Tom
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Registered: 3rd Apr 02
Location: Wirral, Merseyside
User status: Offline
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quote:
Originally posted by A2H GO
PCP always worrys the hell out of me.
I get to drive a nice flash car that I wouldn't normally be able to afford but in in the long run when more important stuff like house and kids come along and you can no longer afford nor want to be spending £400 a month on a car, you have nothing to show for it and so have to scrape some money together to buy a shitter.
Which is why HP is attractive to me if I can get a deal on a used car. Decent deposit, lower overall value, no balloon payment at the end and if I get into shit during the terms I can hand it back.
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Rick Draper
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Registered: 10th Feb 01
Location: Cheshire
User status: Offline
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quote:
Originally posted by Russ
so you are going to give them 3k
then a further 16k over the next 3 years, to not have a car at the end of it?
wouldnt you be better getting a bank loan for the 19k and buying a car that will still be on your drive in 3 years time
I will not want to keep the car at the end of it though, I will just trade it in and go again.
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VegasPhil
Premium Member
Registered: 16th Jan 05
Location: Fareham, Hants Drives: Octavia VRS
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Think it's meant to appeal mainly to people that get car allowance through work.
Corsa 2.0 16v Vegas - Sold
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whitter45
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Registered: 15th Nov 02
Location: Norton
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quote:
Originally posted by VegasPhil
Think it's meant to appeal mainly to people that get car allowance through work.
hardly as PCP normally limit to 10k or 12k annual mileages and above that its get expensive
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Rick Draper
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Registered: 10th Feb 01
Location: Cheshire
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All the dealers i have spoken to said no one pays cash for cars anymore and a lot of customers use PCP deals to finance them as that way after 3 years or so you just trade it in and go again using any equity in the car as a deposit on the new car. Guaranteed future value as well.
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M2RTY
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Registered: 25th May 01
User status: Offline
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24k spent over 4 years on a 28k car, to then not own it. Not for me
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Russ
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Registered: 14th Mar 04
Location: Armchair
User status: Offline
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quote:
Originally posted by Rick Draper
quote:
Originally posted by Russ
so you are going to give them 3k
then a further 16k over the next 3 years, to not have a car at the end of it?
wouldnt you be better getting a bank loan for the 19k and buying a car that will still be on your drive in 3 years time
I will not want to keep the car at the end of it though, I will just trade it in and go again.
quote:
Originally posted by M2RTY
24k spent over 4 years on a 28k car, to then not own it. Not for me
This.
If you dont want to own it after 3 years, sell it, if it makes £4.50 you are better off, surely?
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mwg
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Registered: 19th Feb 04
Location: South Lakes
User status: Offline
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On that example he'll save 4k, have achieved the same thing and have had more money each month to spend on other things.
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Hammer
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Registered: 11th Feb 04
User status: Offline
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10.5k car - 2.5k down, 8k financed over 3 years £270 a month.
That's what I done, whatever that works out at.
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Russ
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Registered: 14th Mar 04
Location: Armchair
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do you get a car a the end of it Hammer
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A2H GO
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Registered: 14th Sep 04
Location: Stoke
User status: Offline
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quote:
Originally posted by Rick Draper
All the dealers i have spoken to said no one pays cash for cars anymore and a lot of customers use PCP deals to finance them as that way after 3 years or so you just trade it in and go again using any equity in the car as a deposit on the new car. Guaranteed future value as well.
It's in their interests to tell you that, although I wouldn't be suprised if its true. Too many materialistic people about nowadays.
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Jambo
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Registered: 8th Sep 01
Location: Maidenhead, Drives: VXR Arctic
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You would be a mong to part with that much cash for a depreciating asset IMO.
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Russ
Member
Registered: 14th Mar 04
Location: Armchair
User status: Offline
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quote:
Originally posted by Rick Draper
All the dealers i have spoken to said no one pays cash for cars anymore and a lot of customers use PCP deals to finance them as that way after 3 years or so you just trade it in and go again using any equity in the car as a deposit on the new car. Guaranteed future value as well.
nobody pays cash? thats because most people either a)have no cash b) want a car that they can not genuinly afford
so they use the scheme's and tell them selves they are getting a great deal as they're driving round in a brand new car for x amount of £ a month.
Saying that if you buy a corsa on finance over 5 years, after 3 years you will probably still owe what the car is worth, so not really worth buying it to trade in as a large deposit in 3 years time to get another new car
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Rick Draper
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Registered: 10th Feb 01
Location: Cheshire
User status: Offline
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I can afford to walk in and pay for it outright. After 3 years my car will be worth £8-£10k so i have just lost £18k. I fail to see the difference?
