PCP anyone..?

[stuart.cameron]

if you trade your car in early before the end of your pcp do you get hit for excess mileage?

It's not taken into account, you just get what they offer you and this will normally clear the outstanding finance. If you decide to hand it back at the end of the PCP plan they will charge you for excess mileage.

[mcmaddy]

that's good as I've done way more than expected. keeping the golf if and when it comes so mileage doesn't really come into it.

[p3asa]

if you trade your car in early before the end of your pcp do you get hit for excess mileage?

Mileage only comes into the equation if you are handing the car back and walking away.
You can trade the car in or sell it privately and mileage doesn't matter. Obviously though it will reflect on what its worth.

[stuart.cameron]

that's good as I've done way more than expected. keeping the golf if and when it comes so mileage doesn't really come into it.

Exactly what I've done with my current car...

[mcmaddy]

cheers fellas had a bit of a panic moment haha

[TDI-line]

I made a quick enquiry via a moneysupermarket link today,2 year pcp 15k pa 3 month deposit and it came in at £375,i could be interested at those levels.Im waiting on a follow up call and see were it goes when discussing the nitty gritty,anything I should be asking or to look out for?

Taking out a pcp plan on a 2nd hand car didn't work for me. The dealer said I would be cheaper buying a new car rather than a 2nd hand car. That was with Audi.

Yes, that is usually true. Apr is around 6% for new and 12-13% apr for used.

[drisser]

Well it depends how you define "cheaper"

If its just monthly payment then yes like for like it will be less on a new car because they subsidise the finance.  When I was looking at the golf / M135 they were both 6% APR but you are sill financing a much higher GFV at the end of the day.

In the end I bought a used 135 coupe and paid higher, but I also negotiated a lower rate - down from over 12% to under 10% APR.

There aint no free lunch at the end of the day and manufacturers sell new cars because of the lower monthly payment making it "affordable" to get into a new car.  Ultimately if you PCP a car costing £30k new v a £20k car used (which i went for) you still pay less for the used one, a lot less.  Plus with a new PCP you can normally put in max 30% deposit, with used I was able to put in 40%.

If i was going to be doing high miles, I would buy something 2-3 years old, lower than average mileage with a much lower GFV to buy it outright, then its easier to sell on.  But I understand some people like to change the car every 2-3 years and buy new, but you ultimately pay a lot for that, especially if doing high miles.

I learnt a lesson though running a BMW 330ci for nearly 3 years, it cost £6500 used and I sold it last week for £4500.  That really was cheap motoring and it never missed a beat, plus personally I like the feeling of having a car "bought and paid for". 

When I bought the 135 (30 months old) I could have had a new one for less monthly payment because of the good deals on offer, but ultimately I wanted to pay it off so bought used, with a lower start point and a 24 month PCP with a much lower final payment that I know I can make in 2 years and have the car paid off.

Pays your money and makes your choice..

[dubber36]

I learnt a lesson though running a BMW 330ci for nearly 3 years, it cost £6500 used and I sold it last week for £4500.  That really was cheap motoring and it never missed a beat, plus personally I like the feeling of having a car "bought and paid for". 

I'm with this every time. Is there a particular reason why you must have a new car?

I get the reason why manufacturers offer PCP's as an "affordable" way of getting people into their new cars, but it's bloody expensive. Very rough figures here, but you could put down a £3000 deposit on a new GTI and drive round in it for 3 years paying out £400 a month. At the end of that time what are you left with? £1000 worth of equity? Or you could buy a really nice used car for £5000 and sell it in 3 years time for maybe £3000.

The equity loss in both cars is around the same, but the new car has cost you £14.4k in the process. That's getting on for £100 a week. Imagine going to get £100 out of the cashpoint every week. Now I appreciate that the older car may cost a bit more to maintain, but the savings you will be making will more than cover any repairs you may need.

Overpay as much as you can into your mortgage (if you have one) That's where your money will do most good, then once that is paid off, you won't have to even think about how you can manipulate figures to ride round in a new car. You'll just hand over your debit card and drive away.

[Thornster]

If i was going to be doing high miles, I would buy something 2-3 years old, lower than average mileage with a much lower GFV to buy it outright, then its easier to sell on.  But I understand some people like to change the car every 2-3 years and buy new, but you ultimately pay a lot for that, especially if doing high miles.

Ic

Yes...and no.

I fully understand the logic, but some people want the peace of mind of a warranty if they are doing high miles. Would I want to buy a 3yr old car (even a low mile example) and then do 35,000 miles a year in it with no warranty? Not sure I would - but it's a personal thing, no right or wrong and the money saved on the purchase can be put aside for any unexpected repair bills.

[matchboy]

I understand drisser's logic.  And from a monetary point of view it makes sense.  But none of us are getting any younger so why drive around in a old sh!tter when you can have a brand new car for a few quid more?!  To coin a well used phrase these days - YOLO!