PCP's

Toast · 5 Apr 2006 at 16:32

I was looking at an Accord Type S last year, was on an 03 plate I think, 10,000miles on the clock, all the options, etc. Was about £12500.

It's a shame that the Euro Type R version isn't available here. Same engine as the ITR DC5

HEADRAT · 5 Apr 2006 at 16:48

[TW]Fox said:
Not against finance, but IMHO, bank loan is the way forward. That way its YOUR car.

Well surely its the banks car

HEADRAT

Toast · 5 Apr 2006 at 18:05

HEADRAT said:
Well surely its the banks car

HEADRAT

No? It's unsecured debt, as far as I'm aware there's not a lot they can do to get unsecured loans back from you, which is why I always get a little confused when people top themselves because they've ran up huge credit card bills and loans, etc. Sure they can threaten legal action and send debt collectors, etc, etc but they won't necessarily get anywhere.

A mate of mine had his bank for £8k, they chased him for ages, over time the amount they wanted back kept becoming less and less until finally he moved. Some time later they found him, he told the debt collector how much he was willing to give them and if they didn't like that then they can eff off, he never heard from them again.

POB · 5 Apr 2006 at 18:10

PCP is a good idea.

Owning a car is over-rated.

I'm happy paying exactly an amount per month and have nothing else to pay it makes budgeting very easy.

Its great if you like new cars and don't want the hassle of disposing of old ones.

HEADRAT · 5 Apr 2006 at 18:10

Toast said:
he told the debt collector how much he was willing to give them and if they didn't like that then they can eff off, he never heard from them again.

Well they can serve a CCJ against you, send the baliffs around and take all of your stuff and sell it for next to nothing etc. etc, also you can kiss goodbye to any chance of buying anything on credit again and things like house purchase would be either more expensive or out of the question.

So while killing yourself over debt is a little OTT they certainly can make your life pretty unpleasant but your right if you have nothing they can't really take anything from you. If it goes to court and you don't pay your CCJ I guess you could be held in "contempt" and could be locked up but I would say it would be pretty unlikely.

HEADRAT

Rilot · 5 Apr 2006 at 18:12

I always PCP my cars. I have a monthy car allowence from work which I always spend. When the PCP is up I hand the car back and get something else.

Easy.

I care not that I don't own the car.

Toast · 5 Apr 2006 at 18:16

HEADRAT said:
Well they can serve a CCJ against you, send the baliffs around and take all of your stuff and sell it for next to nothing etc. etc, also you can kiss goodbye to any chance of buying anything on credit again and things like house purchase would be either more expensive or out of the question.

So while killing yourself over debt is a little OTT they certainly can make your life pretty unpleasant but your right if you have nothing they can't really take anything from you. If it goes to court and you don't pay your CCJ I guess you could be held in "contempt" and could be locked up but I would say it would be pretty unlikely.

HEADRAT

Well he owns two houses (one of which he bought recently) and he's only 28, I'd say he's done pretty well myself.

Dandle · 5 Apr 2006 at 18:27

Rilot said:
I always PCP my cars. I have a monthy car allowence from work which I always spend. When the PCP is up I hand the car back and get something else.

Easy.

I care not that I don't own the car.

Thats probably one of the only times its worth using PCP although do you loose a large lump of your deposit(maybe all?) if you dont take a new car or buy the old one?

With monthly car allowance can you not lease the same car for only slightly more?

[TW]Fox · 5 Apr 2006 at 18:53

HEADRAT said:
Well surely its the banks car

No, its your car if you get an unsecured loan. Yes, if you don't pay it they start sending balifs around but if you dont pay any sort of bills that's a risk.

kitten_caboodle · 5 Apr 2006 at 19:00

I'd go for the PCP option personally if I was looking for a new car. I don't see the point in buying something that depreciates so quickly. I've done the 'must own my own car' and then felt sick when I wanted to upgrade and realised how much I'd thrown away on the car when it was worth buttons at the end.

I own my current car, but I bought it outright, and If I wanted to buy a new car I'd do PCP and then get another one after 3 years. I get bored easily.

But it's horses for courses I guess, if you want to be a payment free car owner at the end of the term, then get a loan. If you're gonna want to sell it on or trade it in for another, I'd say go PCP.

