PCP anyone..?

[david25]

Buy a used car for less, lose less money on it and you’ll be quids in if nothing untoward happens to it, although out of warranty repairs seem to be getting more and more expensive as cars get ever more complex and running to tighter tolerances. Fuel economy is unlikely to be as good (fuel economy and power output get better with every incarnation of a model), equipment may not be as good, and it may have some wear on it (it is a good feeling to be in a car that is new) If you’re not paying cash then you’ll probably be paying more APR if you finance through a dealer. If I was buying a second hand car I’d be looking for a personal loan at 5-6% APR rather than car dealer used finance at anywhere between 10% and 20%.

Yes, good point. Would someone with better maths run the numbers on;

http://www.pistonheads.com/classifieds/used-cars/volkswagen/golf-mk5-mk6/volkswagen-golf-gtd-2-0-tdi-170-ps-dsg--low-rate-finance-and-free-servicing/1605506

Let's say you manage to get this 2012 nearly new car (6000 miles) for £20,000. The good points;

1. New enough for a PCP, but rates higher for used cars?
2.New enough for you to extend the warranty to 5 years/100,000 miles

Bad points, not exactly what you were planning.

Would this be significantly cheaper to finance?

[p3asa]

I must admit I'm not a big fan of PCP deals. I would rather be in a position where at the end of the finance terms you own the car outright and you don't have a huge balloon payment hanging over your head. That's just my preference but I can appreciate the attractiveness of PCP

From my past experiences of buying a 2nd hand car on finance, I have always paid a car off and then immediately traded it in for something new so in effect have always had a monthly payment.

I don't really see the difference in paying a PCP every month for a new car and not actually owning it at the end of the term as I just trade it in and start again.

I would be paying the same monthly figure for a car a good few years older on normal car finance anyway so would rather have a brand new car at that kind of money.   

It would be different if I paid my car off and then had a a couple of years of no payments but I'd be worried I'd get used to spending that money on something else and wouldn't be able to afford another car 

[CraigW]

I must admit I'm not a big fan of PCP deals. I would rather be in a position where at the end of the finance terms you own the car outright and you don't have a huge balloon payment hanging over your head. That's just my preference but I can appreciate the attractiveness of PCP

From my past experiences of buying a 2nd hand car on finance, I have always paid a car off and then immediately traded it in for something new so in effect have always had a monthly payment.

I don't really see the difference in paying a PCP every month for a new car and not actually owning it at the end of the term as I just trade it in and start again.

I would be paying the same monthly figure for a car a good few years older on normal car finance anyway so would rather have a brand new car at that kind of money.   

It would be different if I paid my car off and then had a a couple of years of no payments but I'd be worried I'd get used to spending that money on something else and wouldn't be able to afford another car 

As I say I can see the advantages of PCP but it's not for me. I just like to know that at the end of the finance terms the car is mine outright. I'll probably keep the car for 4 years but paying off after 3 so in the fourth year any savings will go directly into the next car so I can keep progressing towards that Porsche