Why the PH hatred for PCP?

Why the PH hatred for PCP?

Author
Discussion

Sheepshanks

32,530 posts

118 months

Thursday 27th December 2018
quotequote all
Deep Thought said:
Because of course everyone who PCPs or leases has no savings at all and is living from one pay cheque to the next. rolleyes
From the OP:

Kermit power said:
Assuming that I don't happen to have many thousands of pounds sitting around doing nothing which I can use to purchase the vehicle of my choice, I am, in one form or another, going to have to set myself a monthly budget towards motoring costs.

Deep Thought

35,724 posts

196 months

Thursday 27th December 2018
quotequote all
Sheepshanks said:
Deep Thought said:
Because of course everyone who PCPs or leases has no savings at all and is living from one pay cheque to the next. rolleyes
From the OP:

Kermit power said:
Assuming that I don't happen to have many thousands of pounds sitting around doing nothing which I can use to purchase the vehicle of my choice, I am, in one form or another, going to have to set myself a monthly budget towards motoring costs.
And not having many thousands of pounds sitting around translates to you as not having enough for a handful of payments if necessary?

Edited by Deep Thought on Thursday 27th December 17:02

Sheepshanks

32,530 posts

118 months

Thursday 27th December 2018
quotequote all
Deep Thought said:
And not having many thousands of pounds sitting around translates to you as not having enough for a handful of payments if necessary?
Define 'handful'? Anyway, there'll be other things to pay, too.

dmsims

6,450 posts

266 months

Thursday 27th December 2018
quotequote all
Kermit power said:
Cheers all. I guess the fact that I sell Software as a Service for a living goes some way to explaining why "Car as a Service" seems more logical to me than it does to many others! smile
Just watch out for the allowed mileage (how many do you do a year?)

Depending on your typical journey profile (and other requirements) a hybird / EV might! save you a lot of money

Welshbeef

49,633 posts

197 months

Thursday 27th December 2018
quotequote all
The benefit of a brand new car that you serially change is likely to mean

1. Never change the tyres - so on he sorts of car I buy that’s £1k saved
2 no MOTs that’s a hassle - as in arranging it time out of he office etc vs zero.
3. VED is usually included and also generally much lower than older cars
4. New cars are exceptionally efficient and take a diesel a brand new one is apparently 25 times less polluting and NOX output than ever a 5 year older example.
5. Vastly safer / very likely of walking away from nearly any accident vs less so/more injuries
6. Best/latest in car tech
7. Depending on how old a car you go you need luck on your side to counter a part failing or it’s servicing costs


Also who cares how a car is or isn’t paid for - keyboard warriors (many likely just kids not yet driving) or older or middle ages believe you need too qualify by some notion to owning it (I’m guilty of this thinking 17-25year olds simply shouldn’t have xyz car way beyond what I had or have yet they are likely spending everything they have and then some more that it’s on the drip - but again who cares it’s someone else’s life choices.

Flumpo

3,685 posts

72 months

Thursday 27th December 2018
quotequote all
hyphen said:
Kermit power said:
Cheers all. I guess the fact that I sell Software as a Service for a living goes some way to explaining why "Car as a Service" seems more logical to me than it does to many others! smile
Not really. Business and domestic requirements are often different... Not much point attempting to sell office 365 to your average Joe who is happy with his office 2007.

Pretty poor salesman to not know this hehe
What did you sell today?

Kermit1: 36x office 365 and 20 x adobe professional boss.

Hyphen: I didn’t sell any as they already had office 2007...


Edited by Flumpo on Thursday 27th December 17:39

Deep Thought

35,724 posts

196 months

Thursday 27th December 2018
quotequote all
Sheepshanks said:
Define 'handful'? Anyway, there'll be other things to pay, too.
Again, you're assuming the op has a minimal amount of savings for this to be an issue. He may have £10,000. Not enough to buy the car he wants outright but could be more than enough to cover car payments and outgoings for a significant period of time

Sheepshanks

32,530 posts

118 months

Thursday 27th December 2018
quotequote all
Deep Thought said:
Again, you're assuming the op has a minimal amount of savings for this to be an issue. He may have £10,000. Not enough to buy the car he wants outright but could be more than enough to cover car payments and outgoings for a significant period of time
I'm not assuming anything - the OP asked; "what am I missing"? and I raised it as something he may be missing, especially as he's comparing it to a company car, which doesn't carry any financial risk.

anonymous-user

53 months

Thursday 27th December 2018
quotequote all
Sheepshanks said:
Kermit power said:
What am I missing?
You might lose your job and not be able to make the payments.
You can buy a car outright, lose your job, and have to sell it to raise cash. Not seeing a big difference.