[TW]Fox · 5 Apr 2006 at 19:11

kitten_caboodle said:
I'd go for the PCP option personally if I was looking for a new car. I don't see the point in buying something that depreciates so quickly. I've done the 'must own my own car' and then felt sick when I wanted to upgrade and realised how much I'd thrown away on the car when it was worth buttons at the end.

In what way is that any worse than NOT buying something, paying a load of cash, and having.... nothing at the end?

Seriously you get a PCP at, say, 300 quid a month and you've spent £10,000 over 3 years and have absolutely nothing whatsoever to show for it. How is this worse than spending £14k on a car and 3 years later its only worth 7k?

POB · 5 Apr 2006 at 19:27

[TW]Fox said:
In what way is that any worse than NOT buying something, paying a load of cash, and having.... nothing at the end?

Seriously you get a PCP at, say, 300 quid a month and you've spent £10,000 over 3 years and have absolutely nothing whatsoever to show for it. How is this worse than spending £14k on a car and 3 years later its only worth 7k?

But these would be different cars possible twice as expensive on the road prices,

The fact is you can pay less per month for a more expensive car.

A car is just an expense like rent somepeople view cars like this its just a constant expense.

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.

kitten_caboodle · 5 Apr 2006 at 19:46

[TW]Fox said:
In what way is that any worse than NOT buying something, paying a load of cash, and having.... nothing at the end?

Seriously you get a PCP at, say, 300 quid a month and you've spent £10,000 over 3 years and have absolutely nothing whatsoever to show for it. How is this worse than spending £14k on a car and 3 years later its only worth 7k?

Well take it over a few years longer and you've got something that is often worth very little or nothing at all. Or you can be driving around in a nice shiny new motor. And as said, probably a bigger, more expensive one than you would have if you were paying to keep it as it would be losing so much all the time. The fact is many people get a loan/save up, buy a new car, get bored after 4/5 years and sell at a stonking loss (including the finance of course). I'd rather be paying and driving a new car every three years. And the upturn in people doing this, shows that many people feel the same way.

At the end of the day, it's my opinion.

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!!

[TW]Fox · 5 Apr 2006 at 20:01

kitten_caboodle said:
Well take it over a few years longer and you've got something that is often worth very little or nothing at all.

Why take it over a few years longer when virtually all PCP's, which we are comparing here... are 3 years?

You've only got something worth very little or nothing at all if you are daft enough to buy a new example of a depreciation disaster.

Or you can be driving around in a nice shiny new motor.

That isn't yours

You can be driving around in a nice shiney new motor if you hire one or borrow the dealers demonstrator as well

Personally I think there is more kudos in OWNING a 'nice car' than there is in simply renting one..

Dolph · 5 Apr 2006 at 20:05

[TW]Fox said:
Why take it over a few years longer when virtually all PCP's, which we are comparing here... are 3 years?

You've only got something worth very little or nothing at all if you are daft enough to buy a new example of a depreciation disaster.

That isn't yours You can be driving around in a nice shiney new motor if you hire one or borrow the dealers demonstrator as well

Personally I think there is more kudos in OWNING a 'nice car' than there is in simply renting one..

Given that most cars are bought with money loaned in one way or another (Bank loan, PCP, finance) most people don't truely 'own' their car, just as most home owners don't actually own their home.

The question is simply what method of borrowing money is best for you, and that varies very much depending on personal circumstances and car choice.

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.

kitten_caboodle · 5 Apr 2006 at 20:09

Dolph said:
Given that most cars are bought with money loaned in one way or another (Bank loan, PCP, finance) most people don't truely 'own' their car, just as most home owners don't actually own their home.

.

I tried to go with the home example and couldn't make it read right but that's exactly what I was trying to say

You've only got something worth very little or nothing at all if you are daft enough to buy a new example of a depreciation disaster.

Absolutely. I had no clue. I was young and daft. I'm still one of those, I'll let you figure out which one

Fox, I couldn't care less about 'owning' the car. The majority of people who see me in it wouldn't know if I owned it or not and even fewer would give a hoot

. Saying that if you saw what I drive around in now you'd be wondering why we are even having this conversation. It's neither shiny, nor new, and it's not on PCP either

[TW]Fox · 5 Apr 2006 at 20:11

Fair enough, its your opinion and I respect that

Couldn't not own my car though, wouldn't be able to fiddle with it

I'll draw the line at a bank loan, at least for the time being although I will admit I did consider a one year contract hire for July-July rather than E39 purchase, but rejected it for the reasons I've said in this thread.