Questions on taking on a GT4 using PCP.
Discussion
Hi P-MJH . Like you say, I don’t have 80 grand in my current account (nicer problems to have 
) I’m sensible with repayment commitments.
You’ve mentioned something I was not even aware of, that you can use pcp from outside Porsche. Shows my lack of knowledge on pcp. I really need to do some more homework on that. Are there any finance companies that you know of who would be a better pcp option? I could look into those to explore the numbers.
Thanks for your help.
) I’m sensible with repayment commitments.You’ve mentioned something I was not even aware of, that you can use pcp from outside Porsche. Shows my lack of knowledge on pcp. I really need to do some more homework on that. Are there any finance companies that you know of who would be a better pcp option? I could look into those to explore the numbers.
Thanks for your help.
Buggyjam said:
Hi P-MJH . Like you say, I don’t have 80 grand in my current account (nicer problems to have ) I’m sensible with repayment commitments.
You’ve mentioned something I was not even aware of, that you can use pcp from outside Porsche. Shows my lack of knowledge on pcp. I really need to do some more homework on that. Are there any finance companies that you know of who would be a better pcp option? I could look into those to explore the numbers.
Thanks for your help.
Have a word with Richard Foster at Meridian Finance - he's rfoster on here) I’m sensible with repayment commitments.You’ve mentioned something I was not even aware of, that you can use pcp from outside Porsche. Shows my lack of knowledge on pcp. I really need to do some more homework on that. Are there any finance companies that you know of who would be a better pcp option? I could look into those to explore the numbers.
Thanks for your help.
P-MJH said:
Asking questions on here or any other forum about pcp is just asking for trouble...
Some people will tell you if you can’t afford to buy it outright you can’t afford to buy it full stop... bullsh*t
If you can afford the monthlies then you can afford it, a pcp is just a lease. Whether or not that’s a financially astute decision is up for debate, but so is throwing down a chunk of change on a depreciating asset.
I sort of agree, but my rule is if you cannot afford it outright on a 5 year loan you cannot really afford it, hence most cars get handed back after 3 years !Some people will tell you if you can’t afford to buy it outright you can’t afford to buy it full stop... bullsh*t
If you can afford the monthlies then you can afford it, a pcp is just a lease. Whether or not that’s a financially astute decision is up for debate, but so is throwing down a chunk of change on a depreciating asset.
the thing is MOST people CANNOT afford it, but want that new car so will pay through the nose to get it, and while yes they can afford the payments they CANNOT AFFORD to buy the car (that's a FACT), so really can they afford it ? and the answer to that 90% of the time is no. They can only afford to rent it, not ever buy it !!! you are getting confused with affording the rent payments over affording to really own the car.
PCP allows people to use a car they cannot afford to own and never will while they are in that loop.
I think that there are two arguments here, one is the good financial sense of not buying something you can't really afford (Head) and the other is owning a car you do not have the cash to buy (heart). I think the problem with cheap credit is that people sometimes go into these agreements with their eyes shut to the consequences.
There’s some really good questions being raised. Some good stuff. It’s had me thinking!
Rightly or wrongly I had put down my cars as another monthly outgoing on something essentially disposable that I choose to do. You you don’t really need to live or survive but enjoy, gym membership, a hobby etc. Just outgoings really. When you add it all up over the year it’s quite expensive as an annual sum. I don’t buy gym membership outright, or have my yearly allowance for meals out sitting there. Non of it is an investment in a financial way, just things you enjoy day to day that cost money to do. A lot of those things add to quite a sum over a year and you’ve got nothing tangible to show for them after the fact really. They’re just enjoyable.
Mm, it’s all good opinions. Food for thought. Cheers chaps!
Rightly or wrongly I had put down my cars as another monthly outgoing on something essentially disposable that I choose to do. You you don’t really need to live or survive but enjoy, gym membership, a hobby etc. Just outgoings really. When you add it all up over the year it’s quite expensive as an annual sum. I don’t buy gym membership outright, or have my yearly allowance for meals out sitting there. Non of it is an investment in a financial way, just things you enjoy day to day that cost money to do. A lot of those things add to quite a sum over a year and you’ve got nothing tangible to show for them after the fact really. They’re just enjoyable.
Mm, it’s all good opinions. Food for thought. Cheers chaps!
Do people actually care about owning outright... or actually, they are fine as long as they have the use of it whilst they can afford it... i.e. rent/lease.... what's wrong with that?
It's just a different way to have the experience... and how people prioritise how they spend the fruit of their labour is their prerogative. As long as they have their eyes open and don't cry foul if things don't work out for their situation.
People on the continent and in other countries... do they own houses or primarily rent?
Ownership is nice.... in a sentimental, accomplishment, sense of achievement so of way. It means to store value.... not much that is man-made these days is really worth storing value in.
For the now, People are much less attached to things these days... consumerism is the way - and people will use what is current, then go get the next one when it comes available.
It's just a different way to have the experience... and how people prioritise how they spend the fruit of their labour is their prerogative. As long as they have their eyes open and don't cry foul if things don't work out for their situation.
