Getting into the PCP Game

BOWFER

dipsomaniac said:

PCP, lease and finance enables/encourages people to drive a new car who can not afford it

Sheesh....

Norman_Castle

anotheruser said:

We have a car, probably worth about £2500.

I'm a bit worried it's not really worth it though. While it means we don't have to stump up another £4000 - £6000 for a used but good car (could pay less but this tends to be a good spot for us), it does mean we'll be paying a good £200-£300 a month anyway.

£250 per month for a year is £3000. £6000 minus £2500 is £3500. How long do your £6000 cars normally last you?

Personally I'd put £250 per month into an account and use this to maintain your current car.

onlyfoolsandparking

BOWFER said:

onlyfoolsandparking said:

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.

Unsure what you mean here.
With PCP you will always be able to walk away at the end.
Unless it looks like it's been in a stock car race, you don't have to worry that you'll be owe them anything.
You hope it will be worth more than the GFV and then you can use that equity, but it should always be worth the GFV.
That's why the word 'guaranteed' is used in GFV.

Yeah, could have explained it better I guess. I meant the 'stock car race' analogy. The high end cars I had on PCP with their high end alloys, paintwork etc etc always made me feel a bit nervous towards trade in time,like I was gonna end up with a nice 'repair' bill from dealer when inspected by them. Ironically the only time I did end up with a bill was for a kerbed alloy (the missus of course not me lol) and that was only £60. Course I'm going back over 15 years, don't know what the cost would be now but not my problem anymore.

I fully understand the guaranteed bit by the way, just out of interest I always thought it was Guaranteed Residual Value, turns out it's Guaranteed Future Value, who'd have thought it eh.    

Arklight

PCP if a finance instrument, which as others have said is designed to make people think they can afford more than they can. If you can afford it anyway then go wild, but this is a moneysaving site and brand new cars on finance are a brilliant way of dumping thousands of pounds on the experience of a year later sitting in a used car that would have cost 2/3 as much,

BOWFER

Arklight said:

is designed to make people think they can afford more than they can. 

This phrase is really getting on my nerves now...
If people can afford the monthly payments, that's the end of it - the absolute end of it.
If that means they're driving a car they otherwise couldn't afford to buy outright, there is no relevance to that - none

FWIW I could afford to buy the cars we drive, quite easily.
I choose not to, I have no interest in that form of car ownership any more.

Ibrahim5

I quite like the form of car ownership where you own the car.

Arklight

BOWFER said:

Arklight said:

is designed to make people think they can afford more than they can. 

This phrase is really getting on my nerves now...
If people can afford the monthly payments, that's the end of it - the absolute end of it.
If that means they're driving a car they otherwise couldn't afford to buy outright, there is no relevance to that - none

FWIW I could afford to buy the cars we drive, quite easily.
I choose not to, I have no interest in that form of car ownership any more.

This is Moneysavingexpert, not Chuck_money_away_on_shiny_nonsense_bought_on_expensive_credit expert. If you could  afford to buy the cars you drive outright "quite easily", rather than renting them via restrictive lease agreements then why do you not do so?

The very fact that you are throwing money away on credit you don't think you need is proof that finance companies can spot a sucker every hour of the day.

Grumpy_chap

Arklight said:

This is Moneysavingexpert, not Chuck_money_away_on_shiny_nonsense_bought_on_expensive_credit expert. 

Being MSE does not mean never having something nice or new.

neilmcl

Arklight said:

BOWFER said:

Arklight said:

is designed to make people think they can afford more than they can. 

This phrase is really getting on my nerves now...
If people can afford the monthly payments, that's the end of it - the absolute end of it.
If that means they're driving a car they otherwise couldn't afford to buy outright, there is no relevance to that - none

FWIW I could afford to buy the cars we drive, quite easily.
I choose not to, I have no interest in that form of car ownership any more.

This is Moneysavingexpert, not Chuck_money_away_on_shiny_nonsense_bought_on_expensive_credit expert. If you could  afford to buy the cars you drive outright "quite easily", rather than renting them via restrictive lease agreements then why do you not do so?

The very fact that you are throwing money away on credit you don't think you need is proof that finance companies can spot a sucker every hour of the day.

There's a whole section of the forum dedicated to credit, finance instruments etc. Maybe you should inform those in charge that this is no longer required on these forums. Or, maybe you and your like minded posters should try and understand what the MSE forums are actually about and stop trolling.

Norman_Castle

BOWFER said:

Arklight said:

is designed to make people think they can afford more than they can. 

This phrase is really getting on my nerves now...
If people can afford the monthly payments, that's the end of it - the absolute end of it.

Didn't realise you were in charge.

I like PCP. It provides stock for the used car market.