PCP isn't MSE

strawb_shortcake

JamoLew said:

Can i throw leasing into the mix

Is that not MSE either ?

Just found out I can get a Polestar for £400 a month which includes everything - insurance,servicing etc

Its through one of those salary sacrifice schemes

4 year deal - sounds great - is it that £19,200 wasted or £400 a month that I CAN afford (btw, I don't have a spare 40k+ sitting around to buy outright)

If I remember correctly, you work for the NHS? My friend did similar through the NHS and it cost her far more than expected as her tax code changed (the first car she leased with no issues), she got rid of the car about 18 months ago and her tax code still hasn't returned to normal.

motorguy

Bigphil1474 said:

fred246 said:

 I don't have a spare 40k+ sitting around to buy outright

If you didn't waste money on daft PCP plans you would have enough money to buy a car.

Maybe the problem with PCP is that it is only for new cars - if there was a similar product for older cars which gave you worry free motoring and cost less, it would be more MSE and more people might do it. I've not really seen anything like that.  

There are PCP products for used cars, however they are usually at prohibitive rates.  For example, you could easily pay 10.9 or 12.9% APR on a used car PCP deal.

This usually means you can usually have a new car PCP for the same deposit and payment terms as a 1, 2 or 3 year old car.

On older cars it will easily work out cheaper (in terms of interest paid) to take out a cheap loan or even a straight HP deal even if that ends up being over a longer timeframe.

motorguy

NBLondon said:

Bigphil1474 said:

Maybe the problem with PCP is that it is only for new cars - if there was a similar product for older cars which gave you worry free motoring and cost less, it would be more MSE and more people might do it. I've not really seen anything like that.  

Cinch appear to be advertising something like that now - used (nearly-new) car and servicing all in one package.  I can see it appealing to many who like the one-monthly-payment option but can't make the payments on a brand-new whatever.  If there's enough take-up it could effectively be a second go round the loop for some desirable cars.

8.9% APR though which even on a £13K car on PCP will amount to over £3,000 in interest charges.

Would be better with a cheap loan.

Sea_Shell

How popular is PCP across Europe?.   Is it as common in, say, Germany, where a lot of these high end cars come from, or is it a bit of a UK phenomenon. 

thegentleway

PCP isn't MSE just as much as £200 bangers aren't MSE.
PCP is paying for most of the depreciation and £200 bangers you're paying for loads of repairs.
Surely the MSE way is to not buy a car unless you really have to and if you do to buy it at the sweet spot (after most of the depreciation but before the repair bills pile up). There are exceptions where PCP is best or £200 bangers are best.

People do love new cars in the UK; you see a lot more bangers abroad. It's crazy as they are so expensive (presumably due to the high demand). I do wonder why there are such a status symbol. Maybe because the number plates have the reg year? Maybe because hardly anyone garages their car so it's spends a lot of time on the driveway for your neighbours to lust after? In any case it's crazy but I love it as it's great for the second hand market (and presumably the economy!).

motorguy

thegentleway said:

PCP isn't MSE just as much as £200 bangers aren't MSE.
PCP is paying for most of the depreciation and £200 bangers you're paying for loads of repairs.
Surely the MSE way is to not buy a car unless you really have to and if you do to buy it at the sweet spot (after most of the depreciation but before the repair bills pile up). There are exceptions where PCP is best or £200 bangers are best.

People do love new cars in the UK; you see a lot more bangers abroad. It's crazy as they are so expensive (presumably due to the high demand). I do wonder why there are such a status symbol. Maybe because the number plates have the reg year? Maybe because hardly anyone garages their car so it's spends a lot of time on the driveway for your neighbours to lust after? In any case it's crazy but I love it as it's great for the second hand market (and presumably the economy!).

