Who Is Buying Used PCP Cars?
Discussion
My current deal is due to go back so I have spent the last few months scouting as I love a bargain.
My Ipace for example cost £290 a month for 24 months with a 3k deposit. 8k miles a year which I consider pretty good. Included a pod point, 2 years MOTs and 2 years Warranty.
Now though I look at used PCP and its much cheaper to just buy the car outright.
Presumably a combination of lower GFV and higher APR means by the time you have paid the pcp you have pretty much paid the value of the car but then still have the balloon if your fancy it.
I thought prices would drop as I wrongly assumed that no one is doing this but presumably loads of people still are or the market would move?
My Ipace for example cost £290 a month for 24 months with a 3k deposit. 8k miles a year which I consider pretty good. Included a pod point, 2 years MOTs and 2 years Warranty.
Now though I look at used PCP and its much cheaper to just buy the car outright.
Presumably a combination of lower GFV and higher APR means by the time you have paid the pcp you have pretty much paid the value of the car but then still have the balloon if your fancy it.
I thought prices would drop as I wrongly assumed that no one is doing this but presumably loads of people still are or the market would move?
Veloce144 said:
My current deal is due to go back so I have spent the last few months scouting as I love a bargain.
My Ipace for example cost £290 a month for 24 months with a 3k deposit. 8k miles a year which I consider pretty good. Included a pod point, 2 years MOTs and 2 years Warranty.
Now though I look at used PCP and its much cheaper to just buy the car outright.
Presumably a combination of lower GFV and higher APR means by the time you have paid the pcp you have pretty much paid the value of the car but then still have the balloon if your fancy it.
I thought prices would drop as I wrongly assumed that no one is doing this but presumably loads of people still are or the market would move?
Buying a used car via PCP is generally more expensive than buying a new car as there are fewer or no dealer / manufacturer contributions, and the APR is generally higher as well. You are also paying interest on the full balloon amount for the length of the term, which can significantly increase the overall cost to buy.My Ipace for example cost £290 a month for 24 months with a 3k deposit. 8k miles a year which I consider pretty good. Included a pod point, 2 years MOTs and 2 years Warranty.
Now though I look at used PCP and its much cheaper to just buy the car outright.
Presumably a combination of lower GFV and higher APR means by the time you have paid the pcp you have pretty much paid the value of the car but then still have the balloon if your fancy it.
I thought prices would drop as I wrongly assumed that no one is doing this but presumably loads of people still are or the market would move?
Buying with cash or the more traditional HP finance is most likely a better way to buy a used car.
I think used pcp is for the terminally insane
Work out what you can afford/want to pay on a bank loan and then look at that price point
My bank's current loan rate is 5.7% which is less than half the pcp quoted above and you're paying off the whole amount and will own the car at the end
Work out what you can afford/want to pay on a bank loan and then look at that price point
My bank's current loan rate is 5.7% which is less than half the pcp quoted above and you're paying off the whole amount and will own the car at the end
It's no surprise that a lower APR is going to result in cheaper overall cost, since there will be less interest to pay.
A bank loan or HP will be even cheaper than PCP due to not paying interest on the balloon amount, which doesn't reduce with payments over the term.
On a final note, with PCP you will also own the car at the end, unless you decide to return the car to the finance company.
A bank loan or HP will be even cheaper than PCP due to not paying interest on the balloon amount, which doesn't reduce with payments over the term.
On a final note, with PCP you will also own the car at the end, unless you decide to return the car to the finance company.
Earthdweller said:
I think used pcp is for the terminally insane
Work out what you can afford/want to pay on a bank loan and then look at that price point
My bank's current loan rate is 5.7% which is less than half the pcp quoted above and you're paying off the whole amount and will own the car at the end
Have to agree with this, and I'm a serial PCP-er of used cars. Before 2020 I could usually find a palatable deal with a single digit interest rate, but since then it's crazy. My current PCP deal is ending soon and I'm looking at either a bank loan, or a brand new car because there are still some half decent PCP deals to be had there. I know with a bank loan the monthly payments will be higher, but at least you own it at the end rather than having to find more money for the balloon payment, or hand it back and have nothing to show for it.Work out what you can afford/want to pay on a bank loan and then look at that price point
My bank's current loan rate is 5.7% which is less than half the pcp quoted above and you're paying off the whole amount and will own the car at the end
Earthdweller said:
I think used pcp is for the terminally insane
There was a time I'd have agreed with you. After years of running very dull Golf's, Passats, Mondeos, Insignia and other company cars of that ilk I decided to opt out of these corporate supplied delights and put myself in something a bit more interesting.
Car 1 was a MINI Clubman JCW (going back a bit here so talking about the original version with three doors, the third being the suicide door behind the driver's door) That car was 3 years old and was purchased using a deposit down and a personal loan where the repayments were covered by having no BIK tax to pay and a salary upgrade due to opting out of the company car. I kept the car for 3 years.
