PCP: How many people actually pay the balloon
Discussion
CraigyMc said:
Depends if you want to keep the car for the length of the deal.
If you want it to be yours so you can do whatever you want to it immediately (sell it on, modify it, whatever) then jumping out of even a 0% deal may be worthwhile.
Fair point. If you want it to be yours so you can do whatever you want to it immediately (sell it on, modify it, whatever) then jumping out of even a 0% deal may be worthwhile.
Perhaps similarly, if you're handing a car back anyway, is there an advantage to doing a voluntary termination the month before rather than the "normal" handback? I've seem people mention it can mean different standards for "fair wear and tear" and so on.
My SiL bought a 1.2 Yeti. Brilliant deal; 3 years servicing, 0% finance, dealer deposit, etc.
Dealer took the p155 on trying to get her into a new one at 3 years so she paid it off and kept it.
She still likes it and has no plans to change. It's a genuine low miles / one lady owner / full SSH
Dealer took the p155 on trying to get her into a new one at 3 years so she paid it off and kept it.
She still likes it and has no plans to change. It's a genuine low miles / one lady owner / full SSH
InitialDave said:
CraigyMc said:
Depends if you want to keep the car for the length of the deal.
If you want it to be yours so you can do whatever you want to it immediately (sell it on, modify it, whatever) then jumping out of even a 0% deal may be worthwhile.
Fair point. If you want it to be yours so you can do whatever you want to it immediately (sell it on, modify it, whatever) then jumping out of even a 0% deal may be worthwhile.
Perhaps similarly, if you're handing a car back anyway, is there an advantage to doing a voluntary termination the month before rather than the "normal" handback? I've seem people mention it can mean different standards for "fair wear and tear" and so on.
Has anyone here got experience of this?
CraigyMc said:
Interesting question. I would be surprised if it meant a more lax approach from the finance company to stonechips and the like.
Has anyone here got experience of this?
Finance companies will actually make this slightly difficult to do but its perfectly legal, they usually stall for time give you nonsense stuff like it affects credit score.Has anyone here got experience of this?
Plenty of my previous customers have VT their car, as long as its in nothing above whats considered fair wear and tear. stonechips are acceptable. light scratches ,
HumanDoing said:
It's a simple principle of economics - if one chooses to pay a bit more in total in order to have it on the monthlies, fine - some people can't afford to drop £800 on the newest phone so pay £40 a month for 24 years and are either happy paying that premium or can't afford otherwise.
I'm always interested in the facts that show how little savings most people have, yet on here everyone 'could've afforded cash but chose the PCP instead'. Why lie on a forum where nobody knows or gives a baboon's toss about your financial affairs?
Wow wading into a yet another argument that you know nothing about along with the typical PCP response from the PH massiveI'm always interested in the facts that show how little savings most people have, yet on here everyone 'could've afforded cash but chose the PCP instead'. Why lie on a forum where nobody knows or gives a baboon's toss about your financial affairs?
I did a detailed post on exactly how much my pcp on my Skoda cost me and exactly how much I saved by putting it on pcp rather than paying cash but no one is really interested in any evidence that doesnt suit their own agenda
Yes you are correct that not all investments will give a good return all the time
In my case I've made at least 5% on the money I invested (£20k)and I havent missed the £300pm finance payment, its actually worked as a pretty good savings plan as that money would have gone elsewhere was it not already accounted for.
PCP isnt for everyone but making uneducated generalisations about what you think it is, is pointless
For what it's worth, this says 80% of people don't "buy the car":
https://www.contracthireandleasing.com/car-leasing...
so 3/15 is higher than the 1/15 of experience from our esteemed poster.. but no matter what it very firmly puts it in the far fewer people don't than do buy the car area!
https://www.contracthireandleasing.com/car-leasing...
so 3/15 is higher than the 1/15 of experience from our esteemed poster.. but no matter what it very firmly puts it in the far fewer people don't than do buy the car area!
liner33 said:
Wow wading into a yet another argument that you know nothing about along with the typical PCP response from the PH massive
I did a detailed post on exactly how much my pcp on my Skoda cost me and exactly how much I saved by putting it on pcp rather than paying cash but no one is really interested in any evidence that doesnt suit their own agenda
Yes you are correct that not all investments will give a good return all the time
In my case I've made at least 5% on the money I invested (£20k)and I havent missed the £300pm finance payment, its actually worked as a pretty good savings plan as that money would have gone elsewhere was it not already accounted for.
