PCP: How many people actually pay the balloon

[DonHorizon]

SWoll said:

What are you expecting the market value of the car to be at the end of the term?

£7000 min.

[SWoll]

DonHorizon said:

SWoll said:

What are you expecting the market value of the car to be at the end of the term?

£7000 min.

And that's based on the average private sale price of the vehicle in question? I ask as there seem to be a huge amount for sale at 3 years old and <30k miles on the official Hyundai website for £6-6.5k so be sure you are being realistic?

[DonHorizon]

SWoll said:

And that's based on the average private sale price of the vehicle in question? I ask as there seem to be a huge amount for sale at 3 years old and <30k miles on the official Hyundai website for £6-6.5k so be sure you are being realistic?

Sorry mate, that's just me guessing. The plan is to keep the car though (whether that makes a difference to anything). I've also opted for the second from top model (built in sat nav etc). Again it probably won't make a difference but hey ho.

Also, I was pushed into buying Supagard Xtra for £332.50. Dealer isn't getting back to me atm but do you reckon it's too late to come out of that? After a quick google search afterwards I've realised what a waste of damn money it is.

[BenjiS]

My car is on PCP, and I'm not embarrassed by that, and I'll be paying the balloon. I intend keeping it at least ten years, and it's not exactly a white-goods car.

The choice I had was pay £800 per month for the next four years, whilst banking my bonuses to pay the balloon, and enjoying the exact car I wanted to my specification. Or I could save £800 per month for four years whilst banking my bonuses and then buy in cash whilst driving a banger. Fairly simply choice that, especially as even with the interest, due to the deposit contributions and discounts I got the car will cost me around £5k less than current list price by the time I've paid for it fully.

[DonHorizon]

BenjiS said:

My car is on PCP, and I'm not embarrassed by that, and I'll be paying the balloon. I intend keeping it at least ten years, and it's not exactly a white-goods car.

The choice I had was pay £800 per month for the next four years, whilst banking my bonuses to pay the balloon, and enjoying the exact car I wanted to my specification. Or I could save £800 per month for four years whilst banking my bonuses and then buy in cash whilst driving a banger. Fairly simply choice that, especially as even with the interest, due to the deposit contributions and discounts I got the car will cost me around £5k less than current list price by the time I've paid for it fully.

What car if you don't mind me asking?

[BenjiS]

DonHorizon said:

BenjiS said:

My car is on PCP, and I'm not embarrassed by that, and I'll be paying the balloon. I intend keeping it at least ten years, and it's not exactly a white-goods car.

The choice I had was pay £800 per month for the next four years, whilst banking my bonuses to pay the balloon, and enjoying the exact car I wanted to my specification. Or I could save £800 per month for four years whilst banking my bonuses and then buy in cash whilst driving a banger. Fairly simply choice that, especially as even with the interest, due to the deposit contributions and discounts I got the car will cost me around £5k less than current list price by the time I've paid for it fully.

What car if you don't mind me asking?

A Jaguar.

[nickfrog]

RSK21 said:

HumanDoing said:

Please tell me what you think a 'great' car is then so i can immediately trade in my fantastic Fiesta ST for it in order to impress you.

Lord knows I exist solely to win the approval of self-important, pompous gas bags pontificating/lecturing us mere mortals on how we should conduct ourselves on the internet, who il never meet. It's their opinion that matters to me more than anything - I'd merrily put years on my working life widdling PCP money up the wall so I can come on here saying i rent whatever car you sodomise in order to win your approval.

I think you're taking this a bit too seriously.

[mp3manager]

Used to have a Motability car, handed it back because it was crap....can't have us cripples running about in decent cars.

£8k down on a FK2, disability benefits pays the monthlies for 3 years, absolutely no intention of paying another penny towards the purchase price.

£8k of my own money for a £30k car...winner winner chicken dinner.

[SWoll]

I honestly wouldn't be jumping into anything mate. Looking at 3 year old i20's I think that £6k is a far more realistic market value at the end of the term, especially for a private sale car.

You'll be handing over nearly £14k over 3 years to end up with a car worth £6k, so a cost of £8k or so, which looks very expensive to me for an i20.

Take into account you could lease a Mercedes A Class for £8400 over the same term https://www.contracthireandleasing.com/independent... with £1200 down and £205 a month.

Edited by SWoll on Saturday 21st October 16:20

[Piginapoke]

Paid the wife's PCP off yesterday. £8500 for a 3 year old Honda Civic 1.8 SR auto. Dealer price would be about £11,500 so I keep telling myself its a good deal.

Seems an expensive way to buy a car though when you add up all the various payments. I think I will stick to used next time.

[Elysium]

InitialDave said:

Elysium said:

Interested to know why you think your car will be different if you are reasonably in line with predicted mileage?

I'm right in line with my mileage allowance, I chose it because it matched my usage. I might even be a thousand miles under come handback.

But the car is a Renault Zoe, and the depreciation on them is pretty severe. My suspicion is that Renault knowingly shunted more money into the final payment in order to reduce the monthly payments to attract people, but however it came to be, I think it will be worth a grand or two less than that.

