New Car PCP Advice

[neilhd]

Originally Posted by Floridag1rl

You are probably right, I just don't like a PCP it is just me. The way I see it is, you buy a car via PCP normally over three years with a balloon payment at the end of it or you trade the car in or give it back. I have never seen a balloon payment yet which is less than the car is worth. People I know struggle to get the trade in price which is the same as or more than the balloon payment. So your offered trade in at £4000 but you owe £5000 at the end of 3yrs, you then have no choice but to hand the car back. So realistically you have paid a loan for three years and have nothing at the end of it. So you then have to find a deposit for another car and another PCP, it just never ends. I hate car loans, I like to own my car. On average we spend around £1000 a year on our car, servicing, tyres and the odd thing that may go wrong. Then on top you have the PCP loan to continually pay, I just cannot see as it is viable.

See more...

I see no benefit to actually owning the car. I don't see the point in paying £30k cash for something that a year later is worth £20k or less. Better to treat the PCP as a monthly thing you budget for and change the car every 3 years. You also don't have to worry about fixing the car as it's always in warranty so will never have to pay for repairs (obviously things like tyres etc you will, but in a 3 year PCP its likely you won't need to change them due to wear and tear, only due to damage). Many places offer service plans as well.

And for what its worth we have just got rid of DWs car. The end payment was £4900. We sold it for £6800 and pocketed £1900. My parents just did a similar thing, with a year left on their PCP, they traded it early with a "profit" that went towards their next one.

My own current car will not be like this - it is worth less than the PCP fial value. The purchase price was £30000, and at the end of the term will probably be worth about £12-13000. I will have paid about £14500 in payments during this time. So I have paid less than the depreciation - the finance company is taking the hit and I will just get another car. I only ever put down small deposits (£500). Putting down a large deposit is not a good idea on a PCP as that money will not be seen again.

[neilhd]

Originally Posted by mandevillepete

The offers that you get through from Carwow. When you contact the dealer are they actually there or do the dealers try to sell you something else? Not sure how to go about buying online. This is all new to me. Thanks for all the advice so far.

See more...

You will be able to get the deal they quote - probably on a new-build car. They may have something similar in stock or already on order that they might try and tempt you into. Up to you of course whether you want that or not.

[sdrfish]

I used to do pcp but changed to getting a lease works out much better.

The new car list price on my recent car was 36k and for a 2.5k initial payment I get a fully maintained car with tyres, almost all options ticked for 13k miles a year that’s costs me £350pcm.

The same car bought via pcp would cost me £470 a month and that is with no maintenance, no tyres and max 10k a year miles.

[bernard301]

Originally Posted by mandevillepete

The offers that you get through from Carwow. When you contact the dealer are they actually there or do the dealers try to sell you something else? Not sure how to go about buying online. This is all new to me. Thanks for all the advice so far.

See more...

Carwow orders are generally factory orders, unless there is the car you've specified available within the supply chain somewhere.

The good thing is that after just a few emails you could have the exact spec car ordered for you

[bernard301]

Originally Posted by neilhd

I see no benefit to actually owning the car. I don't see the point in paying £30k cash for something that a year later is worth £20k or less. Better to treat the PCP as a monthly thing you budget for and change the car every 3 years. You also don't have to worry about fixing the car as it's always in warranty so will never have to pay for repairs (obviously things like tyres etc you will, but in a 3 year PCP its likely you won't need to change them due to wear and tear, only due to damage). Many places offer service plans as well.

And for what its worth we have just got rid of DWs car. The end payment was £4900. We sold it for £6800 and pocketed £1900. My parents just did a similar thing, with a year left on their PCP, they traded it early with a "profit" that went towards their next one.

My own current car will not be like this - it is worth less than the PCP fial value. The purchase price was £30000, and at the end of the term will probably be worth about £12-13000. I will have paid about £14500 in payments during this time. So I have paid less than the depreciation - the finance company is taking the hit and I will just get another car. I only ever put down small deposits (£500). Putting down a large deposit is not a good idea on a PCP as that money will not be seen again.

See more...

You can also get away with over getting the car for a longer period and at lower mileage to reduce your monthly payments if you intend to settle early

[mandevillepete]

Just had my first offer through from Carwow which is an amazing deal. Do the dealers on Carwow part exchange? Not sure how this would work if they are delivering to me from a distance away

[Grump$]

Originally Posted by mandevillepete

Just had my first offer through from Carwow which is an amazing deal. Do the dealers on Carwow part exchange? Not sure how this would work if they are delivering to me from a distance away

See more...

Yes they take part exchanges, there's a section in the car wow page that values your car you use this valuation as a bench mark to get a good trade in from the dealer.

[Blue nose]

Originally Posted by neilhd

I see no benefit to actually owning the car. I don't see the point in paying £30k cash for something that a year later is worth £20k or less. Better to treat the PCP as a monthly thing you budget for and change the car every 3 years. You also don't have to worry about fixing the car as it's always in warranty so will never have to pay for repairs (obviously things like tyres etc you will, but in a 3 year PCP its likely you won't need to change them due to wear and tear, only due to damage). Many places offer service plans as well.

And for what its worth we have just got rid of DWs car. The end payment was £4900. We sold it for £6800 and pocketed £1900. My parents just did a similar thing, with a year left on their PCP, they traded it early with a "profit" that went towards their next one.

My own current car will not be like this - it is worth less than the PCP fial value. The purchase price was £30000, and at the end of the term will probably be worth about £12-13000. I will have paid about £14500 in payments during this time. So I have paid less than the depreciation - the finance company is taking the hit and I will just get another car. I only ever put down small deposits (£500). Putting down a large deposit is not a good idea on a PCP as that money will not be seen again.

See more...

I see your point but i buy a car that's not brand new but already registered. It might have up to 1000 miles but is technically second hard so save £1000s on the list price.

If you finance this with a low APR loan or interest free credit card (assuming you don't have cash you want to spend) you will pay less a month, ok maybe for slightly longer but you own the whole car. Or in my case trade-in when it's 3 with a deposit for the next one.

Most dealers offer a 3 year warranty on everything like your PCP car so no bills for repairs except for tyres etc

I've even taken the dealers finance as they've discounted the car to keep my monthly payments down and then I've refinanced to a better APR within weeks.

It's all personal preference and I guess it all depends on how much you're spending to but for me a cheap loan wins.

[neilhd]

Originally Posted by sdrfish

I used to do pcp but changed to getting a lease works out much better.

The new car list price on my recent car was 36k and for a 2.5k initial payment I get a fully maintained car with tyres, almost all options ticked for 13k miles a year that’s costs me £350pcm.

The same car bought via pcp would cost me £470 a month and that is with no maintenance, no tyres and max 10k a year miles.

See more...

Leases can definitely work out really well. The downside is they aren't generally as flexible - no early change option etc. And usually there's some kind of fee to pay at the end to fix any "damage" that might not be an issue when trading a PCP.

But - can definitely work out cheaper. I might consider one for my next car.

[mandevillepete]

All done. Went in with my Carwow quote and they gave us a really good deal. Thank you for the great advice. As always dibbers came through to help and I believe saved us a lot of money. Every penny counts towards the next trip 😀