PCP or loan

The offset of it not being a particularly pleasurable car to drive on motorway is that our 107 was, by an absolute country mile the cheapest car we ever had on a day to day running cost basis. When (a sensible view of) finances dictate not swapping at present you could be stuck with something much, much worse
 
rodenal said:
The offset of it not being a particularly pleasurable car to drive on motorway is that our 107 was, by an absolute country mile the cheapest car we ever had on a day to day running cost basis. When (a sensible view of) finances dictate not swapping at present you could be stuck with something much, much worse
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This is true and the C1 is a great little car but just not great on long journeys.

[TW]Fox said:
This is the sort of thinking that gets people upside down in terrible financed cars.
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That maybe true but for a LOT of people, car finance is perfectly acceptable. Without it, no one could afford to buy cars!

sideways14a said:
Why are doing 15k in your c1? is this commuting? if so then... **** that.
Is it for work, if so then why are you paying for the car?
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I purchased the C1 on a £99pm deal when I was working 10 miles away from my home and just needed something to get my there with no fuss and the C1 fitted that perfectly. I've now moved job and I do a 60 mile round trip everyday.

I get £340 car allowance from work (with the option for company car but that's actually worse) so right now, I'm pocketing £240,
 
Casdawer said:
The same reason why people sign up to any loan/mortgage over a long period? No one knows that will happen during the period of any loan, that's life.
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People tend to always require somewhere to live and forward plan for many years when buying a property. You are also each month usually paying off equity which would then allow you to upgrade / move to another house should you wish.

Cars and mortgages / houses are not comparable in terms of financing, your massive negative equity balance on a fairly small loan proves that.

Why is a small bank loan and a second hand suitable car not on the table? Your current two options are;

1) Keep a car that is rubbish for it's required purpose
2) Buy a brand new car and throw away thousands

Keep in mind that option 2 will likely end up also including option 1 (as it has with your current C1).

How about option 3;

3) Bank loan of £7.5k, pay off negative equity and buy £5k suitable car. £280 per month for 28 months (just over 2 years) and you are out of negative equity and own your car. You are then in a position where you will be £280 better off each month and can save for a newer car, put it towards something else or take out another small loan and upgrade your car.
 
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Peerzy said:
Why is a small bank loan and a second hand suitable car not on the table? Your current two options are;

1) Keep a car that is rubbish for it's required purpose
2) Buy a brand new car and throw away thousands

Keep in mind that option 2 will likely end up also including option 1 (as it has with your current C1).

How about option 3;

3) Bank loan of £7.5k, pay off negative equity and buy £5k suitable car. £280 per month for 28 months (just over 2 years) and you are out of negative equity and own your car. You are then in a position where you will be £280 better off each month and can save for a newer car, put it towards something else or take out another small loan and upgrade your car.
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Option 1 is where I am at the moment but option 3 has been tempting as it'll give me something at the end of the loan however I may as well wait till I've paid off half of the PCP agreement and then hand the car back and hopefully within that time I've saved enough for a 2nd hand car (If I saved the £240 'saving' over the next 24 months that'll give me £5760 which would be plenty to get a decent motorway runner).
 
Kenai said:
Just the £350 sized hole in your pay packet every month instead :p
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Well yes, that's a bit of a pain but I can get a VW Polo R Line for £15 per month (yes, it's correct, I checked!)

Money saved from loan/PCP/HP, Insurance, Tax, Servicing, MOT etc. + worry free driving!
 
Casdawer said:
Well yes, that's a bit of a pain but I can get a VW Polo R Line for £15 per month (yes, it's correct, I checked!)

Money saved from loan/PCP/HP, Insurance, Tax, Servicing, MOT etc. + worry free driving!
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It's not 15 quid a month, it's 15 quid a month plus monthly tax plus loss of car allowance.
 
[TW]Fox said:
It's not 15 quid a month, it's 15 quid a month plus monthly tax plus loss of car allowance.
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The £15 is the company car tax total as I'd be trading down and it's a slight increase every year but pay rises will more than cover that increase!

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Casdawer said:
I'm happy to keep the C1 but it means I'll have to either a) increase the monthly payments b) save for the excess mileage (it's 3p per mile so not much really).
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3p per mile is fairly cheap. You'll be paying 9000*0.03 = £270/year excess mileage or £22.50/month.
 
No brainer, keep the C1 at 3p a mile, and only 30 miles each way commute, it's hardly a cross county trek. 30,000 miles will cost you £900, which you'll be pocketing as you put it, in less than 4 months. :)
 
You don't have to pay excess mileage if you just pay the GFV? You will probably do this anyway as there will likely be positive equity at the end.
 
Kenai said:
You can get a Polo R Line for £355 a month then?
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I could but I'd still need to tax, insure and maintain the car which would be an extra £70 odd per month.

Journey said:
No brainer, keep the C1 at 3p a mile, and only 30 miles each way commute, it's hardly a cross county trek. 30,000 miles will cost you £900, which you'll be pocketing as you put it, in less than 4 months. :)
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Yea, that's what I'm going to do. When the PCP is done I think I'll just go company car and be done with it all. Its a hassle trying to get.a decent deal on a new car!

muon said:
You don't have to pay excess mileage if you just pay the GFV? You will probably do this anyway as there will likely be positive equity at the end.
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Yea, its the quickest way of getting rid of the car as they legally have to take it back if I've paid off half the value of the loan and I terminate the agreement.
 
Casdawer said:
I could but I'd still need to tax, insure and maintain the car which would be an extra £70 odd per month.
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No, what I mean is it isn't costing £15, it's costing £355.

I would expect you could get a Polo significantly cheaper than £355 a month when buying one.
 
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