PCP isn't MSE

dipsomaniac

She will have to worry about the resale value if she decides to 'resolve'🙂 the outstanding finance on the enjoyable car

BOWFER

thegentleway said:

BOWFER said:

..

It's perfectly sound thinking.

🤦‍♂️ No it’s not. She doesn’t need to replace her car in 3-4years time let alone worry about resale value

The fact your mother is prepared to keep a car for a long time doesn't change the fact it's sound enough thinking from the salesman.
Most folk don't want to keep a car for years and years and big changes are coming at an alarming rate.
PCP allows you to walk away from a car that might be worthless or a pain to get rid of in a few years.

Cornucopia

dipsomaniac said:

She will have to worry about the resale value if she decides to 'resolve'🙂 the outstanding finance on the enjoyable car

Not really.   She has the option to rely on the estimated value that she agreed at the outset.   She can even hedge her bets and look around for a better offer and revert to the estimated value if she doesn't find one.

motorguy

dipsomaniac said:

She will have to worry about the resale value if she decides to 'resolve'🙂 the outstanding finance on the enjoyable car

Only if she plans on selling it.

I dont worry about the resale value on my cars because i have no intentions of selling them.

thegentleway

BOWFER said:

thegentleway said:

BOWFER said:

..

It's perfectly sound thinking.

🤦‍♂️ No it’s not. She doesn’t need to replace her car in 3-4years time let alone worry about resale value

The fact your mother is prepared to keep a car for a long time doesn't change the fact it's sound enough thinking from the salesman.
Most folk don't want to keep a car for years and years and big changes are coming at an alarming rate.
PCP allows you to walk away from a car that might be worthless or a pain to get rid of in a few years.

No it’s not. She told him she had the cash to buy it and he tried to get her to pay 10% interest on finance. 
petrols/diesel cars won’t be worthless in a couple of years, that’s just scaremongering. It’s also dead easy to sell a car on webuyanycar. Even my mum could do it.
lol at ‘keeping a car a long time’. Cars last 200k miles. They don’t need replacing every couple of year unless you do 100k miles a year 

Grumpy_chap

thegentleway said:

No it’s not. She told him she had the cash to buy it and he tried to get her to pay 10% interest on finance. 
petrols/diesel cars won’t be worthless in a couple of years, that’s just scaremongering. It’s also dead easy to sell a car on webuyanycar. Even my mum could do it.

Sometimes, even if you can pay cash, finance is a better start as it can come with incentives.  So, you can claim the incentives, then repay the finance quickly meaning that the interest rate is irrelevant.

The_Real_Cheddar_Bob

I love this thread! It's bold, blunt and factual. PCP is for people who refuse to accept their reality of spending more than they earn and justifying it by being able to "afford" the monthly payments. I'm pretty sure Martin Lewis said its like robbing your future self of money. If it wasn't him, it was someone similar. 

fred990

Indeed Bob, one wonders what the industry would look like were it not for this financial 'product', spending tomorrows money today. 
One of the big German company execs (bmw I think) referred to the UK as Treasure island! 

Sea_Shell

fred990 said:

Indeed Bob, one wonders what the industry would look like were it not for this financial 'product', spending tomorrows money today. 
One of the big German company execs (bmw I think) referred to the UK as Treasure island! 

Is PCP a UK phenomenon or is it widely used across Europe?   

How do the Germans buy their Audi's, BMW's and Mercedes'?

fred246

The UK with its number plate system has always seemed to promote people buying NEW cars. I really don't think the age of a car bothers me. When I was at school we always had cars that were a few years old. Leather interior with walnut dashboards. Top of the range. My best school friend always had a brand new car of the most basic model you could buy. Vinyl seats. Not even a radio. He used to try and convince me that new was better.