Opinions on forking out on a PCP deal?

oscart1111

I just attempted a soft search with Admiral for a personal loan they were not able to offer one. However, they will happily offer me the PCP rate of 5%, frankly do not understand. I reckon for my age a personal loan with a low interest rate will be fairly hard to obtain!

oscart1111

DrEskimo wrote: »

Pleasure.

Now for my boring old man advice (at the ripe old age of 30...) keep your £6k car and put the money towards house deposit, and some of the monthly payments towards additional pension contributions. In all likelihood your current car will depreciate at half the rate, will cost £0 in interest and probably be cheaper in maintenance overall....

In 30years time you will absolutely think back at how great it was that you got on the housing ladder as early as you did, and that you took advantage of your disposable income to build your pension....you rarely think back and go...I'm so glad I drove that 2 series BMW for a few years....!

:rotfl:, you actually sound exactly like my mum! Yeah my goal to get onto the ladder by early next year. I thought £100 something a month couldn't hurt too much as others my age will use that much going clubbing on the weekends/other recreational activities (which I no longer do!). This is what I am strongly contemplating... getting onto the ladder early but then a part of me thinks that this car payment can't do too much damage!

DrEskimo

oscart1111 wrote: »

:rotfl:, you actually sound exactly like my mum! Yeah my goal to get onto the ladder by early next year. I thought £100 something a month couldn't hurt too much as others my age will use that much going clubbing on the weekends/other recreational activities (which I no longer do!). This is what I am strongly contemplating... getting onto the ladder early but then a part of me thinks that this car payment can't do too much damage!

Ha....yea sorry...!

See that's the clever marketing....it's why all car adverts say "from just £199 a month", without stipulating the deposit, the term and where it will leave you at the end of the agreement. It's not £117per month at all...it's £8,200 over 3 years, plus all the servicing costs involved, plus all the maintenance costs, plus all the insurance costs!

Also your mates chucking £100 a month on discotheques isn't the financial bar you should be setting yourself...you should be aiming higher than that, not looking to emulate that by throwing just as much away on a nice Beemer :P

oscart1111

I absolutely agree that this is clever marketing but of course I know what I am potentially getting myself into. I also have savings so I am not the type that is living pay check to pay check for example.

Contrasting my income to the possible monthly payments for this car, it doesn’t seem too unviable. Currently I have an Audi so I appreciate the costs of servicing/maintainence/insurance and to my surprise it was not as bad as I anticipated before I purchased it! All cars will require such upkeep.

Sorry if it appears as if I am trying to counter your point each time aha, you can tell a part of me really wants a new car.
You just told me want I didn’t want to hear but by far the most sensible option :money:

neilmcl

oscart1111 wrote: »

Owning the car would work out better I reckon as I like to add some subtle touches to my vehicles but am not sure if this is permitted on PCP. One thing that worries me though is that I may not be able to obtain those 2.8% rates, as my lack of credit history may lead to those 9.9% rates!

What makes you think you'll get the 5% on the PCP?

Scrapit

oscart1111 wrote: »

Thanks a lot :beer: because I like to change my car quite often so I thought PCP would be useful in that respect. With a personal loan at least that car will effectively be owned by me and I am free to sell it after 3 years? as opposed to a PCP whereby I will have to settle any outstanding finances beforehand?

No.
If you get a loan that isn't secured against the car you and an sell it right away cos you will own it outright. You will owe money on it to the lender but the car belongs to you.

oscart1111

You’re right, however when I go on admiral following the credit check it says I will be guaranteed a rate of 5.9%. When I called up I am able to get 5%.

loskie

try someone like sainsburys for a cheap loan, not sure how sensitive they are to credit history however.
Or better still follow the dad advice and keep your old current car.

Im 48 now when I was 18 I had a golf mk1 (1272cc I think) a great wee car took me all round the UK, against all advice I traded it in for a newer Polo Coupe S, I thought it was sporty and trendy, it wasnt either nor was it reliable. I learned that lesson the hard way,

Apodemus

DrEskimo wrote: »

Pleasure.

Now for my boring old man advice (at the ripe old age of 30...) keep your £6k car and put the money towards house deposit, and some of the monthly payments towards additional pension contributions. In all likelihood your current car will depreciate at half the rate, will cost £0 in interest and probably be cheaper in maintenance overall....

In 30years time you will absolutely think back at how great it was that you got on the housing ladder as early as you did, and that you took advantage of your disposable income to build your pension....you rarely think back and go...I'm so glad I drove that 2 series BMW for a few years....!

Lol! While the advice is sound, i’m not sure I agree about how one remembers life! Looking back across 40 years of driving, I am sure I remember more about my first rust-bucket mini, my old MG, my series III Land Rover, trading up to a V8 etc etc than I do about my first flat!

caprikid1

I have to admit having recently driven a 420i for a week and about 1000 miles I thought it looks amazing, handled great but the 2l was just a bit short for such a lovely car, just needed a little bit more.


Regarding the earlier post of I remember my old rusty mini, Landrover etc etc .I agree with the sentiment of old cars create great memories but I bought the house first then the old rusty mini and landrover and capri etc etc.


when I was 25 my company was selling off 3yr old company cars, a red 318i BMW was my temptation , £6500 I think it would have cost which was a good price at the time.


I stayed with my Trusty MK2 Cavalier 1.6GL, bought a 3 bed house in Bristol for £40,000 (1995). The mortgage is now all paid off and rents now for £1000 a month with a value of £240,000. That house now provides a garage for one of my classic cars, storage for parts and enough left over to pay for a fleet of cars.


You don't have to have spend money to have fun with cars, as I overtook a 420i through a fast roundabouy about this morning in a 1.6 Capri I know who was enjoying the drive more.