Only because the dealers can have a steady income instead of the peaks and troughs. I wouldn't want to be tied into monthly payments for a car
To PCP or not to PCP
- Thread starter Syla5
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Only because the dealers can have a steady income instead of the peaks and troughs. I wouldn't want to be tied into monthly payments for a car
You could get a 4x4 for the Winter, a cabriolet in the summer an estate for a family trip away and something small and fun for the weekends. Too many options
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You could get a 4x4 for the Winter, a cabriolet in the summer an estate for a family trip away and something small and fun for the weekends. Too many options
It starts from 570, so that won't include those cars.
If the base models hatchbacks are £570 per month, the level that would afford flexibility like that is going to more like £750 per month, if not more, surely?You could get a 4x4 for the Winter, a cabriolet in the summer an estate for a family trip away and something small and fun for the weekends. Too many options
Point being its likely to be significantly more than purchasing a car to the point only those with enough money they could literally burn it for entertainment that'll be interested in such schemes until they become much much cheaper.Shock that the all inclusive monthly cost to use a 5/6/7/X5 is high
The company running the scheme are quoting 550 for a SEVEN year old Disco. That's mental.
For sure the monthly fee includes a significant amount added for flexibility and convenience.
I'm reading the cars come with a full tank of fuel, no mileage limit, full maintenance cover and insurance. These need to be taken into account when looking at the cost. People on this forum spend upwards of £100 per month on a warranty. My fuel and insurance costs are around £250 per month and 520d at £450 per month, so that's £700 for a base 5 Series right there.
Soldato
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PCP is just a finical service, just because some people misuse it doesn't mean it's crap/useless. That's like saying credit cards are crap because some people rack up credit they can't afford. However a friend, who still lives at home, has just got a Audi Q2 in PCP and it does make me cringe how much it's going to cost him.
It isn't a 'new car every day' service, its more long term than that, and there is no mention that fuel is included. I think you are confusing it with the car-club things, of which this isn't?
So the comparable cost against your 5 Series is £450 a month plus a trivial amount for insurance. So much more expensive, given it starts at £570 for a Mini. We've just got a new Mini and I'll be crying into my cornflakes if my sums were so far out that it ended up costing anything like £570 a month to own over the period we have it
The inclusive schemes are an ingenious way of making money under the banner of convenience. The likes of the Porsche one mentioned in another thread may be useful if you're stinking rich, but for most other people you're tying up yet more money.
Why do people think businesses are doing you a favour with these ideas, they only exist for one reason
Why do people think businesses are doing you a favour with these ideas, they only exist for one reason
Why do people think businesses are doing you a favour with these ideas, they only exist for one reason
Its called marketing. Getting people into cars that are normally too expensive for them to afford then to tie them in for as long as possible for the attraction of a monthly payment they can afford so they can show off that they can regularly drive or look to own a new car
So lets say your new Kia (Sportage for example) is costing you £14k, you've added that £14k to your mortgage, at 1.79%, so in effect the cast over 60 months is going to be £15300ish, so £1300 interest to pay - don't think you'll beat this deal with car finance.
My mind is on the figures of 10 years, and 3k miles per year... my advice get an Electric car now, or don't keep the Kia for 10 years, and replace it once the taxes start going through the roof for fossil fuel cars, and tax on fuel is increased to offset the move to primarily electric vehicles. It'll be 2028 before you are changing it again, the motoring world will not want your car after that time if it is ICE, especially diesel so you will literally end up writing it off.
EDIT: I got my figures mixed up, 14K over 60 months is only about £650.
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quick question, how do you do this? add the cost of the car to your mortgage?
Call them up and ask to borrow more, or do it when you’re remortgaging (which is what we did).
@Maccy ah! thanks!
so the mortgage company will allow you to borrow against the house? basically up to the max amount they're willing to lend you, and you don't have to spend all of that on the house/redecorating the house (if i read that correctly)?
so the mortgage company will allow you to borrow against the house? basically up to the max amount they're willing to lend you, and you don't have to spend all of that on the house/redecorating the house (if i read that correctly)?
@Maccy ah! thanks!
so the mortgage company will allow you to borrow against the house? basically up to the max amount they're willing to lend you, and you don't have to spend all of that on the house/redecorating the house (if i read that correctly)?
Of course it would change depending on circumstances, but yes best off calling them up and asking!
Can get at least a couple of grand off by using a broker so the depreciation is likely a bit less than you have calculated.
On the flip side if you've taken out PCP on a car you "can't afford" then presumably that means you may be in a more appealing car to start with that had you bought something outright. So the reason you have to buy something less appealing at end of term is because you had a luxury to begin with, so that outcome should be expected rather than considered a problem.
The thing that I was mainly trying to find out is was there a cheaper alternative or is there extra value in PCP for our situation and I think the answer here is clear, PCP is not the option for us. One of my key drivers was that there are 5 year fix rate bonds on the market that offer a return of 2.6% so technically if I can borrow for less then this rate, I could put the money in to this no risk investment and effectively earn money for nothing while paying for a car cheaply.
The mileage will go up, the car will be doing probably closer to 8k per year then the current 3k but that is still low by todays standards. As for an Electric car, that is my ideal choice BUT for my wife the car needed to be large enough to fit in 3 car seats as she is a child minder, and all the electric options were out of price range for this size.
When my car is due for replacement I will get an electric car.
For us we were re-mortgaging as we were at the end of the term, we borrowed extra to get the new car and get home improvement work (Garden and Driveway) done as well, but yes mortgage companies will lend for other stuff then just buying the house.
Back to the point raised by the OP:
Avoid the PCP on used cars, the rate is too high. If you're keen to maintain some liquid funds in the bank for financial flexibility then consider a bank loan for some or all of the cost of the car. This will leave your money in the bank, paying for the convenience in the form of the interest on the loan (which will be a lower % than the PCP).
Avoid the PCP on used cars, the rate is too high. If you're keen to maintain some liquid funds in the bank for financial flexibility then consider a bank loan for some or all of the cost of the car. This will leave your money in the bank, paying for the convenience in the form of the interest on the loan (which will be a lower % than the PCP).
I am surprised that you would be of the opinion that 3-4% APR is a competitive borrowing rate. Santander sell offsets at less than half this rate for example.
Some of the advice in this thread is hilarious, especially the guys spearheading non 0% PCPs as anything other than a rip off.