I still need to shop around and I think I am coming round to the idea of the PCP (lease thing or what ever it is called)
Was wondering if many people on here buy their cars that way now?
When I bought my Passat, the salesman told me it was most unusual for someone to hand over a debit card, take the keys and drive off. Most of their sales are PCP financed. Whilst they may be affordable in terms of low deposits and monthly payments, they are ultimately more expensive. You pay the money back at a slower rate, therefore more of the debt is outstanding which interest is charged on.
Having been in the trade, I am also aware how easy it is for the salesman to sell add on such as Lifeshine, Gap, wheel and tyre insurance etc. "It's only and extra £x a month Sir." Many, many unsavy customers will be caught up in the whole excitement of ordering a new car, that they don't look at the bigger picture.
I'm not saying that people on here are that gullible, but it does pay to do your sums carefully and make sure that you get the absolute best deal for you.
What I don't like about PCPs is the amount of outstanding money still owing at the end of the term. You are forced to make a decision about what to do with the car. If you want to keep it, you have a considerable amount of money to find. Hand it back, that leaves you with nothing to show for three years of monthly payments, or roll it over into a new car, meaning you have to borrow yet more money and will be back in the same position in another 3 years time.
