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  • FIRST POST
    • Rebster
    • By Rebster 16th Jan 17, 7:07 PM
    • 149Posts
    • 1,003Thanks
    Rebster
    Can PCP work out good value for high mileage?
    • #1
    • 16th Jan 17, 7:07 PM
    Can PCP work out good value for high mileage? 16th Jan 17 at 7:07 PM
    I'm starting a new job next month, and as a result my annual mileage will be increasing from 12,000 to closer to 30,000. Because of this I'm looking at changing my car to something slightly newer. I own my current car outright, but am considering a PCP deal for my next car.

    Previously I've always assumed PCP offers poor value as you are paying monthly for something you never own. However, when taking into account the "cost" of depreciation on a car, I've recently started to think it may actually be quite a good deal. Particularly with such high mileage, I would see a lot of depreciation on any car I owned outright.

    I'm looking at deals around the 250pm mark. E.g. the new Citroen C3, available on a 3 year lease with 30,000 annual miles for 240pm with a 3 month deposit.

    Is PCP a good option for me or would I be better off going down a different route? (Suggestions welcome)
Page 2
    • BeenThroughItAll
    • By BeenThroughItAll 20th Jan 17, 9:08 AM
    • 4,680 Posts
    • 4,092 Thanks
    BeenThroughItAll
    A number of you have suggested keeping my current car, but this isn't a suitable option for me for a couple of reasons. First, the main thing I want is some peace of mind that my car will be reliable under such heavy use. While there are no guarantees with any car, I really don't trust that with my current car. It's not under warranty so if anything does go wrong, I'll be paying for it. The other big reason is the size of the fuel tank - it's tiny, and would be filling up every couple of days on my new mileage. As well as all this, as it stands my car is worth a few grand. I'd rather cash in on that and get a bit of equity out of it than run it into the ground to the point it's worthless.
    Originally posted by Rebster


    Addressing these points in order (I'm not even going to go into the reliability question, as I think it's madness expecting a new car to be any more reliable overall)


    1) Total time spent filling up with fuel will be the same if you do it in 2x5 minute visits to the petrol station with a small fuel tank, or 2x10 minute visits (broadly speaking, although obviously you only have to get out, open fuel flap, close fuel flap, pay, get back in once in one trip so it's not quite equal)


    2) Why couldn't the money you're thinking of throwing at a lease/PCP (IMO, wasted, but that's up to you if it suits you) be saved? I guarantee if you saved the 200 a month or whatever, you'd have a LOT more in the bank by the time your current car becomes uneconomical to repair than if you sold it now and 'cashed in'.


    Up to you at the end of the day - if you just *want* a new car, and can afford it, then go ahead. The costs of a PCP/lease for high mileage will be significant, and are far from a money saving option; but it's your money.


    The only thing I'd point out is the number of threads on here by people who've locked themselves into expensive leases on the back of a new job who've then decided they don't like it, been made redundant, got pregnant, been injured, etc. Then there's all the threads about leased cars with major failures the poster can't afford to have fixed and which aren't covered under warranty.


    Seems to me that locking oneself into a long-term, high-cost lease with few break clauses is a recipe for disaster, financially - but at the end of the day, as I say, it's your money.
    • Nasqueron
    • By Nasqueron 20th Jan 17, 9:30 AM
    • 5,935 Posts
    • 3,589 Thanks
    Nasqueron
    Thanks for the thoughts everyone. 30,000 is based on a combination of 20,000 miles commuting, and expected business/personal mileage. In reality this is an overestimate, and is likely to be closer to 25,000, but I quoted 30,000 because if I go with a PCP/lease deal I will be erring on the side of caution to avoid being stung with any excess mileage charges.

    A number of you have suggested keeping my current car, but this isn't a suitable option for me for a couple of reasons. First, the main thing I want is some peace of mind that my car will be reliable under such heavy use. While there are no guarantees with any car, I really don't trust that with my current car. It's not under warranty so if anything does go wrong, I'll be paying for it. The other big reason is the size of the fuel tank - it's tiny, and would be filling up every couple of days on my new mileage. As well as all this, as it stands my car is worth a few grand. I'd rather cash in on that and get a bit of equity out of it than run it into the ground to the point it's worthless.

    Some of you have also made comments about the length of time spent in the car/spent commuting. Bizarrely, although the distance of my commute will be increasing significantly, the time it takes won't be, thanks to the fact that I'm changing from a heavily congested route to a route with fairly light traffic.

    Thinking it all through, I'm currently leaning towards lease rather than PCP, and have seen some good deals about. Will keep looking though!
    Originally posted by Rebster
    Do you want to keep the car at the end of the finance?

    If so PCP is fine, you only get excess mileage charges for handing it back after the contract ends due to the effect on the GMV. If you don't want to keep the car then the GMV will be low if you're doing 30000 miles a year as the car will have around 75000-90000 miles on it after 3 years which affects the value for the dealer resale.

    If you can get 0% finance and want the car at the end I'd say 100% go PCP. If the finance will mean you spend quite a bit more than the car is worth with interest + GMV is pants then I wouldn't go PCP
    • BeenThroughItAll
    • By BeenThroughItAll 20th Jan 17, 6:45 PM
    • 4,680 Posts
    • 4,092 Thanks
    BeenThroughItAll
    Hi this is a bit off topic but didn't know how to start new thread. I have a dilemma which is that having searched for prices at Carwow i bought a brand new car and the salesman said if I didn't tell Carwow he would throw in mats (50 ish) and 25 petrol,so I said OK. However, I could get 50 cash back ( topcashback)and a 20 Amazon voucher. Can I go back on my word or is that a bit cheeky. I kind of feel that a large motoring organisation won't miss 70 whereas it's quite a lot to me.
    Originally posted by Snowflake
    Eh?

    "I bought a brand new car"

    "70 is quite a lot of money"

    Seriously?
    • Bel0612
    • By Bel0612 15th Sep 18, 11:43 AM
    • 1 Posts
    • 0 Thanks
    Bel0612
    Citroens are noted for comfort
    How comfortable a car is down to personal taste. Citroens are also renowned for their comfort. I would not be unhappy driving a C3 on long mileage journeys.
    • neilmcl
    • By neilmcl 15th Sep 18, 1:41 PM
    • 11,974 Posts
    • 8,718 Thanks
    neilmcl
    How comfortable a car is down to personal taste. Citroens are also renowned for their comfort. I would not be unhappy driving a C3 on long mileage journeys.
    Originally posted by Bel0612
    Congrats for resurrecting a near 2 year old thread, I'd imagine the OP has made his decision by now.
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