Is it good to apply for Personal Contract Hire (PCH)?

fantasyvn

May I ask this question?

I saw the website skyfleetcarleasing.co.uk which said Personal Contract Hire (PCH) is "is the best way to finance the car you want (but perhaps can't otherwise afford), and make considerable savings in the process".

Is it true? Is it better than buying a car?

My sincere thanks,

BeenThroughItAll

fantasyvn wrote: »

May I ask this question?

I saw the website skyfleetcarleasing.co.uk which said Personal Contract Hire (PCH) is "is the best way to finance the car you want (but perhaps can't otherwise afford), and make considerable savings in the process".

Is it true? Is it better than buying a car?

My sincere thanks,

Not if you want to own a car.


If you're happy to pay thousands of pounds over a few years to rent a car, whilst being told how far you're allowed to drive without penalty, then charged through the nose for every tiny mark, scratch, dent or bit of visible wear and tear when you give the car back, then it is.

lloydyd

However on the flip side of that statement, if you are happy to buy a car and watch it depreciate over the course of the 3 years then pay a hefty balloon payment to "own" the car at the end of it, all the while paying for road tax and servicing, then buy one. The cost of having a car for 3 years can often work out much cheaper when leasing due to the fact that a new purchased car will lose around £3-4K as soon as you put 1 millionth of a mile on it driving off the forecourt.

BeenThroughItAll

lloydyd wrote: »

However on the flip side of that statement, if you are happy to buy a car and watch it depreciate over the course of the 3 years then pay a hefty balloon payment to "own" the car at the end of it, all the while paying for road tax and servicing, then buy one. The cost of having a car for 3 years can often work out much cheaper when leasing due to the fact that a new purchased car will lose around £3-4K as soon as you put 1 millionth of a mile on it driving off the forecourt.

That's not the flipside of my statement. I never once suggested buying new, or PCP.

New cars are, in my opinion, overpriced fashion statements for mugs who want to impress their neighbours. Leasing's just a way to do that whilst ending up with nothing for your money.

I guarantee I've been running cars over the last five years which in total (including depreciation which is minimal on an older car) have cost less than it would have for me to have leased, PCP'd or bought outright a new one. None of them have been unreliable, and none have been base model Euroboxes either.

fantasyvn

Dear BeenThroughItAll,

Does it mean you have bought used cars?

I would like to buy used cars as well, but am just afraid some will be bad cars.

BeenThroughItAll

fantasyvn wrote: »

Dear BeenThroughItAll,

Does it mean you have bought used cars?

I would like to buy used cars as well, but am just afraid some will be bad cars.

I only buy used cars. Some are good, some are bad; just the same as brand new ones.


People will give lots of advice about buying used cars, but ultimately it will come down to you knowing what you're looking at, or taking someone along with you who knows.


When you buy used, you put all the money you would have paid for that lease, HP, loan etc into the bank and use it to keep your used car on the road for as long as you need/wish. I bet by the end of three years you'll be sitting on a decent pile of cash, and own a car which you can sell too.

lloydyd

BeenThroughItAll wrote: »

I only buy used cars. Some are good, some are bad; just the same as brand new ones.


People will give lots of advice about buying used cars, but ultimately it will come down to you knowing what you're looking at, or taking someone along with you who knows.


When you buy used, you put all the money you would have paid for that lease, HP, loan etc into the bank and use it to keep your used car on the road for as long as you need/wish. I bet by the end of three years you'll be sitting on a decent pile of cash, and own a car which you can sell too.

Ive got to disagree with that. If thats the experiance you have had then great. Mine is quite different. Almost 13 months ago, i bought a 53 Reg A Class auto for my wife (cost £2300). 13 months down the line, it needs a new gearbox (cost £1800). Thats 13 months. I could have leased a brand new corsa for three years for the money thats costing me. Older cars will reach a point where they become uneconomically viable to repair. You then have to start again with another older car.

As the post above says, some are good some are bad, but in my experiance Cheap usually costs more in the long run. (unless of course you are very lucky or know enough about cars not to get caught)

roonaldo

lloydyd wrote: »

Ive got to disagree with that. If thats the experiance you have had then great. Mine is quite different. Almost 13 months ago, i bought a 53 Reg A Class auto for my wife (cost £2300). 13 months down the line, it needs a new gearbox (cost £1800). Thats 13 months.

Thats a 10 year old car, im not suprised.

As the post above says, some are good some are bad, but in my experiance Cheap usually costs more in the long run.

How? A new £15k car may be worth £5k after 4 years and £250 per month and you still dont own the car.

You are comparing a new car to a 10 year old which is not comparable. For best value for money buy a car thats 3-4 years old, the previous owner would have taken the hit on the depreciation and you should (fingers crossed) bought a reliable motor.

forgotmyname

I spent just over £2000 on my car in 2009 and its cost less than £250 a year in MOTs and servicing and repairs.

fantasyvn

To forgotmyname:

How old is your car? £2,000 is very cheap and it would be great if you managed to find a good car.

roonaldo

Probably high miles and good servicing. I'm not too suprised.