Buy outright & DIY vs PCP

E30M3

still none the wiser as to what this car is?

My concern with new vehicles is that they are vastly complex, if they are to go wrong, they can in a big way. I like the way I can budget my monthly outgoings for my lease and I do have pleasure in driving a new car, it's more to me than A to B. My financial advisor also recommends lease / PCP so that someone else manages the depreciation and he can look after my capital.

I would love to daily drive my 32 year old M3 but can't bring myself to do it, even though it might work out technically cheaper...

motorguy

E30M3 wrote: »

still none the wiser as to what this car is?

My concern with new vehicles is that they are vastly complex, if they are to go wrong, they can in a big way. I like the way I can budget my monthly outgoings for my lease and I do have pleasure in driving a new car, it's more to me than A to B. My financial advisor also recommends lease / PCP so that someone else manages the depreciation and he can look after my capital.

I would love to daily drive my 32 year old M3 but can't bring myself to do it, even though it might work out technically cheaper...

No, you'd definitely want to keep that m3 tucked up nice and warm somewhere. :beer:

Nasqueron

You don't need to have a new car every 3 years on PCP. You can, certainly, but you can equally buy one, enjoy up to 7 years warranty and sometimes even have free servicing. If you intend buying the car at the end you don't need dealer servicing.

A huge chunk of your saving is from servicing the car yourself, something the vast majority are not qualified to do nor have the tools not the workshop to do it - did you factor in those costs as well?

fred246

motorguy wrote: »

Nowhere near the amounts your talking about but it will be cheaper yes.

I bought my car at 10 months old. List price £26K. Purchase price £16K. Now worth £1K.

Current list price is £35K. Broker £30K. Value after 3 years £15K. So paying £522 per month is £18K over 3 years. If they give you something worth £30K and you give it back worth £15k then paying £18K for it doesn't sound out of the ordinary.

fred246

E30M3 wrote: »

My financial advisor also recommends lease / PCP so that someone else manages the depreciation and he can look after my capital.

You'd have much more capital to look after if you ditched your financial adviser and listened to people like me on the MSE forum. Who manages the depreciation on your TV, fridge, washing machine,dishwasher? Do they all have to replaced every 3 years or leased?

Arklight

fred246 wrote: »

I have had my large family car now for 15 years and done all my own servicing and repairs. The only repair I paid for was a new clutch and dual mass flywheel for £750. It works absolutely perfectly. I have kept all my receipts and was adding them up recently. I wondered how much a similar car on PCP would have cost with main dealer servicing. I would have had 5 news cars in that time. My car has suffered £15K depreciation and cost just over £4k in servicing & repairs. A similar car would have cost £94K in PCP payments, just under £5K for main dealer servicing with a new set of tyres for each car. I didn't include any over mileage charges or cosmetic repair charges. So that works out at a saving of £80K, less than a fifth of the price of PCP. I call that MONEY SAVING.

I call that maths that needs explaining.

Your 15 year old car would have cost you £94k in PCP but has only lost £15k in depreciation? What is this car?

If you mean that you would have spent £94k over the last 15 years renting new and nearly new cars, then yes, but that's not really comparing like with like.

TheMoonandBack

A colleague of mine drives a new BMW 320d x drive. It is on a pcp and he paid £3500 deposit (which was the old car trade in) and £350 a month with 10000 miles p.a mileage. I don’t know what the balloon payment is, but the list price of the car was £42k, he got it for less than that.
I don’t personally advocate pcp’s at all but he can afford the payments and likes the car and has no interest in servicing it, or any car, whatsoever.
Your theory is great for you, but other peoples lifestyle choice may not be to drive around in a 15 year old car or service it themselves on the driveway.
I still don’t see where you get your £522 a month from or £94k over 15 years, unless you are running a 15 year old Porsche 911 and the payments are for a new 911 renewed every 3 years ?
Also you haven’t factored in at all that the list price, of whatever car you have, is now £35k and was £26k 15 years ago. Or that you managed to get a 10 month old one for £10k less than the new list price.

Arklight

TheMoonandBack wrote: »

A colleague of mine drives a new BMW 320d x drive. It is on a pcp and he paid £3500 deposit (which was the old car trade in) and £350 a month with 10000 miles p.a mileage. I don’t know what the balloon payment is, but the list price of the car was £42k, he got it for less than that.
I don’t personally advocate pcp’s at all but he can afford the payments and likes the car and has no interest in servicing it, or any car, whatsoever.
Your theory is great for you, but other peoples lifestyle choice may not be to drive around in a 15 year old car or service it themselves on the driveway.
I still don’t see where you get your £522 a month from or £94k over 15 years, unless you are running a 15 year old Porsche 911 and the payments are for a new 911 renewed every 3 years ?
Also you haven’t factored in at all that the list price, of whatever car you have, is now £35k and was £26k 15 years ago. Or that you managed to get a 10 month old one for £10k less than the new list price.

I'm a bit sceptical about that too. You certainly can get reasonable discounts on nearly new cars but they aren't usually more than 15%.

TheMoonandBack

If Fred246 isn’t careful he’ll convert me to leasing and pcp’s !
Fred, even your car has cost you £105 a month over 15 years. In order to replace it at say, 20 years old, you’ve had to save at least that amount (£105 a month) again. You could easily pcp or lease for not much more, have a car that’s always under warranty, has free breakdown cover and needs minimal basic services (possibly even included in the deal).
You’ve now got a car that is apparently worth £1k (good luck getting that for it), I don’t know your mileage but at that age it is at risk of suffering expensive failures. It’s a fact, electrics, suspension, steering rack, gearbox will start to go wrong and won’t be easy to do on the drive.

E30M3

TheMoonandBack wrote: »

If Fred246 isn’t careful he’ll convert me to leasing and pcp’s !
Fred, even your car has cost you £105 a month over 15 years. In order to replace it at say, 20 years old, you’ve had to save at least that amount (£105 a month) again. You could easily pcp or lease for not much more, have a car that’s always under warranty, has free breakdown cover and needs minimal basic services (possibly even included in the deal).
You’ve now got a car that is apparently worth £1k (good luck getting that for it), I don’t know your mileage but at that age it is at risk of suffering expensive failures. It’s a fact, electrics, suspension, steering rack, gearbox will start to go wrong and won’t be easy to do on the drive.

You also forgot to factor in that it's got ZERO service history with it