Appreciate views on this please?🤔

[Doogle]

So, after seeing my first “Affordable” Formentor, a V1 with 3000 miles on the clock, on a ‘20 plate (but a 21 reg car I think) and clearly liking it but until I receive some money next year sadly unaffordable at the moment at £26,990 I’ve had a phone call from the dealership suggesting the following, and I’d like peoples thoughts if possible?

Basically he’s saying I could get the same car “Brand new” For a little over £27,000, this, whilst not much more than the secondhand car with 3,000 miles on the clock is obviously still out of my range for now…HOWEVER…what he’s suggesting is, that as I won’t be seeing any cash until at least March next year, if I ordered one now it wouldn’t be delivered till around April/May next year, if I ordered it on PCP, which to be honest I’m not too keen on, however as he said, if I’m not planning on retiring until September next year, and in March when the cash arrives I’m paying both my mortgage off and my current car loan finishes, I could pay the PCP and then “Simply pay off the balance when I want as the cash would be in place”
All fine and dandy but I have some concerns around whether it’s this simple, would I not get interest added on if I pay the difference off years early (In actual fact it could be within months potentially) just seems a bit to easy for me, generally if a thing is too good to be true…it IS too good to be true (In other words, it’s rubbish) never had experience of PCP, I understand about the option to buy at the end of the term (The bubble payment?) but how would that work if you’ve say paid six months into a three year plan and you want to pay it off?
Obviously this is a HUGE commitment on my part as parting with the best part of 30,000 is no small feat, I’m not rich or loaded, just a working class fella who’s worked all his life and am fortunate to have a not too bad pension (my lump sum is paying for this) so understandably I’m very wary
As I say just putting it out there to see what peoples thoughts are, cheers for reading

 

[rafletcher]

You don’t pay the “future” interest, you get a settlement figure on the day you ask, and that includes interest to date.

 

[Doogle]

You don’t pay the “future” interest, you get a settlement figure on the day you ask, and that includes interest to date.

Yeah I kinda guessed you wouldn't be charged for future interest as you say but did wonder if you could incur a penalty?
but another thing that popped into my head is, if the car isn't due until April/May and my money is due March, why then could I not put a deposit on a new car anyway and just pay it off when it arrives avoiding PCP?
My thought is the salesman makes more commission on a COP deal?

 

[rafletcher]

No "early redemption" penalty either. You pay what's owed. Used to be before PCP, and the delaer arranged finance (and got the kick-back from the finance company) they'd ask you to wait a couple of months for that to clear into their books, but with PCP they don't seem to care, it's alla bout shifting new cars into an increasingly crowded market. And yes, they'll probably still get a hand-out for getting a PCP contract, plus they hope you won't pay it off and will roll it over when the next New! Shiny! model comes out, whcih you can do at any time in the term.

 

[BigJase88]

Or just go looking next year with cash, prices will fall just have to wait it out

 

[Doogle]

Or just go looking next year with cash, prices will fall just have to wait it out

Yeah I've thought about that as well, second-hand car prices are currently, stupidly (And artificially) high mostly through supply and demand