The problem with PCP is you spend a lot of money and get nothing at the end of it. Basically it's a lease on a brand new car, that doesn't neccesarily have the advantages of leasing.
Let's say you spend £400 per month for 3 years, that's £14,400. At the end of the agreement you have nothing, zip, nadda. Meanwhile that £14,400 would buy a second hand E85 outright. You could have that car for life. Even if you didn't, you could spend another 2yrs saving up £400pm, that's £9,600, plus maybe a trade-in of your E85 @ £9k = £18,600. That'll get you a second hand E89 that you can also keep for life.
To me, spending a lot of money on cars is a mugs game. They cost a fortune to run, depreciate like stones, so you might as well save where you can. PCP on the face of it seems like a good idea because you're only paying for the depreciation (theoretically), but it locks you in to finance indefinitely. If you have a normal loan or buy out right, you'll almost always have a car to fall back on if things go horribly wrong. I mean, even with a loan you'll have enough equity (at this level) to PX to a supermini outright. So if you lost your job, or suddenly needed to cut expenses drastically (maybe a child on the way, or flood damage to your house) then you have an escape route that lets you still commute to your place of work or find a new job.
Of course it's all up to you. If we were all the same it would be a terribly boring planet. Depends on how much you value a car. You can spend more on the car and less on your house, or less on your car and more on your house. What makes you happy?
Let's say you spend £400 per month for 3 years, that's £14,400. At the end of the agreement you have nothing, zip, nadda. Meanwhile that £14,400 would buy a second hand E85 outright. You could have that car for life. Even if you didn't, you could spend another 2yrs saving up £400pm, that's £9,600, plus maybe a trade-in of your E85 @ £9k = £18,600. That'll get you a second hand E89 that you can also keep for life.
To me, spending a lot of money on cars is a mugs game. They cost a fortune to run, depreciate like stones, so you might as well save where you can. PCP on the face of it seems like a good idea because you're only paying for the depreciation (theoretically), but it locks you in to finance indefinitely. If you have a normal loan or buy out right, you'll almost always have a car to fall back on if things go horribly wrong. I mean, even with a loan you'll have enough equity (at this level) to PX to a supermini outright. So if you lost your job, or suddenly needed to cut expenses drastically (maybe a child on the way, or flood damage to your house) then you have an escape route that lets you still commute to your place of work or find a new job.
Of course it's all up to you. If we were all the same it would be a terribly boring planet. Depends on how much you value a car. You can spend more on the car and less on your house, or less on your car and more on your house. What makes you happy?
