Car - Buy, Lease(PCH) or PCP.

Grumpy_Old_Duffer

There has been much written over the years on this forum on the do's & don'ts of buying a car using either:-

1. Bank Loan
2. Lease Hire (PCH Contracts)
3. PCP Contracts

My situation is that I'm nearing retirement and having had a company car for the last 15 years, I'll obviously loose the 'benefits' of this and will have to find one for myself in retirement. I want a new or reasonably new car, but want to keep changing it before the 1st MOT's are due.

Bank Loan is fairly straight forward as we've probably all had a Bank Loan at some time or other, but that means I then own the car and then have the hassle (& heartache!!!) of selling the car before the 1st MOT is due and probably for less than what I consider it to be worth!!!

I've looked at Leasing (PCH Contracts) and have concerns about picking a 'wrong-un' Lease Company who will try and get more money out of me at the end of the lease by saying "this & that is scratched". As far as I'm aware these issues must surely be down to "fair wear and tear" ...... but do Lease policies actually define what is "fair wear & tear"? Also as I'm looking for a new or reasonably new car, can I assume that you can only Lease new cars? Another issue with Leasing is can you actually have a Lease agreement when all you have as income is 'Pension and Savings'?

PCP Contracts is very much the same issues as above, but the finance options look so much better for PCP and PCH than they do for Hire Purchase/Bank Loans. Can you have PCP or PCH deals on anything other than new cars, because if these are available then the obvious (to me anyway!!) is to have a PCP/PCH contract on a car that is, say, 6 - 9 months old (or ex demo) when the worst of the depreciation has happened.

Like I said I have no love for a car (it's just a depreciating asset!!) so just want to keep renewing every 2 or 3 years, before the MOT's are due and any 'unexpected' bills may start.


As a reference I've used website http://www.financeacar.co.uk/new-cars/ford-fiesta-hatchback
to look at the different finance options for a FORD FIESTA 5dr Hatchback 1.6 TDCi [95] Titanium ECOnetic 2012 and
website http://www.whatcar.com/car-depreciation-calculator/results?makeId=1&modelVersionId=1468&editionId=38495 to look at the depreciation trend for this car, and clearly the worst year is the 1st year.

Would appreciate any 'up-to-date' comments, whether you be an Individual or in the Motor Trade (i.e. a Motor Agent)

rs65

I got a Mercedes on PCP in January and got a booklet detailing what they regard as Vehicle Return Standards. It shows what is and isn't acceptable when you return it. Don't know if all manufacturers do that though.

I like PCP as I also don't want to keep a car until its first MOT. Try to change every 24-30months.