Car 2 was a brand new Peugeot 208GTI.
The little Pug had just been discontinued thus PSA was throwing money at deals to clear stock.
With a discount on list price, a deposit contribution and a subsidised interest rate the three years in the brand new Peugeot financed through PCP turned out to be considerably cheaper than three years outright ownership of the seconhand MINI once depreciation, repairs and loan interest costs were factored in.
Burny16v said:
I know with a bank loan the monthly payments will be higher, but at least you own it at the end rather than having to find more money for the balloon payment, or hand it back and have nothing to show for it.
Don't fall into the trap of believing the common misconceptions about PCP finance.Tannedbaldhead said:
Earthdweller said:
I think used pcp is for the terminally insane
There was a time I'd have agreed with you. After years of running very dull Golf's, Passats, Mondeos, Insignia and other company cars of that ilk I decided to opt out of these corporate supplied delights and put myself in something a bit more interesting.
Car 1 was a MINI Clubman JCW (going back a bit here so talking about the original version with three doors, the third being the suicide door behind the driver's door) That car was 3 years old and was purchased using a deposit down and a personal loan where the repayments were covered by having no BIK tax to pay and a salary upgrade due to opting out of the company car. I kept the car for 3 years.
Car 2 was a brand new Peugeot 208GTI.
The little Pug had just been discontinued thus PSA was throwing money at deals to clear stock.
With a discount on list price, a deposit contribution and a subsidised interest rate the three years in the brand new Peugeot financed through PCP turned out to be considerably cheaper than three years outright ownership of the seconhand MINI once depreciation, repairs and loan interest costs were factored in.
Neither of those examples are of used PCP
1. Used car on bank loan
2. New car on pcp (which often makes a lot of sense)
Not quite sure what you are disagreeing with me about tbf
Earthdweller said:
Tannedbaldhead said:
Earthdweller said:
I think used pcp is for the terminally insane
There was a time I'd have agreed with you. After years of running very dull Golf's, Passats, Mondeos, Insignia and other company cars of that ilk I decided to opt out of these corporate supplied delights and put myself in something a bit more interesting.
Car 1 was a MINI Clubman JCW (going back a bit here so talking about the original version with three doors, the third being the suicide door behind the driver's door) That car was 3 years old and was purchased using a deposit down and a personal loan where the repayments were covered by having no BIK tax to pay and a salary upgrade due to opting out of the company car. I kept the car for 3 years.
Car 2 was a brand new Peugeot 208GTI.
The little Pug had just been discontinued thus PSA was throwing money at deals to clear stock.
With a discount on list price, a deposit contribution and a subsidised interest rate the three years in the brand new Peugeot financed through PCP turned out to be considerably cheaper than three years outright ownership of the seconhand MINI once depreciation, repairs and loan interest costs were factored in.
Neither of those examples are of used PCP
1. Used car on bank loan
2. New car on pcp (which often makes a lot of sense)
Not quite sure what you are disagreeing with me about tbf
Was so used to reading negative posts on PCP as a procurement route I had kneejerked a "it's not all bad" reply.
In fairness I've never really looked into used PCP figures but must admit I feel very wary of using it on a used car.
Earthdweller said:
I think used pcp is for the terminally insane
Work out what you can afford/want to pay on a bank loan and then look at that price point
My bank's current loan rate is 5.7% which is less than half the pcp quoted above and you're paying off the whole amount and will own the car at the end
Or PCP through your bankWork out what you can afford/want to pay on a bank loan and then look at that price point
My bank's current loan rate is 5.7% which is less than half the pcp quoted above and you're paying off the whole amount and will own the car at the end
Veloce144 said:
My current deal is due to go back so I have spent the last few months scouting as I love a bargain.
My Ipace for example cost £290 a month for 24 months with a 3k deposit. 8k miles a year which I consider pretty good. Included a pod point, 2 years MOTs and 2 years Warranty.
Now though I look at used PCP and its much cheaper to just buy the car outright.
Presumably a combination of lower GFV and higher APR means by the time you have paid the pcp you have pretty much paid the value of the car but then still have the balloon if your fancy it.
I thought prices would drop as I wrongly assumed that no one is doing this but presumably loads of people still are or the market would move?
I was in the same boat as you with the iPace, I got a new Model 3 0% interest and £3k deposit contribution in November to replace it. My Ipace for example cost £290 a month for 24 months with a 3k deposit. 8k miles a year which I consider pretty good. Included a pod point, 2 years MOTs and 2 years Warranty.
Now though I look at used PCP and its much cheaper to just buy the car outright.
Presumably a combination of lower GFV and higher APR means by the time you have paid the pcp you have pretty much paid the value of the car but then still have the balloon if your fancy it.
I thought prices would drop as I wrongly assumed that no one is doing this but presumably loads of people still are or the market would move?
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