The reason I have a car on PCP is .......
Discussion
Purely because it was an overall considerably cheaper method of purchase.
Car in question is the wife's Volvo XC60, offer was 0% with a fairly hefty deposit (think it was 40%), deposit contribution from Volvo & dealer of £4k & free servicing for 3yrs. None of these incentives existed with a cash purchase & we paid the balloon off last Autumn (no penalty). Same applied to the FFRR A/B i purchased a couple of years ago, the financial incentives were only available when using their preferred lender (happened to be Lloyds Bank & thus i get a further preferential rate) & thus the £8k discount outweighed the minimal interest charged over the term. Car got rejected after 4mths, so overall cost me nothing.
Similar applies to the few cars i've Leased which include a BMW F10 M5, Audi A8 & my current VW Golf R. All were acquired when the relevant fantastic deals were on offer & thus i stayed well ahead of the depreciation over the term to the tune of around £30k across the M5 & A8, so somewhat of a no brainer. Positive gain against depreciation on the Golf R will have saved me around £5k over the term & i'll be buying the Golf from VWFS at the end of the Lease.
Car in question is the wife's Volvo XC60, offer was 0% with a fairly hefty deposit (think it was 40%), deposit contribution from Volvo & dealer of £4k & free servicing for 3yrs. None of these incentives existed with a cash purchase & we paid the balloon off last Autumn (no penalty). Same applied to the FFRR A/B i purchased a couple of years ago, the financial incentives were only available when using their preferred lender (happened to be Lloyds Bank & thus i get a further preferential rate) & thus the £8k discount outweighed the minimal interest charged over the term. Car got rejected after 4mths, so overall cost me nothing.
Similar applies to the few cars i've Leased which include a BMW F10 M5, Audi A8 & my current VW Golf R. All were acquired when the relevant fantastic deals were on offer & thus i stayed well ahead of the depreciation over the term to the tune of around £30k across the M5 & A8, so somewhat of a no brainer. Positive gain against depreciation on the Golf R will have saved me around £5k over the term & i'll be buying the Golf from VWFS at the end of the Lease.
Edited by w8pmc on Wednesday 23 January 09:20
Because I live on a new build executive development and my neighbours have, in no particular order and grouped by house:
2017 Q3 (Green)
2018 Q3 (Green)
2017 S8 (Black)
2017 Range Rover Sport (Black)
2017 Range Rover Evoque Convertible (White)
2016 BMW 5 Series Saloon (Silver)
2018 BMW 5 Series Estate (Blue)
2017 Focus ST (Yellow)
2018 Ecoboost (Red)
2018 S3 (Black)
2018 A3 (White)
2018 BMW X1 (Black)
I'd owned my M135i from new, but with a 2014 plate on it, I felt like I was being looked down on by my neighbours. When my other half PCP'd a new Volvo V40, I thought it was time for an upgrade so that I'd fit in with the other Professionals on Our Executive Eevelopment. That meant either a change in the size of the car, or in the relative age.
Without having the necessary £30k in the bank for something that might fit in, I PCP'd a VW Touareg, which, whilst it isn't from a Premium German Manufacturer (what I call the big 3 - Mercedes Benz, Audi, BMW) is a big SUV, which I think people know and respect when I'm entering The Estate. I've not worked out what it's going to cost me over the term and I'll probably look to VT early to get into the hot seat of something that's newer, but it's worth it to keep up appearances.
2017 Q3 (Green)
2018 Q3 (Green)
2017 S8 (Black)
2017 Range Rover Sport (Black)
2017 Range Rover Evoque Convertible (White)
2016 BMW 5 Series Saloon (Silver)
2018 BMW 5 Series Estate (Blue)
2017 Focus ST (Yellow)
2018 Ecoboost (Red)
2018 S3 (Black)
2018 A3 (White)
2018 BMW X1 (Black)
I'd owned my M135i from new, but with a 2014 plate on it, I felt like I was being looked down on by my neighbours. When my other half PCP'd a new Volvo V40, I thought it was time for an upgrade so that I'd fit in with the other Professionals on Our Executive Eevelopment. That meant either a change in the size of the car, or in the relative age.
Without having the necessary £30k in the bank for something that might fit in, I PCP'd a VW Touareg, which, whilst it isn't from a Premium German Manufacturer (what I call the big 3 - Mercedes Benz, Audi, BMW) is a big SUV, which I think people know and respect when I'm entering The Estate. I've not worked out what it's going to cost me over the term and I'll probably look to VT early to get into the hot seat of something that's newer, but it's worth it to keep up appearances.
