PCP Car Loan - Changing Car Make

CarlizzleFoSho

Ah OK groovy, thanks for that. It's all so unclear to start with, I was always under the impression that once you're stuck with PCP from one manufacturer you're stuck with them for the long haul.

One last thing, how much up front payment are you expected to fork out? I have no deposit down but it mentions on the quote I got £200 a month plus £140 1st payment. Does that mean in the first month (if I'm to go down this route) I'd pay £340?!

In which case I may just get an old banger.

Idiophreak

CarlizzleFoSho wrote: »

Ah OK groovy, thanks for that. It's all so unclear to start with, I was always under the impression that once you're stuck with PCP from one manufacturer you're stuck with them for the long haul.

One last thing, how much up front payment are you expected to fork out? I have no deposit down but it mentions on the quote I got £200 a month plus £140 1st payment. Does that mean in the first month (if I'm to go down this route) I'd pay £340?!

In which case I may just get an old banger.

Like any finance agreement, it depends.

Leases generally run on a 3+35 basis, where your first payment is triple the remaining 35, but PCP can be anything. 0 deposit, 30% deposit...and adjusted monthly payments accordingly.

I will say, however, that if you're scared off at the idea of an extra £140, maybe paying out £200/month isn't for you....

CarlizzleFoSho

Yeah that's why I'm weighing up my options. I earn £25,000 so don't really want to be paying out a vast amount. the only reason I'm looking is because I've had to give up my company car so I will soon be car less.

However the only other alternative I can think of is to take out a very small loan and get a cheap old car. However what puts me off is the repairs could cost lots, I tend to like to change a car every 2-4 years.

Like you said though I don't have much expendable money so I'm not sure what the best route is on this..

Idiophreak

CarlizzleFoSho wrote: »

Yeah that's why I'm weighing up my options. I earn £25,000 so don't really want to be paying out a vast amount. the only reason I'm looking is because I've had to give up my company car so I will soon be car less.

However the only other alternative I can think of is to take out a very small loan and get a cheap old car. However what puts me off is the repairs could cost lots, I tend to like to change a car every 2-4 years.

Like you said though I don't have much expendable money so I'm not sure what the best route is on this..

Why not just take out a personal loan from the bank and use that to buy a car?

You can get some really nice small cars a couple of years old for 4-5k...look for something with a couple of years of warranty left....£150/month for three years...If you want to change car, there's no complications and you'll actually have an asset at the end of the day.

CarlizzleFoSho

Yeh I think that's probably the best route in all honesty. When I look into how much it costs to essentially hire a car it's insane, no idea how people can afford to throw £400 odd away every month.

Problem is I'm very picky when it comes to cars, I tend to go for the performance versions over the bog standards ones! Currently looking at a 2001 Polo GTI for £3,000..

Will perhaps look back into PCP when I'm on a bigger wage and can justify it then!

Idiophreak

CarlizzleFoSho wrote: »

Yeh I think that's probably the best route in all honesty. When I look into how much it costs to essentially hire a car it's insane, no idea how people can afford to throw £400 odd away every month.

It all depends, we lease one and PCP one, total cost around £400...For us it makes a certain amount of sense...we get to drive new cars all the time, they're more efficient than older cars, so we save money in fuel, tax is free on one and paid for on the other, we have breakdown cover with both. Obviously we pay no MOTs and don't have to worry about expensive repairs. Two services, change of tyres and you're on to the next car.

Contrary to popular belief, buying a car doesn't mean free motoring thereafter...you have to save for maintenance and repairs...and, of course, for a replacement car down the road...So if you choose the right PCP/lease it can wind up not costing massively more than driving mid-range used cars. Bangernomics, of course, is a different matter.

chanz4

why not get a leon tdi 1.9 and have the engine mapped

CarlizzleFoSho

I definitely prefer the idea of PCP and a new more reliable car. However I have to be realistic with what I can afford. I wouldn't have the money for the upfront payment towards a PCP, but the £200 a month would be do-able.

In contrast the POLO I'm looking at is £5k to buy so about £150 over 3/4 years. However it'll need an MOT, and car tax which is £280 a year. I used to have a diesel but I just don't do the miles to warrant it any more.

So with £20 a month for the tax added on to the loan repayment I'd be spending £170 a month technically for it before I consider any repairs that may need to be done.

So for £30 more I can get a new car that I won't need to worry about. When I look at it like that PCP is more tempting, however I just can't stump up the needed lump sum at the beginning.

If I had an asset such as a car to sell it would be a no brainer, but obviously in my situation it's get a car soon or have nothing.

stator

10 year old cars can be just as reliable as 2 year old cars, sometimes even more so if looked after correctly

thebritishbloke

If you don't have any lump sum to throw at it in the beginning, what are you going to do if you're ill off work for a month? Do you have an emergency fund saved up to pay your loan if you're out of work?

Why do you need a GTI model?