PCP Plan - Best Way Forward

IAMIAM

I want to be in a position where I can continually hand a car back after 3-4 years instead of keeping a car and ultimately forking out circa 2k every year in MOTs and Repairs when I have previously tried to keep hold of a car for 5-10 years.

What advice would you have regarding PCP's? Is it best to put the maximum deposit down for the 3 years or the least deposit down for the 3 years? What about what type of car I should be buying initally...1 year old? Mileage less than 50k? I probably do 15k miles per year.

I just like the thought of handing my car back instead of worrying about major issues every few years.

Any thoughts, I know a loan or saving up is cheaper option, but come the end of this, I just end up with the same issues, car needs major repairs of something else doing to it that just costs more in the long run vs cheaper interest.

Nebulous2

IAMIAM said:

I want to be in a position where I can continually hand a car back after 3-4 years instead of keeping a car and ultimately forking out circa 2k every year in MOTs and Repairs when I have previously tried to keep hold of a car for 5-10 years.

What advice would you have regarding PCP's? Is it best to put the maximum deposit down for the 3 years or the least deposit down for the 3 years? What about what type of car I should be buying initally...1 year old? Mileage less than 50k? I probably do 15k miles per year.

I just like the thought of handing my car back instead of worrying about major issues every few years.

Any thoughts, I know a loan or saving up is cheaper option, but come the end of this, I just end up with the same issues, car needs major repairs of something else doing to it that just costs more in the long run vs cheaper interest.

Have you looked at leasing? Can work out cheaper than PCP, especially if you aren't too worried about colour / spec. You can specify a lease to include maintenance.

You generally have to hand a lease car back at the end of the period you initially agreed. 

Car_54

IAMIAM said:

Any thoughts, I know a loan or saving up is cheaper option, but come the end of this, I just end up with the same issues, car needs major repairs of something else doing to it that just costs more in the long run vs cheaper interest.

Why the issues? Why not just sell it trade it in at or before the 3-year mark?

IAMIAM

Car_54 said:

IAMIAM said:

Any thoughts, I know a loan or saving up is cheaper option, but come the end of this, I just end up with the same issues, car needs major repairs of something else doing to it that just costs more in the long run vs cheaper interest.

Why the issues? Why not just sell it trade it in at or before the 3-year mark?

Thats what I want to do. I have always just taken. loan out and owned the car outright and now feel its not worth it after two good stints doing it this way

On-the-coast

Either buy a reasonably priced 5-6 year old car outright.

Or lease (not PCP).
lease from new.
Put down the minimum deposit.

Be very clear in your mind about your average mileage over 3 or 4 years.

IAMIAM

On-the-coast said:

Either buy a reasonably priced 5-6 year old car outright.

Or lease (not PCP).
lease from new.
Put down the minimum deposit.

Be very clear in your mind about your average mileage over 3 or 4 years.

Thanks. Is leasing for brand new or used? I cannot see any used leases online....

Am I liable for any other costs? MOT? Service? Tax? 

Arunmor

Leasing is generally new cars.  Look for the deal and not the car you think you want, older or unpopular models or new model due tend to offer the best deals.  Do plenty of research so that you know a good deal when you see one.

Also run a spreadsheet with leasing, pcp, buying new (with loan or not), pre reg etc that will help you see the wood from the trees.

born_again

IAMIAM said:

On-the-coast said:

Either buy a reasonably priced 5-6 year old car outright.

Or lease (not PCP).
lease from new.
Put down the minimum deposit.

Be very clear in your mind about your average mileage over 3 or 4 years.

Thanks. Is leasing for brand new or used? I cannot see any used leases online....

Am I liable for any other costs? MOT? Service? Tax? 

PCP is not the best idea on a 2nd hand car. As warranty may be about to expire or even expired. Which as many posts here, can lead to a dead car, or a very expensive bill to fix car & you still have to pay the PCP &/or fix car or pay balloon. As you can not hand back a non working car.

daveyjp

Your potential to have to pay for repairs on an older vehicle (although buy a 2-3 year old vehicle of a reliable brand and this can be reduced significantly) is offset by the need to pay a deposit every time you enter into a new PCP agreement.

Mildly_Miffed

An MOT costs £50, not thousands.

The work to bring an ill-maintained car up to the basic standard of legal roadworthiness is what costs money. MOT is not servicing. Routine maintenance is not repairs.

Indout96

Also look at PCH which will generally be cheaper than PCP, but is exactly the same but the car has to be returned at the end, there is no option to buy even if you decided you wanted to.
But don't forget that with each option you will be charged for any damage deemed outside normal wear & tear items, for instance scuff a wheel and if its outside a set length (small) then its a bill at the end. Don't go over mileage or again you will be billed at the end.