PCP Financing Advice

bpk101

What doesn’t add up though is what i actually pay vs. what they say my total amount is:

£4000 deposit +
£249.46 +
46 x £249.46 +
£249.22 +
£10, 749.26

= £26,723.10

Where do they get the figure of £29,723.79 from?

Surely interest is added first and split across the monthly payments?!

DrEskimo

bpk101 wrote: »

What doesn’t add up though is what i actually pay vs. what they say my total amount is:

£4000 deposit +
£249.46 +
46 x £249.46 +
£249.22 +
£10, 749.26

= £26,723.10

Where do they get the figure of £29,723.79 from?

Surely interest is added first and split across the monthly payments?!

I imagine it includes the deposit contribution as well, so not what you will actually pay. If you deduct that, do you get to the £26,723.10 figure? Probably a £10 optional purchase fee as well.

So the question is, are you happy spending £23k on a brand new Qashqai, knowing it will depreciate £13k over the next 4yrs/40kmiles, whilst paying Nissan finance £3k to do so...?

Honestly, will you not get about 99% of the same experience by just buying a 4yr old used one for about £12k from a dealer? The difference in depreciation and finance costs will be SO much cheaper that it will more than offset any unlikely repair bills you may face (OH Mini Cooper is now 9yrs old and in the last 6yrs she's owned it, she has spent £365 on a repairs....).

k6chris

I think (?) this is what you are paying for the 4 year use of a car:



£4000 deposit + £249.46 + 46 x £249.46 + £249.22 = £15,962


This is the optional figure to buy it after 4 years



£10, 749.26


And I think the final figure includes some kind of dealer / manufacturer contribution?

k6chris

DrEskimo wrote: »

Honestly, will you not get about 99% of the same experience by just buying a 4yr old used one for about £12k from a dealer? The difference in depreciation and finance costs will be SO much cheaper that it will more than offset any unlikely repair bills you may face (OH Mini Cooper is now 9yrs old and in the last 6yrs she's owned it, she has spent £365 on a repairs....).

Or a one year old lower spec model?


https://www.motorpoint.co.uk/vehicleadvert/nissan/qashqai%20hatchback/938620


Yes, none of my damn business, but this is a money saving forum! :rotfl:

Arklight

The issue is, he wants to buy a very popular, overpriced car, typically purchased by people who don't know much about cars and don't usually haggle.

On a (non motoring related forum) I visit, one of the members proudly posted his brand new Qashqai that he'd bought for £27k outright. The poor guy got absolutely roasted by people pointing out how much he'd overpaid.

It did have leather seats though, and little twiddly electrical bits wired in by Renault.

penguineater

Arklight wrote: »

The issue is, he wants to buy a very popular, overpriced car, typically purchased by people who don't know much about cars and don't usually haggle.

On a (non motoring related forum) I visit, one of the members proudly posted his brand new Qashqai that he'd bought for £27k outright. The poor guy got absolutely roasted by people pointing out how much he'd overpaid.

It did have leather seats though, and little twiddly electrical bits wired in by Renault.

That's pretty funny but also a little sad, lol!




OP, have you drove this car? Why are you so set on buying this particular one?


I would go for a car that is up to 3 years old and save a fortune. There is a constant flow of 2-4 year old cars that have ended their leases and will still be under manufacturers warranty (often 4-5 years/100k miles, except Kia which is 7 years) https://www.carwow.co.uk/best/cars-with-good-warranties-0170


Also it would suck majorly if you paid out the bum for a PCP deal and ended up hating the car for whatever reason, you'd be stuck with it or extorted of even more money to exit early.

k6chris

OP has shown a huge willingness to learn, seek different opinions, which I think in this day and age is hugely commendible. Ultimately you 'pays your money and takes your choice.' I would urge anyone on this forum to search here for the term 'PCP' and marvel in the issues people have had. I have learned a lot too.

bpk101

penguineater wrote: »

OP, have you drove this car? Why are you so set on buying this particular one?

It's a good question. I suppose the main reason is i really don't like the look of the the previous Qashqai model, probably not the best reason but hey, it's the truth.

I also want a petrol engine (i live in London and the incoming ULEZ zone makes diesel a non-starter) and automatic transmission. The new Qashqi Tekna seems to fit the bill within my budget.

Cards on the table i have a budget of around £23k to buy a car outright although it would make life a lot easier if i could finance a car and spread it out over some years... but i'm not ruling out buying cash.

The only other car i'm interested in is an Audi Q3 but they start at £30k so probably out of my budget.

As mentioned earlier i'm no car expert and only feel comfortable buying from an authorised dealer so i guess there's a bit of a premium to pay there too.

DrEskimo

bpk101 wrote: »

It's a good question. I suppose the main reason is i really don't like the look of the the previous Qashqai model, probably not the best reason but hey, it's the truth.

I also want a petrol engine (i live in London and the incoming ULEZ zone makes diesel a non-starter) and automatic transmission. The new Qashqi Tekna seems to fit the bill within my budget.

Cards on the table i have a budget of around £23k to buy a car outright although it would make life a lot easier if i could finance a car and spread it out over some years... but i'm not ruling out buying cash.

The only other car i'm interested in is an Audi Q3 but they start at £30k so probably out of my budget.

As mentioned earlier i'm no car expert and only feel comfortable buying from an authorised dealer so i guess there's a bit of a premium to pay there too.

What would you use the £23k for? Unless you have any specific purpose, it makes very little sense to just have it in your bank account so you get to keep it there... particularly as the interest you will earn on it will pale in comparison to the interest you are paying on the finance.

Put it this way, would you just get a loan for £23k that's costing you £3k to borrow just to have £23k in your account. Would would be better off buying the car with the cash and borrowing the money that way, as you can borrow it for much cheaper than £2k....

I might be wrong (and overstepping the mark, so apologies if I am!) but it does seem to me that you want to buy a brand new car, but use the finance so it doesn't feel like you have just spent £23k....

Also....have you considered an EV? I bought a used one last year and the car has appreciated, my running costs are stupidly low and it's the best 'automatic' transmission you will ever drive!

daveyjp

If you have the cash use it. Pay yourself back every month at what it would cost you to borrow the same amount.