PCP: How many people actually pay the balloon
Discussion
HumanDoing said:
Mandat said:
Why do people keep repeating this ignorant nonsense? 
There have been so many threads on this subject that you'd think that people would have learnt by now. But no, some people continue to embarass themselves by repeating this crap.
Ok please lead me out of my ignorance, what do people have at the end of the deal? At the end the PCP you have either:There have been so many threads on this subject that you'd think that people would have learnt by now. But no, some people continue to embarass themselves by repeating this crap.
a) Nothing, and hand the car back or
b) A relatively small amount left in the deal to roll up in to another PCP or to fund a private puchase yourself.
Over one three year period, enough money has been widdled up the wall to afford a decent car at 2 or 3 years old. Over two or three PCPs, enough money has been widdled up the wall to afford pretty much anything other than the very highest of high end cars.
You've put say £13,000 in to it at 2 years old and you hope to get £4,000 back at 6 years old? Hows that any better than leasing a new one every two years for £200 odd a month?
Edited by daemon on Sunday 22 October 21:10
HumanDoing said:
Over one three year period, enough money has been widdled up the wall to afford a decent car at 2 or 3 years old. Over two or three PCPs, enough money has been widdled up the wall to afford pretty much anything other than the very highest of high end cars.
I get your point (that PCP has lured some folk into buying newer cars) but it still comes down to total cost of ownership whether or not you finance a car or buy it outright with cash. My last car (a Scoobie) cost me about £2k p.a. depreciation, but I probably spent similar in garage bills and VED. My latest car is HP financed and i'll pay that off after 2 months - but the financing aspect doesn't worry me - it's the mechanical bits going wrong. As cars go electric we'll treat cars just like phones .. and how many folks buy their phones outright? Not saying it's right/wrong.daemon said:
Just as a point of order though - your 2014 Fiesta ST you bought a year ago.
You say on this thread -
https://www.pistonheads.com/gassing/topic.asp?h=0&...
you've lost £4000 in a years depreciation, so i make that £333 a month
And in this thread you say you expect it to make £4,000 in three years time
https://www.pistonheads.com/gassing/topic.asp?h=0&...
You said you gave £13,000 for it at 2 years old, with a view to it being worth £4,000 at 6 years old, so thats £9,000 depreciation or £187 a month.
At that point, having cost you £187 a month to drive a Fiesta for 4 years, when you sell it, what will YOU have to show for it?
According to both those threads you're already talking about an M140i or similar, and these too will depreciate (and i suspect a lot more than your Fiesta does), so whats the difference between what you're suffering / proposing suffering in depreciation and someone taking out a PCP or lease for a similar amount?
Selective, out of context quoting. Yes, I've lost £4,000 in 18 months IF I sell now to a dealer - I've been offered £8,500 for my car, but if I sold privately I could probably get closer to £10k considering what I'm seeing things going for via various means. The £4,000 at 6 years was also a worst case scenario. More likely I'll lose £11k over 8 years (I'm not getting shot of it now, I'll keep it and get something else as well in time, at which point the ST will become the mile muncher) which works out at about £115 a month.You say on this thread -
https://www.pistonheads.com/gassing/topic.asp?h=0&...
you've lost £4000 in a years depreciation, so i make that £333 a month
And in this thread you say you expect it to make £4,000 in three years time
https://www.pistonheads.com/gassing/topic.asp?h=0&...
You said you gave £13,000 for it at 2 years old, with a view to it being worth £4,000 at 6 years old, so thats £9,000 depreciation or £187 a month.
At that point, having cost you £187 a month to drive a Fiesta for 4 years, when you sell it, what will YOU have to show for it?
According to both those threads you're already talking about an M140i or similar, and these too will depreciate (and i suspect a lot more than your Fiesta does), so whats the difference between what you're suffering / proposing suffering in depreciation and someone taking out a PCP or lease for a similar amount?
Edited by daemon on Sunday 22 October 21:10
Bump that up to £200 a month if you'd like to factor in maintenance, repair, tax etc. Then show me a car as good/better that up for PCP at £200 a month without a deposit. That's my point, old friend.
HumanDoing said:
Selective, out of context quoting. Yes, I've lost £4,000 in 18 months IF I sell now to a dealer - I've been offered £8,500 for my car, but if I sold privately I could probably get closer to £10k considering what I'm seeing things going for via various means. The £4,000 at 6 years was also a worst case scenario. More likely I'll lose £11k over 8 years (I'm not getting shot of it now, I'll keep it and get something else as well in time, at which point the ST will become the mile muncher) which works out at about £115 a month.
Bump that up to £200 a month if you'd like to factor in maintenance, repair, tax etc. Then show me a car as good/better that up for PCP at £200 a month without a deposit. That's my point, old friend.
Oh aye, you've probably done reasonably well with your Fiesta, if you spread the depreciation over many years. Likewise with my Passat. It would have been easy to take on a lease deal on a new one however i bought one at a year old and may well run on at it for quite a few years (reliability permitting - and it hasnt started well....)Bump that up to £200 a month if you'd like to factor in maintenance, repair, tax etc. Then show me a car as good/better that up for PCP at £200 a month without a deposit. That's my point, old friend.
All you've done is show that for your particular circumstances and constraints then a 2 year old Fiesta ST was a good buy and one you're happy with and can justify on the internet to strangers. However everyone has their own particular perspective based on their own circumstances and their choices doesnt make them wrong.
