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    • drc90
    • By drc90 15th May 19, 8:32 PM
    • 36Posts
    • 0Thanks
    PCP finance - what's the catch?
    • #1
    • 15th May 19, 8:32 PM
    PCP finance - what's the catch? 15th May 19 at 8:32 PM
    Hi all.

    I'm new to PCP financing so don't fully understand it.

    There's a car that I can buy from Ford for 19,750 cash outright. However, the same car I can also buy on finance:

    * 2,000 customer deposit
    * 2,250 deposit allowance
    * 209.16 x 38 monthly payments
    * 7,552 optional final payment
    * 0% APR

    Assuming the deposit allowance is paid for by Ford and not me, and assuming my maths is correct, this means if I buy the car at the end of the term, my total payments will be 17,500.08, which is considerably less than the 19,750 list price.

    Can someone tell me what I'm missing? I know a lot of people say "0% finance is too good to be true", so what's the catch?

Page 2
    • engineer amy
    • By engineer amy 17th May 19, 7:26 AM
    • 701 Posts
    • 1,232 Thanks
    engineer amy

    Personally for me if I was buying a new car it would be to have the new car smell, that new car feeling, something that is fault and damage free not even having the lightest of scratches, sitting in the driver's seat knowing someone elses sweaty ball sack hasn't spent thousands of hours perspiring on it, holding a steering wheel that isn't covered with someone else's mucus, having something that is wholly and entirely mine from the start.
    Originally posted by Tarambor
    Love it!!!
    never heard it put quite like that before, but that's kinda the same reason im going for brand new
    Mortgage = 113,495 (May 2009) 68601.81 Jan 2019
    Halifax CC 0% = 0!!! Car Loan = 0!!!!!
    PAYDBX16 #106 = 12377/12377 (100%)
    • Silvertabby
    • By Silvertabby 17th May 19, 11:26 AM
    • 4,181 Posts
    • 6,445 Thanks
    Oh I agree, I don't spend thousands on holidays either!

    Well yes my house is second hand. It's a Victorian terrace so I'm guessing quite a few have lived here! Although I did completely gut it and renovate it so that would solve any irrational fear I had of naked, chronic sneezers living there before me....

    I don't buy many of the other things second hand because the cost saving relative to the benefits of brand new (easy to return when faults occur, longer warranty that are very costly to extend, etc.) are not nearly as large, but sure, I've bought ex display TVs, second hand computers (most of the components in my custom PC are from eBay) and phones in the past.

    I don't think there is the same second hand market on those things like there is with cars though. I bought a 2yr old car recently with just 5k miles on it. It still has the new car smell and is completely unmarked. The small price of extending the warranty for an extra year (289) and the need to disinfect the steering wheel is worth the nearly 5k I saved IMHO...

    I guess I'll be just as perplexed about why people spend the extra thousands as I am about people who spend thousands each year on holidays....!

    As you say i should be thankful for supplying me with good used cars...!
    Originally posted by DrEskimo
    You'd love our 'old' cars - low mileage, no smoking, no kids, no dogs. By the way, forgot to mention another reason for buying new - at the risk of sounding girlie, we (I) get to pick the colour we (I) want !
    Last edited by Silvertabby; 17-05-2019 at 11:59 AM.
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