Question about finance and insurance

FoxRacer · #1 (**Post Link**) 16-10-09

A quick query regarding Alfa Romeo finance....

I'm buying my mito on PCP through AR finance and looking at insurance quotes. Now is it the case that the car is owned by AR but registered in my name? Because I know some insurance companies won't quote on financed cars....afaik

Do the finance company keep the V5? (This would seem logical)

Thanks,

James

BIDET FITZAKAZI · #2 (**Post Link**) 16-10-09

The car will be registered in your name and you will have the V5, AR finance will own the car until you have paid a certain percentage of the loan, there should be no problem with insurance companies covering you as the majority of new cars are financed.

EauRouge · #3 (**Post Link**) 16-10-09

Why don't you go to the finance company/bank yourself and eliminate the middle man/dealer and save yourself a small fortune!?

t3yls · #4 (**Post Link**) 16-10-09

Originally Posted by EauRouge

Why don't you go to the finance company/bank yourself and eliminate the middle man/dealer and save yourself a small fortune!?

because that is not the reason for purchasing a car via PCP

It is seen as a way to avoid the depreciation trap, a PCP agreement allows you the option to set up a contract term, with monthly payments. At the end of the term, you then have the option to purchase the vehicle, or simply hand it back to the contract provider.

FoxRacer · #5 (**Post Link**) 16-10-09

Plus a bank loan is not secured against anything, whereas the PCP agreement is secured against the car. So the latter is easier to get

Thanks for your knowledge BIDET FITZAKAZI!

EauRouge · #6 (**Post Link**) 16-10-09

A bank loan will be secured against the car!

NotAgain · #7 (**Post Link**) 28-10-09

Originally Posted by t3yls

It is seen as a way to avoid the depreciation trap, a PCP agreement allows you the option to set up a contract term, with monthly payments. At the end of the term, you then have the option to purchase the vehicle, or simply hand it back to the contract provider.

Providing the current value of the car is greater than the agreed guaranteed future value (ie. the balloon payment), then you also have additional equity which can be used against a new car, not just an Alfa.

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