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Original poster

How much do you spend on PCP?

71 replies

Brumbrumbrumbrum · 07/03/2020 18:21

I feel that I need to get this out of the way because I've seen threads derail previously but I'm going round in circles so please do help!

yes this is a first world problem
I don't need opinions on PCP, this is the best way for us to do things for many many reasons I won't bother getting into here
I'm both nosey and curious

I'm torn between two cars.
Both SUVs. (2 young teens with huge amount of sports kits, 2 big dogs)

I roughly do 1200miles a month so I'm in the car a lot.

Car 1. One down from top spec. 1.3 engine so I suspect will be a bit sluggish with weight of car. Nice interior, I do really like it. 3 year warranty. £300 pm.

Car 2. One down from top spec, but a sport version so has some aesthetically appealing additions. 1.6 turbo engine, nicer interior and gadgets than car1 and 5 year warranty. £360pm. Heart really wants this one...

The reason I'm dithering is because both are significant hikes in our current PCP- 4 Years ago I was over cautious because of £ and we didn't get an SUV, meaning our payments were £230, but subsequently we've had a car that's on that annoying side of just not quite big enough, making things logistically difficult at times.

In theory, we can yes afford it. Our income has significantly increased in this time, but I'm naturally cautious and tend to worry about losing jobs etc. Some financial commitments are due to end in the next 6 months which would more than cover this hike in bill.

Both cars are big enough, but in the same sense that I was too cautious last time and didn't get what I wanted, and it's always niggled me, do I just get car 2 because ultimately that's the car I prefer?

Husband think 5 year warranty is important because when our 3 y warranty ended on current car, we almost immediately had a technical issue which would have been covered had it still been in warranty. He also isn't worried about the money but I'm higher earner and generally manage finances.

But the little poor child deep inside keeps creeping up and telling that its a stupid amount to spend on a car per month.

What does your PCP cost you?.

OP posts:
AConvivialHost · 08/03/2020 09:49

We have a Tucson, and they're not that spacious. We have a toddler, teen and two dogs - when everyone is in, it's a bit cramped in the back and we have to use a roof box for trips, even short ones.

WTFdidwedo · 08/03/2020 09:55

I was thinking Car 2 already but now you've said what they are I would definitely go Hyundai over Renault. Have you looked at both on the HonestJohn website as well?

Lionsleepstonight · 08/03/2020 10:08

Another recommendation to investigate leasing too on the models you like. Depending on the deals, leasing can sometimes work out cheaper. We lease one, and pcp the other as thats how the numbers worked out at the time.

Original poster
Brumbrumbrumbrum · 08/03/2020 12:48

Ok have asked Hyundai about leasing. They want 1.5k deposit on top of the 1.2 i need to pay off neg equity in current car.

Waiting on Peugeot to call back re leasing 3008 - they had wanted 490pm to pcp which was way over budget so had discounted.

OP posts:
VirtualHamster · 08/03/2020 12:53

I would say both of those cars are big on the outside whilst not being very spacious inside. If space is your priority I think there'd be better options out there. I've had both as rental cars and was surprised at how cramped they felt inside/limited boot space when they appear so much bigger than other cars I've driven.

Original poster
Brumbrumbrumbrum · 08/03/2020 12:55

(Hyundai say 309pm on lease, so cheaper pm. But they want a deposit)

OP posts:
VirtualHamster · 08/03/2020 13:01

They want 1.5k deposit on top of the 1.2 i need to pay off neg equity in current car.

Sorry, may be sidetracking, but I thought with PCP you just handed the car back at the end if it was in negative equity and the finance company takes the hit?

I've been researching different financing options and i thought i'd started to understand them but maybe not....

ShouldIcall · 08/03/2020 13:03

Isn't PCP a drug 😂

AJPTaylor · 08/03/2020 13:09

Don't go via dealer for leasing
Look at companies like nationwide leasing.

TiddyTid · 08/03/2020 13:10

£138 for a Toyota Aygo 😂 (not helpful)

mistermagpie · 08/03/2020 13:25

DH has got a Mitsubishi Outlander, second down from the top of the range I think, it's got 4WD, 360 cameras etc and seven seats (two fold down so if you don't use these it's got a big boot) - it's probably comparable to your car number 2 and he pays £261 a month. His is leased though rather than PCP, I'm not entirely sure of the fundamental differences between the two things but leasing tends to be cheaper.

