Why the PH hatred for PCP?
Discussion
Kermit power said:
Dr Jekyll said:
Kermit power said:
Just to muddy the waters a bit further, I've been looking at 1-2 year old cars on Autotrader.
I kept to PHEVs, since I have one at the moment and like it, so the Merc C350e, Volvo XC90, X5 and so on...
How on earth do some people rack up such high mileages?!?!? They almost all seem to have done around 50k miles per annum!
I know my mileage is low at around 7k per annum, but 50k? How do people find the time to actually do any work when they stop driving???
A hundred miles each way commute can be only 1 1/2 to 2 hours each way. I kept to PHEVs, since I have one at the moment and like it, so the Merc C350e, Volvo XC90, X5 and so on...
How on earth do some people rack up such high mileages?!?!? They almost all seem to have done around 50k miles per annum!
I know my mileage is low at around 7k per annum, but 50k? How do people find the time to actually do any work when they stop driving???
You say that like you think it's sane and normal!!!
Why are people comparing a used car v a new car on a thread purely about financing of new cars.
Clearly buying used for cash is cheaper than new - that’s because it’s used older more wear more strangers bum sweat in the drivers seat less warranty etc.
Buy new get the exact spec you want no need to travel to view used examples with unknown history. But you pay a premium for it.
Financing a used car on PCP will not be a great APR never has never will. Also depending on the age of it a brand new one with cracking discount might mean a brand new car costs the same as a two year old car to buy
Clearly buying used for cash is cheaper than new - that’s because it’s used older more wear more strangers bum sweat in the drivers seat less warranty etc.
Buy new get the exact spec you want no need to travel to view used examples with unknown history. But you pay a premium for it.
Financing a used car on PCP will not be a great APR never has never will. Also depending on the age of it a brand new one with cracking discount might mean a brand new car costs the same as a two year old car to buy
PCP puts people in cars that they can't otherwise afford, and in the process the pay more, to fund the salary of the salesman, the finance people, the dealership cleaner etc. Then people smugly walk around having done phantom mathematics convincing themselves that somehow they've saved money by paying through the nose for vehicles that they can't afford. They're literally going to work in a car they can't afford, to get money to pay for the image of the shiny metal that they can't really afford. Madness!
They end up paying the cost to buy the car outright over 3 years, juiced to the point where they have only a small amount of equity in the car to keep on the treadmill over and over again. It's a genius business model design to rip idiots off to get more money out of them forever, yet somehow it's dressed up as genius and the height of financial literacy by fiscal incontinents on here, in open defiance of all monetary logic.
It's a bit like being told it's a good idea to rent a house at a premium forever rather than buying one and eventually paying it off. Somehow on PH this is sold as financial genius.
They end up paying the cost to buy the car outright over 3 years, juiced to the point where they have only a small amount of equity in the car to keep on the treadmill over and over again. It's a genius business model design to rip idiots off to get more money out of them forever, yet somehow it's dressed up as genius and the height of financial literacy by fiscal incontinents on here, in open defiance of all monetary logic.
It's a bit like being told it's a good idea to rent a house at a premium forever rather than buying one and eventually paying it off. Somehow on PH this is sold as financial genius.
Gordon_Roslin said:
PCP puts people in cars that they can't otherwise afford, and in the process the pay more, to fund the salary of the salesman, the finance people, the dealership cleaner etc. Then people smugly walk around having done phantom mathematics convincing themselves that somehow they've saved money by paying through the nose for vehicles that they can't afford. They're literally going to work in a car they can't afford, to get money to pay for the image of the shiny metal that they can't really afford. Madness!
They end up paying the cost to buy the car outright over 3 years, juiced to the point where they have only a small amount of equity in the car to keep on the treadmill over and over again. It's a genius business model design to rip idiots off to get more money out of them forever, yet somehow it's dressed up as genius and the height of financial literacy by fiscal incontinents on here, in open defiance of all monetary logic.
It's a bit like being told it's a good idea to rent a house at a premium forever rather than buying one and eventually paying it off. Somehow on PH this is sold as financial genius.
