Opinions on forking out on a PCP deal?

motorguy

caprikid1 wrote: »

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.

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.

the 420i engine tunes well. Even a tuning box will take it to 250BHP which is probably more in line with the needs of such a big body. You can mod them to close to 300BHP quite easily too just with remapping.

caprikid1

At Age 23 I would not want to be declaring a remap on a car like that to my insurance company ? Its ok for us old farts.

I would also worry about the long term strain on the transmission on such a deed on a petrol engine.

System

motorguy wrote: »

Just to put "littered with people" in to perspective...

The last time anyone started a thread with PCP in the title was over a year ago.

Hardly "littered".

If you're just looking for that in the title then you'll get that result but we have at least one new thread a week and sometimes we have one a day.

According to this This Is Money article, 2.5 million people in the UK, 28% of those who get a car on finance, are trapped in car finance deals they can't afford.

https://www.thisismoney.co.uk/money/cars/article-6034971/Some-2-5-million-UK-motorists-trapped-car-finance-deals.html

NaughtiusMaximus

Tarambor wrote: »

If you're just looking for that in the title then you'll get that result but we have at least one new thread a week and sometimes we have one a day.

According to this This Is Money article, 2.5 million people in the UK, 28% of those who get a car on finance, are trapped in car finance deals they can't afford.

https://www.thisismoney.co.uk/money/cars/article-6034971/Some-2-5-million-UK-motorists-trapped-car-finance-deals.html

It's true that there are people out there who decide they want a 30k car when based on their income and expenditure they should really be looking at the 3-5k used market but this is a symptom of a person living beyond their means, not any inherent problem with PCP or other forms of car finance.

Taking out finance you can't afford for something you don't need (could be a new car, expensive holidays, designer clothes etc) is a sign of poor judgement/lack of forward planning/greed/ego/stupidity (delete as applicable).

caprikid1

"It's true that there are people out there who decide they want a 30k car when based on their income and expenditure they should really be looking at the 3-5k used market but this is a symptom of a person living beyond their means, not any inherent problem with PCP or other forms of car finance."




Surely a PCP on a car is just a rental deal like a flat or anything else ? It has nothing to do with the actual purchase price.


It won't be long before we just pay for cars by the mile.


If someone does the maths in terms of income and expenditure its up to them. I would argue that someone buying a car outright following a windfall is more living beyond their means as when they want to replace it they will be unable to afford the replacement ?


someone has to buy overpriced new cars otherwise where would all the 5-10 year old bargains come from ?

fred990

Tarambor wrote: »

If you're just looking for that in the title then you'll get that result but we have at least one new thread a week and sometimes we have one a day.

According to this This Is Money article, 2.5 million people in the UK, 28% of those who get a car on finance, are trapped in car finance deals they can't afford.

https://www.thisismoney.co.uk/money/cars/article-6034971/Some-2-5-million-UK-motorists-trapped-car-finance-deals.html

Truly bizarre, millions would rather actually be poor than be seen in public in an older car!
Anyway it's different this time......

NaughtiusMaximus

caprikid1 wrote: »

Surely a PCP on a car is just a rental deal like a flat or anything else ? It has nothing to do with the actual purchase price.

It is, but my point is there are plenty of people who choose to fork out £200+ per month on a PCP deal when they really can't afford to.

caprikid1 wrote: »

I would argue that someone buying a car outright following a windfall is more living beyond their means as when they want to replace it they will be unable to afford the replacement ?

Depends on the circumstances. If someone has always bought older used cars but following a windfall decides to treat themselves to a new of nearly new car as a one off (ie they will go back to buying older cars when this one is worn out) it's not living beyond your means.

caprikid1 wrote: »

someone has to buy overpriced new cars otherwise where would all the 5-10 year old bargains come from ?

Agreed, and someone always will.

motorguy

caprikid1 wrote: »

At Age 23 I would not want to be declaring a remap on a car like that to my insurance company ? Its ok for us old farts.

I would also worry about the long term strain on the transmission on such a deed on a petrol engine.

Absolutely agree - was merely making comment on the car you drove

Yeah you can do the same thing to a MINI Cooper S or JCW but the issue there is getting the power down. Mines around 250BHP now and it really could do with an LSD and upgraded brakes, so you start to run in to extra expenses there immediately, plus as you say pushing maybe 300BHP you're in to upgraded clutches, etc.

Our A45 is 380BHP but its transmission is designed for that sort of power.

motorguy

Tarambor wrote: »

If you're just looking for that in the title then you'll get that result but we have at least one new thread a week and sometimes we have one a day.

And yet, thats not picked up by ANY searches? Yeah right.

Frankly, you're making it up.

Tarambor wrote: »

According to this This Is Money article, 2.5 million people in the UK, 28% of those who get a car on finance, are trapped in car finance deals they can't afford.

https://www.thisismoney.co.uk/money/cars/article-6034971/Some-2-5-million-UK-motorists-trapped-car-finance-deals.html

Sensationalist click bait nonsense.

For kick off -

• It doesnt say they're trapped, it says they "feel" trapped. God forbid people should have to actually meet the commitment of the deal they signed up to. Too many people "fancy a change" after a year then wonder why they are in negative equity.
• They are rating "affordability" by people not being able to "afford" the balloon payment. PCP deals are not designed for people to own the car, therefore no one ever plans to "afford" the final payment.
• No one "has" to take on another finance agreement - its simply a matter of deciding what you want to do next. It might suit most to take on another deal however they have the option to buy a car with cash if they want, buy a car with a loan, buy a car on straight HP, PCP another car or lease a car. Noone is forcing people to do anything.

Its also pretty much just an active advertisement for Drover - VERY telling how they pitch it at the end "Drover is based on monthly subscriptions that can be cancelled at any time - similar to signing up for Netflix" .

Hardly impartial reporting - using words like "shock", "shocking", "trapped", using picture of people looking shocked and outraged then pitching a "solution" at the end.

Frankly ridiculous report designed to generate clicks to Drover.

Oh and heres an example of the deal you can expect from Drover (comment lifted from another thread running) - "On a rolling monthly contract you can pay £379/month for a 2017 Toyota Aygo. "

EDIT: Just found this at the bottom - "The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline." That explains a lot - its a Daily Mail article. Thought i recognised the language used

motorguy

NaughtiusMaximus wrote: »

It's true that there are people out there who decide they want a 30k car when based on their income and expenditure they should really be looking at the 3-5k used market but this is a symptom of a person living beyond their means, not any inherent problem with PCP or other forms of car finance.

Taking out finance you can't afford for something you don't need (could be a new car, expensive holidays, designer clothes etc) is a sign of poor judgement/lack of forward planning/greed/ego/stupidity (delete as applicable).

And can equally be a sign that people simply want to budget a set amount monthly, based on the fact they get paid monthly and all their other bills are monthly too.

And who said that £30,000 was typical? Most new Fiestas, Focus, Astras, Golfs, Corsas are bought on these deals.

Maybe these people dont have to eke out a living and can afford nice holidays etc without killing themselves to do it. Sorry if you cant.