People on the continent and in other countries... do they own houses or primarily rent?
Ownership is nice.... in a sentimental, accomplishment, sense of achievement so of way. It means to store value.... not much that is man-made these days is really worth storing value in.
For the now, People are much less attached to things these days... consumerism is the way - and people will use what is current, then go get the next one when it comes available.
TDT said:
Do people actually care about owning outright... or actually, they are fine as long as they have the use of it whilst they can afford it... i.e. rent/lease.... what's wrong with that?
It's just a different way to have the experience... and how people prioritise how they spend the fruit of their labour is their prerogative. As long as they have their eyes open and don't cry foul if things don't work out for their situation.
People on the continent and in other countries... do they own houses or primarily rent?
Ownership is nice.... in a sentimental, accomplishment, sense of achievement so of way. It means to store value.... not much that is man-made these days is really worth storing value in.
For the now, People are much less attached to things these days... consumerism is the way - and people will use what is current, then go get the next one when it comes available.
All good points. Leasing cars is much more popular in the US than here - I have a friend with a new Range Rover Sport and a new Jaguar F Type 5.0 litre both on lease agreements he runs through his company, and it's a very small company. I don't think he has ever actually bought a car since moving to the US some 15 years ago. He's not concerned about ownership.It's just a different way to have the experience... and how people prioritise how they spend the fruit of their labour is their prerogative. As long as they have their eyes open and don't cry foul if things don't work out for their situation.
People on the continent and in other countries... do they own houses or primarily rent?
Ownership is nice.... in a sentimental, accomplishment, sense of achievement so of way. It means to store value.... not much that is man-made these days is really worth storing value in.
For the now, People are much less attached to things these days... consumerism is the way - and people will use what is current, then go get the next one when it comes available.
One more point for the OP . . . you can't equate buying food or gym membership with car ownership. If you were to draw up your own personal balance sheet, a car would be a fixed asset, same as owning property.
I think a lot of this is a generational thing, come back to the forums in 30 years and I bet not too many people will be fussed about car ‘ownership’ ... Acquire your toy through whatever means make most sense to you and enjoy it.
The most important thing is fully understanding any finance agreement you go into and the total cost it incurs. Too many people naively rush into these deals without much consideration... and to be honest they are set up to cater to these less intelligent beings. However, credit used sensibly with the low interest rates on offer at the moment is something to be exploited
The most important thing is fully understanding any finance agreement you go into and the total cost it incurs. Too many people naively rush into these deals without much consideration... and to be honest they are set up to cater to these less intelligent beings. However, credit used sensibly with the low interest rates on offer at the moment is something to be exploited
Edited by P-MJH on Tuesday 24th April 13:00
T25UFO said:
TDT said:
Do people actually care about owning outright... or actually, they are fine as long as they have the use of it whilst they can afford it... i.e. rent/lease.... what's wrong with that?
It's just a different way to have the experience... and how people prioritise how they spend the fruit of their labour is their prerogative. As long as they have their eyes open and don't cry foul if things don't work out for their situation.
People on the continent and in other countries... do they own houses or primarily rent?
Ownership is nice.... in a sentimental, accomplishment, sense of achievement so of way. It means to store value.... not much that is man-made these days is really worth storing value in.
For the now, People are much less attached to things these days... consumerism is the way - and people will use what is current, then go get the next one when it comes available.
All good points. Leasing cars is much more popular in the US than here - I have a friend with a new Range Rover Sport and a new Jaguar F Type 5.0 litre both on lease agreements he runs through his company, and it's a very small company. I don't think he has ever actually bought a car since moving to the US some 15 years ago. He's not concerned about ownership.It's just a different way to have the experience... and how people prioritise how they spend the fruit of their labour is their prerogative. As long as they have their eyes open and don't cry foul if things don't work out for their situation.
People on the continent and in other countries... do they own houses or primarily rent?
Ownership is nice.... in a sentimental, accomplishment, sense of achievement so of way. It means to store value.... not much that is man-made these days is really worth storing value in.
For the now, People are much less attached to things these days... consumerism is the way - and people will use what is current, then go get the next one when it comes available.
One more point for the OP . . . you can't equate buying food or gym membership with car ownership. If you were to draw up your own personal balance sheet, a car would be a fixed asset, same as owning property.
ted 191 said:
How many people own their home, most people below 50 will have a mortgage
You are right.. but the crucial difference..especially acute in the UK is that generally properties are alway appreciating.. so you are borrowing vs the price at the point in time - the time of your purchase.. and in most cases if you complete the payment plan you own the asset and it will be worth more than you paid + the interest.Demand is always increasing... supply is limited and also very constrained on this island we call home.
Its also a big cultural and generational thing as people have mentioned.
Bought a car recently and was offered PCP as a way to finance it. In each scenario I had to push the dealer to tell me what the APR was and also what the total interest payments were - the dealer wasn't volunteering this info. What he did say was that 'nobody asks this, they just want to know what the monthly payments are'.
I ended up playing very hard-ball on the 'monthlies' to the extend that the dealer said that the only way he could achieve those payments would be to discount the price, which he did by a chunk and threw in a few extras.
