New car time - EV PCP deals?

Journey · 26 Jun 2022 at 15:10

Amraam said:
That's very true.

That price bracket car type is not something I've really focused on. What car would you recommend there? A small astra estate or focus/mondeo?

I am not a car expert, far from it. I understand the costs more than the cars, for a me a car is mostly A to B, and back to A again with sometimes a C and D in the middle. I don't spend hours reading about them, or washing them with £100's of expensive soaps etc. You best as one of the Motors "guru's" or just buy a car you like, have test driven, that comes with a (proper) warranty, and is affordable to you. Some research is probably wise given the costs though!

[TW]Fox · 26 Jun 2022 at 15:17

Amraam said:
any car that's £30k financed on PCP is going to equate to that sort of money?

I doubt it, but even if it is, this is a further argument against this sort of vehicle financing isn't it?

No £30k car is going to be worth only £5k in 4 years time, so you should be able to find a way of driving it for 4 years that doesn't cost £25k.

Personal Contract Plan is typically the most expensive way to finance a car. But dealers and customers like it because of all the available options it is the one which gives the lowest monthly payment...

Amraam · 26 Jun 2022 at 15:21

[TW]Fox said:
I doubt it, but even if it is, this is a further argument against this sort of vehicle financing isn't it?

No £30k car is going to be worth only £5k in 4 years time, so you should be able to find a way of driving it for 4 years that doesn't cost £25k.

Personal Contract Plan is typically the most expensive way to finance a car. But dealers and customers like it because of all the available options it is the one which gives the lowest monthly payment...

What other options are there then? I don't have £30k available to hand over in cash, PCH is similar money with zero possibility of equity at the end, and bank loans are double the monthly cost.

PCH on an MG ZS EV is £1100 + 47x £359 + insurance and maintenance etc. £18000 lease cost over 4 years

nam · 26 Jun 2022 at 16:17

worst time for any car purchase atm with increase in interest rates and rising inflation. Would be better off riding the storm in a cheaper model until this crisis has reversed

Simon · 26 Jun 2022 at 16:36

Journey said:
I am not a car expert, far from it. I understand the costs more than the cars, for a me a car is mostly A to B, and back to A again with sometimes a C and D in the middle. I don't spend hours reading about them, or washing them with £100's of expensive soaps etc. You best as one of the Motors "guru's" or just buy a car you like, have test driven, that comes with a (proper) warranty, and is affordable to you. Some research is probably wise given the costs though!

You spend hours posting about them though !

[TW]Fox · 26 Jun 2022 at 16:41

Amraam said:
bank loans are double the monthly cost

Because you own the car. The overall cost will likely be lower unless the rate on the finance is particularly good, but I can't see it being as low as a bank loan. The more money you put in yourself, the less you need to borrow and the lower your monthly cost and the cost of borrowing.

Amraam · 26 Jun 2022 at 16:47

nam said:
worst time for any car purchase atm with increase in interest rates and rising inflation. Would be better off riding the storm in a cheaper model until this crisis has reversed

Worst time thus far. I suspect in 6 months from now, it'll only be worse again.

Amraam · 27 Jun 2022 at 16:22

Couple that caught my eye. PCH though...

Hyundai Kona Hatchback

£198.12 Per Month, INC VAT. 1.0 TGDi 48V MHEV SE Connect 5dr on a Personal 35 month term with a 9 month deposit and an annual mileage allowance of 10,000 miles.

leasing.com

Cupra Formentor Estate

£282.59 Per Month, INC VAT. 1.5 TSI 150 V1 5dr DSG on a Personal 35 month term with a 9 month deposit and an annual mileage allowance of 10,000 miles.

leasing.com

Amraam · 27 Jun 2022 at 17:14

[TW]Fox said:
Because you own the car. The overall cost will likely be lower unless the rate on the finance is particularly good, but I can't see it being as low as a bank loan. The more money you put in yourself, the less you need to borrow and the lower your monthly cost and the cost of borrowing.

I get this, but this assumes I want to own the car for a long period, which I probably won't want to. Once you're out of warranty costs start mounting up in repairs etc.

[TW]Fox · 27 Jun 2022 at 18:49

Amraam said:
I get this, but this assumes I want to own the car for a long period, which I probably won't want to. Once you're out of warranty costs start mounting up in repairs etc.

This has nothing to do with the method of financing the car you pick. The warranty is separate, it doesn't matter whether you take a Personal Contract Plan, Hire Purchase, pay cash, take a bank loan or get given it for free as a gift.

