PCP's

panthro · 4 Apr 2006 at 23:06

I was just interested to see how many people here are in favour of buying a car through this method, i.e. low deposit, low monthly payments and a final balloon payment/hand the car back?

Personally I dont think I would like to, but it seems like the only way I will be able to afford a car that I really desire. Anyone here bought their car through this method? Sorry if I am being rude asking this type of question, just want to hear some pros and cons.

panthro · 4 Apr 2006 at 23:53

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Thats a good point.

But what if the car was something in the region of 30k and you put something like £5000 deposit on it? A bank loan wouldnt be able to cover that?

panthro · 5 Apr 2006 at 00:07

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Thanks, it has had me in stitches all day. Its so true.

Am I right in saying that PCP's would be more worthwhile on something like a Boxster S, where the residuals would be strong and you would possibly be gaining some of your money back at the end of the term?

panthro · 5 Apr 2006 at 19:32

Good replies to this thread, it has enlightened me a lot.

Im not actually looking for a new car at the moment, but was interested to see peoples points of view on pcps. Very mixed responses. It seems that it is a good method if you want hassle-free motoring, but the big downside is not having anything to show for it once the term is up, unless you have got a very good deal on a low depreciating car.

panthro · 5 Apr 2006 at 19:49

If I ever work for a company that gives me allowance, I think I will go the PCP route. As most of its not my money!!

panthro · 5 Apr 2006 at 20:06

In Evo this month, some guy called Paul Baily bought a Carrera GT via this company

http://www.supercarfinance.co.uk/supercarfinance.html

Just having a read on there, seems be PCP offers (to a certain extent) through that site. Personally, if I had the money to drive a Carrera GT, I wouldnt car whether or not I "owned" it or not, as it would be parked on my drive everyday, and my name would be on the reg documents.

At this moment in time though, I definitely prefer to be the owner of my car.

panthro · 5 Apr 2006 at 22:07

Rilot said:
That's not actually how it works.

The bubble payment is calculated up front to be well below the projected market value of the car after 3 years.

Example. My RX8 had a bubble payment of £7k after 3yrs and 36k miles. The actual predicted value after that period is £11k.
You pay the bubble payment and then sell the car for market value, thus making £4k back.

Just out of interest if you dont mind me asking, how much were you paying per month and what was the initial deposit?

EDIT: Just realised you live in Reading. Whereabouts? Im in Wokingham but work at Foster Wheeler in Shinfield.