3/10They end up paying the cost to buy the car outright over 3 years, juiced to the point where they have only a small amount of equity in the car to keep on the treadmill over and over again. It's a genius business model design to rip idiots off to get more money out of them forever, yet somehow it's dressed up as genius and the height of financial literacy by fiscal incontinents on here, in open defiance of all monetary logic.
It's a bit like being told it's a good idea to rent a house at a premium forever rather than buying one and eventually paying it off. Somehow on PH this is sold as financial genius.
Must try harder.
Deep Thought said:
3/10
Must try harder.
The best anyone can come up with on here in favour of PCP is 'I want to pay north of 10,000 GBP in order to avoid someone else's buttocks having made contact with the seat', that's the level of justification we're at.Must try harder.
The same people who'd laugh at someone going to wonga for the latest iphone gleefully sign up for PCPs having been egged on by financial illiterates on here. Please contradict my points with facts and evidence rather than the hilarious '3/10'.
Gordon_Roslin said:
PCP puts people in cars that they can't otherwise afford, and in the process the pay more, to fund the salary of the salesman, the finance people, the dealership cleaner etc. Then people smugly walk around having done phantom mathematics convincing themselves that somehow they've saved money by paying through the nose for vehicles that they can't afford. They're literally going to work in a car they can't afford, to get money to pay for the image of the shiny metal that they can't really afford. Madness!
They end up paying the cost to buy the car outright over 3 years, juiced to the point where they have only a small amount of equity in the car to keep on the treadmill over and over again. It's a genius business model design to rip idiots off to get more money out of them forever, yet somehow it's dressed up as genius and the height of financial literacy by fiscal incontinents on here, in open defiance of all monetary logic.
It's a bit like being told it's a good idea to rent a house at a premium forever rather than buying one and eventually paying it off. Somehow on PH this is sold as financial genius.
Well most people think monthlyThey end up paying the cost to buy the car outright over 3 years, juiced to the point where they have only a small amount of equity in the car to keep on the treadmill over and over again. It's a genius business model design to rip idiots off to get more money out of them forever, yet somehow it's dressed up as genius and the height of financial literacy by fiscal incontinents on here, in open defiance of all monetary logic.
It's a bit like being told it's a good idea to rent a house at a premium forever rather than buying one and eventually paying it off. Somehow on PH this is sold as financial genius.
1. Mobile phone cost
2. sky or another internet landline tv/streaming cost
Really they see the pcm of a car and have gotten used to mobile monthly costs and frankly they can justify it as a multiple of that.
Now this is just for those who really cannot afford it not the countless reasons already posted here. It matters not to any one of us as in pretty sure we’re savvy ebough to work it out. Worst case they have the enjoyment of something for a period of time that’s worth £
Gordon_Roslin said:
PCP puts people in cars that they can't otherwise afford, and in the process the pay more, to fund the salary of the salesman, the finance people, the dealership cleaner etc. Then people smugly walk around having done phantom mathematics convincing themselves that somehow they've saved money by paying through the nose for vehicles that they can't afford. They're literally going to work in a car they can't afford, to get money to pay for the image of the shiny metal that they can't really afford. Madness!
They end up paying the cost to buy the car outright over 3 years, juiced to the point where they have only a small amount of equity in the car to keep on the treadmill over and over again. It's a genius business model design to rip idiots off to get more money out of them forever, yet somehow it's dressed up as genius and the height of financial literacy by fiscal incontinents on here, in open defiance of all monetary logic.
It's a bit like being told it's a good idea to rent a house at a premium forever rather than buying one and eventually paying it off. Somehow on PH this is sold as financial genius.
Interesting and excellent post. They end up paying the cost to buy the car outright over 3 years, juiced to the point where they have only a small amount of equity in the car to keep on the treadmill over and over again. It's a genius business model design to rip idiots off to get more money out of them forever, yet somehow it's dressed up as genius and the height of financial literacy by fiscal incontinents on here, in open defiance of all monetary logic.
It's a bit like being told it's a good idea to rent a house at a premium forever rather than buying one and eventually paying it off. Somehow on PH this is sold as financial genius.