Before anyone comes on to say it's because you can't 'own' the car with leasing, that's not the case any more. My own car is leased (nothing like you're looking for OP but dirt cheap) and I've just been given a price to buy it at the end of the term.

mistermagpie · 08/03/2020 13:26

Sorry hadn't read the full thread and see you're looking at leasing!

FartingInTheFence · 08/03/2020 13:56

but if you're looking at controlling cost, I'd question whether you need an SUV

Sheesh, theres always one, isnt there. How do you know what the OP needs or doesnt need? Hmm

Sorry, may be sidetracking, but I thought with PCP you just handed the car back at the end if it was in negative equity and the finance company takes the hit

Er no. Why would the finance company take the hit? Dont you remember the fallout from the 2008 financial crises? No financial institution will take on neg-eq any more.

If you have neg-eq at the end, its the customer who pays.

Original poster
Brumbrumbrumbrum · 08/03/2020 14:08

Virtual sadly not, there'd be nothing in it for finance company if so would there?

Also wondering what pp meant about handing it back and walking away if it all goes to shit.... not quite.... i wish!

Still waiting to hear from Peugeot. Will check out nationwide leasing, interesting you say not to use dealer?

OP posts:
willowpatterns · 08/03/2020 14:15

Leaving aside the cost, I think that a 1.3 isn't going to cut the mustard for what you need it for, which is to lug a load of stuff about all over the place every day.

Go for the 1.6 and then cost-wise (if you can face it) move another step or two down from top spec which will reduce the monthly outgoings a bit.

mistermagpie · 08/03/2020 14:31

My car is leased via nationwide, they were fine. We've used a few companies over the years but they all much of a muchness, a lot use the same finance company anyway and it's them you end up dealing with. I think they use one called leaseplan. Just get the best deal you can.

userxx · 08/03/2020 14:32

Does anyone know if you can hand the car back and get out of a pcp early?

stopwining · 08/03/2020 14:44

I pay £360 per month for a Range Rover evoque - one down from top spec over four years

I was nervous about the payments as previous car was £220 per month but similar to you, wage increases and ending of other commitments gas meant I haven't noticed.

I would go for car 2 if I was you. I still love my car 3 years in and it makes me happy every time I get in it. I would shop around though for potentially a better deal.

BarbaraofSeville · 08/03/2020 15:30

Does anyone know if you can hand the car back and get out of a pcp early

You can hand the car back without penalty when you have paid half the amount of the agreement, including the balloon payment. It will say what this amount is on the paperwork, but in practice it's not that far from the end of the 3 years or whatever, depending on what deposit you have.

I had a Skoda Citigo on a 3.5 year agreement and decided to hand it back and it was around 3 years when I could do that.

VirtualHamster · 08/03/2020 16:00

For the finance company, I assumed it was a 'you win some you lose some' scenario with the guaranteed future value.

Everything I've read says one of the options at the end of a PCP deal is to return the car to the manufacturer with nothing left to pay as long as all monthly payments made, car serviced as per agreement and mileage limits adhered to.

VirtualHamster · 08/03/2020 16:07

Er no. Why would the finance company take the hit? Dont you remember the fallout from the 2008 financial crises? No financial institution will take on neg-eq any more.

A PCP is not a mortgage agreement, numerous sites online say you can hand back at the end of a deal and negative equity is only an issue if you want to terminate early. I thought the whole idea of a guaranteed future value was it was, well, guaranteed!

AJPTaylor · 08/03/2020 16:48

Old fashioned hp used to be that you could hand back after half the payments. Don't know if it's the same with Pcp. Obvs you get a hit with leasing if you go over mileage.

userxx · 08/03/2020 16:51

@BarbaraofSeville Thanks for that.

EddieVeddersfoxymop · 08/03/2020 17:16

Pcp here on both our daily drives. DH £440 on high spec BMW 3 series. Mine £273 high spec BMW 1 series. You can hand back pcp cars without penalty when you've paid half of the full amount owing. So likely just under the 3 years ish based on 4 year deals. We do pay a lot combined for our cars but its peace of mind with warranty/breakdown/recovery etc . We have 2 other cars that we own however so dont need a lot of mileage allowance which keeps the cost down. DH is 10k per year, mine 8k as I have a shorter commute and the car is smaller meaning we use DHs more. Hope that helps.

mistermagpie · 08/03/2020 17:24

It's also possible to hand back a lease car early in some situations, we've done it twice.