Sheepshanks

32,530 posts

118 months

Thursday 27th December 2018
quotequote all
Greg66 said:
You can buy a car outright, lose your job, and have to sell it to raise cash. Not seeing a big difference.
You can make that choice if you own the car.

anonymous-user

53 months

Thursday 27th December 2018
quotequote all
Sheepshanks said:
Greg66 said:
You can buy a car outright, lose your job, and have to sell it to raise cash. Not seeing a big difference.
You can make that choice if you own the car.
If you have to sell it, there’s no choice to be made. Likewise if you can’t afford the monthlies.

So no difference.

Sheepshanks

32,530 posts

118 months

Thursday 27th December 2018
quotequote all
Greg66 said:
So no difference.
Big difference. You'll get some money.

Depending on where you are in the PCP term, you'll likely have to pay money to terminate the PCP.

ZX10R NIN

27,494 posts

124 months

Thursday 27th December 2018
quotequote all
Kermit power said:
Afternoon chaps,

I have observed on here frequent disparaging comments with regards to the funding of cars through PCP, and was wondering why?

For the last 7 years or so, I've had a company car. That's nice and easy. It has a monthly cost that covers absolutely everything except for fuel. Recently, however, my employer announced that they're canning company cars and are just going to pay an allowance instead, so when the lease on my current car expires, I'm going to have to find an alternative.

Assuming that I don't happen to have many thousands of pounds sitting around doing nothing which I can use to purchase the vehicle of my choice, I am, in one form or another, going to have to set myself a monthly budget towards motoring costs.

Option one would be to take out a loan and get whichever car I want. Yes, this gives me the option of buying used as well as new, which isn't necessarily a bad thing, but on the other hand, means I've actually got to purchase the car and then go through all the hassle of selling it when I want something different.

Option two is the PCP-type arrangement, where I can just say "I want that car for a defined period of time, then I'll give it back and choose something new".

On the one hand, I assume there's more profit margin baked in to the PCP deal, but on the other, there's far less uncertainty, as I don't have to worry about trying to second-guess depreciation rates.

If I go second-hand, yes, I might well get far more car for my money with far less depreciation, but on the other hand, it'll be harder to get the car I actually want (a curse on all the weirdos who insist on buying dull as fk cars with monochrome interiors and exteriors! You can have any colour you want so long as it's black, white, or any shade of silvery-grey in between!), and there's more uncertainty over running/servicing costs.

As someone coming out of a company car, it just strikes me that so long as I can find something I like within my monthly budget, then a PCP or similar deal with as much of the cost included into one single payment (in the ideal world, I'd like a deal similar to my company car, where fuel is my only variable) just seems like the sensible, logical approach to take?

What am I missing?
If you want something that's a bit different why not go down the personal loan route & you should be able to buy a non dull alternative you should be able to land a nearly new car for your budget whatever that may be.

anonymous-user

53 months

Thursday 27th December 2018
quotequote all
Sheepshanks said:
Greg66 said:
So no difference.
Big difference. You'll get some money.

Depending on where you are in the PCP term, you'll likely have to pay money to terminate the PCP.
Less money back than you had to pony up to buy in the first place. Which you either borrowed from a bank to put into a depreciating asset or took from your savings to put into a depreciating asset. So you take the hit when you sell, and realise your loss. Or you take the hit when you terminate the PCP agreement.

Seems you’re determined to agree with me: no difference.

Sheepshanks

32,530 posts

118 months

Thursday 27th December 2018
quotequote all
Greg66 said:
Seems you’re determined to agree with me: no difference.
Big difference - when you bought the car you had a job. Now you don't.

dmsims

6,450 posts

266 months

Thursday 27th December 2018
quotequote all
Can you get PCP on used cars ?

anonymous-user

53 months

Thursday 27th December 2018
quotequote all
Sheepshanks said:
Greg66 said:
Seems you’re determined to agree with me: no difference.
Big difference - when you bought the car you had a job. Now you don't.
When you signed the PCP agreement you had a job. Now you don’t. Etc.

Please, list some more similarities. It’s helpful.

Flumpo

3,685 posts

72 months

Thursday 27th December 2018
quotequote all
dmsims said:
Can you get PCP on used cars ?
Yes.

Sheepshanks

32,530 posts

118 months

Thursday 27th December 2018
quotequote all
Greg66 said:
When you signed the PCP agreement you had a job. Now you don’t.
Exactly. And now you've got to buy your way out of it, probably with a loan from a dodgy doorstep lender at a time when it's least ideal. wink

anonymous-user

53 months

Thursday 27th December 2018
quotequote all
Sheepshanks said:
Greg66 said:
When you signed the PCP agreement you had a job. Now you don’t.
Exactly. And now you've got to buy your way out of it, probably with a loan from a dodgy doorstep lender at a time when it's least ideal. wink
We’ve done that one already. Running out of “differences”?