PCP deal calculation help

[crazy about cars]

End of Day 2 requesting deposit back and still haven't received any. Just sent another email saying if they cannot match the quote I gave yesterday while retaining same (or lower) APRs there would be no further negotiation - I just want my deposit back as promised!

Personally I'm being very sceptical how they can find a brand new car with the specs I wanted in such as short time.

[daemon]

crazy about cars said:

End of Day 2 requesting deposit back and still haven't received any. Just sent another email saying if they cannot match the quote I gave yesterday while retaining same (or lower) APRs there would be no further negotiation - I just want my deposit back as promised!

Personally I'm being very sceptical how they can find a brand new car with the specs I wanted in such as short time.

I would go and see them

[Grandfondo]

daemon said:

Grandfondo said:

Why do people get so het up about a statement of fact that does not concern them? Unless it does of course!

Because its such a banal comment, and often you use it in an inflammatory context that it needs correcting.

It would be like me saying "SOME men ride bicycles because they like to see mens bottoms in front of them in lycra". To which you might (?) reply "I ride bicycles to keep fit and because I enjoy it", to which i would then go "Why do people get so het up about a statement of fact that does not concern them? Unless it does of course!"

And of course, i would then repeat that at every possible opportunity on every possible thread and the more people retorted to it, the more i would declare "Oh oh you're protesting too much!"

And why does it seem to matter to you so much IF people use PCP deals? Do you not understand that people h

ave a range of options open to them and are very capable of chosing what suits them best?

Why must you try to broad brush all PCP deals?

You seem to think it makes you look smart - it doesnt - its cringeworthy.

Grandfondo said:

In you posts you just about mention every time that you deserve a medal for paying cash for a car and how you still could but go on to argue vehemently for PCP?

Just because he can see how on occassions a PCP deal may work for someone, doesnt mean its the ONLY tool he might use.

Hes not arguing vehemently, hes giving a viewpoint.

Grandfondo said:

PCP certainly works for cars that can't be shifted and the manufacturer knows the only way to get them moving is to throw bundles of cash at the deal like the BMW Z4!

Yes. Exactly. The Z4 is reaching end of life now so they are having to support it on the market.

Interestingly Mercedes are doing similar with the SLK.

Thats the trick with PCP deals - find the deals where the manufacturer is incentivising them.

Edited by daemon on Wednesday 17th December 18:02

Edited by daemon on Wednesday 17th December 18:05

Is there something in your past that has made you this insecure?

You said a page back that you would not be posting on anything I said again and here you are answering to a post that wasn't even directed at you!
You then go on some rant about some homosexual fantasy you have and then start arguing with yourself about it!
I don't think being "tricked" by a manufacturer into a PCP deal is a good advertisement for your argument either!

[liner33]

daemon said:

If you want a new car the de facto choice has to be a PCP or lease deal these days. I cant think of ANY reason why you'd want to put your own hard earned into run of the mill new cars these days.

Be

If you don't only do 10k per year or don't feel the need to change your car every 30,000 miles or are actually aware that most savings accounts don't even keep pace with inflation

I can't see why anyone wouldn't use their own money provided they have it

[daemon]

Grandfondo said:

Is there something in your past that has made you this insecure?

You said a page back that you would not be posting on anything I said again and here you are answering to a post that wasn't even directed at you!
You then go on some rant about some homosexual fantasy you have and then start arguing with yourself about it!
I don't think being "tricked" by a manufacturer into a PCP deal is a good advertisement for your argument either!

Again, not arguing in favour of PCP deals. Just that they are an option for people - and moreoften a perfectly viable reasonable option.

[daemon]

liner33 said:

daemon said:

If you want a new car the de facto choice has to be a PCP or lease deal these days. I cant think of ANY reason why you'd want to put your own hard earned into run of the mill new cars these days.

Be

If you don't only do 10k per year or don't feel the need to change your car every 30,000 miles or are actually aware that most savings accounts don't even keep pace with inflation

I can't see why anyone wouldn't use their own money provided they have it

If i was buying a car to keep long term or do big miles in, i wouldnt be buying new.

[liner33]

daemon said:

If i was buying a car to keep long term or do big miles in, i wouldnt be buying new.

Maybe you wouldn't but that's irrelevant

In the example you posted you basically pay £2800 in interest costs in four years and 40,000 miles for the privilege of the pcp deal

If you put £28k in the bank instead you'd be lucky to make £1000 on it meaning you are £2k better off buy using your own money instead of pcp

[daemon]

liner33 said:

daemon said:

If i was buying a car to keep long term or do big miles in, i wouldnt be buying new.

Maybe you wouldn't but that's irrelevant

In the example you posted you basically pay £2800 in interest costs in four years and 40,000 miles for the privilege of the pcp deal

If you put £28k in the bank instead you'd be lucky to make £1000 on it meaning you are £2k better off buy using your own money instead of pcp

This example?

BMW z4 sDrive28i - list price £37,390

Customer deposit £5799 - probably £5K customer cash, and an extra £799 discount from dealer.
BMW UK deposit contribution £6,500
Dealer deposit contribution £1,389

Repayments £322, residual £14,429.

The BMW UK finance contribution you cant otherwise get as discount, its only if you use their PCP deal.

[Grandfondo]

liner33 said:

daemon said:

If i was buying a car to keep long term or do big miles in, i wouldnt be buying new.

Maybe you wouldn't but that's irrelevant

In the example you posted you basically pay £2800 in interest costs in four years and 40,000 miles for the privilege of the pcp deal

If you put £28k in the bank instead you'd be lucky to make £1000 on it meaning you are £2k better off buy using your own money instead of pcp

NO,that can't possibly be right!