PCP isnt for everyone but making uneducated generalisations about what you think it is, is pointless
Hardly 'wading in to an argument I know nothing about'. In you case, if you made more than you otherwise would've done, great. My point is that you've done so in extremely favourable economic conditions - for a number of reasons, the FTSE 100 is now at unparalleled highs even though we have a huge number of potential economic and geopolitical issues shooting down the pipeline at us. I did a detailed post on exactly how much my pcp on my Skoda cost me and exactly how much I saved by putting it on pcp rather than paying cash but no one is really interested in any evidence that doesnt suit their own agenda
Yes you are correct that not all investments will give a good return all the time
In my case I've made at least 5% on the money I invested (£20k)and I havent missed the £300pm finance payment, its actually worked as a pretty good savings plan as that money would have gone elsewhere was it not already accounted for.
PCP isnt for everyone but making uneducated generalisations about what you think it is, is pointless
If the economy had experienced a 2007-8 style financial crash, would you still be pontificating on how well you'd done with your investments and getting self-righteous about how I apparently shouldn't be joining in the debate because I dare to have a different viewpoint?
Limpet said:
As long as you have a decent experience with the car, and your financial situation doesn't change for the worse, there is a very good chance you'll register another new car in 2/3/4 years.
Good point: I know it's not very PH to praise VW, but I am now into my 6th Passat since 2002 and literally nothing has gone wrong with any of them. That's 15 years of trouble-free motoring that has kept me moving and VW free of the costs of any warranty work.HumanDoing said:
Close to 0% as PCP appeals to the sort of people who don't even register it's possible to own a phone outright, or in some cases are paying for a TV/toaster on the monthlies.
If they could afford it they wouldn't be PCP'ing it whilst strutting around pretending that entering a deal that puts bread on the table for the dealer and finance company is somehow 'the most efficient way of purchasing'.
'Get a PCP, it's cheaper' - said no financial expert ever. Someone please find me a financial analyst/guru/expert who advocates PCP, please. It's only on Planet Pistonheads that's people have such ego that they can't accept they're paying more for shinier metal than they could otherwise afford (which is fine). What is not fine is having such a collossal ego that they also have to lie to themselves that doing so makes them financial geniuses as well.
I had warned this would happen. Little did I know our resident schizo would fire the first salvo. If they could afford it they wouldn't be PCP'ing it whilst strutting around pretending that entering a deal that puts bread on the table for the dealer and finance company is somehow 'the most efficient way of purchasing'.
'Get a PCP, it's cheaper' - said no financial expert ever. Someone please find me a financial analyst/guru/expert who advocates PCP, please. It's only on Planet Pistonheads that's people have such ego that they can't accept they're paying more for shinier metal than they could otherwise afford (which is fine). What is not fine is having such a collossal ego that they also have to lie to themselves that doing so makes them financial geniuses as well.
LotusOmega375D said:
Good point: I know it's not very PH to praise VW, but I am now into my 6th Passat since 2002 and literally nothing has gone wrong with any of them. That's 15 years of trouble-free motoring that has kept me moving and VW free of the costs of any warranty work.
'As long as your financial situation doesn't change' is a huge caveat though - stocks can fall, businesses can fail, large companies can go through 'restructures' that affect even the best performers. Nobody is questioning the advantage of trouble-free motoring, the point is a) can people actually afford the balloon (I suggest usually not) and b) what is with people who attempt to suggest it is also the most financially astute way of conducting this business. Even if it works out for some people in good economic circumstances, it doesn't necessarily follow it is the best way to obtain a car as many people would consider the risks attached to be unreasonable.I love how every discussion on here about car finance turns into a cess pool of ranting about OTHER PEOPLES CHOICES.
For god sakes just chill out.
If I or anyone else wants to waste MY money thats MY business.
If you think PCP or Leasing or PCH or whatever is a mugs game then good for you.
The same people rock up in each discussion to have the same rant and frankly it's spoiling the forum.
The original post was "how many people actually pay the balloon".
