Hi guys 

considering buying a mk8 on pcp with the intention of keeping it after I pay it off, I’m just wondering, what can you change on a car while on PCP? are things like milltek catback exhausts etc fair game? an exhaust is probably the only real performance part I’d add, just looking for some clarification 🙂 

Technically you can't change anything because it's not your car until you make that final balloon payment. If you default on payments and they take the car, you'll get done for modifying something that isn't yours.

With the interest rate being this low, a good bank loan seems far better option in the current climate if you're keeping the car. Plus with a bank loan the car will belong to you.

If you keep the original, such that it can be put back to standard it isn't so much of an issue.

Although it probably says in the contract you can't modify without permission. I had a cat back exhaust on my PCP Focus ST MK3.5 but I kept the original. Gave the car with mountune exhaust and stock exhaust for them to sell as they wished when I traded the car in.

PCP is a bit like a mortgage. You are registered keeper and you do own a bit of the car (unless negative equity), but the finance is secured against the car, so the finance company have "first dibs" on it's value to pay for the their loan to you. In the same way a bank can turf you out of your home to pay off the mortgage.

I believe once you have paid off a certain percentage, they can't just reposses the car anymore and have to take you to court.

Have you looked at Ford’s HP deals? Not sure what things are like atm but Ford offer some good deals including 0% apr at times, worth checking that out if you’re 100% set on keeping the car. 

1 hour ago, alexp999 said:

If you keep the original, such that it can be put back to standard it isn't so much of an issue.

Although it probably says in the contract you can't modify without permission. I had a cat back exhaust on my PCP Focus ST MK3.5 but I kept the original. Gave the car with mountune exhaust and stock exhaust for them to sell as they wished when I traded the car in.

PCP is a bit like a mortgage. You are registered keeper and you do own a bit of the car (unless negative equity), but the finance is secured against the car, so the finance company have "first dibs" on it's value to pay for the their loan to you. In the same way a bank can turf you out of your home to pay off the mortgage.

I believe once you have paid off a certain percentage, they can't just reposses the car anymore and have to take you to court.

I have read about this since I posted this, this clears up perfectly 🙂 I guess I'll wait and see obviously its not decided yet but at least i know now, cheers 🙂