I guess the Zoe is a bit unusual as the used market is likely to be limited. Making money back on a private sale will be harder with a small electric vehicle, where future purchasers will be motivated by warranty issues and probably drawn towards buying new themselves.

[Elysium]

Piginapoke said:

Paid the wife's PCP off yesterday. £8500 for a 3 year old Honda Civic 1.8 SR auto. Dealer price would be about £11,500 so I keep telling myself its a good deal.

Seems an expensive way to buy a car though when you add up all the various payments. I think I will stick to used next time.

Depends how much discount you got from the list price and what the interest rate was. A good PCP deal can be better value than buying a 2 year old used car in many cases, but there are exceptions.

Buying a 3-4 year old car is a different story, but that is about depreciation, not the PCP itself.

[Sheepshanks]

SWoll said:

And that's based on the average private sale price of the vehicle in question? I ask as there seem to be a huge amount for sale at 3 years old and <30k miles on the official Hyundai website for £6-6.5k so be sure you are being realistic?

I do wonder if a lot of the "I'll pay the GFV as the car is worth more" folks are looking at forecourt retail values and not being realistic about the sale (private, trade or p/x) value of their car?

[DonHorizon]

SWoll said:

I honestly wouldn't be jumping into anything mate. Looking at 3 year old i20's I think that £6k is a far more realistic market value at the end of the term, especially for a private sale car.

You'll be handing over nearly £14k over 3 years to end up with a car worth £6k, so a cost of £8k or so, which looks very expensive to me for an i20.

Take into account you could lease a Mercedes A Class for £8400 over the same term https://www.contracthireandleasing.com/independent... with £1200 down and £205 a month.

Edited by SWoll on Saturday 21st October 16:20

But I'll be keeping it? I'm paying 14k (interest included) for a car retailing at £15k, just spreading the costs over 3 years.

[SWoll]

Sheepshanks said:

SWoll said:

And that's based on the average private sale price of the vehicle in question? I ask as there seem to be a huge amount for sale at 3 years old and <30k miles on the official Hyundai website for £6-6.5k so be sure you are being realistic?

I do wonder if a lot of the "I'll pay the GFV as the car is worth more" folks are looking at forecourt retail values and not being realistic about the sale value (private, trade or p/x) value of their car?

Indeed. Surprises me how many people seem willing to take on a significant financial commitment whilst guessing at the outcome?

Try selling a run of the mill car privately for anything near what a main dealer is asking and with a choice of 100's. I'd estimate a valuation with somewhere like WBAC personally and base everything on that.

In fact I've just done that in 30 seconds using the plate off a late 2014 i20 on Hyundai's website priced at £6.5k and it's come back from WBAC as worth £5k..

[Zoobeef]

I bought my A4 4 years ago for £2k and it's now at 258k miles. I feel I must get a PCP deal £300 a month because it's definitely cheaper than carrying on with what I'm doing.

[SWoll]

DonHorizon said:

SWoll said:

I honestly wouldn't be jumping into anything mate. Looking at 3 year old i20's I think that £6k is a far more realistic market value at the end of the term, especially for a private sale car.

You'll be handing over nearly £14k over 3 years to end up with a car worth £6k, so a cost of £8k or so, which looks very expensive to me for an i20.

Take into account you could lease a Mercedes A Class for £8400 over the same term https://www.contracthireandleasing.com/independent... with £1200 down and £205 a month.

Edited by SWoll on Saturday 21st October 16:20

But I'll be keeping it? I'm paying 14k (interest included) for a car retailing at £15k, just spreading the costs over 3 years.

You're paying £14k for something that'll be worth £5-6k in 3 years, so the cost for those 3 years to you is £8-9k. For that same £8-9k over the 3 year period you could lease a much nicer car, hand it back then buy a 3 year old i20 and you'd be no worse off financially?

[covmutley]

Zoobeef said:

I bought my A4 4 years ago for £2k and it's now at 258k miles. I feel I must get a PCP deal £300 a month because it's definitely cheaper than carrying on with what I'm doing.

Bet you feel a mug compared to someone who paid only £1k for a car. You've paid 100% more.

[yellowbentines]

Sheepshanks said:

I do wonder if a lot of the "I'll pay the GFV as the car is worth more" folks are looking at forecourt retail values and not being realistic about the sale (private, trade or p/x) value of their car?

Arguably, why wouldnt you?

Retail is what it would cost to replace it with something similar if you dont pay the balloon, if you do pay the balloon and intend to keep the car long term its current trade value has little relevance.

[InitialDave]

Elysium said:

I guess the Zoe is a bit unusual as the used market is likely to be limited. Making money back on a private sale will be harder with a small electric vehicle, where future purchasers will be motivated by warranty issues and probably drawn towards buying new themselves.

Yes, I knew it would be like this going in, I never intended to keep it unless proved wrong.

But my point is you can't say just that a car will be worth more than the payment at the end, each case will be different.