Hi esaMami, I've just taken out my 1st Passport. I didn't do it last time as I thought it was limited to 6,000 miles per year, which would mean a huge payment at the end for excess milage. Found out this time you can specify any mileage and they recalculate the payments / future value.
Basically, when it comes to the end of your term the garage sometimes contacts you early to see what you want to do next, maybe offer you an early change of vehicle.
At the end of term there are three options for you.
1: Order your new car and set up the new Passport deal. When the new car is ready for you, take your old car in and swap them over, drive away the new one.
2: If you're happy with your car and want to keep it, you pay the future value amount that was worked out for you when you originally took out the Passport deal and the car is all yours.
3: If you don't want to take another car or don't want to keep the one you have, all you do is tell them so and when the contract reaches it's end, take the car in to the dealer hand over the keys, service book and V5 and walk away, although my salesman said they would come round to the house and pick it up if I'd prefer.
The way I'm doing it suits me. I have two cars, I traded in my '06 car, got £4k for it £200 from that goes to my deposit, the rest I get back as a cheque which I'm putting into an ISA for 3yrs, then use it to pay off the car I've just ordered when the contract ends.
I'll probably take out another deal at the time for another new car and trade in my '56 car and put the money I get from that into an ISA and do the same again.
The reason I'm doing it is because the Passport deal is only 5.9% APR and my bank for anything under £10,000 was over 10% APR.
I hope this was of help to you.
