Downgrading PCP ?

motorguy

Double_V wrote: »

I had Audi A1 previously on PCP on 36 months.
After 19 months I was able to change my car to A5 with no deposit.
As I don't have deep pockets. The salesman said there was £2000 negative equity but we will pay that off.
So I didn't have to pay anything to clear that car off.
But my monthly increased by £100 as I did not put any deposit.

Cool, however you're in a very different boat this time.

Also, if there was £2,000 of negative equity whereby you owed £2,000 more than the car was worth - trust me on this - YOU paid it indirectly.

motorguy

gzoom wrote: »

Essentially the real winners from PCP deals are dealers (who can sell you a new car on PCP again) and the finance company. Hopefully you can start to see why car dealers LOVE selling people PCP.

You're effectively financing the depreciation on the car, not the car itself.

There are MANY PCP and lease deals that work out at least as good as buying with cash and selling again over the same period.

And, being honest, if it wasnt for PCP and lease deals, what sort of nut would you have to be to spend £38,000 of your own hard earned on a car?

motorguy

loskie wrote: »

lease instead of pcp.

Most likely cheaper monthly payments, however no Consumer Credit Act protection for voluntary termination, and if your circumstances change and you need out of it, they'll pretty much bill you for ALL remaining payments.

motorguy

londonTiger wrote: »

I wish my customers had the same level of common sense as OP.

Me too.

Financial suicide doing stuff like this

gzoom

motorguy wrote: »

You're effectively financing the depreciation on the car, not the car itself.

There are MANY PCP and lease deals that work out at least as good as buying with cash and selling again over the same period.

And, being honest, if it wasnt for PCP and lease deals, what sort of nut would you have to be to spend £38,000 of your own hard earned on a car?

If you want to change cars every 2-3 years PCP is fine, which is why I'm running a Leaf on PCP. Any car that you actually want to keep longterm buying cash is far cheaper, once the Leaf goes am dropping £50K on a 12-18 months old Tesla Model S...It's a lot of ££££ but it'll be a car I'll happly keep for the next 10 years

neilmcl

gzoom wrote: »

If you want to change cars every 2-3 years PCP is fine, which is why I'm running a Leaf on PCP. Any car that you actually want to keep longterm buying cash is far cheaper, once the Leaf goes am dropping £50K on a 12-18 months old Tesla Model S...It's a lot of ££££ but it'll be a car I'll happly keep for the next 10 years

You really think you'll get 10 years trouble free motoring out of a Tesla Model S?

Don't get me wrong, electric (and especially) electric hybrids are the way to go but the technology, particularly battery technology, is moving very quickly I wouldn't want to be making a long term commitment to a car bought today.

londonTiger

neilmcl wrote: »

You really think you'll get 10 years trouble free motoring out of a Tesla Model S?

Don't get me wrong, electric (and especially) electric hybrids are the way to go but the technology, particularly battery technology, is moving very quickly I wouldn't want to be making a long term commitment to a car bought today.

Battery technology has actually been evolving very slowly compared to the pace of growth in oher areas.

If you take a laptop for instance you can see the ram, storage, cpu, display tech improving exponentially, but battery technology has improved only lineraly at a very slow and gradual pace.

There is research done on aluminium ion cells they can charge at the fraction of the speed of lion making it possible to charge a car in the same sort of speed as a fillup. But the technoilogy isn't yet very practical. Manufacturering costs too high and issues with reliability as the aluminium ion wears out far too quicker than lion.

Battery technology is whats is holding back widespread use of EVs, the slow charging and short range makes it impractical, the only people on EVs at the moment is relatively well off people wh use EV as a second car.

Also lithium is even more scarce than crude oil and there just wouldn't be enough lithium around for every car in the world if people were to adopt EV on a wide scale..

Double_V

Good suggestions guys.
I am keeping the car for now.