My personal take on the 3 PCP deals i have had since 2007....
Between 2001 and 2006 i spent £50,000 cash on buying 4 cars... despite owning them outright i still got bored with them, spent money modding them and watched the capital cash outlay in all of them depreciate before my very eyes, after some thought i decided to try and avoid ever blowing that much cash on a depreciating asset that i'm destined to change after 2-3 years anyway...
So i decided on a PCP and to treat cars as a rental proposition from then on, i never put more than £1500 deposit into any deal and keep the mileage allowance low as it matters not when trading in which i will always do as i simply cant be without a car for any length of time, PCPs allow me to factor out the depreciation cost and also to keep some emotional and financial detachment from the car, means i dont blow a load of cash on huge mods and dont get hung up on its falling value...
I set myself a self imposed limit of £300 a month for my car fund and buy accordingly, usually means i get to drive the car i really want rather than compromising, yeah i could save up for 3 years, live on beans etc but would i really want an ED30 by then?, probably not lol!
I'm open minded enough to realise it's not for everyone and for instance my uncle thinks i'm insane!, he's extremely proud of the fact he owns his car outright 'all paid for etc etc' and i'm sure it gives him great comfort telling everyone down the pub how ace he is for completely owning every single part of his 2000 Passat complete with paddling pool footwells
Guess i've just never really got the whole kudos thing about paying for a car with cash, really who cares if you do or not? The bank own my house but i'm still classed as a home owner...