perils of car finance

Grumpy_chap

AdrianC said:

Grumpy_chap said:

Deleted_User said:

funnily enough, the world hasn't fallen in because my car has 64 plate not 67/18, 

I think you'll find it pretty much has!
If only you had bought that new car, this whole coronavirus malarkey could have been avoided.

Blimey... Our newest are 02 and 05 - bought this year to replace R and E-prefixes. Presumably, that makes EVERYTHING from Trump, Brexit and the weather onwards entirely my fault?

Sorry, everybody.

He he.
Glad someone has broad shoulders.

frost500

I had an "nearly new" TT on PCP, 2015, never really felt like mine, handed it back, faced a £800 bill for an alloy that had a rub mark on the rim along with a few other things. It was also well below the contract mileage, which you do not get a refund for, yet it add hundreds to the resale value. I am a bit of petrol head. Drive an S3 MK1 now, that I prefer, that I have spent a lot of money on getting it right, close it its value. But it is mine and feels like mine. But yeah which ever way you finance a car, you lose overall. But I don't mind and have an interest in car mechanics, like a hobby. But if I had my time again I would never buy a car on finance, it is just a way to contribute towards the funding of a banker's lifestyle somewhere. Some people call running on old car bangermonics or call old cars rust buckets, fair enough. I call it frugal living, the least amount of direct debits, the better.

ontheroad1970

frost500 said:

I had an "nearly new" TT on PCP, 2015, never really felt like mine, handed it back, faced a £800 bill for an alloy that had a rub mark on the rim along with a few other things. It was also well below the contract mileage, which you do not get a refund for, yet it add hundreds to the resale value. I am a bit of petrol head. Drive an S3 MK1 now, that I prefer, that I have spent a lot of money on getting it right, close it its value. But it is mine and feels like mine. But yeah which ever way you finance a car, you lose overall. But I don't mind and have an interest in car mechanics, like a hobby. But if I had my time again I would never buy a car on finance, it is just a way to contribute towards the funding of a banker's lifestyle somewhere. Some people call running on old car bangermonics or call old cars rust buckets, fair enough. I call it frugal living, the least amount of direct debits, the better.

They say hindsight is 20/20, but £800 to fix one alloy is silly money, you should have fixed it yourself for a fraction of that.  As for being wildly under the mileage, you should have sold the car for a higher amount than GFV rather than hand back.  Something doesn't automatically become poor value jus because you didn't find a way to get best value.

frost500

Not just an alloy, few other things, as I said. Never knew you could sell a PCP car, how does this work?

caprikid1

"spent another £1k on "overhaul" - it will be as good as and "nearly new""
Sorry but even with a well equipped workshop and the time I don't think I could get a 15+ years old golf to "Nearly New".
That said I live in a realtively nice area and drive 2003 Golf 1.8T, it is surprising the amount of MK4 Golfs outside the decent houses and New Audi's / BMW's outside the lesser houses....

frost500

It was my MK1 S3 I overhauled. So far spent £2.5k this year on cluster repair, haldex service, new coil packs, headlight polish, new tyres tracking, new brake pads discs calipers and hours sorting correded brake lines, cam belt, new aerial, new windscreen, new battery. Various bushes, full service and finally painted the underbody with waxoyl. Labour of love by myself, pita for my mechanic. Of course it is not nearly new, it is a 20 year old Audi with 170k miles and still needs a bit more work. But I would rather do this than give away my money to banks with their pcps.   I guess I am in the minority on this pro finance "money saving" site. 

born_again

frost500 said:

Not just an alloy, few other things, as I said. Never knew you could sell a PCP car, how does this work?

You pay the balloon payment & the car is yours.... Simples

Which will have been explained to you when you took out the PCP finance.

born_again

fred246 said:

I know someone who has just replaced their three year old car for a brand new one. They hadn't intended to get stuck on the new car every 3 year business but they have. The car is exactly the same model in the same colour. You just look at it and think "Wow you have taken a brand new car, just run it in and it's lost half of it's value in 3 years. You have gained absolutely nothing and now you are going to take a brand new car down that ski slope of depreciation". It's crazy. Well this is a money saving site and that is exactly how NOT to save money. The old one may have needed a new tyre or two or even brake pads but the cost is nowhere near those depreciation losses.

They are aware that they are not STUCK on a new car every 3 years and could simply have payed the balloon payment and kept the car.
But maybe they want a new car every 3 years. So they do not have the worry of repairs as much (yes I know they can still go wrong)

Mercdriver

born_again said:

frost500 said:

Not just an alloy, few other things, as I said. Never knew you could sell a PCP car, how does this work?

You pay the balloon payment & the car is yours.... Simples

Which will have been explained to you when you took out the PCP finance.

Or you get someone else to buy the car, settling the finance and keeping the difference...

waamo

frost500 said:

It was my MK1 S3 I overhauled. So far spent £2.5k this year on cluster repair, haldex service, new coil packs, headlight polish, new tyres tracking, new brake pads discs calipers and hours sorting correded brake lines, cam belt, new aerial, new windscreen, new battery. Various bushes, full service and finally painted the underbody with waxoyl. Labour of love by myself, pita for my mechanic. Of course it is not nearly new, it is a 20 year old Audi with 170k miles and still needs a bit more work. But I would rather do this than give away my money to banks with their pcps.   I guess I am in the minority on this pro finance "money saving" site. 

Crikey a shade over £200/month on a 20 year old car. You could get a brand new A3 for that.