Also, run it until its 10 years old and worth a few thousand then what are you going to do - drop £20-25K on a Focus RS and do the same thing again (only more expensively?)
You're still ultimately funding depreciation....
Edited by daemon on Sunday 22 October 21:37
Edited by daemon on Sunday 22 October 21:38
Edited by daemon on Sunday 22 October 21:39
Julian Thompson said:
But really, though, Sir, you’re going to end up driving a ten year old fiesta - of course that’s less expensive than buying a new one every few years HOWEVER you fund it! I for one am struggling to see your point?
Sorry for being born Thompson, but thank you for showing me the error of my ways, I'll be sure never to express an opinion again without consulting you first. HumanDoing said:
Julian Thompson said:
But really, though, Sir, you’re going to end up driving a ten year old fiesta - of course that’s less expensive than buying a new one every few years HOWEVER you fund it! I for one am struggling to see your point?
Sorry for being born Thompson, but thank you for showing me the error of my ways, I'll be sure never to express an opinion again without consulting you first. 
You could just answer the question - you're ultimately funding depreciation anyway albeit at a lower rate but driving an older car, are you not?
This hardly seems a new concept?
"Yes by driving a Fiesta until its ten years old it will cost me less"
Edited by daemon on Sunday 22 October 21:45
daemon said:
Dont "soil your nappy" (as you're so fond of saying)
You could just answer the question - you're ultimately funding depreciation anyway albeit at a lower rate but driving an older car, are you not?
This hardly seems a new concept?
Bully someone else, I've had enough of being taken for a You could just answer the question - you're ultimately funding depreciation anyway albeit at a lower rate but driving an older car, are you not?
This hardly seems a new concept?
. HumanDoing said:
daemon said:
Dont "soil your nappy" (as you're so fond of saying)
You could just answer the question - you're ultimately funding depreciation anyway albeit at a lower rate but driving an older car, are you not?
This hardly seems a new concept?
Bully someone else, I've had enough of being taken for a You could just answer the question - you're ultimately funding depreciation anyway albeit at a lower rate but driving an older car, are you not?
This hardly seems a new concept?
. 
Get over yourself.
What is actually wrong with people on here where this same subject comes up every bloody week and they get so belligerent about other people’s decisions?
I would not buy a fiesta. Other people do. I think they are st and for grandmothers, but accept that others have a different view.
I have never done pcp but can see why people do.
This is why we have both such a massively wide choice in the market place of which car to buy, and how to pay for it.
But I am not naive enough to think there won’t be another thread in a week’s time.
I would not buy a fiesta. Other people do. I think they are s
t and for grandmothers, but accept that others have a different view. I have never done pcp but can see why people do.
This is why we have both such a massively wide choice in the market place of which car to buy, and how to pay for it.
But I am not naive enough to think there won’t be another thread in a week’s time.
I bought a brand new Golf in 2007 on a PCP
I needed a new car for work (opt-out rules on age, etc) and it was a better finance deal to go brand new than nearly new
I didn’t have 18 grand in the bank, so I got a PCP
At the end of the term, the GFV was quite a bit less than the value of the car so I paid it off and ran the car for another 18 months.
It suited me at the time and I’d do it again if my circumstances were similar. Running 20 year-old E39 BMW’s is not practical for everyone.....
I needed a new car for work (opt-out rules on age, etc) and it was a better finance deal to go brand new than nearly new
I didn’t have 18 grand in the bank, so I got a PCP
At the end of the term, the GFV was quite a bit less than the value of the car so I paid it off and ran the car for another 18 months.
It suited me at the time and I’d do it again if my circumstances were similar. Running 20 year-old E39 BMW’s is not practical for everyone.....
I’m slightly taken aback by that - I’m genuinely sorry if I have offended you with my question there. I was meaning to say that I was struggling to visualise your point - it seems obvious that running a car for a long time will be cheaper than swapping it for a new one? Once again apologies if I have caused offence - truly never an intention. Best wishes Julian
Julian Thompson said:
I’m slightly taken aback by that - I’m genuinely sorry if I have offended you with my question there. I was meaning to say that I was struggling to visualise your point - it seems obvious that running a car for a long time will be cheaper than swapping it for a new one? Once again apologies if I have caused offence - truly never an intention. Best wishes Julian
Nothing to apologise for form where I'm reading!Julian Thompson said:
I’m slightly taken aback by that - I’m genuinely sorry if I have offended you with my question there. I was meaning to say that I was struggling to visualise your point - it seems obvious that running a car for a long time will be cheaper than swapping it for a new one? Once again apologies if I have caused offence - truly never an intention. Best wishes Julian
Oh wow thanks for the oh-so-sincere pity, Christ do you think I was born yesterday? Find someone else to take for a I'm done with this thread. Enjoy your PCP. garyhun said:
HumanDoing, you seem to have a massive chip on your shoulder about all this.
I really dont know why either. The lad has done very well for himself having bought a £13K car for cash at his age (i'm assuming early 20's?) No idea why hes getting so up tight about people who have PCP deals. Chances are his Fiesta was on a PCP by the first owner, hence why he was able to buy it at a good price at 2 years old.
I dont even have a car on PCP so its not like i have any vested interest in defending them.
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