[NWH]

You pay interest on the whole price not just what you pay back the bit between that you’ll never pay you pay that interest to,PCP is a poor man’s way of getting in to a high end vehicle.
Plenty of mugs out and about willing to pay stupid amounts a month just to look good in a car they can’t in reality afford,thank god for PCP agreements it allows them to do it.

[NWH]

When you know a salesman at Audi and even he’s telling you not to PCP a vehicle over a certain price bracket or higher end vehicle I think that’s the time to give it a miss,if you can’t afford it don’t buy it I’ve done my own PCP style agreements through big deposits and banks you don’t lose if you buy the right car.

[NWH]

If you buy a car for 70k and you’re paying 36k back over 3 years with a 4K deposit taking you to 40k you still pay interest on the 30k you’ll hardly ever decide to pay off at the end,you pay interest on everything not just what you pay back,a lot of people don’t realise it’s calculated over the full purchase price.
You would have to pay a minimum of 18k to get out of that agreement after 18 months if you decide sod this.

[NWH]

5 series diesel BMW over 4 years with nearly 5k down on PCP you end up paying 30k 😂 what a bargain,that’s an offer lol.
Look on the bright side after 4 years you can buy that for 27k or refinance it,goodness me do you have to take down you’re pants when you walk in that showroom.

[KS Cleaning]

Cars 50k plus are not affordable to most people if you speak to anyone in cars sales and that’s main dealer they will tell you why PCP was brought in to shift high end motors,umpteen people driving about in a car they couldn’t afford only through a PCP so no twaddle at all.

I think your right nwh , the purchase price for my car was totally irrelevant to me . I would never buy a car brand new , even my customers who have brand new range rovers lease them. Iv no idea how much my CLA cost new , all I was  bothered about was the monthly payment of £200.

You sound like a salesman’s dream😆

[KS Cleaning]

Nigel is spot on regarding PCP.  Whilst it’s an affordable way of driving a new car and I’m not knocking anyone who chooses to go down this route, you should really be aware of interest charges, penalties if you end the contract early, final settlement etc.
When a customer  goes into a dealership and says I can afford X amount of ££’s per month with no clue on interest charges and other associated costs, you see the salesman’s eyes light up🤑🤑

[windowswashed]

Covid was a wake up call for those maxed out on credit. This year a lot of businesses wil go under. Many businesses are selling up near me, shops, hospitality, tourism,  people are noticing inflation biting in and struggling to recruit new staff.

[Stoots]

I used to want the newest, flashiest  motors and in the past ive had them, but once youve had them a few months the novelty wears and if anything you just feel depressed with the payments and its not made you as happy as you thought it would.

Ive got a car, 2 vans and a motorbike all paid for in full and all older vechicles.

[NWH]

Nigel is spot on regarding PCP.  Whilst it’s an affordable way of driving a new car and I’m not knocking anyone who chooses to go down this route, you should really be aware of interest charges, penalties if you end the contract early, final settlement etc.
When a customer  goes into a dealership and says I can afford X amount of ££’s per month with no clue on interest charges and other associated costs, you see the salesman’s eyes light up🤑🤑

Lol thanks m8 yeah people don’t realise because they only look at the monthly amount unless they’ve done the research the salesman is not at Liberty to disclose the small print it’s all in front of you to read for yourself,like the comment earlier I only pay interest on what I’m paying yeah that’s exactly how it looks so much down so much a month.
Years ago I nearly got caught big time on an M4 the small amount down with a monthly that was a lot but far cheaper than finance,you can finance these things in a much cheaper way where’s you get you’re deposit back as long as you don’t keep the car too long that it becomes worth less than the big deposit initially used.
if I estimated that the vehicle I’m buying will drop by 25% over 3 years i would put down 70-75% I always do this on cars it always ends up costing just a few grand to own it over that period then full deposit back,at the moment with the right car you’ve made money.
This method can only be done if you can lump a big deposit down and people that sell PCP know this and any decent salesman would tell you this,its just like you’re own PCP without the huge interest you get nothing for money in the bank anyway.

[NWH]

If you PCP a small car under 20k I can see the attraction if you will definitely be changing it every couple of years but at the end of the day you are just renting the car,lots of people driving around in 60-70k cars paying 30-35k over 3 years + deposit just renting-PCPing them almost no one buys the vehicle at the end period and they love that coz they want to get you in to another one so you’re constantly renting again and again they hate cash buyers.