Cardinal Hips said:
I'm financially illiterate.
I don't see why people have such an issue with leasing - if it works for you, great, if it doesn't, still great. You still have to have a level of affordability for certainly the nicer stuff anyway. Don't get me started on the "well they can't possibly be allowed the same car as me because I paid for it outright and therefore i'm great" brigade.For me, if I was to lease (I don't currently), part of the appeal would be an end to "oh s
t I've got to get this car back together for Monday morning and it's 8pm on a Sunday". Although I can't lease currently as I can't afford the monthlies for what I'd really like. Plus I'm generally happy with my two old BMWs.Tom_Spotley_When said:
Because I live on a new build executive development and my neighbours have, in no particular order and grouped by house:
2017 Q3 (Green)
2018 Q3 (Green)
2017 S8 (Black)
2017 Range Rover Sport (Black)
2017 Range Rover Evoque Convertible (White)
2016 BMW 5 Series Saloon (Silver)
2018 BMW 5 Series Estate (Blue)
2017 Focus ST (Yellow)
2018 Ecoboost (Red)
2018 S3 (Black)
2018 A3 (White)
2018 BMW X1 (Black)
I'd owned my M135i from new, but with a 2014 plate on it, I felt like I was being looked down on by my neighbours. When my other half PCP'd a new Volvo V40, I thought it was time for an upgrade so that I'd fit in with the other Professionals on Our Executive Eevelopment. That meant either a change in the size of the car, or in the relative age.
Without having the necessary £30k in the bank for something that might fit in, I PCP'd a VW Touareg, which, whilst it isn't from a Premium German Manufacturer (what I call the big 3 - Mercedes Benz, Audi, BMW) is a big SUV, which I think people know and respect when I'm entering The Estate. I've not worked out what it's going to cost me over the term and I'll probably look to VT early to get into the hot seat of something that's newer, but it's worth it to keep up appearances.
Amusing as I assume you're taking the piss?2017 Q3 (Green)
2018 Q3 (Green)
2017 S8 (Black)
2017 Range Rover Sport (Black)
2017 Range Rover Evoque Convertible (White)
2016 BMW 5 Series Saloon (Silver)
2018 BMW 5 Series Estate (Blue)
2017 Focus ST (Yellow)
2018 Ecoboost (Red)
2018 S3 (Black)
2018 A3 (White)
2018 BMW X1 (Black)
I'd owned my M135i from new, but with a 2014 plate on it, I felt like I was being looked down on by my neighbours. When my other half PCP'd a new Volvo V40, I thought it was time for an upgrade so that I'd fit in with the other Professionals on Our Executive Eevelopment. That meant either a change in the size of the car, or in the relative age.
Without having the necessary £30k in the bank for something that might fit in, I PCP'd a VW Touareg, which, whilst it isn't from a Premium German Manufacturer (what I call the big 3 - Mercedes Benz, Audi, BMW) is a big SUV, which I think people know and respect when I'm entering The Estate. I've not worked out what it's going to cost me over the term and I'll probably look to VT early to get into the hot seat of something that's newer, but it's worth it to keep up appearances.
Tom_Spotley_When said:
Because I live on a new build executive development and my neighbours have, in no particular order and grouped by house:
2017 Q3 (Green)
2018 Q3 (Green)
2017 S8 (Black)
2017 Range Rover Sport (Black)
2017 Range Rover Evoque Convertible (White)
2016 BMW 5 Series Saloon (Silver)
2018 BMW 5 Series Estate (Blue)
2017 Focus ST (Yellow)
2018 Ecoboost (Red)
2018 S3 (Black)
2018 A3 (White)
2018 BMW X1 (Black)
I'd owned my M135i from new, but with a 2014 plate on it, I felt like I was being looked down on by my neighbours. When my other half PCP'd a new Volvo V40, I thought it was time for an upgrade so that I'd fit in with the other Professionals on Our Executive Eevelopment. That meant either a change in the size of the car, or in the relative age.
Without having the necessary £30k in the bank for something that might fit in, I PCP'd a VW Touareg, which, whilst it isn't from a Premium German Manufacturer (what I call the big 3 - Mercedes Benz, Audi, BMW) is a big SUV, which I think people know and respect when I'm entering The Estate. I've not worked out what it's going to cost me over the term and I'll probably look to VT early to get into the hot seat of something that's newer, but it's worth it to keep up appearances.
