PCP Question

istabraq

Hi,

I follow the concept of a PCP deal for a car but would like to know if you can ascertain the cost of the deal and then pay with your own cash or a trade in vehicle?

I'm trying to work out if it is possible to pay a PCP up front without having to take any finance package at all from the garage.

TIA

BeenThroughItAll

istabraq wrote: »

Hi,

I follow the concept of a PCP deal for a car but would like to know if you can ascertain the cost of the deal and then pay with your own cash or a trade in vehicle?

I'm trying to work out if it is possible to pay a PCP up front without having to take any finance package at all from the garage.

TIA

Isn't that 'buying' a car?

forgotmyname

Why bother with loans and PCP's if your going to buy it outright?

Just tell them its a cash sale and know what the best deal is elsewhere and say you can buy it now today...

A salesman wont want you to go away and think about it. Often the buyer finds a better deal and goes with it or decides not to.

istabraq

Ha ha, sorry - i see the error in my ways with how i've described it.

What i mean is let's say a car costs 9 thousand pounds and i want to do a pcp for two years. Basically all i am paying is the depreciation so if that is around 3 thousand pounds can i just pay them the three thousand without the need for taking finance from them. I can then obviously return the car after two years if i don't want to pay the balloon payment.

BeenThroughItAll

istabraq wrote: »

Ha ha, sorry - i see the error in my ways with how i've described it.

What i mean is let's say a car costs 9 thousand pounds and i want to do a pcp for two years. Basically all i am paying is the depreciation so if that is around 3 thousand pounds can i just pay them the three thousand without the need for taking finance from them. I can then obviously return the car after two years if i don't want to pay the balloon payment.

Yes. You put the three grand in your bank, then pay it out monthly to cover the cost.


Or, 'buy' the car, then sell it after three years. You've paid for the depreciation then.


But you've misunderstood PCP. You're not paying just for depreciation, you're paying for servicing, etc.

istabraq

If i put the money in the bank and repay it i would still be using finance though. I'm trying to work out if i have the capital if i can avoid having to take out finance?

Re PCP almost everything i have read on it says you are paying depreciation

BeenThroughItAll

istabraq wrote: »

If i put the money in the bank and repay it i would still be using finance though. I'm trying to work out if i have the capital if i can avoid having to take out finance?

Re PCP almost everything i have read on it says you are paying depreciation

Yes, you can. Just buy the car.


Yes, PCP IS paying for depreciation, but that's not ALL it's paying for.

istabraq

I can't buy the car though cause i don't have enough money

Car cost = 9k

PCP over two years = 3k

I have the 3k but want to know if i absolutely have to take finance or if i can just hand over the 3k for a two year pcp deal (at which point i will hand the car back)

mjoneseyjones

Of course you can't.

What does the dealer/finance company get out of that?

istabraq

The dealer would get the cost of the PCP deal if i'm giving them the 3k

mjoneseyjones

Its not that simple though is it?

The dealer/finance company have more of an interest in the car than just the cost of the PCP over the 3 years.

I don't know why we're still talking about it, you'll not find a dealer in the world who'll let you hand over 3 grand to drive off wih a brand new car with no finance package attached to it.