Best way to buy an almost new car…

Sunsh1ne54

Hi, I’ve never bought cars on PCP before, and my car is now 18 years old and I’m looking to buy a nearly new car. (I’ll probably not go for brand new as that seems extravagant to me). 

Can anyone help with pros and cons of different ways to purchase please?

Thanks in advance 

MEM62

1) Rock up, choose car, pay cash, tax, insure and drive away.  No finance costs - just running and depreciation.
2) Rock up, choose car, late a loan, tax, insure & drive away.  Now you have running costs, depreciation and the interest on the loan. 
3) Rock up, choose car, put it on PCP, tax insure & drive away.  You then have running costs, depreciation and interest on finance, albeit with lower monthly payments than you would have on a loan.  In this case you don't even end up owning the car unless you also pay a balloon payment.          

Sunsh1ne54

MEM62 said:

1) Rock up, choose car, pay cash, tax, insure and drive away.  No finance costs - just running and depreciation.
2) Rock up, choose car, late a loan, tax, insure & drive away.  Now you have running costs, depreciation and the interest on the loan. 
3) Rock up, choose car, put it on PCP, tax insure & drive away.  You then have running costs, depreciation and interest on finance, albeit with lower monthly payments than you would have on a loan.  In this case you don't even end up owning the car unless you also pay a balloon payment.          

Thanks, now I just need to figure out if I’d rather spend my money in one go, or do (2) or (3) 

MikeJXE

I bought cash with part exchange Main dealer

3 year old Jaguar with 1 year manufacturers warranty 

Spent £130 on it by ABS sensor no other problems in the 5 years I have owned it 

Grumpy_chap

Sunsh1ne54 said:

Hi, I’ve never bought cars on PCP before, and my car is now 18 years old and I’m looking to buy a nearly new car. (I’ll probably not go for brand new as that seems extravagant to me). 

Can anyone help with pros and cons of different ways to purchase please?

Thanks in advance 

How new is your "nearly new"?
With discounts and incentives, brand new can sometimes work out as cheap, or even cheaper, than "nearly new".  It may seem extravagant but it is a check worth making.  You can get good indications of brand new prices using the online sites.  At least you will then be armed with the knowledge before going out and speaking to traders for the "nearly new" car.

Goudy

PCP on used cars aren't usually the best option as they tend to work out expensive.

For a start interest rates are usually higher for used finance deals and deposit contributions aren't usually great either.

As it's used and on finance, you could end up with an expensive loan around your neck and a car out of warranty that goes bang. That's something to consider.

You also usually get a few other incentives and free add ons with a new that you might not get with used or less of in the case of nearly new, like breakdown cover and extended warranties.

As you are looking at nearly new, I'm presuming months rather than years old, so run some figures on a new model first.
Look for a discount deal on somewhere like Carwow so you can compare the total cost to you with any nearly new deal you might look at, again as a total cost.

If there's only a few months in them, it might just work out cheaper overall to plump for new, if it has a better rate, larger deposit contribution and a full warranty and 3 years breakdown.

 

Sunsh1ne54

Grumpy_chap said:

Sunsh1ne54 said:

Hi, I’ve never bought cars on PCP before, and my car is now 18 years old and I’m looking to buy a nearly new car. (I’ll probably not go for brand new as that seems extravagant to me). 

Can anyone help with pros and cons of different ways to purchase please?

Thanks in advance 

How new is your "nearly new"?
With discounts and incentives, brand new can sometimes work out as cheap, or even cheaper, than "nearly new".  It may seem extravagant but it is a check worth making.  You can get good indications of brand new prices using the online sites.  At least you will then be armed with the knowledge before going out and speaking to traders for the "nearly new" car.

Maybe ex demo or if no good deals then a year or two old…. 

Sunsh1ne54

Goudy said:

PCP on used cars aren't usually the best option as they tend to work out expensive.

For a start interest rates are usually higher for used finance deals and deposit contributions aren't usually great either.

As it's used and on finance, you could end up with an expensive loan around your neck and a car out of warranty that goes bang. That's something to consider.

You also usually get a few other incentives and free add ons with a new that you might not get with used or less of in the case of nearly new, like breakdown cover and extended warranties.

As you are looking at nearly new, I'm presuming months rather than years old, so run some figures on a new model first.
Look for a discount deal on somewhere like Carwow so you can compare the total cost to you with any nearly new deal you might look at, again as a total cost.

If there's only a few months in them, it might just work out cheaper overall to plump for new, if it has a better rate, larger deposit contribution and a full warranty and 3 years breakdown.

 

By opting for a year or three old versus new it looks like I’d save about £8k 

Car_54

MEM62 said:

1) Rock up, choose car, pay cash, tax, insure and drive away.  No finance costs - just running and depreciation.
2) Rock up, choose car, late a loan, tax, insure & drive away.  Now you have running costs, depreciation and the interest on the loan. 
3) Rock up, choose car, put it on PCP, tax insure & drive away.  You then have running costs, depreciation and interest on finance, albeit with lower monthly payments than you would have on a loan.  In this case you don't even end up owning the car unless you also pay a balloon payment.          

Or 4) if there are incentives to do so, put it on PCP and pay it off ASAP while keeping the incentives.

Arunmor

Car_54 said:

MEM62 said:

1) Rock up, choose car, pay cash, tax, insure and drive away.  No finance costs - just running and depreciation.
2) Rock up, choose car, late a loan, tax, insure & drive away.  Now you have running costs, depreciation and the interest on the loan. 
3) Rock up, choose car, put it on PCP, tax insure & drive away.  You then have running costs, depreciation and interest on finance, albeit with lower monthly payments than you would have on a loan.  In this case you don't even end up owning the car unless you also pay a balloon payment.          

Or 4) if there are incentives to do so, put it on PCP and pay it off ASAP while keeping the incentives.

Doubtful on a used car.

Brie

Bought mine on a credit card and then did a balance transfer so 0% for 2 years.