Are the wheels about to fall of car finance?
Discussion
My four year PCP has about 6 months to run..
I put £3.5k down as a deposit... If I sold the car privately right now I’d pay off the balance and roughly have about £18k left to play with..
Does work sometimes.... although it now those funds seem to be destined for a new kitchen... hey-ho...
I put £3.5k down as a deposit... If I sold the car privately right now I’d pay off the balance and roughly have about £18k left to play with..
Does work sometimes.... although it now those funds seem to be destined for a new kitchen... hey-ho...
Granfondo said:
daemon said:
Granfondo said:
Deamon is correct people in the main do use PCPs as they were intended that is to keep them locked into perpetual car prison and it is working perfectly! 
Thats a fairly feeble attempt at baiting me even by your low standards 
Of course maybe that was another of your "throw away comments" a la 20% retention for deposit but seriously you come back with that pearl!
You don't have to agree but your still wrong!
IMHO a 48 month finance "agreement" is just that - an agreement to make payments over a specific term. A PCP deal offsets an amount to the end of term, however you're still committing to the agreement.
I personally dont want to be making a commitment to something for that length of time, then go back after 9 months and say "actually i fancy a change. No other reason, i just fancy a change". To me that is not using the product for the purpose it was intended. You've taken on the wrong product.
Hence what i was saying by "using it as it was intended".
Now, of course its in the car companys interest to sell you another car. They will do so whenever they can, as often as they can. We're all grown ups though and we can make choices - for example, to respectfully decline to take on another PCP deal.
Chip shops want to sell you chips. Chips are fine every now and again, though chips for every meal are bad, even if the chip shop will happily sell you them.
It suits some people to happily pay a monthly set amount on a PCP deal, and perhaps occasionally switch early - change of circumstance, whim, whatever. There is nothing wrong with that, IMHO. It doesnt mean as you often tell us that they "cant afford" the car, nor does it mean as you've just again told us they're "in a perpetual car prison".
Its not difficult - if PCPing a car no longer suits, at the end of term, you have options, dispose of it and buy with savings / rent / HP another car using what facility best suits you.
No one is "trapped" in a "Perpetual Car Prison", you would have to be terminally dim to believe that OR attempting to be antagonistic on an internet forum, OR perhaps both
TA14 said:
djc206 said:
Wow! That's one way to make a bit of dough 
Goodness I can't overstate how much I hate companies that exploit poor people (both the financially poor, and those who are poor at doing their sums and get fleeced). And if Brighthouse is going that for toasters, how many car retailers are doing the same thing for cars?
You would need to be "terminally dim" not to listen to 4941cc when he is speaking from an informed position and 18years experience and he is telling you how bad things are for customers!
Anyway good luck now you have descended to your usual name calling I will just watch with interest!
Anyway good luck now you have descended to your usual name calling I will just watch with interest!
Once again, some PCP deals are great, some are terrible (and there is a wide spectrum between the two).
Some people are dim, some are not (and there is a wide spectrum between the two).
Only the binary thinkers who can't accept the above and make sweeping statements are totally thick or simply trolling or both.
Some people are dim, some are not (and there is a wide spectrum between the two).
Only the binary thinkers who can't accept the above and make sweeping statements are totally thick or simply trolling or both.
Chromegrill said:
It gets worse. A toaster and electric kettle that can be bought for £150 (which still seems a lot to me for basic kitchen gadgets!) are being advertised by Brighthouse for £227, except that the final payable is £6 per week for 52 weeks which comes to £312. Except it's not because on top of that you are required to pay insurance of £1.35 per week (£70.20 after a year) and advised to pay a maintenance fee of £1.20 per week or £62.40 too. So your £150 kettle and toaster, paid weekly over a year, comes to the grand total of £444.60, almost THREE TIMES the price you could buy it for paid all up front with a bit of online shopping. Even the maintenance contract and insurance together (about £133) comes to nearly the cheapest available purchase price.
Goodness I can't overstate how much I hate companies that exploit poor people (both the financially poor, and those who are poor at doing their sums and get fleeced). And if Brighthouse is going that for toasters, how many car retailers are doing the same thing for cars?
They are absolute scum. Preying on the desperate.Goodness I can't overstate how much I hate companies that exploit poor people (both the financially poor, and those who are poor at doing their sums and get fleeced). And if Brighthouse is going that for toasters, how many car retailers are doing the same thing for cars?
Granfondo said:
You would need to be "terminally dim" not to listen to 4941cc when he is speaking from an informed position and 18years experience and he is telling you how bad things are for customers!
I've no issues with what he has said / is saying and i agree with him!There are people out there who are dumbly mis-using the product and then wonder why they are upside down halfway through the agreement.
Things arent bad for all customers. I would say the vast bulk know how to use it and dont blindly attempt to change every 9 months.
Granfondo said:
Anyway good luck now you have descended to your usual name calling
Well heres another name calling for you - you're a pot stirrer. Always have been, always will be, so please dont attempt to take any moral high ground.Granfondo said:
I will just watch with interest!
Somehow i very much doubt that.... nickfrog said:
Once again, some PCP deals are great, some are terrible (and there is a wide spectrum between the two).
Some people are dim, some are not (and there is a wide spectrum between the two).