You're misinterpreting the ethos of MSE.

thegentleway

motorguy said:

thegentleway said:

PCP isn't MSE just as much as £200 bangers aren't MSE.
PCP is paying for most of the depreciation and £200 bangers you're paying for loads of repairs.
Surely the MSE way is to not buy a car unless you really have to and if you do to buy it at the sweet spot (after most of the depreciation but before the repair bills pile up). There are exceptions where PCP is best or £200 bangers are best.

People do love new cars in the UK; you see a lot more bangers abroad. It's crazy as they are so expensive (presumably due to the high demand). I do wonder why there are such a status symbol. Maybe because the number plates have the reg year? Maybe because hardly anyone garages their car so it's spends a lot of time on the driveway for your neighbours to lust after? In any case it's crazy but I love it as it's great for the second hand market (and presumably the economy!).

You're misinterpreting the ethos of MSE.

If you say so mate but every week I get an e-mail with this:

thegentleway

motorguy said:

thegentleway said:

PCP isn't MSE just as much as £200 bangers aren't MSE.
PCP is paying for most of the depreciation and £200 bangers you're paying for loads of repairs.
Surely the MSE way is to not buy a car unless you really have to and if you do to buy it at the sweet spot (after most of the depreciation but before the repair bills pile up). There are exceptions where PCP is best or £200 bangers are best.

People do love new cars in the UK; you see a lot more bangers abroad. It's crazy as they are so expensive (presumably due to the high demand). I do wonder why there are such a status symbol. Maybe because the number plates have the reg year? Maybe because hardly anyone garages their car so it's spends a lot of time on the driveway for your neighbours to lust after? In any case it's crazy but I love it as it's great for the second hand market (and presumably the economy!).

You're misinterpreting the ethos of MSE.

e.g. this article starts with "A new iPhone is never MoneySaving" - https://www.moneysavingexpert.com/mobiles/cheap-iphone/

thegentleway

motorguy said:

thegentleway said:

PCP isn't MSE just as much as £200 bangers aren't MSE.
PCP is paying for most of the depreciation and £200 bangers you're paying for loads of repairs.
Surely the MSE way is to not buy a car unless you really have to and if you do to buy it at the sweet spot (after most of the depreciation but before the repair bills pile up). There are exceptions where PCP is best or £200 bangers are best.

People do love new cars in the UK; you see a lot more bangers abroad. It's crazy as they are so expensive (presumably due to the high demand). I do wonder why there are such a status symbol. Maybe because the number plates have the reg year? Maybe because hardly anyone garages their car so it's spends a lot of time on the driveway for your neighbours to lust after? In any case it's crazy but I love it as it's great for the second hand market (and presumably the economy!).

You're misinterpreting the ethos of MSE.

Even better example: "Buying a new car is anything but MoneySaving" - https://www.moneysavingexpert.com/car-finance/buying-new-car/ but tell me more how I've misinterpreted the ethos of MSE

motorguy

thegentleway said:

motorguy said:

thegentleway said:

PCP isn't MSE just as much as £200 bangers aren't MSE.
PCP is paying for most of the depreciation and £200 bangers you're paying for loads of repairs.
Surely the MSE way is to not buy a car unless you really have to and if you do to buy it at the sweet spot (after most of the depreciation but before the repair bills pile up). There are exceptions where PCP is best or £200 bangers are best.

People do love new cars in the UK; you see a lot more bangers abroad. It's crazy as they are so expensive (presumably due to the high demand). I do wonder why there are such a status symbol. Maybe because the number plates have the reg year? Maybe because hardly anyone garages their car so it's spends a lot of time on the driveway for your neighbours to lust after? In any case it's crazy but I love it as it's great for the second hand market (and presumably the economy!).

You're misinterpreting the ethos of MSE.

Even better example: "Buying a new car is anything but MoneySaving" - https://www.moneysavingexpert.com/car-finance/buying-new-car/ but tell me more how I've misinterpreted the ethos of MSE

They dont say dont do it though and end there though do they?  They go on to show you how to do it most cost effectively.

Thats the difference between Money Saving and the ethos of MSE.

HTH