Gordon_Roslin said:
Deep Thought said:
3/10
Must try harder.
The best anyone can come up with on here in favour of PCP is 'I want to pay north of 10,000 GBP in order to avoid someone else's buttocks having made contact with the seat', that's the level of justification we're at.Must try harder.
The same people who'd laugh at someone going to wonga for the latest iphone gleefully sign up for PCPs having been egged on by financial illiterates on here. Please contradict my points with facts and evidence rather than the hilarious '3/10'.
Hence my "3/10. Must try harder". You're bringing nothing new to the table so why would i or anyone write an essay (again) explaining any prospective merits of PCP.
Clearly PCP isnt for you. I'm fine with that thanks
Gordon_Roslin said:
PCP puts people in cars that they can't otherwise afford, and in the process the pay more, to fund the salary of the salesman, the finance people, the dealership cleaner etc. Then people smugly walk around having done phantom mathematics convincing themselves that somehow they've saved money by paying through the nose for vehicles that they can't afford. They're literally going to work in a car they can't afford, to get money to pay for the image of the shiny metal that they can't really afford. Madness!
They end up paying the cost to buy the car outright over 3 years, juiced to the point where they have only a small amount of equity in the car to keep on the treadmill over and over again. It's a genius business model design to rip idiots off to get more money out of them forever, yet somehow it's dressed up as genius and the height of financial literacy by fiscal incontinents on here, in open defiance of all monetary logic.
It's a bit like being told it's a good idea to rent a house at a premium forever rather than buying one and eventually paying it off. Somehow on PH this is sold as financial genius.
So, is finance good or bad? They end up paying the cost to buy the car outright over 3 years, juiced to the point where they have only a small amount of equity in the car to keep on the treadmill over and over again. It's a genius business model design to rip idiots off to get more money out of them forever, yet somehow it's dressed up as genius and the height of financial literacy by fiscal incontinents on here, in open defiance of all monetary logic.
It's a bit like being told it's a good idea to rent a house at a premium forever rather than buying one and eventually paying it off. Somehow on PH this is sold as financial genius.
Your post seems to contradict itself.
Welshbeef said:
Well most people think monthly
1. Mobile phone cost
2. sky or another internet landline tv/streaming cost
Really they see the pcm of a car and have gotten used to mobile monthly costs and frankly they can justify it as a multiple of that.
Now this is just for those who really cannot afford it not the countless reasons already posted here. It matters not to any one of us as in pretty sure we’re savvy ebough to work it out. Worst case they have the enjoyment of something for a period of time that’s worth £
But the average PCP costs £400 per month, whilst the average take home pay is about £1,700. So the same millenials making violin-soaked paeans to their tragic situation on youtube about not being able to afford a mortgage are forking out nearly a mortgage payment a month on being able to claim how successful they are, when actually anyone with any financial literacy is directing gale force laughter in their direction as they go by in their debt-prisons with wheels on. Notice how nobody ever provides any evidence in favour of PCPs, it always comes down to 'one life, live it' 'you only live once' 'i don't want another person's posterior in the seat'. 1. Mobile phone cost
2. sky or another internet landline tv/streaming cost
Really they see the pcm of a car and have gotten used to mobile monthly costs and frankly they can justify it as a multiple of that.
Now this is just for those who really cannot afford it not the countless reasons already posted here. It matters not to any one of us as in pretty sure we’re savvy ebough to work it out. Worst case they have the enjoyment of something for a period of time that’s worth £
av185 said:
Gordon_Roslin said:
PCP puts people in cars that they can't otherwise afford, and in the process the pay more, to fund the salary of the salesman, the finance people, the dealership cleaner etc. Then people smugly walk around having done phantom mathematics convincing themselves that somehow they've saved money by paying through the nose for vehicles that they can't afford. They're literally going to work in a car they can't afford, to get money to pay for the image of the shiny metal that they can't really afford. Madness!
They end up paying the cost to buy the car outright over 3 years, juiced to the point where they have only a small amount of equity in the car to keep on the treadmill over and over again. It's a genius business model design to rip idiots off to get more money out of them forever, yet somehow it's dressed up as genius and the height of financial literacy by fiscal incontinents on here, in open defiance of all monetary logic.