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A2H GO
Member
Registered: 14th Sep 04
Location: Stoke
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Its true, cars are money pits, most of the time it's a given you're going to loose money and so its all about minimising the inevitable loss.
That said I don't see the beneift in buying a new one and loosing £18k+ over buying a 3 year old one that looks exactly the same other than the number on the number plate and loosing £2-3k.
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Ben G
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Registered: 12th Jan 07
Location: Essex
User status: Offline
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jesus christ the amount of people in here spouting shit is unreal  once again an informative thread has gone way off track.
his money, he can do what he likes.
finance pcp isnt the evil sinister thing you all think it is. its basically a mini mortgage and after the 3.years you either get another new motor, sell private or keep it and pay the balloon payment.
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Ojc
Member
Registered: 14th Nov 00
Location: Reading: Drives : Clio 197
User status: Offline
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I could have bought the Clio outright but I'd rather have the money sat in my account for a rainy day and pay £150 a month for it.
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Ben J
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Registered: 31st Jan 05
Location: Cheshire
User status: Offline
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Nope. Cash all the way.
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Nath
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Registered: 3rd Apr 02
Location: MK
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So the Clio is yours? 
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Ojc
Member
Registered: 14th Nov 00
Location: Reading: Drives : Clio 197
User status: Offline
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No mate
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A2H GO
Member
Registered: 14th Sep 04
Location: Stoke
User status: Offline
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quote:
Originally posted by Ben G
jesus christ the amount of people in here spouting shit is unreal once again an informative thread has gone way off track.
his money, he can do what he likes.
finance pcp isnt the evil sinister thing you all think it is. its basically a mini mortgage and after the 3.years you either get another new motor, sell private or keep it and pay the balloon payment.
Since you're going on about spouting shit...
Its actually nothing like a mortgage given you own the house at end.
I also presume you mean your options are to give the car back or pay the balloon payment then keep or sell private.
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A2H GO
Member
Registered: 14th Sep 04
Location: Stoke
User status: Offline
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quote:
Originally posted by Rick Draper
quote:
Originally posted by Jambo
quote:
Originally posted by Rick Draper
Car i am looking at is £28020 OTR fully specked up and around £400-£440 PM using BMW Select.
Large deposit? Thats a good monthly for such an expensive car.
£440 is with a 10% deposit and a 4 year deal 12k miles a year with a view to trade it in after 3 years.
Based on current 123d's I'd guess it would be worth £14-15k in 3 years....I'm also guessing your final payment will be around £12-13k leaving you with having spent £16k, no car and £1800 less in your pocket than your initial £2800 deposit in 3 years from now.
Rather you than me.
[Edited on 22-11-2011 by A2H GO]
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Hammer
Member
Registered: 11th Feb 04
User status: Offline
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quote:
Originally posted by Russ
do you get a car a the end of it Hammer
Hope so mate, I would be furious otherwise
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Rick Draper
Member
Registered: 10th Feb 01
Location: Cheshire
User status: Offline
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quote:
Originally posted by A2H GO
quote:
Originally posted by Rick Draper
quote:
Originally posted by Jambo
quote:
Originally posted by Rick Draper
Car i am looking at is £28020 OTR fully specked up and around £400-£440 PM using BMW Select.
Large deposit? Thats a good monthly for such an expensive car.
£440 is with a 10% deposit and a 4 year deal 12k miles a year with a view to trade it in after 3 years.
Based on current 123d's I'd guess it would be worth £14-15k in 3 years....I'm also guessing your final payment will be around £12-13k leaving you with having spent £16k, no car and £1800 less in your pocket than your initial £2800 deposit in 3 years from now.
Rather you than me.
[Edited on 22-11-2011 by A2H GO]
If at the end of the agreement i want it it will be £8k otherwise if its valued at £15k i then have £7k worth of equity in the car to use as a deposit on another car.
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Ben G
Member
Registered: 12th Jan 07
Location: Essex
User status: Offline
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quote:
Originally posted by A2H GO
quote:
Originally posted by Ben G
jesus christ the amount of people in here spouting shit is unreal once again an informative thread has gone way off track.
his money, he can do what he likes.
finance pcp isnt the evil sinister thing you all think it is. its basically a mini mortgage and after the 3.years you either get another new motor, sell private or keep it and pay the balloon payment.
Since you're going on about spouting shit...
Its actually nothing like a mortgage given you own the house at end.
I also presume you mean your options are to give the car back or pay the balloon payment then keep or sell private.
yes, im talking from personal experience.
most people who worry about finance have never actually had it.
what ojc said is bang on.
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