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Getting a brand new car on PCP then complaining you're broke

(72 Posts)
brexitstolemyfuture Sun 23-Apr-17 08:55:00

I don't understand why people go for these "deals", if you want a reliable car you can get a year old one and a personal loan for the same price but you get to keep it afterwards.

Friend has got one saying she had no choice, even though she's broke confused

EwanWhosearmy Sun 23-Apr-17 10:49:37

My last 2 cars have been on a PCP because the one I paid for blew up.

I've just had a look and for the small car I've got I pay £177 a month, which includes breakdown cover and a 3 year warranty. For the same car, 2 years old on a 3 year personal loan it would cost £288 a month, plus in a year's time I'd need an MOT.

No brainer.

Middleoftheroad Sun 23-Apr-17 10:57:43

I lease a car and will change it after two years. It costs £167 top spec and no private garage could even come close - even with cars that were years older - it was a no brainer for us.

Libitina Sun 23-Apr-17 11:00:45

Mine is leased through work and what we pay over 3 years is cheaper than how much it will have lost in value. Ours includes everything including insurance for the two of us.

RJnomore1 Sun 23-Apr-17 11:01:41

It's a bit like renting, it suits some people but to me it's just flinging money away too op. I paid my car loan and I've had five years now where my cars been fine and completely mine and costs buttons to run. On a pcp I'd have been making payments those five years.

But I suppose it does give peace of mind you don't get hit with a huge bill and I'm not bothered about having a new car every couple of years either. Depends your priorities I guess. Which is fine.

brexitstolemyfuture Sun 23-Apr-17 11:08:02

I'd like figures for the people saying it's a no brainier.

Everyone i know that has said that was actually fooled by the sales people and works out thousands of pounds woorse off. You have to take account of the deposit, arrangement fee and the fact you own no asset at the end of the loan period.

Headline grabbing "new car for £150" without taking other things into account.

My car cost 900. It's been going 5 years and all its needed are new tyres and windscreen wipers. Excluding insurance it's about 30 quid a month and still worth a bit in scrap.

PeaFaceMcgee Sun 23-Apr-17 11:20:27

I agree with brexitstole

An older 2nd hand car usually costs (in running & repairs) nowhere near the £2000+ per year that either leased or brand new on hp costs.

Doublevodkaredbull Sun 23-Apr-17 11:22:30

It all depends on mileage, warranty and what you need from a deal. Not everyone goes for the flashy "drive a way for a tenner" thing.

ProudBadMum Sun 23-Apr-17 11:23:41

We are getting a new car but he will be getting a personal loan for it as everything else is very expensive to say we will end up with fuck all.

We looked into one and it was small deposit, £500 a month then £16000 after 3 years to buy it!

We can get a personal loan for less a month and own the car outright.

TheMonkeyandthePlywoodViolin Sun 23-Apr-17 11:24:41

Some people don't have £900

RJnomore1 Sun 23-Apr-17 11:27:10

Even a highish interest £900 loan over one year would cost less than pcp for any new car.

I don't see how you can say you don't have £900 but you would have what, 2.5 k that year?

brexitstolemyfuture Sun 23-Apr-17 11:29:32

That's why i said a loan. If they don't have 900 they won't have the money for a deposit on a PCP anyway!

I think everyone that goes to see a car dealer comes away with a "good deal" it's their job after all. I've yet to see one that was financially a good deal.

brexitstolemyfuture Sun 23-Apr-17 11:29:43

That's why i said a loan. If they don't have 900 they won't have the money for a deposit on a PCP anyway!

I think everyone that goes to see a car dealer comes away with a "good deal" it's their job after all. I've yet to see one that was financially a good deal.

Floralnomad Sun 23-Apr-17 11:30:42

Some people want to drive around in cars that they otherwise cannot afford though , personally I know too many people who get caught out on the scratches and they usually have restrictions on mileage which would be ridiculous for us .

Birdsgottaf1y Sun 23-Apr-17 11:32:47

Both my Son In Laws and my Sister had cars under this scheme,they are all penny pinches, so must have weighed up all of the costs.

But my Son In Laws wanted Kuga's and my Sister a new car, for high mileage driving, for work.

My sister has since got rid of the monthly commitment, because her work changed and is driving a £300 car, but there has been times when she has been car less because of repairs.

brexitstolemyfuture Sun 23-Apr-17 11:33:15

And that's fine, in a way, if they want to drive around in cars that they can't afford. Just don't try to justify it as being the cheapest / only option.

wifeyhun Sun 23-Apr-17 11:33:41

Do these pcp things come with ridiculous mileage restrictions and stuff?

I think my neighbours must lease their cars as they never go anywhere in them. One goes round the corner once a week, while he washes the other one.

It would not work for us I don't think as we like to drive all over Europe in our car.

SelfObsessionHoney Sun 23-Apr-17 11:33:42

I got my car on a 0% interest finance plan, so works out cheaper than a loan would cost me.

CarlottosWay Sun 23-Apr-17 11:34:23

Following with interest. I will need to get a bigger car soon and I am debating between pcp or getting a loan and buying nearly new outright.

NurseButtercup Sun 23-Apr-17 11:34:25

I think one of the other factors for new car v old car is dependent upon being able to find a mechanic that is reliable, affordable and trustworthy.

I've had my old car for almost 10 years looked after by a mechanic I've known for 15 years. My friend is on her 3rd brand new car on lease.

Money is a bit tighter for her now so she's keeping her car this time. She also very recently asked me for contact details of my mechanic because according to her: "your car never breaks down" and "I don't hear you stressing out about cost of running a car"....

brexitstolemyfuture Sun 23-Apr-17 11:36:22

Yes you can usually only do 10k miles a year in them, so they have to spend a lot of time sat on the drive.

Ah yes the "0% finance deals", again scratch under the surface.

wibblywobblyfish Sun 23-Apr-17 11:38:42

I have a 18 yr old car that I own outright and have done for about 8yrs. It costs me about £300 a year to MOT and service and I do about 10k a year in it. I couldn't justify the cost of pcp, seems mad to pay a deposit, then the depreciation on someone else's asset.

SelfObsessionHoney Sun 23-Apr-17 11:40:32

Well it does work out cheaper for me than a loan, it means I get a car which I am paying off in affordable monthly sums, with no interest which I will own outright at the end.

RJnomore1 Sun 23-Apr-17 11:43:37

Some of them are 6/8k miles per year. 10k is generous. One reason I took a loan when I bought mine; I was doing 15k miles year and 7000 x8p after three years was about £1700 just to hand the car back if I did pcp.

wifeyhun Sun 23-Apr-17 11:43:51

10k would be no good for us then. We do double that some years.

My neighbours get the bus everywhere while their shiny new cars remain on their drives.

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