How do you use PCP?
Discussion
syl said:
Joe5y said:
I'm still struggling to understand how a PCP is attractive to anyone? To buy a c£22,500 car the total repayment could be c£30,000 with limited mileage - why would you write off £7,500 if you could afford the car in the first place? Or is it as stated only for people who can't afford the car?
Car cost £22,500At 3 years sell for £10,000
Lost opportunity cost on £22,500 @ 5% £3633
Total cost £16,133
Cost to buy PCP
Deposit £2,500
Manufacturer contribution £2,500
36 months @ 277 (5.9% APR)
(GMFV £10,000 - not paid as car handed back)
Lost opportunity cost on £2,500 @5% £404
Lost opportunity cost on 36x£277 approx £700
Total cost £16,076
Plus PCP allows you to buy the car or get rid of it if the GFMV plummets because the government/council demonises diesel.
Brooking10 said:
VAGLover said:
Where are you getting a 5% return?
Over the past 5 years there are plenty of funds which have returned at least 5% and indeed much more. A number have featured regularly in the PH finance section over that period.All depends on one’s appetite for risk.
I can make any loan look bad by comparing it to a risk driven return.....the fair comparison of opportunity cost in buy v lease is the rate of return in the bank (I.e risk free)
VAGLover said:
Brooking10 said:
VAGLover said:
Where are you getting a 5% return?
Over the past 5 years there are plenty of funds which have returned at least 5% and indeed much more. A number have featured regularly in the PH finance section over that period.All depends on one’s appetite for risk.
I can make any loan look bad by comparing it to a risk driven return.....the fair comparison of opportunity cost in buy v lease is the rate of return in the bank (I.e risk free)
I imagine the vast majority of folk would do too.
The inverse of course of your position is that a cash purchase of a vehicle similarly brings inherent risk and the vagaries of markets into play.
There really is no blanket right or wrong answer.
As is said ad nauseam on these threads it’s all a question of circumstances.
Brooking10 said:
VAGLover said:
Brooking10 said:
VAGLover said:
Where are you getting a 5% return?
Over the past 5 years there are plenty of funds which have returned at least 5% and indeed much more. A number have featured regularly in the PH finance section over that period.All depends on one’s appetite for risk.
I can make any loan look bad by comparing it to a risk driven return.....the fair comparison of opportunity cost in buy v lease is the rate of return in the bank (I.e risk free)
I imagine the vast majority of folk would do too.
The inverse of course of your position is that a cash purchase of a vehicle similarly brings inherent risk and the vagaries of markets into play.
There really is no blanket right or wrong answer.
As is said ad nauseam on these threads it’s all a question of circumstances.
Anyway, each to their own
FYI. I have enough cash to buy my cars in cash. I personally pcp and then pay off half way through,
I don’t want a good sized chunk of cash tied up in an asset on the drive - I value liquidity
Owned a few new cars in my time and was always terrified of the first bash or keying, especially as my cars live on the street in London.
Please don't remind me of my new Disco 3 that was keyed on every panel at 2 months old.
Thing is once it was keyed, I got over it and drove it and didn't care where I parked it and abused it off road as well. It was rather enlightening.
My current car I have had since 1998 and really don't worry about it at all.
So I get a car on PCP. With the right deal it financially makes sense but what, despite me driving and parking carefully, do I do about the inevitable bashes and scrapes gained from all those other idiots I share the roads with?
Will I constantly be paying Chips Away or losing my NCB? as I presume the car has to be returned in decent nick.
Seems as a London driver and parker, owning a car on PCP will be more nerve wracking than buying outright.
My thinking is PCP is perfect for an owner with a drive/garage out of town and a decent parking space at work, not for someone like me who drives to different parts of London and the UK for work and usually ends up in a street overnight.
Or have I got this wrong and have been missing out?
Please don't remind me of my new Disco 3 that was keyed on every panel at 2 months old.
Thing is once it was keyed, I got over it and drove it and didn't care where I parked it and abused it off road as well. It was rather enlightening.
My current car I have had since 1998 and really don't worry about it at all.
So I get a car on PCP. With the right deal it financially makes sense but what, despite me driving and parking carefully, do I do about the inevitable bashes and scrapes gained from all those other idiots I share the roads with?
Will I constantly be paying Chips Away or losing my NCB? as I presume the car has to be returned in decent nick.
Seems as a London driver and parker, owning a car on PCP will be more nerve wracking than buying outright.
My thinking is PCP is perfect for an owner with a drive/garage out of town and a decent parking space at work, not for someone like me who drives to different parts of London and the UK for work and usually ends up in a street overnight.
Or have I got this wrong and have been missing out?
This topic was exhausted on a very similar thread only last week. It reached over 30 pages.
Bottom line is that I PCP/lease my cars and buy everything else. Although I’m not against buying cash and may do so in the future for the right deal/car.
There are MANY good PCP/leases and MANY poor cash deals... and VICE VERSA.
I wonder how many “anti PCP’ers” on here pay monthly for their car insurance opposed to buying up front.
It would be laughable if any of them refuse to spread the cost of a car over monthly payments but then insure it via a monthly direct debit.
Would love to know that stat.
Bottom line is that I PCP/lease my cars and buy everything else. Although I’m not against buying cash and may do so in the future for the right deal/car.
There are MANY good PCP/leases and MANY poor cash deals... and VICE VERSA.
I wonder how many “anti PCP’ers” on here pay monthly for their car insurance opposed to buying up front.