Amraam · 27 Jun 2022 at 19:42

What are folks thoughts on the Hyundai Kona MHEV then? No power house, certainly, but £10k cheaper than the MG ZS EV which would account for the fuel costs:

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Spleen Sauce · 27 Jun 2022 at 19:44

Amraam said:
What are folks thoughts on the Hyundai Kona MHEV then? No power house, certainly, but £10k cheaper than the MG ZS EV which would account for the fuel costs:

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The Kona is alright yeah, though I’d probably want the full EV and not the mild hybrid.

Amraam · 27 Jun 2022 at 20:43

Spleen Sauce said:
The Kona is alright yeah, though I’d probably want the full EV and not the mild hybrid.

As would I, but then the monthly payments start creeping up to the £400 mark.

Journey · 27 Jun 2022 at 21:06

Amraam said:
As would I, but then the monthly payments start creeping up to the £400 mark.

Are you worried more about the monthlies than the residual value at the end? What is your priority?

Amraam · 27 Jun 2022 at 21:19

Journey said:
Are you worried more about the monthlies than the residual value at the end? What is your priority?

I don't know in honesty, I'm a little overwhelmed. I'm not good with money really, but an immediate thought is the idea of spending £450 to run a car that doesn't tick all my boxes is quite daunting. But I keep having to kick to remind myself that I've been in a dream world running a model 3 for such relatively little money the past 2 1/2 years. Having heard that used car prices were high but not really paying much attention has kind of caught me off guard. I'm honestly a bit scared of dumping a chunk of my savings into a car, but I know that one way or another, I'm going to have to pay £350-£400 on average, one way or another, to run a car.

I'm struggling to understand the balance. I keep bouncing between the ideas of a new (in stock) PCP/PCH deal at the value of £30k, or just buying a crappy car. Problem is, crappy cars are crappy prices. I've seen Fabias with 100k+ miles for sale for £10k. It's bonkers.

In the past and growing up, I've always wanted THAT car. Now, I know what car I want, but there's no chance I can afford it. I need to spend the same money but one something far less attractive or not what I want. I know, I know, adulting. I just want to get the right balance on value. The Kona looks decent and I'm hoping it means I can trade performance for comfort and efficiency. But.. it's a manual. I've gotten used to autos and would prefer to stay with that if possible.

Part of me is actually regretting this job move. Had I know how much stress I'd put on myself trying to source a car (and some other news I heard at work) I might not have taken it. It's going to cost me £900 just to return the car early...

[TW]Fox · 27 Jun 2022 at 21:19

Amraam said:
As would I, but then the monthly payments start creeping up to the £400 mark.

But which one would cost you less overall? This is what matters.

Amraam · 27 Jun 2022 at 21:27

[TW]Fox said:
But which one would cost you less overall? This is what matters.

Exactly mate. Which is why I was looking at the MG ZS EV at £33k, but you seemed to think it was a horrific idea, and I'm at the mercy of the advice of members like yourself. Pay more for the car and save on fuel, or pay less and hope fuel doesn't keep rising at the crazy rate it has been?

Journey · 27 Jun 2022 at 21:32

Amraam said:
Exactly mate. Which is why I was looking at the MG ZS EV at £33k, but you seemed to think it was a horrific idea

It's the fact you aren't buying a used 5-series BMW for £30k+ that has him horrified, and you'd consider an MG BEV instead of a 'prestige' vehicle. :cry:

dlockers · 27 Jun 2022 at 21:40

New MG ZS is only £359/mo with £6k down - that's only £24k/4 years or £6k/year. Not sure what folk are expecting for a brand new £34k car. I think @Journey has already done the maths on the net saving - - but price in your flexibility, I think you said 4 years is a long time and you'd be itching to change.

It is also a Chinesium car, so not sure how the interior will feel. Probably not far off your Tesla but with way less toys I imagine

The thing is, 10k miles isn't really that much - a decent Ford Focus will give you 52mpg (list) and can be had for a much lower cost.

Amraam · 27 Jun 2022 at 21:47

dLockers said:
New MG ZS is only £359/mo with £6k down - that's only £24k/4 years or £6k/year. Not sure what folk are expecting for a brand new £34k car. I think @Journey has already done the maths on the net saving - - but price in your flexibility, I think you said 4 years is a long time and you'd be itching to change.

It is also a Chinesium car, so not sure how the interior will feel. Probably not far off your Tesla but with way less toys I imagine

The thing is, 10k miles isn't really that much - a decent Ford Focus will give you 52mpg (list) and can be had for a much lower cost.

Yeah that's it, I don't drive much, and that's a risk with PCP/PCH... I do not know what mileage I'll be doing in the new job. About 1/3 of the commute there and back, but I may be driving between sites a lot more.