PCP deal - to proceed or not?
Discussion
My Porsche will be going for sale next week and I dont think it will take too long to sell so I have been browsing some local garages.
The reason for sale is that I need a bigger car but I am also looking to free up some cash for a new business venture.
My Porsche was purchased with a personal loan and I was planning on keeping that running and buying something for about £10k less than the car sells for so I have about 10k in cash and a 20k car (something like a Q7 possibly or estate car)
However a slight curve ball was thrown in today when I visited a local garage with a 2014 Range Rover sport HSE in, few extras on the car and only 30,000 miles. Looks lovely and the deal they threw out was very tempting, £2500 down and then £449 for 36 months on PCP after that chances are I would chop it in for a new model on PCP.
Normally I would just buy the next car and pay the loan off over the next 3 years so I own it but for my budget I am looking at higher mileage Q7 on about an 11 reg so its nothing flash where as the RR is low miles and a lot more modern inside, just generally a nicer car to be in.
The mileage on the PCP was enough for me and I have the deposit to hand.
Has anyone gone for PCP over this option and just continued to PCP their cars?
The reason for sale is that I need a bigger car but I am also looking to free up some cash for a new business venture.
My Porsche was purchased with a personal loan and I was planning on keeping that running and buying something for about £10k less than the car sells for so I have about 10k in cash and a 20k car (something like a Q7 possibly or estate car)
However a slight curve ball was thrown in today when I visited a local garage with a 2014 Range Rover sport HSE in, few extras on the car and only 30,000 miles. Looks lovely and the deal they threw out was very tempting, £2500 down and then £449 for 36 months on PCP after that chances are I would chop it in for a new model on PCP.
Normally I would just buy the next car and pay the loan off over the next 3 years so I own it but for my budget I am looking at higher mileage Q7 on about an 11 reg so its nothing flash where as the RR is low miles and a lot more modern inside, just generally a nicer car to be in.
The mileage on the PCP was enough for me and I have the deposit to hand.
Has anyone gone for PCP over this option and just continued to PCP their cars?
The payments are the same as what I pay now so financially no different.
I do understand I wont own the car at the end but can trade it back in for a new one, my logic is that if I am buying a higher mileage 2011 Q7 now its probably going to drop quite a lot in the next 3 years as it approaches 10 years old with even more miles so as a PX in the future I cant see it being much and no doubt I will lose a lot in 3 years.
The deal seems very good on the RR which is why I am tempted.
I do understand I wont own the car at the end but can trade it back in for a new one, my logic is that if I am buying a higher mileage 2011 Q7 now its probably going to drop quite a lot in the next 3 years as it approaches 10 years old with even more miles so as a PX in the future I cant see it being much and no doubt I will lose a lot in 3 years.
The deal seems very good on the RR which is why I am tempted.
I'm seeing a few red flags, firstly your Porsche is on credit/loan whatever.
Now you want to throw another £18000+ down the drain so you can have a RR just when you want to start a business?
As someone who's had a few businesses in the past, remember the statistic that many new businesses fail, especially early on, you don't want a PCP hanging over you when things are getting tough.
I'm no money adviser but using that loan money from the Porsche sale is the best thing you can do for your business.
I will check the GFV, the car is for sale at £42k. I am having a sleep on it but was told I can come back at the weekend (when I am free) to speak with one of the team properly.
No worries regarding income or business worries, I have two other limited companies which have been trading with success for over 6 years. They are my income, the additional cash will be used to put in to property I am investing in so although it sounds a bit risky its relatively safe and the monthly payments are only what I have been paying long term on my personal loan which if I go this route will be paid off completely when the Porsche goes.
No worries regarding income or business worries, I have two other limited companies which have been trading with success for over 6 years. They are my income, the additional cash will be used to put in to property I am investing in so although it sounds a bit risky its relatively safe and the monthly payments are only what I have been paying long term on my personal loan which if I go this route will be paid off completely when the Porsche goes.
JCKST1 said:
The payments are the same as what I pay now so financially no different.
I do understand I wont own the car at the end but can trade it back in for a new one, my logic is that if I am buying a higher mileage 2011 Q7 now its probably going to drop quite a lot in the next 3 years as it approaches 10 years old with even more miles so as a PX in the future I cant see it being much and no doubt I will lose a lot in 3 years.
The deal seems very good on the RR which is why I am tempted.
Exactly. You are under no illusions that you will have more money in the bank after 3 years if you buy the less expensive car but if both are affordable then.... Maintenance costs are likely to be more on the older higher mileage car. Equally if you are just going to replace the Audi anyway once it's paid off then you will never actually convert the asset to cash. I do understand I wont own the car at the end but can trade it back in for a new one, my logic is that if I am buying a higher mileage 2011 Q7 now its probably going to drop quite a lot in the next 3 years as it approaches 10 years old with even more miles so as a PX in the future I cant see it being much and no doubt I will lose a lot in 3 years.
The deal seems very good on the RR which is why I am tempted.
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