car purchasing in retirement

ali_bear

I think (but I'm not sure) that the 14-day voluntary withdrawal period is a thing because of consumer protection legislation.

Don't worry about the car finance companies they make plenty big profits

chuffinnora

When I looked at PCP recently I thought the interest over 3-4 years was quite large, mainly because most new EV/HEV/PHEVs are very expensive anyway. Put me off PCP, unless doing what several have stated and pay off within 14 days. Hence I went lease until I review the market again in 3 years.

ali_bear

You see a lot of EV/PHEV on the road because there are very generous tax allowances for having one as a company car. They are incentivised through the tax system. Take that away and they are indeed expensive to buy. Possibly this explains why their value drops so sharply on the used car market.

bjorn_toby_wilde

https://forums.moneysavingexpert.com/discussion/comment/81898740#Comment_81898740

I get what you mean but I do wonder how much the average driver ever feels that roll. Especially the retired like me who have no need to rush any more 😁

bjorn_toby_wilde

Wish I’d kept my last company car really. It was an X3 PHEV and an excellent drive.

Hal17

Interesting thread. Very recently purchased a new Audi after giving our VW Golf to our daughter. Went with PCP finance as they offered a £2,500 discount Also negotiated a dealer discount as well, so extremely pleased with the actual price for the car.

Asked for an early settlement figure and paid of the PCP finance almost straight away. Total cost for interest was £49.60, happy days.

leosayer

https://forums.moneysavingexpert.com/discussion/comment/81899538#Comment_81899538

I was quoted 13.9% on a PCP contract from an Audi dealer yesterday.

Here's the "deal" details:

• Purchase price (after trade-in) = £46k
• 48 x £810 per month (almost £39k paid).
• £27k Guaranteed future value (ie. amount we'd have to pay to keep the car)

Do people really get deals on those terms?

Why would anyone pay £39k to finance a £46k car and then hand it back after 4 years?

Silvertabby

https://forums.moneysavingexpert.com/discussion/comment/81900343#Comment_81900343

The ones who get locked in to these deals won't have started with a substantial trade in deposit, which immediately gives them some equity.

Instead, they put down the minimum deposit then, at the end of the 3/4 year contract, they either hand the car back and walk away or start again with a new car/new contract. Not so much car purchase as long term rental.

chuffinnora

Yeah I had similar unattractive terms when I looked at a VW Tiguan deal a few weeks ago. PCP makes no sense at all if you plan to hand the car back after 3/4 years, lease is much cheaper in those situations.

But even paying the PCP off at 4 years would have resulted in a car abut £12k more than it should have been.

ali_bear

Many folk are financially illiterate. They only see the monthly payment and if they can afford to keep that up they think they can afford the car.