PCP's

wesley · 6 Apr 2006 at 13:46

with bank loan you can

Firestar_3x · 6 Apr 2006 at 13:47

wesley said:
with bank loan you can

Yes but thats not secured against the car we are talking about pcp's.

Desmo · 6 Apr 2006 at 13:53

wesley said:
a good friend of mine is a Nissan dealer, told me we can to return the car after 18 months without any reasons. as long the car is in good condition.

As Fox said, the point is you're left with no car.

wesley said:
and if in first few months of loan, my financial situation changed quickly due baby on the way

what should i do?

sell the car privately and pay off the loan

no difference to me

I wasn't talking in the immediate future which is why I said nearing the ned of your term.

You're telling me that if you knew your finances were getting worse in 6 months time you'd rather have PCP with no car at the end rahter than a loan with a car at the end?

wesley · 6 Apr 2006 at 14:07

You're telling me that if you knew your finances were getting worse in 6 months time you'd rather have PCP with no car at the end rahter than a loan with a car at the end?

then i wouldnt get a car

actually, i got a loan on my second hand ford focus, if i lose my job now and i would still have to sell my car anyway

as i understand with PCP, we're stuck with PCP for 18 months

but with loan its no difference to me cos if i buy a brand new car on loan of £15K, few months later, lost my job, sell the car privately LESS than the amount i own the bank so i'll be still in financial problem

however, someone i know lost his job and asked the financial company to freeze his PCP, they agreed to freeze it for 2 months. but the GFV will be less than original thou.

Desmo · 6 Apr 2006 at 14:17

wesley said:
then i wouldnt get a car

So you'd just go without a car totally? Most people wouldn't be able to get to work without their car.

wesley said:
actually, i got a loan on my second hand ford focus, if i lose my job now and i would still have to sell my car anyway

I'm not realy talking about losing ALL of your income. Just a change in circumstances that means you have less disposable income. I'd rather sit it out until I'd finished my loan and be left with a car than sit it out and then have the car taken away.

[TW]Fox · 6 Apr 2006 at 14:29

wesley said:
but with loan its no difference to me cos if i buy a brand new car on loan of £15K, few months later, lost my job, sell the car privately LESS than the amount i own the bank so i'll be still in financial problem

Thats becuase you'd have been daft enough to buy a brand new car and wonder why it instantly sheds a load of value.

kitten_caboodle · 6 Apr 2006 at 14:31

Desmo said:
I'd avoid things like PCP for one simple reason. Your financial situation can change very quickly. Say you're coming to the end of your 3 year car loan and your finances change due to house repairs, baby on the way, etc. You see out your loan and your'e left wit ha car that's all yours.

With PCP, you see out the term, give your car back and you're left with diddly squat. Now you have to pay for your house or baby and go out and buy another car.

You never know what the future holds with regards to your finances.

any good news you want to share with us ??

Desmo · 6 Apr 2006 at 14:39

kitten_caboodle said:
any good news you want to share with us ??

Yeah

We've got a crap load of house repairs to do

Jez · 6 Apr 2006 at 15:22

I have always been of the opinion that i'd buy all cars outright with cash. Maintaining a car however old does not cost a lot as long as you get something half decent, and with the stupidly low cost of second hand motors i really cannot see why anyone would spend a load on one.

I just dont get what it is about a new car which makes it better than an old one of the same sort of quality. The only reason i drive a band new car is because my company will pay it all with very little on offer in the way of an alternative, if they offered the PCP cost of the car to me in cash i'd buy up a £5000 tops car myself and keep the monthly bonus.

I'm like that with everything though, i hate oweing anything to anyone, i am pretty sure that the only debt i will ever have will be a house when i finally get around to purchasing one, which is obviously unavoidable.

wassap · 6 Apr 2006 at 21:02

I think it may have been mentioned earlier, PCP`s are really only anygood to those folk who are on company car schemes.

I think its nice to have a new car, but its not worth getting yourself in debt if you are not in a secure financial state.

The key is to convince the dealer to give you a low GRV so therefore when you chop the car back in you stand to make some money, its ideal for company car drivers, as the mileage has no effect on the final GRV, its better to go PCP rather than source your own car, as high mileage will kill the value of a car.Also for those on a crappy company car scheme (ie your choice is limited to a 1.8 vectra) its ideal.

Rilot · 6 Apr 2006 at 21:33

wohoo said:
I think it may have been mentioned earlier, PCP`s are really only anygood to those folk who are on company car schemes.

I think its nice to have a new car, but its not worth getting yourself in debt if you are not in a secure financial state.

The key is to convince the dealer to give you a low GRV so therefore when you chop the car back in you stand to make some money, its ideal for company car drivers, as the mileage has no effect on the final GRV, its better to go PCP rather than source your own car, as high mileage will kill the value of a car.Also for those on a crappy company car scheme (ie your choice is limited to a 1.8 vectra) its ideal.

Yup. Ideal for this. That's why I do it.

djjuk · 17 Jun 2006 at 19:01

Rilot said:
Yup. Ideal for this. That's why I do it.

Just had a good read through this...Some good points.

I currently have a company Vectra supplied to me, although I have the option of a cash allowance & fuel card instead if I wish..

I have had enough of driving the Vectra now, & unfortunately we do not get a choice of cars, so another Vectra beckons in a year or so

So I have been researching the PCP option as it seems ideal for me..

Now if I have worked this out correctly my current tax liability (payment) per month for the Vectra is about £130ish, as I am in the 40% tax bracket most of the time. If I add this £130 to the net monthly allowance I could take instead of the Vectra it gives me a total of about £350 net per month.

So basically my company supplied Vectra is currently 'costing' me the equivalent of £350 a month if my sums are correct :confused:

Looking on http://www.buyacar.co.uk for that amount or a touch more I could get a nice new BMW 320 SE Coupe, or Z4 2.0 SE with a 20K miles per year allowance :cool:

& change for something else after 3 years..Obviously I would have to fund insurance, but being 32 it is not really a problem. Also, as it's a new car shouldn't have any real concerns re expensive repairs etc..

Seems a no brainer to me :confused:

More or less the same as my Vectra costs me now, I can have a much nicer motor..

Any views on this? Or anything I have missed?

Also, any recommended sites as the one above to look at PCP's...

Cheers..