PCP How much?
- Thread starter MrZen
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Have to be a bit more specific otherwise you will get plenty of silly answers.
E.g. £450/month is a lot for a supermini, but not necessarily much for a large executive saloon.
Give us an idea what sort of car you are interested in
E.g. £450/month is a lot for a supermini, but not necessarily much for a large executive saloon.
Give us an idea what sort of car you are interested in
Lets say a more luxury car ie: Audi, Merc, BMW.
Just interested if anyone has a PCP on a more expensive car and how much they pay.
True, but I'd say that's a rare occurrence not always the case.
What a weird question....it's like saying "what's a reasonable amount to spend on a mortgage" with no concept of budget, location or house value
Take the cost of the new car, deduct the anticipated cost at the end of the PCP. Divide that by the number of payments and add interest.....The higher the interest rate, the worse the deal is. The lower the final value, the more likely you are to have a decent equity at the end.
Beware of "0%" PCP deals, look at the actual new price and compare against broadspeed - you'll see a big gap on subsidised rates... I'd actually rather pay a higher APR and have a lower purchase price to ensure there's a decent equity in it.
Take the cost of the new car, deduct the anticipated cost at the end of the PCP. Divide that by the number of payments and add interest.....The higher the interest rate, the worse the deal is. The lower the final value, the more likely you are to have a decent equity at the end.
Beware of "0%" PCP deals, look at the actual new price and compare against broadspeed - you'll see a big gap on subsidised rates... I'd actually rather pay a higher APR and have a lower purchase price to ensure there's a decent equity in it.
The answer is of course what you can afford.
PCP can be made as low as you want by putting more down as a deposit and of course varies depending on the mileage you state you are going to do.
And as said look out for dealer and manufacturers contributions. For example, as well as VW knocking £6k of the list price of a Touareg 262PS Rline v6 TDI recently they will also throw £5k contribution against a deposit on them.
Dealers will easily when pushed knock another £6k off the list price and the dealer I just dealt with was prepared to throw in another £1500 payment towards the downpayment.
Brings what would normally be £585 on pCP down to £319 a month based on 10,000 miles per annum.
PCP can be made as low as you want by putting more down as a deposit and of course varies depending on the mileage you state you are going to do.
And as said look out for dealer and manufacturers contributions. For example, as well as VW knocking £6k of the list price of a Touareg 262PS Rline v6 TDI recently they will also throw £5k contribution against a deposit on them.
Dealers will easily when pushed knock another £6k off the list price and the dealer I just dealt with was prepared to throw in another £1500 payment towards the downpayment.
Brings what would normally be £585 on pCP down to £319 a month based on 10,000 miles per annum.
I would say it's more often the case than not. Very few new cars nowadays don't come with some sort of considerable discount, certainly not from the major Germans at least. You just need to look at what's on offer from the likes of Broadspeed.
It is very rare, for the likes of an "executive saloon" for example, to be cheaper to PCP a 1 year old one than it would be for a new one. Due to the combination of better interest rates, and dealer discounts.
Soldato
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What's a reasonable amount to spend on a bar of chocolate?
How long is a peice of string?
Your question needs more context.
£1.29 and 3 feet 7 inches.
![[TW]Fox](/data/man-of-honor/2009.png){kind=avatar}
No it isn't, that's a completely meaningless answer. You might be able to afford £1000 a month, that doesn't mean that's the answer to how much you should spend on a PCP for a 1 Series, does it?
The real answer is whatever monthly payment results in the lowest possible TCO (Versus other ways of running the same or similar vehicle), plus a small amount added for the convenience of PCP, IMHO.
There is much mystery mis-truths spouted about PCP's, mostly by those who like PCP's and like to convince themselves PCP's are the best thing ever.
People like PCP's because the offset enormous balloon payment puts them into cars they couldnt afford any other way. A PCP will typically have the highest TCO of any method of purchase bar leasing. The dealer/manufacturer contributions are still available with HP, which almost always costs you less over your ownership duration. But of course the monthly payment is higher with HP...
[TW]Fox;28952492 said:
What I sort of was getting at was OP never said for what kind of car. No point saying should £450 be what he should be looking at if he's buying a £100k rolls royce but your points are valid.
I disagree with that PCP is the most expensive though. Done, right it needn't be.
But in general PCP is used to buy a better car than they could afford on straight hp over 4 years cause they don't have £20k deposit to put down.
And also disagree that leasing is always the highest TCO as well.
Like all things in life, you need to compare all three ways of paying.
Why a PCP and not a PCH ? Do you plan to keep the car once the lease is over ? TBH you should always look at the total cost of the deal over the number of years than just the monthly figure and down payment, after all you don't want to be paying more into a car than it is worth in equity after the lease period is up. The best deal's will always be around through out the year just take a look on here http://www.pistonheads.com/gassing/...ase+Car+Deals+Available?++(Vol+II)&mid=418423
[TW]Fox;28952755 said:
Not always, i was one of those who went through the leasegate and there was a list of how much option's added to the cost of the car and there value added, it was quite a surprise to see metallic paint and Nav actually added no real value but certain option's did from what i can remember.. for the op i would just focus on the total cost of deal itself over the period and what you can afford.
There is no one answer; you should not be approaching a purchase from the perspective of "I'm getting PCP, how much should I spend?" but rather "What do I want*, and what is the most cost-effective way of purchasing that?"
*Note "what do I want" may mean more than just a type or model of vehicle, it could extend to factors such as how long it will be before you wish to change the vehicle.
*Note "what do I want" may mean more than just a type or model of vehicle, it could extend to factors such as how long it will be before you wish to change the vehicle.