Only the binary thinkers who can't accept the above and make sweeping statements are totally thick or simply trolling or both.
Some people are dim, some are not (and there is a wide spectrum between the two).
Only the binary thinkers who can't accept the above and make sweeping statements are totally thick or simply trolling or both.
nickfrog said:
Once again, some PCP deals are great, some are terrible (and there is a wide spectrum between the two).
Some people are dim, some are not (and there is a wide spectrum between the two).
Only the binary thinkers who can't accept the above and make sweeping statements are totally thick or simply trolling or both.
Nickfrog, it is possible for someone to disagree you without being 'totally thick' or 'simply trolling'. It is also perfectly reasonable for someone to point out that MOST PCP deals are massively slanted in favour of the dealer rather than the customer, and finding a small number that beat depreciation curves on a new car doesn't actually disprove the point of those who suggest that PCP is USUALLY a bad way to go compared to buying outright, or used at 2 or 3 years. Some people are dim, some are not (and there is a wide spectrum between the two).
Only the binary thinkers who can't accept the above and make sweeping statements are totally thick or simply trolling or both.
Can we move on from this trenches at dawn scenario where any disagreement is a source of immediate ridicule and abuse being hurled across the battlefield?
A friend (a real one) who is a serial PCPer came to the end of his contract on his old* Focus and instead of keeping with the same supplier for its replacement (another Focus) shopped around and made a saving of about £20 per month (allowing for deposit.) Doesn't sound much, but £700 for an afternoon's work sounds quite good to me.
Especially for those in the trade, is he typical or an isolated example, and most just take out another contract with the same company?
Especially for those in the trade, is he typical or an isolated example, and most just take out another contract with the same company?
daemon said:
PCP deals work best on new cars. New cars suffer heaviest from depreciation, so 9 months in and getting bored in a new car is going to be painful to get out of no matter how excellent the PCP deal was in the first place. Likewise, a cash deal will result in big hit on depreciation
That's not really a PCP problem. It's a New Car problem. doesn't matter how you choose to pay for it.daemon] said:
Buy at a year old and PCP it and you're probably looking at 10.9% APR or similar, so a painful amount of interest. Cash or a cheap loan probably best for that sort of thing.
PCP rates on used cars are indeed shocking, and I don't really know why. Obviously the rate will be somewhat higher than a bank loan, to cover the risk of the asset value being less than the GFV, but still... Justin Case said:
A friend (a real one) who is a serial PCPer came to the end of his contract on his old* Focus and instead of keeping with the same supplier for its replacement (another Focus) shopped around and made a saving of about £20 per month (allowing for deposit.) Doesn't sound much, but £700 for an afternoon's work sounds quite good to me.
Especially for those in the trade, is he typical or an isolated example, and most just take out another contract with the same company?
The average person these days will earn about £1.25 million over their working life so said friend is crowing about saving 0.00056% of career earnings. Especially for those in the trade, is he typical or an isolated example, and most just take out another contract with the same company?
HumanDoing said:
Justin Case said:
A friend (a real one) who is a serial PCPer came to the end of his contract on his old* Focus and instead of keeping with the same supplier for its replacement (another Focus) shopped around and made a saving of about £20 per month (allowing for deposit.) Doesn't sound much, but £700 for an afternoon's work sounds quite good to me.
Especially for those in the trade, is he typical or an isolated example, and most just take out another contract with the same company?
The average person these days will earn about £1.25 million over their working life so said friend is crowing about saving 0.00056% of career earnings. Especially for those in the trade, is he typical or an isolated example, and most just take out another contract with the same company?
Are you saying we shouldnt have bothered?
Just so i know for next time?
Justin Case said:
A friend (a real one) who is a serial PCPer came to the end of his contract on his old* Focus and instead of keeping with the same supplier for its replacement (another Focus) shopped around and made a saving of about £20 per month (allowing for deposit.) Doesn't sound much, but £700 for an afternoon's work sounds quite good to me.
Especially for those in the trade, is he typical or an isolated example, and most just take out another contract with the same company?
Always shop around for the best dealEspecially for those in the trade, is he typical or an isolated example, and most just take out another contract with the same company?
In fact. Split it out to three transactions
The price for the car you're buying
The price for your own car
The finance rate
Make sure you're getting the best deal on each
daemon said:
A £700 saving isnt worth getting bothered about???
I'm glad that provides such mirth. I didn't say it wasn't worth getting bothered about, I said it's not worth running around shouting about £20 a month. Funny how the same people who claim that the difference between 2% and 3% interest is nothing are now getting all teary-eyed about £20 a month.HumanDoing said:
daemon said:
A £700 saving isnt worth getting bothered about???
I'm glad that provides such mirth. I didn't say it wasn't worth getting bothered about, I said it's not worth running around shouting about £20 a month. Funny how the same people who claim that the difference between 2% and 3% interest is nothing are now getting all teary-eyed about £20 a month.You were very dismissive of the amount, relative to lifetime earnings.
If someone can save £20 a month / £700 over the term then great. To me thats significant.
Likewise if interest rates go up a little and something costs £20 a month more at some point then its not the end of the world for most people.
And i dont think anyone is getting teary eyed?
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