Brain leak..pcp v hp help

Goudy

Do you actually do 10,000 miles a year?

The contract mileage effects the GFV, the more miles, the less it's worth. This effects the monthlies.

Over predict a little but if you only do 5,000 miles a year, don't sign a 10,000 contract. Perhaps think about 6,000, they will give you a bit of leeway.

Go too low then go over contracted miles and they will charge you if you choose to hand it back to the finance company.

Moley27272

I checked my last 3 mot test. 2 were under 10000 and one was 12000

Goudy

Then 10,000 miles sounds about right.

As Herzlos writes, it sounds like they have quoted a strange PCP deal, which on the face of it might be good for one thing and really terrible for everything else and that comes down to what you want at the end of the contract.

As already stated, it's almost HP with a fairly high APR.

I can't tell you what to do, you need to have a good think about it.

There are some gripes with PCP but perhaps one or two less than with normal HP in my opinion, but it can come with a cost, which is why you put the work in before signing up.

Peoples circumstances change and not fully paying or having large monthly payments for a new car that is generally fuss free and fully warrantied does have some advantages, like budgeting.

I accept it's not for everyone though.
People say you're just renting it, but unlike a lease you have options at the end and plenty of people lease anyway.

What you do tend to hear on this forum is someone signs up for an expensive used car that they wouldn't usually afford. Then it goes bang in a big way and it's out of warranty.
They still have the payments to make and can't hand it back in that state so need to fix it at great cost.

You asked what I do.
These days I go for PCP deals with a big deposit contribution (via NHS discount schemes) that I just paid off as soon as I collect the car. Then run it for the warranty period (perhaps a year longer if I think it's worth it).

I have had PCP deals in the past that I have let run to near the end of the contract and traded them in.
It's not a "keep up with the Jones" thing, I got and paid for my pound of flesh out of the thing for around 3 to 4 years without any real costs except basic servicing.
It suited me and my budget well enough that I can afford to do what I do now.

I've tended to pick cars carefully. 
In the days I did them well equipped hatchbacks in modest colours always sold well used and I never had a problem haggling a trade in value above the GFV. As they were 3 or 4 years old they tended to be still fairly current models and equipped the same as new ones.

A few people I know did PCP on super cheap Dacia's, monthlies were cheaper than the bus and they all came out laughing as depreciation on them tended to be really really low (45% of nothing is nothing!)

These days it's all Crossovers and SUV's that dominate the markets.

If I did another I wouldn't do an EV at this stage am sorry to say, not because I am anti EV.
I'd probably go for a HEV.

I wouldn't want to buy one outright, whatever the finance was, technology changes fast and I feel the market for used has not really got a notable trend except downwards, fast. Which also rules them out for PCP in my book.

I don't think that's likely to change anytime soon, what with China flooding the market with cheaper and cheaper models which is going to hammer the used values further, unless import duty is increased but that won't be a vote winner with the motorists.
States could fund manufacturers to help bring the prices down, but that would accelerate the downward trend in used prices initially and probably another vote killer.

There was a recent thread about a Mini EV range being poor and they start at around £32k.
October sees the Dacia Spring hit the UK market and you'll get the same sort of range for £14995!
There's no guessing need to know what that is going to do to the prices of similar used cars.

Stateofart

Moley27272 said:

the Apr for HP is 13.9%
I thought hp was cheaper long term ?

Depends on the APR!

Get a bank loan.  You'll get a rate around 6% at the moment.

Moley27272

Goudy said:

Then 10,000 miles sounds about right.

As Herzlos writes, it sounds like they have quoted a strange PCP deal, which on the face of it might be good for one thing and really terrible for everything else and that comes down to what you want at the end of the contract.

As already stated, it's almost HP with a fairly high APR.

I can't tell you what to do, you need to have a good think about it.

There are some gripes with PCP but perhaps one or two less than with normal HP in my opinion, but it can come with a cost, which is why you put the work in before signing up.

Peoples circumstances change and not fully paying or having large monthly payments for a new car that is generally fuss free and fully warrantied does have some advantages, like budgeting.

I accept it's not for everyone though.
People say you're just renting it, but unlike a lease you have options at the end and plenty of people lease anyway.

What you do tend to hear on this forum is someone signs up for an expensive used car that they wouldn't usually afford. Then it goes bang in a big way and it's out of warranty.
They still have the payments to make and can't hand it back in that state so need to fix it at great cost.

You asked what I do.
These days I go for PCP deals with a big deposit contribution (via NHS discount schemes) that I just paid off as soon as I collect the car. Then run it for the warranty period (perhaps a year longer if I think it's worth it).

I have had PCP deals in the past that I have let run to near the end of the contract and traded them in.
It's not a "keep up with the Jones" thing, I got and paid for my pound of flesh out of the thing for around 3 to 4 years without any real costs except basic servicing.
It suited me and my budget well enough that I can afford to do what I do now.

I've tended to pick cars carefully. 
In the days I did them well equipped hatchbacks in modest colours always sold well used and I never had a problem haggling a trade in value above the GFV. As they were 3 or 4 years old they tended to be still fairly current models and equipped the same as new ones.

A few people I know did PCP on super cheap Dacia's, monthlies were cheaper than the bus and they all came out laughing as depreciation on them tended to be really really low (45% of nothing is nothing!)

These days it's all Crossovers and SUV's that dominate the markets.

If I did another I wouldn't do an EV at this stage am sorry to say, not because I am anti EV.
I'd probably go for a HEV.

I wouldn't want to buy one outright, whatever the finance was, technology changes fast and I feel the market for used has not really got a notable trend except downwards, fast. Which also rules them out for PCP in my book.

I don't think that's likely to change anytime soon, what with China flooding the market with cheaper and cheaper models which is going to hammer the used values further, unless import duty is increased but that won't be a vote winner with the motorists.
States could fund manufacturers to help bring the prices down, but that would accelerate the downward trend in used prices initially and probably another vote killer.

There was a recent thread about a Mini EV range being poor and they start at around £32k.
October sees the Dacia Spring hit the UK market and you'll get the same sort of range for £14995!
There's no guessing need to know what that is going to do to the prices of similar used cars.

That's interesting what you say, cheers.
Thing is I can't see EV's selling for less than an ICE, can you? . At the moment they are pretty much on parity. Once hire companies like hertz and Avis off load there EV's, leases and PHP are up, the used market will be bursting.

 Personally I feel supply will outsell demand, then the other way round, maybe 2 or 3 years?. If they do become a better more reliable and economical to run than ICE cars, time will tell. I did read a post from a driving instructor who hit 100,000 miles, said his EV is as new ! EVs one day will out sell ICE, when that happens I would like to be an owner of one. 
I m about to give up waiting for VW to get in touch , thats a whole another story .... So I'm going back on the market and will look into Tesla, Chinese made MG's and Dacia. New and old