increase the chance of the customer being approved.

Some of our lenders require that a tracker is fitted but most do not. This is a lender policy stipulation and is not something that a customer's credit history has a bearing on. This is just the same as some insurance companies may want a tracker and some may not.

Sometimes we do request some additional/supporting information, such as 3 months bank statements. This is requested in order to assist with obtaining approval from a lender on the most competitive basis. Most applications are approved without the need for the customer to supply additional/supporting information but it is not uncommon for the lender to request such information before issuing an approval. Lenders have a duty to treat customers fairly and lend responsibly and sometimes additional information is required in order to ratify their underwriting decision.

Each of our different lenders has a range of different products and these different products have different arrangement fees and option to purchase fees. Exactly the same as when buying a property, you may explore different mortgage products with different fees, our lenders' different products have different fees also. Oracle do not charge a fee for our services and we do not determine what the arrangement or option to purchase fees are. It may sound misleading that it is called an arrangement fee and seem that presumably this is Oracle's fee but this is not the case.

All motor finance products regulated by the Consumer Credit Act have the same early settlement terms. In the event that a customer settles their finance agreement early, they receive a rebate of all of the future interest in the finance agreement, with the exception of 1 months plus 28 days. Therefore, inversely, the charge for early settlement is virtually 2 months interest. Each lender does not have the capability to determine their own early settlement charges for products regulated by the Consumer Credit Act, it is standardised in government legislation.

We pride ourselves in the level of service that we provide and we will do everything we can to assist our customers in all parts of the buying process and afterwards. As we act for our customer and have no affiliation to the dealership where the customer bought the car from, we do everything we can to assist our customer if they have any problems, questions or concerns before, during or after purchase. Having a dedicated Oracle Account Manager means that you can call in and speak to the same person, months or years after purchase, should you wish to explore options regards settling your finance agreement or changing your car. As mentioned previously in this forum, customers often return to Oracle to fund other cars for themselves and/or their family.

I do hope the above helps explain our processes more clearly and provides some clarity. I would be delighted to assist anyone directly, whether they are purchasing a new Land Rover or any car, new or used, purchased from any dealership, independent or franchise, or even being sold by a private seller. I am available directly on 01423 795800 or email oliver.clarkson@oraclefinance.co.uk

Thank you.
Still incorrect information in this clarification as there is no early redemption penalty on JLR finance and any of you can check this with your dealer.
 
#65 ·
Unfortunately you are being misinformed VelarMan. You can check this by requesting a settlement figure from JLR Finance after your 14 day cooling-off period but before you make your first monthly repayment. The settlement figure that you receive will be greater than the amount you have borrowed. The difference will be approximately 2 months interest. Dealerships are experts at selling cars but sometimes have less expertise regards to advising on finance and sometimes can, unintentionally I'm sure, give incorrect advice. JLR Finance is provided by Black Horse and Black Horse is part of the Lloyds Banking group, which also includes Halifax and Bank of Scotland. All of these finance providers and all of Oracle's panel of lenders have to employ the same early settlement terms as dictated by the Consumer Credit Act. When you request a settlement figure from Black Horse, it clearly states that the rebate has been calculated in accordance with the Consumer Credit Regulations 2004. This rebate is exactly the same as Oracle's panel of funders offer; you receive a rebate of all future interest with the exception of 1 month plus 28 days. It may be the case that dealerships tell you there is no penalty for early redemption but you will certainly not find that being the case in writing on any of your JLR Finance documentation. Oracle prefer to provide absolute clarity when giving advice so that there are no surprises when a customer takes out the finance agreement or when, in a number of years' time, they come to settle the finance agreement.
 
#68 ·
Yes, it does touch on it right at the bottom:

Early Settlement - this is when you pay off a finance agreement before the agreed term is complete. By doing so you may save on the interest that would have been charged for the remainder of the agreement.

It says you may save on the interest. It does not say that you will save on all of the interest.
 
#69 ·
OliverOracle said:
Yes, it does touch on it right at the bottom:

Early Settlement - this is when you pay off a finance agreement before the agreed term is complete. By doing so you may save on the interest that would have been charged for the remainder of the agreement.

It says you may save on the interest. It does not say that you will save on all of the interest.
Must say all my early repayment quotes from Black horse have two figures, one that's the current balance and the second an early repayment figure, the early repayment figure is always lower so must be minus the interest.
 
#71 ·
This thread is certainly educational. Thank you for clarifying this.

Arianne
 
#72 ·
OliverOracle said:
Yes, it does touch on it right at the bottom:

Early Settlement - this is when you pay off a finance agreement before the agreed term is complete. By doing so you may save on the interest that would have been charged for the remainder of the agreement.

It says you may save on the interest. It does not say that you will save on all of the interest.
Typical ORACLE response? Can you tell me where it says that you have to pay an early redemption fee? Of course if you pay off early you will save on interest even my 9 year old can tell you that! No where does it state you have to pay "something" to repay early. I have checked my documents too!
 
#73 ·
JKVelarF1 said:
OliverOracle said:
Yes, it does touch on it right at the bottom:

Early Settlement - this is when you pay off a finance agreement before the agreed term is complete. By doing so you may save on the interest that would have been charged for the remainder of the agreement.

It says you may save on the interest. It does not say that you will save on all of the interest.
Must say all my early repayment quotes from Black horse have two figures, one that's the current balance and the second an early repayment figure, the early repayment figure is always lower so must be minus the interest.
I have paid off two cars on JLR finance and both times called up for a settlement figure - they give it to me on the phone and I pay it off - always just one amount to pay which is valid until xx day after which it will need to be recalculated. Never seen 2 figures?
 
#74 ·
Different I know but I paid off a BMW pcp type plan early a few years ago as I had a buyer lined up for it and there was no penalties to pay just the outstanding balance of loan at that point, I only had 2 months to go so it would have been obvious if they had added 2 months interest

I'm fairly sure the regulations set out a maximum limit that can be charged to stop unscrupulous lenders charging excessive fees and not a compulsory fee
 
#75 ·
VelarMan said:
JKVelarF1 said:
OliverOracle said:
Yes, it does touch on it right at the bottom:

Early Settlement - this is when you pay off a finance agreement before the agreed term is complete. By doing so you may save on the interest that would have been charged for the remainder of the agreement.

It says you may save on the interest. It does not say that you will save on all of the interest.
Must say all my early repayment quotes from Black horse have two figures, one that's the current balance and the second an early repayment figure, the early repayment figure is always lower so must be minus the interest.
I have paid off two cars on JLR finance and both times called up for a settlement figure - they give it to me on the phone and I pay it off - always just one amount to pay which is valid until xx day after which it will need to be recalculated. Never seen 2 figures?
You get a letter sent to you, it states,

Current outstanding balance XXXXX
Total amount require to settle your agreement is XXXXX

Two different figures, figure one without rebate to which you're entitled, figure two your settlement figure.
 
#76 ·
JKVelarF1 said:
VelarMan said:
JKVelarF1 said:
Must say all my early repayment quotes from Black horse have two figures, one that's the current balance and the second an early repayment figure, the early repayment figure is always lower so must be minus the interest.
I have paid off two cars on JLR finance and both times called up for a settlement figure - they give it to me on the phone and I pay it off - always just one amount to pay which is valid until xx day after which it will need to be recalculated. Never seen 2 figures?
You get a letter sent to you, it states,

Current outstanding balance XXXXX
Total amount require to settle your agreement is XXXXX

Two different figures, figure one without rebate to which you're entitled, figure two your settlement figure.
Very strange - I just checked my settlement letters and there is only one amount payable on both :?:
 
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