Out of interest, what kind of deal did you get on it? Porsche tried to get me to go down the PCP route and it seems like financial suicide to get in a car you could never afford to buy so they can sell it again once you have paid the depreciation plus a huge profit for them.
Am most likely wrong on this.
But I thought PCP was more for the people that like to replace there car every 24 months or so
Right but the way it was sold to me was as follows
£15k down, £750 a month, then a balloon payment of £20k or give the car back and start again, with zero to show for it, so when you go to start again with a new model you have to find the £15k deposit again...
I probably shouldn't be looking at cars of that value because that just seems like insanity to me to spend that much money and have zero to show for it. I'd much rather go used approved, spend the £15k deposit and finance a lower value car with the aim of owning it at the end.
![[TW]Fox](/data/man-of-honor/2009.png){kind=avatar}
There may be 'some' residual left but usually nothing like £15k! You'll generally still need to find another significant deposit.
The reason PCP is sold as 'for people who like to change car every 2 years' is because thats exactly what the dealers, finance firms and manufacturers want - the customer to change car every 2 years.
Soldato
- Joined
- 3 Oct 2009
- Posts
- 19,896
- Location
- Wales
I'm sure they'll manage to find you some "special one time deal" too where you won't need to come up with as much deposit next time around, they'll roll the equity in your car into the next one! The monthlies will now be £1100 but don't worry, that's just within your budget and maybe we'll even manage to squeeze you into a nicer car!
Some dealerships are now obscenely pushy with PCP due to the money it makes them. I had a VW dealer try to give me some shonky financial advice claiming that a PCP would be far better than a bank loan due to some pseudo-logic to do with a personal 'credit limit', calling out my judgement on my choice of car-financing option then proceeding to explain it to my wife. At this point I got annoyed as had I been less well informed and aware of my own financial situation/ability to secure credit, I might have been duped by him - I'm sure others have been and will be in future. They try and get you with the new car smell, promise of fantastic residuals that will mean you won't pay a deposit on your next car (you will) and make out like you're only winner in the deal - of course you're not the winner, otherwise they wouldn't be trying to push it on you.
Sorry for sitting on the fence regarding car salesmen/PCP!
But sir, you can end the PCP whenever you like (within terms and conditions) and you won't need to pay a deposit for your next car (you will) because the car will definitely be worth more than our GFV (but not by enough) Look, with my pseudo maths I'll show you how your repayments will be lower (they won't) and we can offer you a discount on the car's on the road price if you take out the PCP (but you'll pay more over the whole term and will own nothing at the end) and while you're thinking about it breathe in that new car smell!
Bottom line with a PCP is that it's there to get you into a car that is more expensive than would otherwise be affordable or acceptable if you took straight HP or a bank loan. That is why it exists.
A £30,000 car with a £5k deposit on HP over 3 years would be £700 a month before interest and worth say £15k at the end.
A £30,000 car with a £5k deposit on PCP over 3 years with a £15k balloon would be £280 a month before interest.
That is why people PCP - the fact that once you've added the interest the actual cost over that 3 years is higher with a PCP doesn't really factor into most peoples decisions, either because they do not care or because the monthly payment for the cheaper overall option is not affordable anyway or is more than they want to spend on an ongoing basis, despite the fact it might work out cheaper in the long run.
It is now the most popular method of financing a car by some margin - the majority of cars are now purchased this way.
A £30,000 car with a £5k deposit on HP over 3 years would be £700 a month before interest and worth say £15k at the end.
A £30,000 car with a £5k deposit on PCP over 3 years with a £15k balloon would be £280 a month before interest.
That is why people PCP - the fact that once you've added the interest the actual cost over that 3 years is higher with a PCP doesn't really factor into most peoples decisions, either because they do not care or because the monthly payment for the cheaper overall option is not affordable anyway or is more than they want to spend on an ongoing basis, despite the fact it might work out cheaper in the long run.
It is now the most popular method of financing a car by some margin - the majority of cars are now purchased this way.
Last edited:
in pictures they don't look great, but in the flesh they are actually lovely looking.
mk1_salami
mk1_salami
OP
Forgot to update you guys - I went for the M4 Comp Pack. Just had a winter polish & sealant applied and also lowered the car on H&R Springs. Here are some pics from today!
Soldato
- Joined
- 7 Feb 2004
- Posts
- 8,242
- Location
- North East