I settled the bill with VW after a week and saved £6k in interest that I would have paid out over the 4 year period.
Use the PCP wisely and work out how much interest you are happy to pay out each month over the term. For me I wasn't happy to pay £1.5k a year so settled. The dealer must have thought that he'd talked me into it though as I bought the deal.
I ended up playing very hard-ball on the 'monthlies' to the extend that the dealer said that the only way he could achieve those payments would be to discount the price, which he did by a chunk and threw in a few extras.
I settled the bill with VW after a week and saved £6k in interest that I would have paid out over the 4 year period.
Use the PCP wisely and work out how much interest you are happy to pay out each month over the term. For me I wasn't happy to pay £1.5k a year so settled. The dealer must have thought that he'd talked me into it though as I bought the deal.
Edited by WhiskyDisco on Tuesday 24th April 13:43
Edited by WhiskyDisco on Tuesday 24th April 13:44
TDT said:
Do people actually care about owning outright... or actually, they are fine as long as they have the use of it whilst they can afford it... i.e. rent/lease.... what's wrong with that?
NO they care what other people have and want to be seen in the same car at any cost !what I find is people are happy with a £350 figure say for a £30k car (or £600 for a £50k car) etc etc , but that does not buy them a GT4, then these very same people moan a lot when other people buy a better nicer car out right 15 years down the line.
the same People at 40 years old still have that £350 figure paying out year on year and guess what they still drive In a £30k car and yet still moan and b
h how some one else can afford a £130k cash.People are very happy to HAVE THAT NEW CAR now to outdo their mates or the next person on the street, but they are stuck in that loop and the same £30k cars for the rest of their lives.
As an earlier poster said, there is some validity in the argument that cars can be viewed as just another monthly outgoing, like any hobby or discretionary purchase. One of my best mates was very much against car expenditure at any level and always drove around in something old and usually very boring. He would, however, happily spend 10 or 12 grand on a 2-week family holiday sitting on a beach cooking himself in the sun. None of my cars (including Ferrari and Porsche, some but not all of them PCP'd) ever cost me that much in a year. He was happy with his holiday 2 weeks of the year. I was happy driving a gorgeous car for 52 weeks of the year. Whatever makes you happy, and you've got the money, I say just do it.
Porsche911R said:
NO they care what other people have and want to be seen in the same car at any cost !
Blimey, hope you don’t mean me in that post . Just to say I’m happy when I read it, I don’t fit into those descriptions. I just love them. Doesn’t matter if anyone is watching. I don’t mind what others have. I’ve never been an envious type 
.SL550M said:
As an earlier poster said, there is some validity in the argument that cars can be viewed as just another monthly outgoing, like any hobby or discretionary purchase. One of my best mates was very much against car expenditure at any level and always drove around in something old and usually very boring. He would, however, happily spend 10 or 12 grand on a 2-week family holiday sitting on a beach cooking himself in the sun. None of my cars (including Ferrari and Porsche, some but not all of them PCP'd) ever cost me that much in a year. He was happy with his holiday 2 weeks of the year. I was happy driving a gorgeous car for 52 weeks of the year. Whatever makes you happy, and you've got the money, I say just do it.
Ha bar the foreign holiday thing, you’ve just described me . I always ran round in rotten old bangers until last year as wasn’t fussed on cars. Then I discovered an interest in Porsche cars. TDT said:
ted 191 said:
How many people own their home, most people below 50 will have a mortgage
You are right.. but the crucial difference..especially acute in the UK is that generally properties are alway appreciating.. so you are borrowing vs the price at the point in time - the time of your purchase.. and in most cases if you complete the payment plan you own the asset and it will be worth more than you paid + the interest.Demand is always increasing... supply is limited and also very constrained on this island we call home.
Its also a big cultural and generational thing as people have mentioned.
I lived through the peak mortgage rate period when the UK left the ERM - anyone remember when Norman Lamont took on George Soros and lost? Now we think money is cheap but if you look at the spread (what you can earn on savings against what you pay on borrowing) and factor in inflation rates, then most borrowing outside of home ownership is expensive.
Whatever to commodity or product, most people "want it" today and cannot conceive of saving until they can actually afford to buy. It's why we have personal debt at unprecedented levels.
If you can afford the monthly payments, and you understand and are happy with how PCP works and the costs involved, then all is good. Whether you own, or will ever own, the car is irrelevant.
Getting flustered about how other people spend their disposable income and enjoy their life is a strange concept to me. A lot of posts about ownership/financial costs strike me as snobbish and elitist i.e. "you shouldn't have one of those because you're not worthy"
Getting flustered about how other people spend their disposable income and enjoy their life is a strange concept to me. A lot of posts about ownership/financial costs strike me as snobbish and elitist i.e. "you shouldn't have one of those because you're not worthy"
But for a lot of people PCP isn't purchasing, that's the point. It's leasing or paying to use it, which is fine if you understand the game and are happy to play. Some people seem to think it's the devil's work, which it isn't, it's just a way to get into a car you want to drive without actually owning it - but at a cost.
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