Why the PH hatred for PCP?

[m3jappa]

These pcp threads don't end do they I resisted commenting but can't resist.

Where do people draw the line? in life in general?

Wont go on holiday because its wasted money, certainly not a luxury holiday either, why go to the maldives when you could go to southend?

Why wear nice clothes, drink decent wine, eat decent food? What about the people who are in the pub every night? or the people who are in the pub every night and sticking it all up their nose? Why have hobbies, nice kitchen etc etc etc.


Its called choices, yes some people are stupid and dont understand what they are doing but a lot do. We just got a car on pcp, the dealer seemed surprised when i understood we were paying for the depreciation and at the end would probably just hand the keys back. I guess a lot dont! This was a porsche main dealer as well, i would assume their customers would understand that but obviously not.
We have actively chosen to have a nice car, it was expensive (to me at least), i could have bought it outright but it would have been a real stretch and i would have noticed it, it will also be worth the same after 3 years, yes we paid interest but at the same time the gfv imo is bonkers and gives some protection which i like in buying a massive diesel engine car! I prefer to have money in the bank incase life otherwise goes tits up. i understand why many wouldn't want the monthly cost, but for us its in with our home bills and isn't a lot more than the last merc we leased.

On the other hand i totally get the comment about someone saying they are going to work to pay for the car they are going to work in. I suppose it depends how much of your income the car is eating up and if you actually mind doing that. I am genuinely gobsmacked at the amount some new and nearly new cars are on finance, i cant believe people do it but its all relative, if you earn 15k a month then a grand on a finance deal is nothing. If you earn 2k and your spending 500 then there's a real issue there.

[TheStigsWeeBrother]

Deep Thought said:

TheStigsWeeBrother said:

Brooking goes on about “sneering” and there’s plenty going on in the last couple of posts.

You need to look up the definition of sneering.

What was it you said about “maybe that holds true for your salary” “but it was only 5% of ours” not much sneering there.

[Deep Thought]

TheStigsWeeBrother said:

What was it you said about “maybe that holds true for your salary” “but it was only 5% of ours” not much sneering there.

It was poking him in the former and demonstrating that PCPs aren't always large or a big part of people's salary in the latter.

I'm sure he has a decent income

[TheStigsWeeBrother]

Deep Thought said:

TheStigsWeeBrother said:

What was it you said about “maybe that holds true for your salary” “but it was only 5% of ours” not much sneering there.

It was poking him in the former and demonstrating that PCPs aren't always large or a big part of people's salary in the latter.

I'm sure he has a decent income

Fair enough.

[av185]

m3jappa said:

Where do people draw the line? in life in general?

Wont go on holiday because its wasted money, certainly not a luxury holiday either, why go to the maldives when you could go to southend?

Why wear nice clothes, drink decent wine, eat decent food? What about the people who are in the pub every night? or the people who are in the pub every night and sticking it all up their nose? Why have hobbies, nice kitchen etc etc etc.

Check out the 'what cheap people do' thread.

Hilarious.

[av185]

m3jappa said:

We just got a car on pcp, the dealer seemed surprised when i understood we were paying for the depreciation and at the end would probably just hand the keys back. I guess a lot dont! This was a porsche main dealer as well, i would assume their customers would understand that but obviously not.
We have actively chosen to have a nice car, it was expensive (to me at least), i could have bought it outright but it would have been a real stretch and i would have noticed it, it will also be worth the same after 3 years, yes we paid interest but at the same time the gfv imo is bonkers and gives some protection which i like in buying a massive diesel engine car! I prefer to have money in the bank incase life otherwise goes tits up.

If it's a Panamera diesel these are good news values up due to restricted supply of recent late models.

Given these circumstances and the ones you mention it is interesting you chose the expense of pcp rather than buy outright.

[jimPH]

TheStigsWeeBrother said:

Deep Thought said:

TheStigsWeeBrother said:

What was it you said about “maybe that holds true for your salary” “but it was only 5% of ours” not much sneering there.

It was poking him in the former and demonstrating that PCPs aren't always large or a big part of people's salary in the latter.y

I'm sure he has a decent income

Fair enough.

Be careful, if you don't agree with the financial dream makers, you're clearly a rampant green eyed, vitriolic brute, likely found howling at every full moon, burning loan applications on a pyre.

[anonymous-user]

jimPH said:

Be careful, if you don't agree with the financial dream makers, you're clearly a rampant green eyed, vitriolic brute, likely found howling at every full moon, burning loan applications on a pyre.

Put the matches down Jim !

[m3jappa]

av185 said:

If it's a Panamera diesel these are good news values up due to restricted supply of recent late models.

Given these circumstances and the ones you mention it is interesting you chose the expense of pcp rather than buy outright.

