Stupid question time - PCP

almillar

There are several pitfalls, but a big one is that PCP often looks great first time, but much worse second time.
First time is easy, you might have a car worth a few grand to trade in. That makes your monthly payments (and interest) lower, then when it comes time to change, the numbers suddenly go up for the same car - you have no deposit this time, you no longer own a car, remember?! Now you're stuck in the PCP trap. If you didn't see it coming.

thescouselander

almillar wrote: »

There are several pitfalls, but a big one is that PCP often looks great first time, but much worse second time.
First time is easy, you might have a car worth a few grand to trade in. That makes your monthly payments (and interest) lower, then when it comes time to change, the numbers suddenly go up for the same car - you have no deposit this time, you no longer own a car, remember?! Now you're stuck in the PCP trap. If you didn't see it coming.

My car is coming to the end of its PCP. I'm about to order a new one with the £5k deposit I've save up.

Personally it works well for me.

almillar

^ Absolutely, I've done PCP and I'm careful not to knock it. But plenty of people get to the end of the PCP, life gets in the way, and that £5k they meant to save (for another deposit, or to buy the car) doesn't happen. It's a pitfall, you didn't fall into!