It's a bit like being told it's a good idea to rent a house at a premium forever rather than buying one and eventually paying it off. Somehow on PH this is sold as financial genius.
Interesting and excellent post. They end up paying the cost to buy the car outright over 3 years, juiced to the point where they have only a small amount of equity in the car to keep on the treadmill over and over again. It's a genius business model design to rip idiots off to get more money out of them forever, yet somehow it's dressed up as genius and the height of financial literacy by fiscal incontinents on here, in open defiance of all monetary logic.
It's a bit like being told it's a good idea to rent a house at a premium forever rather than buying one and eventually paying it off. Somehow on PH this is sold as financial genius.
Even i'm bored with it and thats saying something
Edited by Deep Thought on Friday 11th January 23:04
Gordon_Roslin said:
But the average PCP costs £400 per month, whilst the average take home pay is about £1,700. So the same millenials making violin-soaked paeans to their tragic situation on youtube about not being able to afford a mortgage are forking out nearly a mortgage payment a month on being able to claim how successful they are, when actually anyone with any financial literacy is directing gale force laughter in their direction as they go by in their debt-prisons with wheels on. Notice how nobody ever provides any evidence in favour of PCPs, it always comes down to 'one life, live it' 'you only live once' 'i don't want another person's posterior in the seat'.
Ah that old chestnut - the average PCP cost is £400 a month, the average wage is £1,700 a month. So everyone who uses PCP is on an average wage. Loving the 2+2=5 
As i said, must try harder.
Gordon_Roslin said:
PCP puts people in cars that they can't otherwise afford, and in the process the pay more, to fund the salary of the salesman, the finance people, the dealership cleaner etc. Then people smugly walk around having done phantom mathematics convincing themselves that somehow they've saved money by paying through the nose for vehicles that they can't afford. They're literally going to work in a car they can't afford, to get money to pay for the image of the shiny metal that they can't really afford. Madness!
They end up paying the cost to buy the car outright over 3 years, juiced to the point where they have only a small amount of equity in the car to keep on the treadmill over and over again. It's a genius business model design to rip idiots off to get more money out of them forever, yet somehow it's dressed up as genius and the height of financial literacy by fiscal incontinents on here, in open defiance of all monetary logic.
It's a bit like being told it's a good idea to rent a house at a premium forever rather than buying one and eventually paying it off. Somehow on PH this is sold as financial genius.
Lol. Bet that you don’t have two pennies to scratch together.They end up paying the cost to buy the car outright over 3 years, juiced to the point where they have only a small amount of equity in the car to keep on the treadmill over and over again. It's a genius business model design to rip idiots off to get more money out of them forever, yet somehow it's dressed up as genius and the height of financial literacy by fiscal incontinents on here, in open defiance of all monetary logic.
It's a bit like being told it's a good idea to rent a house at a premium forever rather than buying one and eventually paying it off. Somehow on PH this is sold as financial genius.
Also bet that you deny this and instead reply back to me claiming you are in fact stinking rich.
I have bought cars with cash in the past and don’t totally write off doing it again in the future. Although I’m leasing at the moment and enjoy funding a nice car with a small monthly payment, while my cash stays in equities, earning me more!
I just wish people will understand the pros and cons, instead of labelling those who do lease cheap/poor/tight/stupid/flash/irresponsible etc.
The truth is, a lot of people who slag off those who lease etc. usually don’t (despite what they claim) have a pot to piss in or a window to throw it from. Cars are not an investment so those who do their research, and find the right deal, will use leasing to work for them. Excluding dealers and classic car collectors of course.
Footballers on £200k a week lease exotic cars, why? Because they don’t want to tie up their cash into a depreciating lump of metal.
It’s even the same in business now. More and more corporate businesses are leasing IT equipment because it’s value sinks like a stone.
Open your eyes a little and stop being so bitter.
