Car PCP help!!

Definite

molerat said:

Definite said:

molerat said:

You are going to pay an advanced rental of £7k with your own money plus 35 monthly rental payments of £106 - effectively £306 per month for 3 years.  If you want to own the car you will have to pay them the second hand value of the 3 yr old car, £10500, at the end of the 3 yr rental.

How is he renting on PCP? He owns the car at the end 

As my post clearly states, to make the car their own they will have to pay the second hand value of it at the end of the contract period.  Exactly the same as going to a dealer and buying a 3 year old car for £10500.

ahhh - Missed the payment at then end bit. That's nuts

[Deleted User]

molerat said:

Definite said:

molerat said:

You are going to pay an advanced rental of £7k with your own money plus 35 monthly rental payments of £106 - effectively £306 per month for 3 years.  If you want to own the car you will have to pay them the second hand value of the 3 yr old car, £10500, at the end of the 3 yr rental.

How is he renting on PCP? He owns the car at the end 

As my post clearly states, to make the car their own they will have to pay the second hand value of it at the end of the contract period.  Exactly the same as going to a dealer and buying a 3 year old car for £10500.

Except that if he buys the car at the end and has looked after it, he has a 3 year old car that is well maintained and reliable that could last for years and years and not be expensive to run. Vs buying that 3 year old car that could break down the next day - the motoring forum is full of the problems of buying second hand cars even from reputable dealers. With something like a Kia with 7 year warranty (particularly if the warranty is only for the original owner) that's no bad thing to have it new

DrEskimo

Deleted_User said:

molerat said:

Definite said:

molerat said:

You are going to pay an advanced rental of £7k with your own money plus 35 monthly rental payments of £106 - effectively £306 per month for 3 years.  If you want to own the car you will have to pay them the second hand value of the 3 yr old car, £10500, at the end of the 3 yr rental.

How is he renting on PCP? He owns the car at the end 

As my post clearly states, to make the car their own they will have to pay the second hand value of it at the end of the contract period.  Exactly the same as going to a dealer and buying a 3 year old car for £10500.

Except that if he buys the car at the end and has looked after it, he has a 3 year old car that is well maintained and reliable that could last for years and years and not be expensive to run. Vs buying that 3 year old car that could break down the next day - the motoring forum is full of the problems of buying second hand cars even from reputable dealers. With something like a Kia with 7 year warranty (particularly if the warranty is only for the original owner) that's no bad thing to have it new

At which point using a PCP loan at 8.9% APR with a interest only balloon payment would have been the more expensive way to finance buying a new car.

They would have paid interest equivalent to about a 15% APR personal loan. Possibly more....

[Deleted User]

DrEskimo said:

Deleted_User said:

molerat said:

Definite said:

molerat said:

You are going to pay an advanced rental of £7k with your own money plus 35 monthly rental payments of £106 - effectively £306 per month for 3 years.  If you want to own the car you will have to pay them the second hand value of the 3 yr old car, £10500, at the end of the 3 yr rental.

How is he renting on PCP? He owns the car at the end 

As my post clearly states, to make the car their own they will have to pay the second hand value of it at the end of the contract period.  Exactly the same as going to a dealer and buying a 3 year old car for £10500.

Except that if he buys the car at the end and has looked after it, he has a 3 year old car that is well maintained and reliable that could last for years and years and not be expensive to run. Vs buying that 3 year old car that could break down the next day - the motoring forum is full of the problems of buying second hand cars even from reputable dealers. With something like a Kia with 7 year warranty (particularly if the warranty is only for the original owner) that's no bad thing to have it new

At which point using a PCP loan at 8.9% APR with a interest only balloon payment would have been the more expensive way to finance buying a new car.

They would have paid interest equivalent to about a 15% APR personal loan. Possibly more....

I never said expensive PCP was a good idea, just that buying a three year old car second hand could well be more expensive than PCP if it wasn't well looked after. You can add all the ..... you like, if the car fails after 31 days for something the dealer couldn't reasonably be held responsible for, something that costs £thousands to repair, who is worse off?

DrEskimo

Deleted_User said:

DrEskimo said:

Deleted_User said:

molerat said:

Definite said:

molerat said:

You are going to pay an advanced rental of £7k with your own money plus 35 monthly rental payments of £106 - effectively £306 per month for 3 years.  If you want to own the car you will have to pay them the second hand value of the 3 yr old car, £10500, at the end of the 3 yr rental.

How is he renting on PCP? He owns the car at the end 

As my post clearly states, to make the car their own they will have to pay the second hand value of it at the end of the contract period.  Exactly the same as going to a dealer and buying a 3 year old car for £10500.

Except that if he buys the car at the end and has looked after it, he has a 3 year old car that is well maintained and reliable that could last for years and years and not be expensive to run. Vs buying that 3 year old car that could break down the next day - the motoring forum is full of the problems of buying second hand cars even from reputable dealers. With something like a Kia with 7 year warranty (particularly if the warranty is only for the original owner) that's no bad thing to have it new

At which point using a PCP loan at 8.9% APR with a interest only balloon payment would have been the more expensive way to finance buying a new car.

They would have paid interest equivalent to about a 15% APR personal loan. Possibly more....

I never said expensive PCP was a good idea, just that buying a three year old car second hand could well be more expensive than PCP if it wasn't well looked after. You can add all the ..... you like, if the car fails after 31 days for something the dealer couldn't reasonably be held responsible for, something that costs £thousands to repair, who is worse off?

If they are both Kia's with 7 year warranties, then neither is worse off.

Well, actually still the person who bought the car brand new with high interest bearing finance, as they've spent thousands on depreciation and interest.