[alank]

I just buy my vehicles the old fashioned way. See what I want, save up a bit, haggle a bit, buy it own it outright from day one. 

[windowswashed]

I just buy my vehicles the old fashioned way. See what I want, save up a bit, haggle a bit, buy it own it outright from day one. 

Once you reach that position in life you never want to go back. Brilliant being debt free, mortgage free, more freedom, more free time, less worries.

[NWH]

You’ve only got to look when you drive to work so so many cars 2-4 years old driving about all leased or PCP but a lot of them are as cheap as chips because there the smaller cheaper end of the market,most young women that use the car to get to work etc it may suit 150 a month on a PCP swap it in after 3 years then get another the dealer sells it on with 15-20000 on the clock everyone’s happy she’s probably got a service package and other bits topping it up.
It’s the higher end of the market if you don’t know what you’re signing up for you get mugged,on first impression you’re only paying interest on what you borrow or I can afford that monthly payment.
They even tell you we give you a contribution to that offer lol 4-5k not that they’ve already overinflated the screen price by the same. 

[NWH]

I just buy my vehicles the old fashioned way. See what I want, save up a bit, haggle a bit, buy it own it outright from day one. 

Once you reach that position in life you never want to go back. Brilliant being debt free, mortgage free, more freedom, more free time, less worries.

They don’t want cash buyers they want you to PCP that’s why they plug it they can then sell you service packages paint protection the list goes on,most of all they want the interest on the finance you take out over the period plus the dormant lump in the middle that’s payable at the end of the term that you will hardly ever intend in paying off.

[dazmond]

I just buy my vehicles the old fashioned way. See what I want, save up a bit, haggle a bit, buy it own it outright from day one. 

I've got no desire to buy a car outright...I'd rather lease and get a brand new one every 3 years....and keep a large chunk of money in the bank for emergencies/holidays,etc..

[deeege]

I just buy my vehicles the old fashioned way. See what I want, save up a bit, haggle a bit, buy it own it outright from day one. 

I've got no desire to buy a car outright...I'd rather lease and get a brand new one every 3 years....and keep a large chunk of money in the bank for emergencies/holidays,etc..

It doesn’t have to be one or the other y’know Daz. It is also possible to own a car outright AND keep a large chunk of money in savings/investments.

[AuRavelling79]

I just buy my vehicles the old fashioned way. See what I want, save up a bit, haggle a bit, buy it own it outright from day one. 

Once you reach that position in life you never want to go back. Brilliant being debt free, mortgage free, more freedom, more free time, less worries.

I'm like that now but I spare a thought for those who have little choice. Back in 2006 when I had three kids at home, a mortgage and was moving from an estate car to a van I had to finance it somehow. But having a van changed my job completely from doing £120 a day in 2005 to £150 a day when I went wfp out of my estate car and straight to £200 a day when I got my first van in 2006.

I doubt there are many doing that now as wfp is the standard way and hardly any serious window cleaner uses a car.

When I bought the van I did a £200 a month over 4 years and did a wriggle to buy the van for £2000. I paid well over the odds than getting a bank loan and deposit BUT it was still worth it as it got me into the cycle of a reliable (new) van. SO I spare a thought for those starting out.

The second (present) van I could have bought outright but was offered a great overdraft deal for one year by my bank and I paid it off over a year at about 2%. For the car we just bought outright. But these were both vehicles well under £20K at the time and are still running fine ten years later. (touch wood).

[dazmond]

I just buy my vehicles the old fashioned way. See what I want, save up a bit, haggle a bit, buy it own it outright from day one. 

I've got no desire to buy a car outright...I'd rather lease and get a brand new one every 3 years....and keep a large chunk of money in the bank for emergencies/holidays,etc..

It doesn’t have to be one or the other y’know Daz. It is also possible to own a car outright AND keep a large chunk of money in savings/investments.

Of course.....but I like getting a new car every 3 years and it's so easy and hassle free,no mots and I usually only service them once or twice in that time

[dd]

Trouble is Daz you will find all the money you have in the bank is losing value.

Compare the rate of inflation to the interest you get on your money, and currently you will find it is depreciating by around 8% or so per year.

[NWH]

You would be better off leasing a mini van or something similar Smart car with advertising on and claiming it against you’re tax each month,Car dealers love PCP deals if they sign you up for a 4 year deal they will get at least half the contract out of you and it will affect you’re credit rating if you finish it early or it can do.
BMWs plummet in price I almost got caught big time a few years ago with PCP I would have owed them money after the contract unless I’d got straight in to another 1.