Getting into the PCP Game

motorguy

ratrace said:

BOWFER said:

Honestly, drives me mad this.
In a site that's full of people asking what they should do with tens of thousands of pounds they have lying around to invest, people are whinging that PCP "isn't MSE"
Dear oh dear.

Did you read the op, he dosent have thousends lying around and even knows that when he comes to hand the car back they wont have the cash to pay the baloon and keep the car. this is thread that the op started and any advice should be to do with what the op is asking, he has been advised accordingly about what he should do form a sensible financial viewpoint as his financial situation at the moment is fairly tight as is most peoples and the moment.

the op has not returned with a reply as of yet so we are in the dark about what he has decided to do.

Did you read all the posts where people repeat ad nauseam "PCP 'isnt MSE'" when they clearly dont know what 'MSE' is and when PCP finance can work for people.

And i certainly dont need to speak for Bowfer, but its perfectly clear hes saying this site isnt for people who want / need to eke out a living making do on the bare minimum, its for people who want to get the maximum value for their money whether that be in buying a TV, foreign holiday, insurance, investment, AND right through to people who want to keep their costs to a minimum.  

Ibrahim5

If you need a pint of milk you go in and pay for it. You don't put it on a poxy monthly payment plan. If you need a car you just go and pay for it.  Same as anything else. Unless you can't afford it of course.

born_again

Ibrahim5 said:

If you need a pint of milk you go in and pay for it. You don't put it on a poxy monthly payment plan. If you need a car you just go and pay for it.  Same as anything else. Unless you can't afford it of course.

So I pay for my milk on my Credit Card. Should I not be using that for my milk, as I can not afford to pay for it at the point I buy it 🤣

Well that would  see new car sales stall, 2nd hand prices soar due to less on the market...

I'm not a lover of PCP/Lease. But that my personal opinion. But it suits some people who have the disposable monthly funds, but do not have savings to buy outright. Or more likely simply want to have a new car every 3 years with no worry about servicing etc.

So just people make their own minds up. What suits one does not suit another, And thank god for that....

motorguy

Ibrahim5 said:

If you need a pint of milk you go in and pay for it. You don't put it on a poxy monthly payment plan. If you need a car you just go and pay for it.  Same as anything else. Unless you can't afford it of course.

I pay for my milk on my credit card

Our groceries too, and the fuel for our cars.  Practically everything in fact.

onlyfoolsandparking

Having had a number of brand new cars on PCP's (2 X5's and a couple of Mercs) I thought the best thing about them was the low monthly repayments BUT I was always mindful of the big balloons on the end so rolled them over a few times until eventually I bailed out and luckily my last car on PCP was worth the GRV and then I moved to bangers where I never worried about where I parked etc.

PCP's aren't for everyone but speaking from experience they aren't the devils work either and If someone 'likes' driving a new car every 3-4 years then they're a good way of doing it.   

motorguy

Ibrahim5 said:

If you need a pint of milk you go in and pay for it. You don't put it on a poxy monthly payment plan. If you need a car you just go and pay for it.  Same as anything else. Unless you can't afford it of course.

And we're still waiting on where, in the MSE PCP guide "It makes it clear that PCP is only for people that can't afford to buy a car."

And that is "Only for the poor and helps them remain poor."

Ibrahim5

"If you need a new car but don't have the cash to pay for it" is the first sentence.

motorguy

Ibrahim5 said:

"If you need a new car but don't have the cash to pay for it" is the first sentence.

Ah right, so they dont say its for people cant afford to buy "a" car?  And it doesnt say "Only for the poor and helps them remain poor"?

Many people who chose PCP deals on new car could - and do - easily afford to buy a car outright, but opt to pay monthly for a new car instead.  There may be various reasons why not buying a car outright at £1,000 or £5,000 doesnt suit them.  They may feel the benefits associated with a new car work better for them.  They may not want to make a large cash commitment to a car, but can easily justify a couple of hundred pounds a month that rolls depreciation, warranty and perhaps servicing in to one payment for them.

I've had instances where i could have bought something fairly decent used for cash, but chose to PCP a new car.  Conversely i've had times when i could have PCP'd something amazing, but chose to buy a used car for cash instead.

And, as has been pointed out, the buoyant new car market invariably means cheaper prices for used cars down the line.  I think its quite telling when people have particular issue and make particular judgement over how / why people chose to finance a new car, when they should be quite gleeful about the cheap used cars it makes available for them.

Grumpy_chap

Ibrahim5 said:

If you need a pint of milk you go in and pay for it. You don't put it on a poxy monthly payment plan. If you need a car you just go and pay for it.  Same as anything else. Unless you can't afford it of course.

That is a simply appalling analogy.

As was the earlier analogy (by a.n.other) comparing PCP to renting a holiday cottage that you could not afford to buy.

In the case of both the pint of milk and the holiday, you commit to and pay for (by whatever means) a one-off purchase that does not create an on-going obligation.  The car on finance is different as it creates an on-going obligation.

motorguy

Grumpy_chap said:

Ibrahim5 said:

If you need a pint of milk you go in and pay for it. You don't put it on a poxy monthly payment plan. If you need a car you just go and pay for it.  Same as anything else. Unless you can't afford it of course.

That is a simply appalling analogy.

As was the earlier analogy (by a.n.other) comparing PCP to renting a holiday cottage that you could not afford to buy.

In the case of both the pint of milk and the holiday, you commit to and pay for (by whatever means) a one-off purchase that does not create an on-going obligation.  The car on finance is different as it creates an on-going obligation.

Exactly - and gives you something of benefit over that commitment timeframe.  Whether someone considers that a long term rental (so handing it back or chopping it in at the end of the term before the residual is due) or whether its a means to an end RE: buying it (paying off the residual)

If someone wants to and can make the monthly commitment (and has used the MSE guides / optimised the deal) then who are we to judge them for it?  Are there cheaper ways of getting from A to B?  Yes of course.  Does that matter?  Not one jot.