Its a cayenne v8 diesel. The gfv is imo quite big and id be surprised if it was worth that in 3 years, but id hope porsche know more than me.

I didn't buy outright because i cant afford it, that's the truth! I had enough to buy outright but then when the boiler went this week it would have been an issue, holiday this year after a few years without would have as well. I could sell my tuscan which has done about 150 miles in 2 years but cant bring myself to.

We needed a new family car as we had a merc on lease, current lease deals aren't great, i started looking at something for say 15k outright but the more i looked at it with regard to what we would get didn't satisfy me. I wanted something nice with a bit of power, low miles and as trouble free as possible. Of course it then escalates. I thought about leasing again but for example this cayenne was cheaper over 3 years than a new (yes i know the new vs old argument) than a well specced glc350d, this car has done 26k has almost 3 years porsche warranty, looks feels and drives like new so was a no brainer.

Bottom line for me is a bit of finance doesnt hurt if its a manageable amount. Im no investor so I'm not going to say 'the money works for me elsewhere' but having some money in the bank can and does help as opposed to buying something i dont actually need outright. We are paying for the depreciation plus interest, however that cost of interest i am happy with due to the plus points i believe i have got.

[jimPH]

roadsmash said:

Joey Deacon said:

If you had £10k in a Marcus account at 1.5 over 48 months you would have £10,617.97 after 4 years

If you borrow £10k from Asda at 2.8% over 48 months you pay back a total of £10,574.40 after 4 years

So given this example would it not be better to get the car on finance and keep the cash in the bank for a rainy day?

Gordon? Jim? Where are you?

Would you argue against this totally reasonable decision?

The only problem is, the Marcus account only pays the bonus in the first year, so the next 3 years are 1.34% gross. Total amount compounded after the term would be £10,557.57. But don't let the facts get in the way of your calculation.

[syl]

Gordon_Roslin said:

Any comedian getting a PCP every 3 years needs to take that £10,000 at 20 and invest it in low cost index funds - do this for 25 years and they'll have about £40k which will be enough to walk in to any dealership and buy a good car. Live within your means or spend your life working for stuff you can't afford to pretend to be Charlie Large Potatoes, it really is up to you.

If you take £3333 a year from 17 (so you have your £10k at 20) and keep doing it for 25 years, with a modest 5% annual return, you will have over £150k in 25 years. You only need to save £850 a year to have your £40k at 25 years, leaving you the best part of £2500 a year for a nice PCP/PCH deal.

[roadsmash]

jimPH said:

roadsmash said:

Joey Deacon said:

If you had £10k in a Marcus account at 1.5 over 48 months you would have £10,617.97 after 4 years

If you borrow £10k from Asda at 2.8% over 48 months you pay back a total of £10,574.40 after 4 years

So given this example would it not be better to get the car on finance and keep the cash in the bank for a rainy day?

Gordon? Jim? Where are you?

Would you argue against this totally reasonable decision?

The only problem is, the Marcus account only pays the bonus in the first year, so the next 3 years are 1.34% gross. Total amount compounded after the term would be £10,557.57. But don't let the facts get in the way of your calculation.

There’s plenty of better savings accounts so your logic is flawed.

[jimPH]

roadsmash said:

jimPH said:

roadsmash said:

Joey Deacon said:

If you had £10k in a Marcus account at 1.5 over 48 months you would have £10,617.97 after 4 years

If you borrow £10k from Asda at 2.8% over 48 months you pay back a total of £10,574.40 after 4 years

So given this example would it not be better to get the car on finance and keep the cash in the bank for a rainy day?

Gordon? Jim? Where are you?

Would you argue against this totally reasonable decision?

The only problem is, the Marcus account only pays the bonus in the first year, so the next 3 years are 1.34% gross. Total amount compounded after the term would be £10,557.57. But don't let the facts get in the way of your calculation.

There’s plenty of better savings accounts so your logic is flawed.

Next time, be sure to choose the right account. Maybe read the terms and conditions before telling us all about it.

[roadsmash]

jimPH said:

roadsmash said:

jimPH said:

roadsmash said:

Joey Deacon said:

If you had £10k in a Marcus account at 1.5 over 48 months you would have £10,617.97 after 4 years

If you borrow £10k from Asda at 2.8% over 48 months you pay back a total of £10,574.40 after 4 years

So given this example would it not be better to get the car on finance and keep the cash in the bank for a rainy day?

Gordon? Jim? Where are you?

Would you argue against this totally reasonable decision?

The only problem is, the Marcus account only pays the bonus in the first year, so the next 3 years are 1.34% gross. Total amount compounded after the term would be £10,557.57. But don't let the facts get in the way of your calculation.

There’s plenty of better savings accounts so your logic is flawed.

Next time, be sure to choose the right account. Maybe read the terms and conditions before telling us all about it.

