Pcp's

[no golf clubs at all]

Anyone ever bought a car this way?

On the face of it. It is madness but in reality I change every 3 years or so and always have come kind of car loan/ monthly payment.

[SteveP]

Used to do them as I have a car allowance with my job, to me for certain types/values of car they can work well, the Clio like Tony D has is a good example of a PCP deal working well 

[ub7rm]

It works well if its a car that won't depreciate much i.e. high end cars.  Wouldn't do it on a corsa ...

Debated going down this road when I bought the golf but just went for old fashioned HP.  My thinking at the time was that if I went PCP I would be spunking a heap of money into something every month and have nothing to show for it at the end.  So I ended up with an older car than I could have had if I had gone with PCP.

However, I recently went on a test drive of an A3 (2.0 TDI S line) at an Audi dealer.  Looking at the PCP figures it was  going to work out cheaper a month than what I'm already on and the residual value of the car was based on 7k.  I have never seen a 5 year old A3 TDI go for that little and the garage confirmed that they always leave enough 'equity' at the end of the deal to move you into a newer car (in their interest I guess!).

They also said that about 70% of cars sold with finance through them are on PCP.  

I've lost my hang up about PCP and will probably be how I buy my next car (not going for the Audi after all ...).  Of course if you intend keeping your car forever its going to get a bit awkward at the end of the lease when you have to pay the balloon.  But if you intend to change after 3 years or whatever does it really matter if you don't really own the thing?  With the VW / Audi finance its very easy to change car whenever you want with no early repayment issues.

Just my thoughts.

[SO8]

I've just bought a 330d coupe this way ... for the first time ever.

I'm not 100% sure it's the best thing but it ties me in more than HP ... which is a good thing as I need to stop changing cars every year !!  That is my main reason for doing it - and the fact I could spend more than I would have .... as I say, not necessarily a good thing  

[no golf clubs at all]

I've bought cars cash, hp, personal loan and lease. Tbh none of it makes economic sense. May pcp this time.  I get a car allowance of £500 per month anyway but I always like a change after 3 years.

[Top Cat]

Its not rocket science you will be out of pocket this way. The car companies came up with this ingenious way of keeping us buying cars we really cant afford. I recently did the numbers on a Tiguan and it worked out about £3500 more for PCP over the term, and that was using there final guestimation figures.
This way works for many people as it brings cars out of reach into range. As long as you do the sums and are willing to pay the extra over the term then alls good.  

[Ifti]

Ive always gone by the rule that if you cant buy a car outright with cash, then you dont buy that car. I wouldnt ever want to be tied down, or in debt, over a car.

[Beddie]

I'm on my 3rd PCP as they work really well for my current circumstances  

After blowing a huge amount of capital over the last few years buying cars outright (11K on a Saxo VTS - i know, i know lol!, 12K on a MK4 1.8T, 17K on a new Bora and 10K into my first MK5 GTi) i decided to treat cars as a rental proposition from then on...

I set myself an 'enjoyment fund' figure that i'm happy to pay per month for the car i want to drive and sort the deal accordingly on a 3 year PCP, on all the deals i've had i have changed cars before the end of the term no problem and without the huge financial losses people assume will come with PCPs, admittedly you have to be mindful of which type of car you choose but most VAG stuff is a safe bet imo  

As a quick ready reckoner a 3 year PCP will work out the same per month as 5 year straight finance on the same car, i like the option to hand back the car if needed and because of the GFV i'll never be in a negative equity situation, i also chose a lower mileage allowance than i do per year to keep the payments low as mileage matters not if you trade it in and the excess mileage charge can work out lower than the extra payment per month should you want to hand back...

It's not for everyone granted, but imo shouldnt be dismissed out of hand  

[Frodo-anni]

What ever works for the individuals circumstances, ive done both pcp on my first two saxo's,  i know, but i was 17 and i got 2 years free insurance, so it saved me a fortune in insurance costs compared to the car costs. Have recently looked at this sort of deal again, but im not to happy about putting a lump sum down initially as in theory if i hand the car back after 3 years i have lost this lump sum of money and walk away with nothing.

My last two cars have been small personal loans, once paid car is mine and i can keep as long as i want. My thoughts when i find the right ED30/pirelli is to do the same, for example lump sum in from sale of my old car then the rest on a loan, this way if i ever need to sell i can and still keep the money from the equity in the car.

Each to there own....

[SO8]

Cars are a slippery slope ....

I owned an S2000 outright.
I sold it and bought an Edition 30 .... small loan
I sold the Edition 30 and bought a Z4M Roadster - bigger loan.
I sold the Z4M and bought a 320d coupe - larger loan again.
I sold the 320d and bought a 330d - PCP was the way forward.

I have been like a drug addict - hopefully the PCP tie in is my methadone  

Edited to add the addiction was quick and brutal - the above only relates to the last 4 years 

[Beddie]

Cars are a slippery slope ....

I owned an S2000 outright.
I sold it and bought an Edition 30 .... small loan
I sold the Edition 30 and bought a Z4M Roadster - bigger loan.
I sold the Z4M and bought a 320d coupe - larger loan again.
I sold the 320d and bought a 330d - PCP was the way forward.

I have been like a drug addict - hopefully the PCP tie in is my methadone 

Amen to that! 

[Top Cat]

Cars are a slippery slope ....

I owned an S2000 outright.
I sold it and bought an Edition 30 .... small loan
I sold the Edition 30 and bought a Z4M Roadster - bigger loan.
I sold the Z4M and bought a 320d coupe - larger loan again.
I sold the 320d and bought a 330d - PCP was the way forward.

I have been like a drug addict - hopefully the PCP tie in is my methadone  

Edited to add the addiction was quick and brutal - the above only relates to the last 4 years 

Ah so thats what it stands for PCP angel dust  the drug of choice. in trading places.

[Beddie]

Incidentally my PCP is up in 5 months and as yet i really can't bear to part with the '30 or find anything that really floats my boat for a change!  

So may well buy it off them! Although will try something that has worked in the past on my MK5 GTi PCP first.... make all the right noises for a hand back then make an offer lower than the GFV, last time they didnt seem to want the hassle of being stuck with the car and took the offer although i admit the market has changed and they may fancy making some cash on the car this time round...

[andrewparker]

Out of interest, what happens with PCP finance if you lose your job, or for any other reason are unable to make the monthly repayments? I'm guessing you don't own the car, so you'd be unable to sell it to finance the debt...

[Frodo-anni]

Dependant on teh time you have been paying on the car, you can just hand it back. I did on my 2nd Saxo in 2003, i'd had it 2 years into the 3 year agreement and wanted a 306, so i went in asked about my options, gave them the keys back. May depend on the dealership.