BRILLIANT!!!2017 Q3 (Green)
2018 Q3 (Green)
2017 S8 (Black)
2017 Range Rover Sport (Black)
2017 Range Rover Evoque Convertible (White)
2016 BMW 5 Series Saloon (Silver)
2018 BMW 5 Series Estate (Blue)
2017 Focus ST (Yellow)
2018 Ecoboost (Red)
2018 S3 (Black)
2018 A3 (White)
2018 BMW X1 (Black)
I'd owned my M135i from new, but with a 2014 plate on it, I felt like I was being looked down on by my neighbours. When my other half PCP'd a new Volvo V40, I thought it was time for an upgrade so that I'd fit in with the other Professionals on Our Executive Eevelopment. That meant either a change in the size of the car, or in the relative age.
Without having the necessary £30k in the bank for something that might fit in, I PCP'd a VW Touareg, which, whilst it isn't from a Premium German Manufacturer (what I call the big 3 - Mercedes Benz, Audi, BMW) is a big SUV, which I think people know and respect when I'm entering The Estate. I've not worked out what it's going to cost me over the term and I'll probably look to VT early to get into the hot seat of something that's newer, but it's worth it to keep up appearances.
Luke. said:
Tom_Spotley_When said:
Because I live on a new build executive development and... I felt like I was being looked down on by my neighbours.
Amusing as I assume you're taking the piss?No matter how spotless it is, and no matter how financially astute as an ownership proposition, it would quickly get tiresome having to explain to other people that yes it's old, yes I prefer older cars, no it's never broken down, and yes I don't mind keeping up with servicing and MOTs.
Richard-390a0 said:
Luke. said:
Tom_Spotley_When said:
Because I live on a new build executive development and my neighbours have, in no particular order and grouped by house...
Amusing as I assume you're taking the piss?
Tom_Spotley_When said:
Because I live on a new build executive development and my neighbours have, in no particular order and grouped by house:
2017 Q3 (Green)
2018 Q3 (Green)
2017 S8 (Black)
2017 Range Rover Sport (Black)
2017 Range Rover Evoque Convertible (White)
2016 BMW 5 Series Saloon (Silver)
2018 BMW 5 Series Estate (Blue)
2017 Focus ST (Yellow)
2018 Ecoboost (Red)
2018 S3 (Black)
2018 A3 (White)
2018 BMW X1 (Black)
I'd owned my M135i from new, but with a 2014 plate on it, I felt like I was being looked down on by my neighbours. When my other half PCP'd a new Volvo V40, I thought it was time for an upgrade so that I'd fit in with the other Professionals on Our Executive Eevelopment. That meant either a change in the size of the car, or in the relative age.
Without having the necessary £30k in the bank for something that might fit in, I PCP'd a VW Touareg, which, whilst it isn't from a Premium German Manufacturer (what I call the big 3 - Mercedes Benz, Audi, BMW) is a big SUV, which I think people know and respect when I'm entering The Estate. I've not worked out what it's going to cost me over the term and I'll probably look to VT early to get into the hot seat of something that's newer, but it's worth it to keep up appearances.
Truth. The neighborhood I live in is exactly like this. When I lived in Zone 2 London people with cars in the basement had either a really cheap beater to run to the shops with on the weekend (something sub-£5k) or they had a really nice sports car that was obviously precious to them whether that be a classic, a Porsche, Ferarri, etc. 2017 Q3 (Green)
2018 Q3 (Green)
2017 S8 (Black)
2017 Range Rover Sport (Black)
2017 Range Rover Evoque Convertible (White)
2016 BMW 5 Series Saloon (Silver)
2018 BMW 5 Series Estate (Blue)
2017 Focus ST (Yellow)
2018 Ecoboost (Red)
2018 S3 (Black)
2018 A3 (White)
2018 BMW X1 (Black)
I'd owned my M135i from new, but with a 2014 plate on it, I felt like I was being looked down on by my neighbours. When my other half PCP'd a new Volvo V40, I thought it was time for an upgrade so that I'd fit in with the other Professionals on Our Executive Eevelopment. That meant either a change in the size of the car, or in the relative age.
Without having the necessary £30k in the bank for something that might fit in, I PCP'd a VW Touareg, which, whilst it isn't from a Premium German Manufacturer (what I call the big 3 - Mercedes Benz, Audi, BMW) is a big SUV, which I think people know and respect when I'm entering The Estate. I've not worked out what it's going to cost me over the term and I'll probably look to VT early to get into the hot seat of something that's newer, but it's worth it to keep up appearances.
