Will you keep yours at the end of your PCP Deal?

[ronk]

I bought mine outright and try to save the equivalent amount of repayment into an ISA or Investment account. Ok so I only get 2.5% but I dont pay the additional 6% thro the term l that I would be paying on a finance deal / PCP contract.

As you say horses for courses and it is a big chunk of cash to throw at a car in one big lump -then end of a few years see how little you once pride and joy is worth. :roll:

 

[inkey$]

Must admit, if I REALLY wanted a new car then I'd be tempted by whatever the finance deal was. To date though, always been happy with older cars and somebody else taking the first hit

 

[ronk]

Must admit, if I REALLY wanted a new car then I'd be tempted by whatever the finance deal was. To date though, always been happy with older cars and somebody else taking the first hit

I reckon to take a 50% hit every three years. New or used.
Probably best not to think about it.

 

[Maniac]

-then end of a few years see how little you once pride and joy is worth. :roll:

For those that consider them still their pride and joy after 3 years... if you're anything like me, you'll usually want to move on. Hence why I was interested in what others did. I bought my e89 with the intention of keeping it therefore paid it off quickly. However with all the problems I've had, the shine has worn off and I'd have probably been better on PCP to ease the transition into a different car at the end of this year. In any event, I'll have a hefty chunk of equity for the trade at least.

 

[TitanTim]

Must admit, if I REALLY wanted a new car then I'd be tempted by whatever the finance deal was. To date though, always been happy with older cars and somebody else taking the first hit

I've tended to go for ex demo cars in the past which are 4 months old or so which are invariably 6K off list with a couple of K on the clock, however with some of the dealer contributions knocking towards 8K off list its starting to make more sense buying new. Problem is with me I very pernickity with cars and finding a secondhand one thats been well looked after with no dents, scratches chips etc and the spec I wanted seems impossible at times.

Tim.

 

[inkey$]

Problem is with me I very pernickity with cars and finding a secondhand one thats been well looked after with no dents, scratches chips etc and the spec I wanted seems impossible at times.

Can see how that could be an issue. Buying and owning a car can be an extremely personal thing.

 

[ronk]

I've tended to go for ex demo cars in the past which are 4 months old or so which are invariably 6K off list with a couple of K on the clock, however with some of the dealer contributions knocking towards 8K off list its starting to make more sense buying new. Problem is with me I very pernickity with cars and finding a secondhand one thats been well looked after with no dents, scratches chips etc and the spec I wanted seems impossible at times.

£6k off the price buys a whole wedge of correction and detailing and with a private plate who would know it wasn't direct from the showroom? 8)

 

[Z4 Beemer]

-then end of a few years see how little you once pride and joy is worth. :roll:

For those that consider them still their pride and joy after 3 years... if you're anything like me, you'll usually want to move on. Hence why I was interested in what others did. I bought my e89 with the intention of keeping it therefore paid it off quickly. However with all the problems I've had, the shine has worn off and I'd have probably been better on PCP to ease the transition into a different car at the end of this year. In any event, I'll have a hefty chunk of equity for the trade at least.

After seeing the results on detailingworld.com it certainly looks like a new car! Appreciate the issues you've had though.

 

[mr wilks]

IF you wanted a brand new car no way should you buy it , utter lunacy the newness wears off faster than the cheque can clear !
Def go PCP
but if you want the flexibility to change vehicles regularly or maybe sometimes you need the cash tied up in the car & want to know the vehicle is yours alone then you have to be happy with a used car at least 18months/2 years of age initially ( & more likely 3/5 years ) or you are going to burn cash so fast you will need to rob a bank ,
Cars are obviously a great pleasure to us all but " a fool & their money are easy parted " used motors can do all that a brand new one can :wink:

 

[Quadracer]

Ooh I'm a looney.

 

[mr wilks]

Only stating the obvious regarding the loss of cash from new to used in first 18 months , its a luxury few motorists can afford to stomach more than once in their lives but if you are one of the lucky few then hats off to you

 

[ronk]

Ooh I'm a looney.

" There are no pockets in your last shirt"

 

[Quadracer]

I just don't see a lot of difference between financing or buying out right. I'll loose out when I come to sell, but I don't have a monthly payment. Everybody looses out buying new.
One question, if you won the Euro Millions would you still get a PCP?

 

[mr wilks]

No i would be able to afford the depreciation ,
if you pay for a £30k/£40k car outright with your own funds then 4/5 years later do it again then you are obviously cash rich & successful at however you achieved that :wink:
Taken over 3/4 cars you could be talking £70k/£100k & that's a loss i certainly can't afford ,
fair play to you genuine admiration

 

[ronk]

I think I may have missed something? :?

PCP must incorporate depreciation and that must be excatly the same whoever owns the car. ie BMW Finance or the individual. However it has an additional 6% apr added to the equation should you decide not to commit your cash to your vehicle.

 

[mr wilks]

I think I may have missed something? :?

PCP must incorporate depreciation and that must be excatly the same whoever owns the car. ie BMW Finance or the individual. However it has an additional 6% apr added to the equation should you decide not to commit your cash to your vehicle.

To simplify for EG £35k new bmw
1) PCP , £ 300 monthly payment x 36 with 3 payments as deposit so total paid after 3 years to "OWN" the new car £11750 ish ? but car goes back or stump up to buy or start new plan
2) Buy with your own cash the same £35k car , 3 years later car worth £20k ? so lose £15k
therefore on paper taking a new car every 3 years PCP would suit but zero equity building up
as opposed to personal loan of £15k (+ a few grand of your own cash )/similar £300/month so 5 years to purchase but the car will still hold a certain value or equity .
scenario gets more complicated factoring in the running costs as car gets older

 

[Quadracer]

PCP on £35k car according to BMW is £4755 deposit and £320 per month is £16275. Then you are restricted to 10k miles per year. Plus I don't keep cars three years. I have found they are best changed around 18 months to 2 years.

 

[mr wilks]

PCP on £35k car according to BMW is £4755 deposit and £320 per month is £16275. Then you are restricted to 10k miles per year. Plus I don't keep cars three years. I have found they are best changed around 18 months to 2 years.

Wasn't quoting , just trying to highlight how the system works in principal ,
No idea how much a 2.0 E89 sell's for topline (£27k/£32k ? guessing ) but am pretty confident the figures you mention have not been paid by forum members stating they had been offered " a hard to refuse crazy deal "
Interesting to know the figures from someone who has taken a PCP recently ?

 

[Quadracer]

I understand what you are saying but I do all the maths every time before I buy a new car and as dealers are desperate to sell at the moment, I managed to negotiate a cash discount a good bit over the dealer contribution and made the deal.

 

[original guvnor]

It also depends on what car you are buying. If i could afford it, i would have absolutely no qualms about buying a brand new 991 GT3 from Porsche. They're going to be £101k and I guess most will be about £110k on leaving the showroom. Compare that to 997.2 GT3's - list price was about £78k and a decent used one on the official Porsche site currently is £75k. Some of them are now 3 years old. That's not bad....