PCP: How many people actually pay the balloon
Discussion
Holy s
t.
Its PCP bingo time.
Getting people into metal they can't afford. Check!
Financial suicide. Check!
You absolute madman you should never throw all your money at a car. Use PCP and invest in stock market/exclusive PH angel investor etc. Check!
its really boring guys.
PCP works for some. Low mileage driver and likes a new car every few years. Perfect!
Anyway to answer the OP.
We bought my mrs BMW on PCP and cleared the finance to get a service pack and 3k extra contribution. PCP does not make sense with her 30k a year.
So at least one person has paid of the balloon this year
t.Its PCP bingo time.
Getting people into metal they can't afford. Check!
Financial suicide. Check!
You absolute madman you should never throw all your money at a car. Use PCP and invest in stock market/exclusive PH angel investor etc. Check!
its really boring guys.
PCP works for some. Low mileage driver and likes a new car every few years. Perfect!
Anyway to answer the OP.
We bought my mrs BMW on PCP and cleared the finance to get a service pack and 3k extra contribution. PCP does not make sense with her 30k a year.
So at least one person has paid of the balloon this year
daemon said:
Thank you. 
I try to communicate with people on their level.
Communicate with people on their level? Ok fair enough I'll give that a whirl:I try to communicate with people on their level.
Your garage looks fantastic mate, well done. You're obviously a very successful 'IT contractor' if you can afford a Volkswagen saloon (after trading in your poor man's Porsche of course)
That Merc gets an incredible amount of praise as well doesn't it and is no way held up as an example of people pissing money away when better cars in the same market are much cheaper - congratulations on that savvy purchase. Hey everybody, I can't fight my own battles alone so can you all join me in ganging up on this person on the internet please so I can feel like a big shot from behind my computer keyboard.
How did I do?
Petrol Only said:
Holy st.
PCP works for some. Low mileage driver and likes a new car every few years. Perfect!
You forgot 'financially incontinent and economically illiterate to the point of irresponsibility - the sort of person dealers fight each other to get to when they see them boogieing on up to the front door of the dealership'. t.PCP works for some. Low mileage driver and likes a new car every few years. Perfect!
HumanDoing said:
You forgot 'financially incontinent and economically illiterate to the point of irresponsibility - the sort of person dealers fight each other to get to when they see them boogieing on up to the front door of the dealership'.
Meh I like these people.Makes cars cheaper for the rest of us.
Can some of you rich f
kers start PCP some petrol estates please. I can't find any fun ones under 10k since you all started PCP dirty dervs. Having a new car every 3 years doesn't really interest me - I tend to get attached to them! But I did take out 2 PCP's on Bimmers this year. The second they came under the 25k balance mark after less than 6 months I binned the PCP and swapped the 6% PCP rate for sub 3% loans. I added a few quid per month to teh payment (IIRC £45 on one and £35 on the other) and about 6 months to the term and it killed an 18k balloon on one and 8k on the other. That gives a big asset at the end of the term rather than bugger all!
There are a few people here saying they will pay the balloon off and from savings - that is just such poor use of funds in paying the significant 'interest only' portion of the PCP. Not paying off any capital means you are paying for a loan and not a car.
In reality this approach will mean no monthly repayments at all for years once we own them = more holidays! Will however put some funds aside to build up funds for replacements at about 5-6 yrs old.
The chat here has been interesting so any critique of that diy approach most welcome - it could well be all I can get my head around!
There are a few people here saying they will pay the balloon off and from savings - that is just such poor use of funds in paying the significant 'interest only' portion of the PCP. Not paying off any capital means you are paying for a loan and not a car.
In reality this approach will mean no monthly repayments at all for years once we own them = more holidays! Will however put some funds aside to build up funds for replacements at about 5-6 yrs old.
The chat here has been interesting so any critique of that diy approach most welcome - it could well be all I can get my head around!
Petrol Only said:
Meh I like these people.
Makes cars cheaper for the rest of us.
