End of PCP repairs - more issues!

[daemon]

bad company said:

daemon said:

bad company said:

milkbackwards said:

I think that if you stopped paying the mortgage you would soon find out who owned the house.

And if you stopped making the PCP payments you would find out who owned the car.

Exactly, however neither having a PCP finance deal or a mortgage makes you a "renter"

I have a BMW on a PCP. I regard it as a rental, I intend keeping the car for the term of the agreement then either part ex or return it depending on it's value at the time. I have no intention of paying the balloon and keeping hence for me it's a rental.

If you chose to use it that way then fine - you have that option as its a flexible product.

Likewise many people chose to view it as owning the car, and may well go on to buy it outright or are happy to replace it with another car at the end of the term, just like they would have done had they taken out HP or a loan or bought with cash. That is their prerogative too.

[bad company]

liner33 said:

bad company said:

I have a BMW on a PCP. I regard it as a rental, I intend keeping the car for the term of the agreement then either part ex or return it depending on it's value at the time. I have no intention of paying the balloon and keeping hence for me it's a rental.

Would be little different to the person who buys a BMW outright with cash, keeps it for three years and then uses the residual value as a deposit for the next one, you gain very little each way apart from a sense of superiority.

Why is there a sense of superiority? It's all about having the depreciation capped in advance for me. I suspect I am not alone with this view.

[liner33]

bad company said:

Why is there a sense of superiority? It's all about having the depreciation capped in advance for me. I suspect I am not alone with this view.

General PH view, buyers feel superior when they use cash over those that finance, because all of those that finance drive cars that we cant really afford.

Yours is an entirely sensible view.

[Granfondo]

Asset versus liability.

[bad company]

Granfondo said:

Asset versus liability.

Depreciating asset except in very unusual circumstances.

[Limpet]

bad company said:

Why is there a sense of superiority? It's all about having the depreciation capped in advance for me. I suspect I am not alone with this view.

Yep, same for me. I know exactly what the car is going to cost me to own over the term, and can budget and plan accordingly. I also really like the flexibility of a PCP. I have no idea what my needs and financial circumstances are going to look like at the end of the term, or how reliable the car is going to be as it ages, so knowing I will have the freedom to choose between paying the balloon and buying it at the end (either to keep, or to sell immediately to release any equity), chopping it in and starting another PCP, or simply handing the keys back and walking, is perfect.

What really swung it for me though is that the contribution from the finance company and the interest charges over the period are within £150 or so of each other. It's incredibly cheap money.

[Granfondo]

bad company said:

Granfondo said:

Asset versus liability.

Depreciating asset except in very unusual circumstances.

Depreciating asset if "owned" liability otherwise.