Gordon_Roslin said:
But the average PCP costs £400 per month, whilst the average take home pay is about £1,700. So the same millenials making violin-soaked paeans to their tragic situation on youtube about not being able to afford a mortgage are forking out nearly a mortgage payment a month on being able to claim how successful they are, when actually anyone with any financial literacy is directing gale force laughter in their direction as they go by in their debt-prisons with wheels on. Notice how nobody ever provides any evidence in favour of PCPs, it always comes down to 'one life, live it' 'you only live once' 'i don't want another person's posterior in the seat'.
I don’t get th only live once attitude point you make. People buy PCP because
1. opt out of company car and need it within age limits & don’t have a lump sum to buy a car outright.
2. There is a massive offer on PCH/PCP whereby the discount on that purchase method is far cheaper all in than buying outright or via bank loan.
3. Some people cannot correctly judge depreciation and always get spanked in part x so PCH / GFV PCP takes that risk away it’s a known entity.
4. You have a sole trader/ltd company setup and want to run the vehicle in the business.
5. Because you can.
roadsmash said:
Lol. Bet that you don’t have two pennies to scratch together.
Also bet that you deny this and instead reply back to me claiming you are in fact stinking rich.
I have bought cars with cash in the past and don’t totally write off doing it again in the future. Although I’m leasing at the moment and enjoy funding a nice car with a small monthly payment, while my cash stays in equities, earning me more!
I just wish people will understand the pros and cons, instead of labelling those who do lease cheap/poor/tight/stupid/flash/irresponsible etc.
The truth is, a lot of people who slag off those who lease etc. usually don’t (despite what they claim) have a pot to piss in or a window to throw it from. Cars are not an investment so those who do their research, and find the right deal, will use leasing to work for them. Excluding dealers and classic car collectors of course.
Footballers on £200k a week lease exotic cars, why? Because they don’t want to tie up their cash into a depreciating lump of metal.
It’s even the same in business now. More and more corporate businesses are leasing IT equipment because it’s value sinks like a stone.
Open your eyes a little and stop being so bitter.
Not bitter, just crestfallen at seeing the level of financial illiteracy on here. Then of course you have offered the always-bizarre 'if you talk financial sense then you must not have any money'. Do you go up to people who obviously know their stuff when it comes to Ju-Jitsu and tell them that therefore they must not know anything about it?Also bet that you deny this and instead reply back to me claiming you are in fact stinking rich.
I have bought cars with cash in the past and don’t totally write off doing it again in the future. Although I’m leasing at the moment and enjoy funding a nice car with a small monthly payment, while my cash stays in equities, earning me more!
I just wish people will understand the pros and cons, instead of labelling those who do lease cheap/poor/tight/stupid/flash/irresponsible etc.
The truth is, a lot of people who slag off those who lease etc. usually don’t (despite what they claim) have a pot to piss in or a window to throw it from. Cars are not an investment so those who do their research, and find the right deal, will use leasing to work for them. Excluding dealers and classic car collectors of course.
Footballers on £200k a week lease exotic cars, why? Because they don’t want to tie up their cash into a depreciating lump of metal.
It’s even the same in business now. More and more corporate businesses are leasing IT equipment because it’s value sinks like a stone.
Open your eyes a little and stop being so bitter.
For what it's worth, since you ask, my equity investments have returned north of 10% over my lifetime, allowing me to now finance my car purchases from the annual income via interest without ever touching the principal. Maybe if a few more people took that approach to asset growth over time then they wouldn't be left without a pot to p*ss in due to all their PCPS over the course of a lifetime?
classicaholic said:
If you want to buy a new car it will probably only be worth 40% of what you paid in 3 years and that is probably the amount you would pay on PCP - buying any new car is a mugs game but if you want a new one I don’t see much difference in the costs.
Why does it have to be a new car? The classic logical fallacy of excluding used cars in order to make PCP seem reasonable.Buy at 2 or 3 years old, invest and when you're 50 or 60 you'll have a pot that'll self-generate money for all the shiny new metal for the rest of your life without touching the principal. They should teach this in schools instead of getting everyone addicted to PCPs, iphone wonga contracts etc. to make people permanent wage slaves forever.
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