There are loads of dealer staff and finance people on here who could answer but by page 4 it just bogged down into another crappy General Gassing rant fest.
Bugger off and let everyone else enjoy the forum!
For god sakes just chill out.
If I or anyone else wants to waste MY money thats MY business.
If you think PCP or Leasing or PCH or whatever is a mugs game then good for you.
The same people rock up in each discussion to have the same rant and frankly it's spoiling the forum.
The original post was "how many people actually pay the balloon".
There are loads of dealer staff and finance people on here who could answer but by page 4 it just bogged down into another crappy General Gassing rant fest.
Bugger off and let everyone else enjoy the forum!
Edited by Stick Legs on Thursday 19th October 15:20
Stick Legs said:
I love how every discussion on here about car finance turns into a cess pool of ranting about OTHER PEOPLES CHOICES.
For god sakes just chill out.
If I or anyone else wants to waste MY money thats MY business.
If you think PCP or Leasing or PCH or whatever is a mugs game then good for you.
The same people rock up in each discussion to have the same rant and frankly it's spoiling the forum.
The original post was "how many people hand actually pay the balloon".
There are loads of dealer staff and finance people on here who could answer but by page 4 it just bogged down into another crappy General Gassing rant fest.
Bugger off and let everyone else enjoy the forum!
Most of those people would not be granted the finance. They resent other people's access to it and console themselves by muttering that it will all come tumbling down.For god sakes just chill out.
If I or anyone else wants to waste MY money thats MY business.
If you think PCP or Leasing or PCH or whatever is a mugs game then good for you.
The same people rock up in each discussion to have the same rant and frankly it's spoiling the forum.
The original post was "how many people hand actually pay the balloon".
There are loads of dealer staff and finance people on here who could answer but by page 4 it just bogged down into another crappy General Gassing rant fest.
Bugger off and let everyone else enjoy the forum!
I planned on buying a year old Fabia Monte Carlo with 9k on the clock on a HP agreement but ended up in the brand new one on PCP due to the much lower interest rate along with a hefty deposit contribution and a free service package. I would never have dreamt of buying new due to the depreciation woes but considering at the time 1 year old models were going for more than the figure after deposit contributions, the numbers worked in favour of the new one and I was able to choose my colour and spec.
Next time round whatever car I decide on if used or a lease works out cheaper I'll do that; I'm undecided on whether I'll buy the Fabia or hand it back yet as I've only had it since March.
Next time round whatever car I decide on if used or a lease works out cheaper I'll do that; I'm undecided on whether I'll buy the Fabia or hand it back yet as I've only had it since March.
Stick Legs said:
I love how every discussion on here about car finance turns into a cess pool of ranting about OTHER PEOPLES CHOICES.
For god sakes just chill out.
If I or anyone else wants to waste MY money thats MY business.
If you think PCP or Leasing or PCH or whatever is a mugs game then good for you.
The same people rock up in each discussion to have the same rant and frankly it's spoiling the forum.
The original post was "how many people hand actually pay the balloon".
There are loads of dealer staff and finance people on here who could answer but by page 4 it just bogged down into another crappy General Gassing rant fest.
Bugger off and let everyone else enjoy the forum!
I've paid off two (poss three) balloons. The rest made financial sense to 'let go'. About to let another go, as I'll get a brand new car tax deductible. Looking forward to it. For god sakes just chill out.
If I or anyone else wants to waste MY money thats MY business.
If you think PCP or Leasing or PCH or whatever is a mugs game then good for you.
The same people rock up in each discussion to have the same rant and frankly it's spoiling the forum.
The original post was "how many people hand actually pay the balloon".
There are loads of dealer staff and finance people on here who could answer but by page 4 it just bogged down into another crappy General Gassing rant fest.
Bugger off and let everyone else enjoy the forum!
GetCarter said:
as I'll get a brand new car tax deductible. Looking forward to it.
this is the other aspect I hadn't thought much about. the fact that as more and more people are in some way self employted etc there will be more and more people 'intending to buy' cough cough cough a car via PCP for the business so yeah as you say it makes sense that more and more people are choosing to cough buy cough this way.could it be that the powers that be are trying to find a reason to do away with PCP because they know they're losing out..??
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