Out in my new neighbourhood which is beyond the M25 borders everyone seems to be on a PCP deal at or a Range Rover Evoque diesel, BMW diesel, Audi diesel, Mercedes Diesel, etc. No one seems to drive cheap cars or have an interesting toy. And these people seem to upgrade these cars almost yearly which must be costing them a fortune.
Edited by cib24 on Wednesday 23 January 10:41
spreadsheet monkey said:
Joking or not, I've seen estates like this, and I can understand why people wouldn't want to have a 10+ year old "bargain barge" on their drive.
.
I'd definitely prefer to be in this position rather than someone who literally enjoys setting fire to banknotes or who is financially retarded..
Tom_Spotley_When said:
Because I live on a new build executive development and my neighbours have, in no particular order and grouped by house:
2017 Q3 (Green)
2018 Q3 (Green)
2017 S8 (Black)
2017 Range Rover Sport (Black)
2017 Range Rover Evoque Convertible (White)
2016 BMW 5 Series Saloon (Silver)
2018 BMW 5 Series Estate (Blue)
2017 Focus ST (Yellow)
2018 Ecoboost (Red)
2018 S3 (Black)
2018 A3 (White)
2018 BMW X1 (Black)
I'd owned my M135i from new, but with a 2014 plate on it, I felt like I was being looked down on by my neighbours. When my other half PCP'd a new Volvo V40, I thought it was time for an upgrade so that I'd fit in with the other Professionals on Our Executive Eevelopment. That meant either a change in the size of the car, or in the relative age.
Without having the necessary £30k in the bank for something that might fit in, I PCP'd a VW Touareg, which, whilst it isn't from a Premium German Manufacturer (what I call the big 3 - Mercedes Benz, Audi, BMW) is a big SUV, which I think people know and respect when I'm entering The Estate. I've not worked out what it's going to cost me over the term and I'll probably look to VT early to get into the hot seat of something that's newer, but it's worth it to keep up appearances.
BRILLIANT!!!2017 Q3 (Green)
2018 Q3 (Green)
2017 S8 (Black)
2017 Range Rover Sport (Black)
2017 Range Rover Evoque Convertible (White)
2016 BMW 5 Series Saloon (Silver)
2018 BMW 5 Series Estate (Blue)
2017 Focus ST (Yellow)
2018 Ecoboost (Red)
2018 S3 (Black)
2018 A3 (White)
2018 BMW X1 (Black)
I'd owned my M135i from new, but with a 2014 plate on it, I felt like I was being looked down on by my neighbours. When my other half PCP'd a new Volvo V40, I thought it was time for an upgrade so that I'd fit in with the other Professionals on Our Executive Eevelopment. That meant either a change in the size of the car, or in the relative age.
Without having the necessary £30k in the bank for something that might fit in, I PCP'd a VW Touareg, which, whilst it isn't from a Premium German Manufacturer (what I call the big 3 - Mercedes Benz, Audi, BMW) is a big SUV, which I think people know and respect when I'm entering The Estate. I've not worked out what it's going to cost me over the term and I'll probably look to VT early to get into the hot seat of something that's newer, but it's worth it to keep up appearances.
PCP threads are getting popular... 
If hire purchase counts, I bought on HP once because I wanted a car I couldn't afford outright, I was young and financially naive so didn't even look if it was a good deal or the total costs. I just saw a monthly payment & deposit I could afford and paid it. Had a nice new (ish) car for a number of years which I very much enjoyed. Was extremely glad though when the contract ended and I had an extra £250 to spend each month. I choose HP rather than PCP because I wanted to own the car.
I've been driving older cars for the last few years quite happily. But the itch to get a newer car still pops up from time to time. I would not be averse to entering into a PCP or HP contract in future, but I would certainly give more thought to the deals and options available.
If hire purchase counts, I bought on HP once because I wanted a car I couldn't afford outright, I was young and financially naive so didn't even look if it was a good deal or the total costs. I just saw a monthly payment & deposit I could afford and paid it. Had a nice new (ish) car for a number of years which I very much enjoyed. Was extremely glad though when the contract ended and I had an extra £250 to spend each month. I choose HP rather than PCP because I wanted to own the car.
I've been driving older cars for the last few years quite happily. But the itch to get a newer car still pops up from time to time. I would not be averse to entering into a PCP or HP contract in future, but I would certainly give more thought to the deals and options available.
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