Can some of you rich fkers start PCP some petrol estates please. I can't find any fun ones under 10k since you all started PCP dirty dervs.
My old RS4 is being sold by a dealer in Taunton. Petrol tick, estate tick. £10k, maybe not but you could always just PCP it like I did. Even had more equity at the end than I put down as a deposit to start with, chuffed!Makes cars cheaper for the rest of us.
Can some of you rich f
kers start PCP some petrol estates please. I can't find any fun ones under 10k since you all started PCP dirty dervs. My girlfriend owns her 2014 Fiesta ST outright too, does she win a prize?
djc206 said:
Even had more equity at the end than I put down as a deposit to start with, chuffed!
is that really the point we're at now? Ok so if someone put down £500 and had £1,500 equity at the end, then they also have 'more deposit at the end than the start' - is that all that matters? Not the thousands spend on interest payments over the same period? Sweet God almighty. HumanDoing said:
is that really the point we're at now? Ok so if someone put down £500 and had £1,500 equity at the end, then they also have 'more deposit at the end than the start' - is that all that matters? Not the thousands spend on interest payments over the same period? Sweet God almighty. k about the interest I knew in advance exactly what I was going to pay in interest. I was just pleasantly surprised to get so much equity out of the car. I was planning on next to nothing and got more, not a bad result.Given that the interest on my mortgage is going to total well into 6 figures I'm having a hard time worrying about a couple of grand interest on a car. I enjoyed the car, I didn't sacrifice anything to get it and I didn't have to wait for it. It tickled my fancy, I ordered it and when I got bored got rid and bought (financed) a new shiny toy. It's my money to burn I don't see why you care so much.
Cyder said:
But paying thousands outright and then losing an absolute packet in depreciation when you sell it makes so much sense right... right?
Case by case, sometimes PCP'ing is the way forward, sometimes buying outright.
Jesus this again. It's quite simple.Case by case, sometimes PCP'ing is the way forward, sometimes buying outright.
Owning outright = the car will depreciate. Depreciation is an unavoidable fact of life for almost all cars.
PCP = paying the same depreciation, plus interest, and have shat-all at the end of it.
'Wow yeah sign me up for the PCP, that sounds much the better deal' - PCP enthusiast.
djc206 said:
I don't give a fk about the interest I knew in advance exactly what I was going to pay in interest. I was just pleasantly surprised to get so much equity out of the car. I was planning on next to nothing and got more, not a bad result.
Given that the interest on my mortgage is going to total well into 6 figures I'm having a hard time worrying about a couple of grand interest on a car. I enjoyed the car, I didn't sacrifice anything to get it and I didn't have to wait for it. It tickled my fancy, I ordered it and when I got bored got rid and bought (financed) a new shiny toy. It's my money to burn I don't see why you care so much.
The very definition of financial incontinence, personified in some choice quotes there. PCP enthusiasts, I think we have found your poster boy:k about the interest I knew in advance exactly what I was going to pay in interest. I was just pleasantly surprised to get so much equity out of the car. I was planning on next to nothing and got more, not a bad result.Given that the interest on my mortgage is going to total well into 6 figures I'm having a hard time worrying about a couple of grand interest on a car. I enjoyed the car, I didn't sacrifice anything to get it and I didn't have to wait for it. It tickled my fancy, I ordered it and when I got bored got rid and bought (financed) a new shiny toy. It's my money to burn I don't see why you care so much.
'I don't give a f
k about the interest''I'm having a hard time worrying about a couple of grand interest on a car'
'I didn't have to wait for it'
'It's my money to burn'
Perhaps if you cared more about your outgoings on a car that is sitting there doing shat all most of the time, you could get that mortgage interest down and shave years, literally years, off your working life?
HumanDoing said:
Owning outright = the car will depreciate. Depreciation is an unavoidable fact of life for almost all cars.
PCP = paying the same depreciation, plus interest, and have shat-all at the end of it.
You want to run a car for the period of the manufacturer's warranty, let's say three years.PCP = paying the same depreciation, plus interest, and have shat-all at the end of it.
