Best way to buy an almost new car…

Northern_Wanderer

https://www.moneysupermarket.com/loans/car-finance/calculator/

To compare PCP versus Hire Purchase costs. I'm sure there are other calculators.

Youwish

Definately worth looking at a dealer ex-demonstration car. They tend to have a fast turnover as dealers want to show off the latest model/colour/spec etc and will discount well.

cfw1994

Does anyone feel things are different if it is an electric vehicle they are looking at?

We are 5½ years & 50k miles into a Kona EV….& I am getting nervous 😱
We love the car, but they are essentially computers on wheels 👀

Now considering changing before EVs hit the ECS (expensive car supplement) additional tax.
For perhaps 15 years we have always bought cars ‘cash’….but I wonder in this new world of EVs whether PCP might make sense, rather than finding £25-£30k up front 🤷‍♂️

The cars can change much more rapidly within a few years and depreciation is a little hard to fathom.  

For context, we paid £36k for ours, & the value looks like around £11k, so perhaps similar to a normal ICE: 70% depreciation after over 5 years.
& for context, my XC60 is over 10 years and 100k miles in, bought for £32k, now worth £8k.  Twice as old, double the miles, 75% down.  That one is a keeper 🤣

Of course there is the option to keep the Kona for another 5 years, & maybe we will…but it won’t stop me being nervous 😜

DrEskimo

cfw1994 said:

Does anyone feel things are different if it is an electric vehicle they are looking at?

We are 5½ years & 50k miles into a Kona EV….& I am getting nervous 😱
We love the car, but they are essentially computers on wheels 👀

Now considering changing before EVs hit the ECS (expensive car supplement) additional tax.
For perhaps 15 years we have always bought cars ‘cash’….but I wonder in this new world of EVs whether PCP might make sense, rather than finding £25-£30k up front 🤷‍♂️

The cars can change much more rapidly within a few years and depreciation is a little hard to fathom.  

For context, we paid £36k for ours, & the value looks like around £11k, so perhaps similar to a normal ICE: 70% depreciation after over 5 years.
& for context, my XC60 is over 10 years and 100k miles in, bought for £32k, now worth £8k.  Twice as old, double the miles, 75% down.  That one is a keeper 🤣

Of course there is the option to keep the Kona for another 5 years, & maybe we will…but it won’t stop me being nervous 😜

As ever, entirely depends on the specific PCP deal. Hight interest rate and low GFV and it will be next to useless as a form of asset depreciation insurance. Low interest rate and high GFV, then may be worth it.

I still always point out that using PCP in this way seems odd though. If it was presented as a stand alone insurance product, I'm not sure there would be many takers given it has ridiculously punitive rules and charges when it comes to mileage and when it can be used.

Overall though, what is your concern? You can always buy a used EV that is registered before April 2025 if you decide to change in the future?