[Grandfondo]

liner33 said:

daemon said:

If i was buying a car to keep long term or do big miles in, i wouldnt be buying new.

Maybe you wouldn't but that's irrelevant

In the example you posted you basically pay £2800 in interest costs in four years and 40,000 miles for the privilege of the pcp deal

If you put £28k in the bank instead you'd be lucky to make £1000 on it meaning you are £2k better off buy using your own money instead of pcp

NO,that can't possibly be right!

[Grandfondo]

liner33 said:

daemon said:

If i was buying a car to keep long term or do big miles in, i wouldnt be buying new.

Maybe you wouldn't but that's irrelevant

In the example you posted you basically pay £2800 in interest costs in four years and 40,000 miles for the privilege of the pcp deal

If you put £28k in the bank instead you'd be lucky to make £1000 on it meaning you are £2k better off buy using your own money instead of pcp

NO,that can't possibly be right!

[Grandfondo]

daemon said:

liner33 said:

daemon said:

If i was buying a car to keep long term or do big miles in, i wouldnt be buying new.

Maybe you wouldn't but that's irrelevant

In the example you posted you basically pay £2800 in interest costs in four years and 40,000 miles for the privilege of the pcp deal

If you put £28k in the bank instead you'd be lucky to make £1000 on it meaning you are £2k better off buy using your own money instead of pcp

This example?

BMW z4 sDrive28i - list price £37,390

Customer deposit £5799 - probably £5K customer cash, and an extra £799 discount from dealer.
BMW UK deposit contribution £6,500
Dealer deposit contribution £1,389

Repayments £322, residual £14,429.

The BMW UK finance contribution you cant otherwise get as discount, its only if you use their PCP deal.

Yes you can!

Take out the PCP deal and pay it off in with no penalty!

You have to have the "cash" of course!

Can I have my "medal" now!

[daemon]

Grandfondo said:

Yes you can!

Take out the PCP deal and pay it off in with no penalty!

You have to have the "cash" of course!

Can I have my "medal" now!

Which is just what i said - you cant get the finance without taking out the PCP deal?

If you then want to clear it and possibly avail of the extra discount then fine. I personally wouldnt want that amount of cash tied up in a new car thats depreciating like snow dropping from a ditch, but if thats your bag.

[daemon]

Grandfondo said:

liner33 said:

daemon said:

If i was buying a car to keep long term or do big miles in, i wouldnt be buying new.

Maybe you wouldn't but that's irrelevant

In the example you posted you basically pay £2800 in interest costs in four years and 40,000 miles for the privilege of the pcp deal

If you put £28k in the bank instead you'd be lucky to make £1000 on it meaning you are £2k better off buy using your own money instead of pcp

NO,that can't possibly be right!

It may well be right - i never said that a PCP deal was the best way to buy, merely that if i was buying new i wouldnt use cash to do it - like the vast bulk of buyers of new cars these days. And if i was buying with cash i wouldnt buy new

Maybe a nice Daimler Dart thats going to appreciate - yes. Common or garden metal thats going down in value - nope.

[Grandfondo]

daemon said:

Grandfondo said:

Yes you can!

Take out the PCP deal and pay it off in with no penalty!

You have to have the "cash" of course!

Can I have my "medal" now!

Which is just what i said - you cant get the finance without taking out the PCP deal?

If you then want to clear it and possibly avail of the extra discount then fine. I personally wouldnt want that amount of cash tied up in a new car thats depreciating like snow dropping from a ditch, but if thats your bag

So on top of depreciation you want to add interest as well?

[daemon]

Grandfondo said:

So on top of depreciation you want to add interest as well?

When its managed in a controlled cost effective way, and when it means you're not putting a large amount of your own hard earned in, then yes, happy to.

Rather that than put in £30K, and watch it drop to £10K

[crazy about cars]

Get a room guys

[Grandfondo]

daemon said:

Grandfondo said:

So on top of depreciation you want to add interest as well?

When its managed in a controlled cost effective way, and when it means you're not putting a large amount of your own hard earned in, then yes, happy to.

Rather that than put in £30K, and watch it drop to £10K

So you'd rather your £32k dropped to £10k?

[Fox-]

daemon said:

Rather that than put in £30K, and watch it drop to £10K

Isn't that exactly what the finance does too? The car doesn't not depreciate just because it's on finance.

PCP is a decent enough product for those who want it but it's not some sort of super secret way of avoiding depreciation on a car. You can't avoid depreciation, you either suffer it directly on a cash purchase or you suffer it indirectly as it drives the cost of your PCP.

At the end of the term you've still lost £Xk whether through depreciation on a car you paid cash for or through finance payments.

[Fox-]

daemon said:

This example?

BMW z4 sDrive28i - list price £37,390

Customer deposit £5799 - probably £5K customer cash, and an extra £799 discount from dealer.
BMW UK deposit contribution £6,500
Dealer deposit contribution £1,389

Repayments £322, residual £14,429.

The BMW UK finance contribution you cant otherwise get as discount, its only if you use their PCP deal.

Of course you can get it otherwise through discount.

Broadspeed can arrange that same z4 sDrive28i M Sport for £26950 in cash - a saving of over £10k.

Infact that represents a much greater discount than that from the deposit contribution?

The car would need to be worth under £10k at 3 years old for the PCP to be cheaper than a cash purchase in this particular example. Which isn't going to happen on a Z4.

The benefit of a PCP in this example above is for those who do not have £27k in cash. If you do have £27k in cash why would you not buy it outright, discounted, and save a pile of money?