PCP - Does it cost in?

Stonker

I'm looking to change my car early next year so have been looking in a few showrooms. Dealers are all trying to steer me towards PCP telling me that 80% of sales are now PCP purchase. I usually but a used car anyway believing that's where the value is but do any of you go the PCP route? The big issue for me is that I really don't know what my mileage will be.

happyc84

PCP works for me. i had been running second hand cars before i signed up. Work out what your budget is and what your car needs are.

Stonker

The problem is that I'm self employed so would only consider it if I put the cash for the whole lease term away somewhere.

Over the 2,3 or 4 years though does the whole life cost work out cheaper than buying?

Crabman

Some people prefer to have an actual asset in exchange for their money. If you were to lose your income for any reason, would you be able to maintain the payments?

Ultrasonic

Stonker wrote: »

The problem is that I'm self employed so would only consider it if I put the cash for the whole lease term away somewhere.

Over the 2,3 or 4 years though does the whole life cost work out cheaper than buying?

Sounds like you want to buy a car outright, so do so. Don't be pressured into a finance plan you don't want by a dealer. Their priority is probably commission for the PCP deal.

You can do some sums yourself but the odds on a PCP deal being cheaper than buying and running an equivalent car that is say 2 to 5 years old is about zero. But it obviously depends how new a car you want to drive!

Stonker

Crabman wrote: »

Some people prefer to have an actual asset in exchange for their money. If you were to lose your income for any reason, would you be able to maintain the payments?

That's the issue. I wouldn't go for it unless I had all the payments put by

happyc84

stonker, if your self employed you might consider a lease option; no vat. PCP has worked for me; as i know what my monthly costs are.

Stonker

Ultrasonic wrote: »

Sounds like you want to buy a car outright, so do so. Don't be pressured into a finance plan you don't want by a dealer. Their priority is probably commission for the PCP deal.

You can do some sums yourself but the odds on a PCP deal being cheaper than buying and running an equivalent car that is say 2 to 5 years old is about zero. But it obviously depends how new a car you want to drive!

I agree. I normally but a 2/3yo car as that's where I perceive the value to be with decent reliability. I also tend to keep my cars for at least 5 years.

I just can't see that a PCP would actually work out cheaper. Although I do understand that finding say £400pm may be easier than writing a cheque out for £20-30k and tying up half of that money for 3 years

Herzlos

Stonker wrote: »

That's the issue. I wouldn't go for it unless I had all the payments put by

If you had all the money available, wouldn't it be cheaper to just buy the car outright and avoid paying interest on the outstanding balance which is likely going to exceed your savings interest?

Stonker

Herzlos wrote: »

If you had all the money available, wouldn't it be cheaper to just buy the car outright and avoid paying interest on the outstanding balance which is likely going to exceed your savings interest?

that's my argument

Hintza

You might want to look for lease deals. In the dim and distant path unpopular or runout models were shifted via lease deals as opposed to offering discounts for straight sales.

But don't expect a deal on the latest must have car.

And do your sums very carefully.