PCP confusion!

[HMS_Dave]

Paying cash for what you can afford has to be the best way

Which is why i drove old knackers for a decade.

 

[biggs682]

Which is why i drove old knackers for a decade.

A new car is nice but it's only new for a short period of time but the payments out last the newness .

 

[Electric_Andy]

A new car is nice but it's only new for a short period of time but the payments out last the newness .

My sofa is testament to that. I'm still paying it off (interest free) but after 3 years it's now looking very used. I doubt I'd even get £200 for it now, but it cost over £1500. Will not buy new again unless I was rolling in cash

 

[wafter]

Yet another example of debt being used to enable avarice and leverage the hard-of-thinking away from their (non) money in order to keep the increasingly wobbly plates of our economy spinning just a bit longer.

Yes, I know that it can be advantageous for those in a position to investigate it and make it work, but I think most never look past the "I can afford that" monthly payment. Just as with housing, years of cheap debt have caused new vehicle prices to rocket and it all just keys into the shallow, consumptive attitudes fostered in the minds of consumers to keep them buying.

Interesting times ahead with the ongoing rate rises - party has to stop some time and some people are going to have a massive hangover when the music stops..

 

[Ming the Merciless]

Which is why i drove old knackers for a decade.

There’s a Les Dawson joke in there somewhere

 

[All uphill]

Which is why i drove old knackers for a decade.

Only one decade?

A friend asked how we have a nice house in an OK area; Ms AU's answer was old cars, cheap holidays and cooking our own meals.

 

[CXRAndy]

Everyone in the chain of financing gets a percentage of the deal from the salesman at the dealership, the broker etc etc.

Layer after layer of cake

 

[HMS_Dave]

Only one decade?

A friend asked how we have a nice house in an OK area; Ms AU's answer was old cars, cheap holidays and cooking our own meals.

Well I came into money, was running my own business and subsequently brought a couple of nice cars. I finally realised my mistake. Hellish depreciation and car park door prangs made it too stressful really when they're worth a bit. They're just transport at the end of the day. So went back to old nails.

 

[Bonefish Blues]

Well I came into money, was running my own business and subsequently brought a couple of nice cars. I finally realised my mistake. Hellish depreciation and car park door prangs made it too stressful really when they're worth a bit. They're just transport at the end of the day. So went back to old nails.

I was running a Porsche 996 at one point and when I came back to my car one dark evening there was a note fluttering on the windscreen.

Turned out the most junior member of staff on site had reversed into it

He was a bit worried, to say the least!

 

[ianrauk]

I was running a Porsche 996 at one point and when I came back to my car one dark evening there was a note fluttering on the windscreen.

Turned out the most junior member of staff on site had reversed into it

He was a bit worried, to say the least!

Similar story. Back in the 80's when I was a fork lift driving for a company. I accidently speared the bosses Porsche. (It was a white one with a big tail fin) He wasn't in the slightest bit peeved, which took me completely by surprise as I had only been working there for a couple of months. He just shrugged his shoulders and said his insurance will sort it.

 

[gbb]

Its all a trade off. When I brought my Astra ( then just 11 months old) circa 2016, the options for me were purchase on the never never, with was going to cost blah blah per month.
Or a PCP kind of deal where the monthly payments were substantially less...but you had to pay a lump sum at the end...or surrender the car and start all over, a boomerang I think I've heard it called.
So we took that deal and paid the lump sum at the end, no problem for us but may be for some people finding several thousand in cash.
I didn't calculate / compare the totals paid either way, just did what suited us at that time.
Would I do it again, no.
Brought the Mazda next, paid £5k up front and finance on the remainder, seems a better way for us and almost certainly cheaper in the long run.
The alternatives without finance are a much older car or empty a big chunk out of the savings. Swings and roundabouts, you do what seems best and most appropriate to you personally at the time

 

[DCLane]

@gbb - savings is how we bought SWMBO's Honda Jazz in 2011; an 18-month old car, £1k trade-in for a horrid Vauxhall Zafira and £9,800 to pay in cash. Twelve years later, minimal maintenance, and it's not a bad buy. With PCP we'd have paid much, much more.

Our neighbours pay £500 per month for a Nissan Quashqai and will never own it.

 

[Ming the Merciless]

£500 per month and a Nissan Quashqai

Couldn’t they afford a car?

 

[gbb]

Another example of PCP. My son got a fairly basic but brand new Astra in 2016 on a PCP deal, just as they had released the then new bodystyle. It was OK, no more no less,a bit underpowered but did the job. As it came to the end of the deal my son approached them and asked about keeping it and still pay a reduced monthly amount.?.oh yes, you can redo the finance PCP sir..but the monthly payment was even more that he paid when it was brand new.
No brainer, he surrendered it and vowed never to do it again.

 

[MrGrumpy]

Need to go in with your eyes open . Work out the cost over the term and whether you’re going to keep a car for that long. We may look at a PCP next time around. However , suspect those paying cash for motors are not spending at the high end ? Second hand cars are/were stupid money as well .