So, who here is on a PCP/Leasing plan?
Discussion
JaredVannett said:
Interesting responses... pretty much a subjective topic then.
I guess it's a case of do what is right for you.
One thing I will say for PCP/Leasing is to truly work out the cost over the term, if your ok with the number looking back at you go for it. I say this from experience as it's so easy to concentrate on the monthlies and miss the big picture.
That’s a lot harder to do with a PCP than a lease given the possibility of equity in the vehicle at the end of the agreement. It’s best to work out the amortised cost on the basis of zero equity but particularly with desirable cars it’s possible to have substantial equity at the end of an agreement. I sold my RS4 two months before the end of the agreement and it had £7k in it, if I’d sold it privately that could have been a tad more still.I guess it's a case of do what is right for you.
One thing I will say for PCP/Leasing is to truly work out the cost over the term, if your ok with the number looking back at you go for it. I say this from experience as it's so easy to concentrate on the monthlies and miss the big picture.
My advice would be avoid 4 year PCP’s and look closely at the rate especially if buying second hand, it’s not uncommon for used approved cars to be sold on 11.9% agreements which is daylight robbery, much lower rates can be found if you arrange the finance yourself.
djc206 said:
That’s a lot harder to do with a PCP than a lease given the possibility of equity in the vehicle at the end of the agreement. It’s best to work out the amortised cost on the basis of zero equity but particularly with desirable cars it’s possible to have substantial equity at the end of an agreement. I sold my RS4 two months before the end of the agreement and it had £7k in it, if I’d sold it privately that could have been a tad more still.
My advice would be avoid 4 year PCP’s and look closely at the rate especially if buying second hand, it’s not uncommon for used approved cars to be sold on 11.9% agreements which is daylight robbery, much lower rates can be found if you arrange the finance yourself.
Could you please explain why 4 year PCP agreements are not recommended? My advice would be avoid 4 year PCP’s and look closely at the rate especially if buying second hand, it’s not uncommon for used approved cars to be sold on 11.9% agreements which is daylight robbery, much lower rates can be found if you arrange the finance yourself.
Cooper2 said:
djc206 said:
That’s a lot harder to do with a PCP than a lease given the possibility of equity in the vehicle at the end of the agreement. It’s best to work out the amortised cost on the basis of zero equity but particularly with desirable cars it’s possible to have substantial equity at the end of an agreement. I sold my RS4 two months before the end of the agreement and it had £7k in it, if I’d sold it privately that could have been a tad more still.
My advice would be avoid 4 year PCP’s and look closely at the rate especially if buying second hand, it’s not uncommon for used approved cars to be sold on 11.9% agreements which is daylight robbery, much lower rates can be found if you arrange the finance yourself.
Could you please explain why 4 year PCP agreements are not recommended? My advice would be avoid 4 year PCP’s and look closely at the rate especially if buying second hand, it’s not uncommon for used approved cars to be sold on 11.9% agreements which is daylight robbery, much lower rates can be found if you arrange the finance yourself.
Everyone is a company director and anyone who dares purchase something shiny with borrowed money is looked down upon...
(+sometimes the interest rate is a little high)
Cooper2 said:
Could you please explain why 4 year PCP agreements are not recommended?
With many manufacturers out of warranty but still responsible for keeping the car in good mechanical condition and often the monthlies are only slightly lower than a three year agreement but it takes a good while longer to get into positive equity. Fine if you want a car for 4 years and it has a warranty but otherwise not really a smart move.Cooper2 said:
Could you please explain why 4 year PCP agreements are not recommended?
My feeling on them would be that you're in to a year of running a car without a manufacturers warranty and they also tend not be that much cheaper than a 3 year deal in terms of monthly payments, so you'd really want to want the car for four years (which is a long time).Also, depending on the price of the car it may be more advantageous to buy the car on say a 5 year personal loan than on a four year PCP which is likely to be at a higher rate and will have a significant option to purchase balloon attached.
Helicopter123 said:
Cooper2 said:
djc206 said:
That’s a lot harder to do with a PCP than a lease given the possibility of equity in the vehicle at the end of the agreement. It’s best to work out the amortised cost on the basis of zero equity but particularly with desirable cars it’s possible to have substantial equity at the end of an agreement. I sold my RS4 two months before the end of the agreement and it had £7k in it, if I’d sold it privately that could have been a tad more still.
My advice would be avoid 4 year PCP’s and look closely at the rate especially if buying second hand, it’s not uncommon for used approved cars to be sold on 11.9% agreements which is daylight robbery, much lower rates can be found if you arrange the finance yourself.
Could you please explain why 4 year PCP agreements are not recommended? My advice would be avoid 4 year PCP’s and look closely at the rate especially if buying second hand, it’s not uncommon for used approved cars to be sold on 11.9% agreements which is daylight robbery, much lower rates can be found if you arrange the finance yourself.
Everyone is a company director and anyone who dares purchase something shiny with borrowed money is looked down upon...
(+sometimes the interest rate is a little high)
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