You can buy it for A, sell it at three years old for B, and it has cost you the difference between these two, C.
Or you can pay an initial payment X, 35 monthly payments totalling Y, adding up to a total expenditure of Z.
Do you guarantee me that there never has been, and never will be, a situation with any car purchase where C is greater than Z?
HumanDoing said:
The very definition of financial incontinence, personified in some choice quotes there. PCP enthusiasts, I think we have found your poster boy:
'I don't give a fk about the interest'
'I'm having a hard time worrying about a couple of grand interest on a car'
'I didn't have to wait for it'
'It's my money to burn'
Perhaps if you cared more about your outgoings on a car that is sitting there doing shat all most of the time, you could get that mortgage interest down and shave years, literally years, off your working life?
Of course I could or I could just enjoy the life I have the way I choose. Again it's really none of your concern and I don't understand why you're getting your panties in a twist about me wasting a fairly insignificant amount of money on a very low interest finance package. You never know one day I might buy a car you really like and you'll get to buy it once I've had my fun and gotten bored.'I don't give a f
k about the interest''I'm having a hard time worrying about a couple of grand interest on a car'
'I didn't have to wait for it'
'It's my money to burn'
Perhaps if you cared more about your outgoings on a car that is sitting there doing shat all most of the time, you could get that mortgage interest down and shave years, literally years, off your working life?
I get to retire at 57 from a job I love doing. That seems pretty reasonable to me, that's about 25-30 years retirement, maybe in the future I'll decide that's not enough and stop spending money on cars, nice meals, booze and holidays to expedite that. Either way I'm a happy bloke, you seem a little less cheery.
HumanDoing said:
Cyder said:
But paying thousands outright and then losing an absolute packet in depreciation when you sell it makes so much sense right... right?
Case by case, sometimes PCP'ing is the way forward, sometimes buying outright.
Jesus this again. It's quite simple.Case by case, sometimes PCP'ing is the way forward, sometimes buying outright.
Owning outright = the car will depreciate. Depreciation is an unavoidable fact of life for almost all cars.
PCP = paying the same depreciation, plus interest, and have shat-all at the end of it.
'Wow yeah sign me up for the PCP, that sounds much the better deal' - PCP enthusiast.
The crux is having a new car at your disposal, new cars are more expensive than old ones as a rule. You can keep the cost down buy buying an older car but then you get other issues, MOT's, no warranty and being liable for failures.
You cant win, you can only minimise your exposure by doing what is best for your income, needs and wants.
What these threads miss is no one situation works for everyone, some will pay a £500 a month PCP or lease without noticing it, someone else may do it at the expense of eating value beans every day, the motivations can be different, there is no one right way and only the individual knows if they can really afford a given cost.
Incidentally, I own my 2010 Citroen C1 outright (can provide Custard verification if required), that's just how I roll (slowly), I could lease something nice but am too tight and have commitments but I dont get the green monster over what other people can do, as one day I may change my mind as I am apt to do, like those student protesters that end up as bank managers.
djc206 said:
Of course I could or I could just enjoy the life I have the way I choose. Again it's really none of your concern and I don't understand why you're getting your panties in a twist about me wasting a fairly insignificant amount of money on a very low interest finance package. You never know one day I might buy a car you really like and you'll get to buy it once I've had my fun and gotten bored.
I get to retire at 57 from a job I love doing. That seems pretty reasonable to me, that's about 25-30 years retirement, maybe in the future I'll decide that's not enough and stop spending money on cars, nice meals, booze and holidays to expedite that. Either way I'm a happy bloke, you seem a little less cheery.
Is life expectancy in the UK 87 now then? I get to retire at 57 from a job I love doing. That seems pretty reasonable to me, that's about 25-30 years retirement, maybe in the future I'll decide that's not enough and stop spending money on cars, nice meals, booze and holidays to expedite that. Either way I'm a happy bloke, you seem a little less cheery.
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