Car Finance - New or Old?

tintin_1929

Ayr_Rage said:

tintin_1929 said:

Ayr_Rage said:

I agree with @born_again, don't have a PCP agreement that runs beyond the manufacturer's warranty period.

What is you plan at the end of the PCP?

Planning to get into the cycle of using the car as a down payment for the next PCP purchase in 4 years time.

Trying to predict if the vehicle is going to be worth more than the balloon payment in 4 years is not going to be easy, especially with K.Smarmer, R.Thieves and Co moving the EV discount goalposts right now.

There's always a chance that you find you have no equity at the end of the deal.

At least with the 0% PCP you aren't paying interest.

However as I said previously, I wouldn't want to have a car that is out of warranty on a PCP agreement.

Good points, these are factors I'll need to consider. Thanks! 

eschaton

tintin_1929 said:

eschaton said:

tintin_1929 said:

eschaton said:

You didn’t list option 3 - something that you can possibly afford?

I can afford it... ? Hence why I'm looking.

If you could afford it you wouldn’t have to pay £500pm. 

Do you mean you can afford to borrow the car?

I really don't understand what you're asking. Also unsure if you're being rude so I won't be answering, but instead thank you for your time and ask you to move on to someone you could better help. Thanks.

Apologies, I thought it was quite a simple question. 

MyRealNameToo

tintin_1929 said:

eschaton said:

tintin_1929 said:

eschaton said:

You didn’t list option 3 - something that you can possibly afford?

I can afford it... ? Hence why I'm looking.

If you could afford it you wouldn’t have to pay £500pm. 

Do you mean you can afford to borrow the car?

I really don't understand what you're asking. Also unsure if you're being rude so I won't be answering, but instead thank you for your time and ask you to move on to someone you could better help. Thanks.

It's been suggested that the third option is that you look at a vehicle that you can buy outright without being dependent on credit which you seemed to have miss understood given you replied you that you can afford the loan repayments. 

Are both quotes for the same vehicle just one is an ex-display or are they different vehicles? 

DrEskimo

tintin_1929 said:

Ayr_Rage said:

I agree with @born_again, don't have a PCP agreement that runs beyond the manufacturer's warranty period.

What is you plan at the end of the PCP?

Planning to get into the cycle of using the car as a down payment for the next PCP purchase in 4 years time.

The problem with this approach is that is assumes you will have equity at the end, and more to the point, upwards of £13k equity to match the deposit of this deal and keep monthly payments the same. 

A combination of cars increasing in price, no idea where interest rates will be and the fact you could face zero equity at the end will mean having to pay substantially more per month to get an equivalent car in 4yrs time. 

There is nothing inherently unique about PCP giving you the option of buying a car, paying a monthly cost, and then trading it in and buying another in 3/4yrs time. 

Consider this: use the £13k to buy a used car outright, save £500/month into a high interest savings account for 4yrs, then use the £24k you’ve saved (with interest) and trade in value to buy another used car. Rinse and repeat.

Will be substantially cheaper even when you factor in maintenance, and you can actually trade up each time, rather than down. You’re also not tied into any contract, so can drive as much or as little as you like, and free to trade in later if you choose. Not forced to make a decision within 4yrs. 

Food for thought!

born_again

tintin_1929 said:

Ayr_Rage said:

I agree with @born_again, don't have a PCP agreement that runs beyond the manufacturer's warranty period.

What is you plan at the end of the PCP?

Planning to get into the cycle of using the car as a down payment for the next PCP purchase in 4 years time.

Well anyone's guess haw car prices will go in 4 years. ICE could really tank, or not. Given the 2030 change.

Altior

There are drawbacks but I had a great experience with PCH, when I wanted to scratch that itch of running a brand new car. That way you know exactly what you're in for and when it terminates, no gambling on future values or potential repairs. It was a few years ago so deals are not at this level now but I ran a new TT S Line for £280 pcm (including initial payment of £2.4K), list price was £40K+. My total costs were initial £2.4K. then 23 *£180 pcm + £180 broker fee. 

The main drawbacks are that you aren't actually the registered keeper, so it will cost admin money if you get a parking fine or speeding ticket. And there's no real value in adding your own spec, as you pay for them over the term, so it's best to go for a model that has a high spec as standard (eg metallic paint). GAP insurance is also a must (imo).

Oneplanetonelife

Is it true that you can pay with cash?

Nasqueron

born_again said:

tintin_1929 said:

Ayr_Rage said:

I agree with @born_again, don't have a PCP agreement that runs beyond the manufacturer's warranty period.

What is you plan at the end of the PCP?

Planning to get into the cycle of using the car as a down payment for the next PCP purchase in 4 years time.

Well anyone's guess haw car prices will go in 4 years. ICE could really tank, or not. Given the 2030 change.

I'm not personally invested as I want to run my car for as long as I can and if I can get to at least 16 years in 2030 hopefully EV will be better priced then, but I would bet that ICE prices go up as the refuseniks try and avoid getting an EV as long as possible.

born_again

Nasqueron said:

born_again said:

tintin_1929 said:

Ayr_Rage said:

I agree with @born_again, don't have a PCP agreement that runs beyond the manufacturer's warranty period.

What is you plan at the end of the PCP?

Planning to get into the cycle of using the car as a down payment for the next PCP purchase in 4 years time.

Well anyone's guess haw car prices will go in 4 years. ICE could really tank, or not. Given the 2030 change.

I'm not personally invested as I want to run my car for as long as I can and if I can get to at least 16 years in 2030 hopefully EV will be better priced then, but I would bet that ICE prices go up as the refuseniks try and avoid getting an EV as long as possible.

As I said they could go up or down. A lot will depend on what Government does in the mean time to force the issue. 
There are many ways that they can price ICE pretty much out of the marketplace. With extra taxes on them.

sourcrates

Never spent more than 5k on a car in my life, and always paid in cash.

According to the Dave Ramsey method, you must be, and I quote "freaking nuts" to consider spending such a sum on credit/PCP for a car considering the depreciation involved with such a purchase.

Even if you think you can afford the monthly payments, its just going to end up costing you an absolute fortune.

I personally think either option is a terrible idea.