It would be laughable if any of them refuse to spread the cost of a car over monthly payments but then insure it via a monthly direct debit.
Would love to know that stat.
roadsmash said:
This topic was exhausted on a very similar thread only last week. It reached over 30 pages.
Bottom line is that I PCP/lease my cars and buy everything else. Although I’m not against buying cash and may do so in the future for the right deal/car.
There are MANY good PCP/leases and MANY poor cash deals... and VICE VERSA.
I wonder how many “anti PCP’ers” on here pay monthly for their car insurance opposed to buying up front.
It would be laughable if any of them refuse to spread the cost of a car over monthly payments but then insure it via a monthly direct debit.
Would love to know that stat.
PCP’ing a car isn’t spreading the cost over the term though is it?Bottom line is that I PCP/lease my cars and buy everything else. Although I’m not against buying cash and may do so in the future for the right deal/car.
There are MANY good PCP/leases and MANY poor cash deals... and VICE VERSA.
I wonder how many “anti PCP’ers” on here pay monthly for their car insurance opposed to buying up front.
It would be laughable if any of them refuse to spread the cost of a car over monthly payments but then insure it via a monthly direct debit.
Would love to know that stat.
TheStigsWeeBrother said:
Brooking10 said:
TheStigsWeeBrother said:
BINGO.
Brooking10,Butter Face and now Road Smash where’s Deep throat?
Still claiming the issue doesn’t bother or interest you ? Brooking10,Butter Face and now Road Smash where’s Deep throat?
I remain fascinated by why folk get worked up by other people’s finances, especially those who claim they’re not interested.
Night, wee man
Brooking10 said:
TheStigsWeeBrother said:
Brooking10 said:
TheStigsWeeBrother said:
BINGO.
Brooking10,Butter Face and now Road Smash where’s Deep throat?
Still claiming the issue doesn’t bother or interest you ? Brooking10,Butter Face and now Road Smash where’s Deep throat?
I remain fascinated by why folk get worked up by other people’s finances, especially those who claim they’re not interested.
Night, wee man
TheStigsWeeBrother said:
Brooking10 said:
TheStigsWeeBrother said:
Brooking10 said:
TheStigsWeeBrother said:
BINGO.
Brooking10,Butter Face and now Road Smash where’s Deep throat?
Still claiming the issue doesn’t bother or interest you ? Brooking10,Butter Face and now Road Smash where’s Deep throat?
I remain fascinated by why folk get worked up by other people’s finances, especially those who claim they’re not interested.
Night, wee man
I did it for the first time 3 years ago on a mk3.5 Focus ST. I’d sold my previous ST to free up cash. I’d not long had baby twins then I needed cash to fix the house. I bought a Clio 200 in the meantime and used the cash left over for the house. 9 months later, more cash needed, leaky roof, sold the Clio for the same price I’d paid, used half as a deposit on the ST and half on the house. 3 years later, back in the black fortunately and I’ll pay the balloon off next month.
TheStigsWeeBrother said:
roadsmash said:
This topic was exhausted on a very similar thread only last week. It reached over 30 pages.
Bottom line is that I PCP/lease my cars and buy everything else. Although I’m not against buying cash and may do so in the future for the right deal/car.
There are MANY good PCP/leases and MANY poor cash deals... and VICE VERSA.
I wonder how many “anti PCP’ers” on here pay monthly for their car insurance opposed to buying up front.
It would be laughable if any of them refuse to spread the cost of a car over monthly payments but then insure it via a monthly direct debit.
Would love to know that stat.
PCP’ing a car isn’t spreading the cost over the term though is it?Bottom line is that I PCP/lease my cars and buy everything else. Although I’m not against buying cash and may do so in the future for the right deal/car.
There are MANY good PCP/leases and MANY poor cash deals... and VICE VERSA.
I wonder how many “anti PCP’ers” on here pay monthly for their car insurance opposed to buying up front.
It would be laughable if any of them refuse to spread the cost of a car over monthly payments but then insure it via a monthly direct debit.
Would love to know that stat.
Caught red handed!!! We’ve got a monthly insurance payer here!!!
BUYS ALL HIS CARS CASH BUT HASNT GOT ENOUGH LEFT IN THE BANK TO INSURE IT UP FRONT!!!
Do you know how pathetic that sounds?
That’s what you sound like when you and your other cronies claim that all who PCP have no cash.
roadsmash said:
Oh god!
Caught red handed!!! We’ve got a monthly insurance payer here!!!
BUYS ALL HIS CARS CASH BUT HASNT GOT ENOUGH LEFT IN THE BANK TO INSURE IT UP FRONT!!!
Do you know how pathetic that sounds?
That’s what you sound like when you and your other cronies claim that all who PCP have no cash.
It was a very simple question but obviously not simple enough for you. Caught red handed!!! We’ve got a monthly insurance payer here!!!
BUYS ALL HIS CARS CASH BUT HASNT GOT ENOUGH LEFT IN THE BANK TO INSURE IT UP FRONT!!!
Do you know how pathetic that sounds?
That’s what you sound like when you and your other cronies claim that all who PCP have no cash.
1) Where did I say I buy all my cars cash?
2) Wher have people said that ALL PCP'ers have no money?
3) Do you actually believe that EVERY PCP'er has the full purchace price in the bank?
4) Could you answer the original question without all the hyperbole/lies?
Edited by TheStigsWeeBrother on Wednesday 23 January 07:23
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