PCP isn't MSE

Grumpy_chap

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)

There are some tax factors that I am not fully knowledgeable on, but I understand that with the employer-backed salary-sacrifice company car schemes, that £400 ends up actually costing you less than £400 in terms of impact on take-home pay.  

Does it also impact the pension contributions?

These are two factors to check before joining the scheme.

I think, if the car is one you'd want and would have been buying a car in any case, the salary-sacrifice schemes can be unbeatable.

dipsomaniac

Grumpy_chap said:

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)

I think, if the car is one you'd want and would have been buying a car in any case, the salary-sacrifice schemes can be unbeatable.

I think?  Iirc it has a negative impact on pension contributions and you are restricted on supplier (price you pay/no discounts). Do plenty of research

dipsomaniac

motorguy said:

thegentleway said:

I disagree. For some people paying over the odds is exactly what it's about (e.g. overpriced champagne in a fancy bar). Or they don't want to look for deals as it's not worth their time. Or they want to pay over the odds for the best service. Pricing things higher than they are worth makes them appear worth more to some people. Etc...

"For some people paying over the odds is exactly what it's about". - Then this site isnt for those particular individuals.

It is however, for people on occasions want the nice things in life, but dont want to pay over the odds for them when they do.

Imho this site isn't about paying for the nicer things in life. You need to recalibrate 🙂

fred246

I know someone who is normally very good with money. They got a brand new car on PCP.  Some good reason. I think they had just bought another buy to let. However three years later I noticed their number plate had changed. Exactly the same car. Another PCP.  Another 3 years. It's so common, so money wasting and just so pointless.

fred246

It also seems to coincide with a total lack of care for the vehicle. The dealer has to do everything. They are so helpless and make no attempt to do anything. One of our neighbours recently brought some screenwash for me. "I wondered if Fred could use this?". They have 2 cars. Don't they use screenwash? Is that a dealer job now?

motorguy

dipsomaniac said:

motorguy said:

thegentleway said:

I disagree. For some people paying over the odds is exactly what it's about (e.g. overpriced champagne in a fancy bar). Or they don't want to look for deals as it's not worth their time. Or they want to pay over the odds for the best service. Pricing things higher than they are worth makes them appear worth more to some people. Etc...

"For some people paying over the odds is exactly what it's about". - Then this site isnt for those particular individuals.

It is however, for people on occasions want the nice things in life, but dont want to pay over the odds for them when they do.

Imho this site isn't about paying for the nicer things in life. You need to recalibrate 🙂

Frankly - you're wrong.  You only have to look at the foreign holiday boards, the loan boards, the credit card boards, the how to get the best deals on cars guides.

You seem to be having a real flounce because not everyone wants to drive a £200 car.  Been there, done that before (several times actually).  Chosing not to now but still look for the best deal when buying anything - precisely what this site is for

motorguy

dipsomaniac said:

motorguy said:

thegentleway said:

I disagree. For some people paying over the odds is exactly what it's about (e.g. overpriced champagne in a fancy bar). Or they don't want to look for deals as it's not worth their time. Or they want to pay over the odds for the best service. Pricing things higher than they are worth makes them appear worth more to some people. Etc...

"For some people paying over the odds is exactly what it's about". - Then this site isnt for those particular individuals.

It is however, for people on occasions want the nice things in life, but dont want to pay over the odds for them when they do.

Clutching at straws???

No making a statement of fact.
Well for most of us it is.

68ComebackSpecial

dipsomaniac said:

motorguy said:

thegentleway said:

I disagree. For some people paying over the odds is exactly what it's about (e.g. overpriced champagne in a fancy bar). Or they don't want to look for deals as it's not worth their time. Or they want to pay over the odds for the best service. Pricing things higher than they are worth makes them appear worth more to some people. Etc...

"For some people paying over the odds is exactly what it's about". - Then this site isnt for those particular individuals.

It is however, for people on occasions want the nice things in life, but dont want to pay over the odds for them when they do.

Imho this site isn't about paying for the nicer things in life. You need to recalibrate 🙂

Like @motorguy I would disagree. Why would you think that this site is only aimed at those who struggle financially? Plenty of the members here have good incomes and still want to maximise their income and get the best value they can for the items they wish to buy.

You're happy buying a car for £200 - good for you. Last week I bought a pair of silver earrings which cost £250. I signed up for their mailing list, which saved me 10%, and paid part of the cost via my PayPal balance which I had "earned" by completing rubbish surveys whilst I watch TV in the evening (aka money for nothing). Upshot is that I paid £183 for my £250 earrings - 27% saving - which I think makes it pretty "MSE". 

Having learned that paying cash for a car doesn't get you a discount next time I will follow the advice from this board and take a finance or pcp deal, get money off and then settle without paying any interest. Definitely following the site's ethos.

epthree

I should be asleep but I am really enjoying this thread, so much in fact that after 6 years of lurking without logging in I felt like I had to recover my password to add my two cents.

First of all, let me add - I've never bought a car on PCP other than once to claim a free servicing plan and £1000 deposit contribution, which I then paid off with a loan after the first month as I understand how it works and it doesn't suit my circumstances.
But, @dipsomaniac while PCP does have lots of downfalls, with the main one in my opinion that lots of people are mis-sold it and/or choose to ignore the finer details before signing, used wisely it can be a good way to get into a car that is reliable, safe, and enjoyable with less stress worrying about unexpected repair bills or getting stranded somewhere.

You surely understand that for lots of people cars mean more to them than a method of transport, they are freedom, they are fun and for lots of people, essential.
While it might not be the best way to save money, advising people who post about PCP if they are getting a good deal, the pitfalls to be aware of, and the things they need to consider, is very MSE.

In addition, MSE to me is not about taking a million to the grave, it's about making sure the decisions I make on the things I want to buy is sensible, affordable and if I can save money on my bills by lurking here to get a nicer car, that would be a bonus.

Driving a £200 banger is fun if you don't rely on your car to get you to work and you can walk to the shops when it's broken  - if you don't particularly care about cars and realistically, you don't care too much for yours and your passenger's safety but - for most people, it isn't ideal or suitable, arguably, being in a position where you can do it by choice, is a luxury in itself.

Grumpy_chap

epthree said:

PCP does have lots of downfalls, with the main one in my opinion that lots of people are mis-sold it and/or choose to ignore the finer details before signing,

I think this part kind of comes down to people getting excited in the moment of ordering the new car and, possibly, semantics in language.  If the marketing literature / sales representative refers to PCP as the affordable way to buy / own your new car, then it creates a false understanding as PCP is not buying / owning a car (unless you choose to buy / own at the end of the term).  

There is also a real issue with PCP staring an individual on a treadmill.  This happened to my SiL - she was about to buy a new (used) Mini for £8.5k.  Then offered 50/50 deal (50/50 is just another for of PCP really), so £9k upfront for brand new instead.  Well, for £500 difference, who would not go brand new rather than used?  The after 2 years, rather than simply take payment for the other £9k, the sales person offers a swap to brand new for £9.5k on another 50/50.  Obviously, £500 extra, got to go brand new.  She had three cars in total on this hamster wheel before giving the car back and simply buying used outright.

The biggest winners from these novel car finance schemes are the car manufacturers.