Peugeot Just Add Fuel/Servicing question

muddymouse

Hi

After having very old cars for many years (currently have a 1998 Fiesta) I have decided that the peace of mind that comes from owning/leasing a new car is worth the expense.

I have decided on a Peugeot 107 because of the no road tax and good fuel economy, and because I prefer the way it looks over the Citroen C1 or Toyota Aygo, which I know are all built in the same factory.

The Peugeot dealer has approved finance on a 5 door model with metallic paint. With a £400 deposit, they have quoted £184pm on their PCP 'Passport' plan, or £210 for the just add fuel option (both over 36 months, with an annual mileage of 12000). I have done lots of reading, including on this forum, which suggests that the just add fuel is a bit of a con really, but with these figures it doesn't sound like a bad option, so just wanted some feedback please.

My insurance will be around £250 annually, which means that with the just add fuel I would be paying an additional £186 in total over 3 years to cover servicing and breakdown cover (although I hope I won't need to use the breakdown cover, it is part of the deal). I think I could probably get the servicing done at a local garage for about this amount or slightly less, but would it be better for warranty/future value to just pay the money to Peugeot and get the main dealer's stamp in the service history?

Thoughts please? Am I missing something? :cool:

Nodding_Donkey

Why would you be worried about future value, don't you just hand it back at the end?

muddymouse

No, you have the option, as with other PCP plans, to pay a final payment at the end and keep the car. Probably would just trade it in, but want to keep my options open.

Iceweasel

I don't think that Peugot will allow you to service their car at your local garage.

There is no option to keep the car - you cannot keep what is not yours.

There is an option to buy it though.

And you can't trade it in as it doesn't belong to you.

You can hand it back and walk away or you can start a new PCP which is what the dealer really wants.

If you think that I'm playing with words then I think you haven't fully understood PCP.

See here:

http://www.telegraph.co.uk/motoring/how-to/10339529/How-to-understand-PCP-finance-plans.html

muddymouse

I understand that if I want to keep the car at the end of the 3 years, I will have to pay a final purchase fee to make it mine. That's not really the issue, I know in money saving terms, PCPs are not the best option, but I am sick of dreading my MOT with old cars, and I don't have the money to pay up front for a newer car.

On the issue of whether the 'straight' PCP or Just Add Fuel option is better value, what is your opinion?

Thanks

P.S. As I understand it, you can service a car on a PCP plan at an independent garage as long as they use approved parts.

daveyjp

On a PCP you are usually required to use a main dealer for all services. It isn't your car so they can dictate this to preserve the guaranteed value.

I would check out some online brokers as PCP is never a cheap way to own a car.

worried_jim

muddymouse wrote: »

but I am sick of dreading my MOT with old cars, and I don't have the money to pay up front for a newer car.

Just buy a car with a years MOT for £500 and if it fails next year scrap it for £170 and pay £330 for another £500 car with an years MOT.

£186 x 12 + £400 deposit = £2632 for a years motoring

or

£500 for a year's motoring.

No brainer.

john_white

muddymouse wrote: »

I understand that if I want to keep the car at the end of the 3 years, I will have to pay a final purchase fee to make it mine. That's not really the issue, I know in money saving terms, PCPs are not the best option, but I am sick of dreading my MOT with old cars, and I don't have the money to pay up front for a newer car.

On the issue of whether the 'straight' PCP or Just Add Fuel option is better value, what is your opinion?

Thanks

P.S. As I understand it, you can service a car on a PCP plan at an independent garage as long as they use approved parts.

Passport Personal Lease - UK Mainland Only
A guarantee may be required. Written quotations available on request from Peugeot Financial Services, Quadrant House, Princess Way, Redhill, RH1 1QA. Passport Personal Lease
contract examples available on each advertisement. Annual mileage 6000 miles. Excess mileage charges may apply. If you choose to pay off the optional final rental at the end of contract, you can keep the car but will not own it – you will pay an annual rental equivalent to one of your monthly. However, car ownership is possible with Passport – ask us for details.

Iceweasel

The whole thing hinges on what the final value of the car will be set at.

I did all these sort of sums a year or so ago and I decided against any form of PCP - purely because of the overall cost not being that big a saving over buying a new car outright and trading it in after 3 years. And at 20K miles year my payments were going to be far too high.

If you are considering holding on to it after the 3 years then you could do well to consider it from a different perspective as the newness of the car is not the prime object.

I calculated that it was best for my situation to buy a 2 year old car from a main dealer with an AUC (Approved Used Car) warranty plus a service pack for 2 years. At the end of the warranty period I will be taking up the option to renew it on an open-ended monthly payment plan.

I have calculated that it will need little or no servicing the 3rd year of my ownership (and if it does it will be at my local garage using genuine OE parts to keep the warranty intact)

I then sell it after 3 years when it is 5 years old, and then start again with another 2 year old one.

A PCP is really a plan to fund the depreciation over 3 years on a new car.

The depreciation is horrendous in my opinion so I was pleased to discover that many cars, even low mileage ones, are available at 2 years old for about 50% of their initial cost.

The depreciation from 2 to 5 years old is much more manageable.

Food for thought - it wont suit everyone of course.

But do the maths and see how it compares for the make and model you want.

Good luck.

Mankysteve

Have a look at some of the aygo competition you get more for money from the Hyundai i10 and kia version, both have the same brillant 1.25ltr engine much more refined than that horrible rattle 3cyclinder thing.

The money saving thing is to keep the car you've got or buy a cheap car and there right but as we all know there other things besides the cost.

AdrianC

Mankysteve wrote: »

much more refined than that horrible rattle 3cyclinder thing.

You kidding me? The C107go's three-pot is a corker. Lovely rasp to it, and just adores being thraped. FAR more fun to drive than it has any right to be.

Depreciation on them is going to get much worse in the near future than it has been - the new model's been announced, and should be launching before long.