Firstly, I didn’t pick the bank account, keep up. As alluded to above I would pick one of the numerous better accounts on the market today.

Secondly, if I had picked Marcus, out of sheer ignorance, without looking at their T&C’s, then 4 years later I wouldn’t be too upset to see that I had lost out on £60.40 over the 4 year term by not switching to a better account.

Just so we are clear, that’s a difference of 4p per day.

[jimPH]

roadsmash said:

Firstly, I didn’t pick the bank account, keep up. As alluded to above I would pick one of the numerous better accounts on the market today.

Secondly, if I had picked Marcus, out of sheer ignorance, without looking at their T&C’s, then 4 years later I wouldn’t be too upset to see that I had lost out on £60.40 over the 4 year term by not switching to a better account.

Just so we are clear, that’s a difference of 4p per day.

You endorsed his post as a "totally reasonable decision" and reveled in the £43.57 potential profit, which is as good as posting it yourself. Stop digging your hole, we could have quietly moved on by now.

Going by your previous posting standards, we should extrapolate and assume these figures on a grander scale, x100 should do it, so that's a 6 grand loss as per the PH fudge factor.

[roadsmash]

jimPH said:

roadsmash said:

Firstly, I didn’t pick the bank account, keep up. As alluded to above I would pick one of the numerous better accounts on the market today.

Secondly, if I had picked Marcus, out of sheer ignorance, without looking at their T&C’s, then 4 years later I wouldn’t be too upset to see that I had lost out on £60.40 over the 4 year term by not switching to a better account.

Just so we are clear, that’s a difference of 4p per day.

You endorsed his post as a "totally reasonable decision" and reveled in the £43.57 potential profit, which is as good as posting it yourself. Stop digging your hole, we could have quietly moved on by now.

Going by your previous posting standards, we should extrapolate and assume these figures on a grander scale, x100 should do it, so that's a 6 grand loss as per the PH fudge factor.

What are you going on about??? Even the £60 loss on the lump sum in the bank is far better than tying up the whole amount of cash into the same depreciating car, which you advocate.

You’ve lost track.

You’re now simply comparing savings accounts!!! That’s for a different thread.

[jimPH]

roadsmash said:

jimPH said:

roadsmash said:

Firstly, I didn’t pick the bank account, keep up. As alluded to above I would pick one of the numerous better accounts on the market today.

Secondly, if I had picked Marcus, out of sheer ignorance, without looking at their T&C’s, then 4 years later I wouldn’t be too upset to see that I had lost out on £60.40 over the 4 year term by not switching to a better account.

Just so we are clear, that’s a difference of 4p per day.

You endorsed his post as a "totally reasonable decision" and reveled in the £43.57 potential profit, which is as good as posting it yourself. Stop digging your hole, we could have quietly moved on by now.

Going by your previous posting standards, we should extrapolate and assume these figures on a grander scale, x100 should do it, so that's a 6 grand loss as per the PH fudge factor.

What are you going on about??? Even the £60 loss on the lump sum in the bank is far better than tying up the whole amount of cash into the same depreciating car, which you advocate.

You’ve lost track.

You’re now simply comparing savings accounts!!! That’s for a different thread.

You seem to be getting all worked up. Firstly, you should leave some reserve to cover emergency's, not doing so is foolish. So in reality, the 10k is "cash for a car" and it's cheaper, £500 odd cheaper.

You're so keen to take out credit, it's credit for credits sake. You don't have to take out the loan on the car, just take out the loan if and when you need it.

Lastly, interest is so piffling as you see it, it's not worth saving it anyway, might aswell pay cash outright. All that eagle eye investing just results in a net loss.

[jimPH]

Let's look at the cash purchase savings

Buy the car outright, saving you the interest of £574.40.

Pay your saved loan payments into the Marcus account, £220.46/month. total interest over 4 years = £277.54. Amount in your account = £10,881.21

[roadsmash]

Eugh we are going round in circles.

PCP/leasing/finance is NOT always king.

On this particular £10k example, it’s much of a muchness, HOWEVER you are not factoring mileage and depreciation in your decision.

You could easily tie up that £10k into a car then put 30,000 miles on it in a year and your investment has significantly dropped in a year.

Whereas if you had spread it over a longer term you get to keep your cash in the bank/use it on a better investment and use your monthly income to fund the purchase.

As I’ve demonstrated in the below thread, cash CAN be king, but as we have said here, it DEPENDS ON THE CIRCUMSTANCES.

https://www.pistonheads.com/gassing/topic.asp?h=0&...

[Bob-2146]

roadsmash said:

Eugh we are going round in circles.

PCP/leasing/finance is NOT always king.

“not always” LOL.

Here’s your PCP finance deal, just put your neck in here :