To ask how much you spend on car pcp p/math?

[Springiscoming20]

Need a new car (new to us) and for the first time we are tempted to buy a car on pcp rather than save and buy something outright. Just curious really what car you have and how much you pay.thank you

There are so many variables like the term length, the mileage and the deposit size which all have an effect on the monthly payment. We have a Q5 and that's £320 a month.

Depends on the cost of the car!. When I looked into it after all the ‘discounts’ on offer it simply worked out at interest free credit and then you hand the car back.

Its cheaper to buy outright but i guess allows you to afford a more expensive car

I’ve got a Jaguar E Pace and I pay £488 a month. I cut down on getting my nails done and still dyeing my own hair to justify it!

I’ve got a Toyota Auris hybrid with all the bells and whistles. It’s contracted for 12k miles a year and costs me £290 a month. It’s 0% interest

I dont like PCP as you're stuck paying & never actually owning it in the end.

Get HP if you can instead. I pay £427 a month for a SEAT Tarracco.

Higher purchase is a better option than pcp
At the end of pcp there's a balloon payment
At the end of higher purchase you own it

You CAN own the car in the end. PCP is a balloon-payment facility. You pay the monthly agreed term (I have an Audi A4, £420pm) and paid off the balloon payment at the end of the five year term. The car is mine now.

I looked into this and found there are as many answers as there are car manufacturers and models so a meaningless question.

Better to work out your budget and then see what you can get for that amount of £££

I didnt go for it in the end as it just seemed a bit of a waste of money, better value to get a 2nd hand car imo

HP being better is a complete myth. At the end of a PCP contract you’ve got a decent deposit for a nice, new shiny car. Paying for a depreciating asset is a mug’s game.

@LyingWitchInTheWardrobe

You CAN own the car in the end. PCP is a balloon-payment facility. You pay the monthly agreed term (I have an Audi A4, £420pm) and paid off the balloon payment at the end of the five year term. The car is mine now.

Oh yes you own it but who wants a balloon payment in the end?

@VinylDetective

HP being better is a complete myth. At the end of a PCP contract you’ve got a decent deposit for a nice, new shiny car. Paying for a depreciating asset is a mug’s game.

At the end of pcp you have a balloon payment - how a deposit????? And all car sales will do is knock is down pending the mileage, damages etc. They play the game

Should just clarify for those telling me to work out. Y budget. We have. And we understand the payments vary with mileage age, model, engine etc. To be honest that wasn’t my question. I was purely being nosey.

Thank you to those who have answered. We are looking at hp and pcp Depending on the spec we want and options available to us. I would prefer pcp my husband hp. Having similar ‘debate’ over diesel v petrol and manual v auto 🙈

BabySharksMom. Well clearly, I did. The loan company underwrote the car which I had use of for the whole of the loan term and I could have given it back at any point. It's a good car so I didn't.

At the end of pcp you have a balloon payment - how a deposit?????

You trade it in for a new one and it pays the deposit!!!!!

VinylDetective but does that new deposit not tie you in to another arrangement with that same company? It's not as if you can take the money (your decent deposit) and go and spend it with a private seller.

Or have I misunderstood? Very possibly.

OP, I went with Motorpoint because I was in a rush as my car had conked out. I wouldn't recommend them EVER. The loan was with Lloyds though and they were great, I would recommend them.

We have just paid our balloon payment on 3.5 year old Skoda Octavia. The car had a list price of £21,000 when we bought it. We got a £2k contribution from Skoda on the finance, and we had a car to PEx. In total, including all payments of £199 per month for 42 months, the part ex and the final payment it actually cost us £17,500, so I am v pleased with the deal. We now own the car outright.

No, you’re not wrong @LyingWitchInTheWardrobe but I love Toyota, particularly the hybrids. I’ll love them even more when they produce a completely electric car so I’m very happy to be tied into them. Just as you recommend Lloyd’s, I recommend Toyota.

We do leases. Not bothered about not owning a car. We pay a small deposit and then currently paying £285 for a Volvo XC40. That goes back next year and I’ll put down another deposit and find another car for a similar amount; I’ll never buy a car outright again

Is it not cheaper to get a bank loan/save up cash and buy outright a little used ex demonstrator/low mileage recent car? (Which is what we have always done) So you do not lose out on the price drop/depreciationfrom new, and you do own the car.
Curious, as we may get a newer car this year.

Springiscoming20... a bit of advice, I learned the hard way:

Unless you particularly want a special edition of whatever vehicle you're looking at, make sure that you do a rough cost of what super-duper paint will cost to have resprayed if necessary - and whether your special snowflake of a car is suitable for expected terrain, eg. not extra low-profile for cornering at 90mph when it has to be inched over a 'sleeping policeman' at 3mph or else the car needs TLC at the garage for special snowflake cars...

Tyres to me are round and black... not so. I've found out that IF you buy a special snowflake car, the tyres cost 3-4 times more than any other round black tyres bought for sensible and just-as-nice cars. Note that nails can penetrate round black tyres very easily, however much you pay for them.

Finally, if you do go down the special snowflake car route - and it has to go to the garage for said snowflakes, be very afraid if they bring you a lemon shortbread with your coffee whilst you're waiting for the car to be brought around to you. It means your bill is going to be eyewateringly HUGE.

We have done this for years with VW. Our polos cost around £220 a month and Up! about £160.

We got an ex demo SEAT me 3 door hatch back 1 L which was 2 years old for only £80 a month, £80 deposit, total bargain, we ended up buying it at the end of the 3 years for 2.5k as it is such an economical car. Completely recommend it for a cheap second little runaround but couldn't stomach paying 400 quid a month for the main family car

We got an ex demo SEAT me 3 door hatch back 1 L which was 2 years old for only £80 a month, £80 deposit, total bargain, we ended up buying it at the end of the 3 years for 2.5k as it is such an economical car. Completely recommend it for a cheap second little runaround but couldn't stomach paying 400 quid a month for the main family car

Oh yes you own it but who wants a balloon payment in the end?

It worked for he because I needed a car just after moving house and had no savings. Two years of interest free credit, saved the balloon payment (which wasn’t massive) and kept the car and lost the £200 a month outgoing.

I've just taken delivery of a spanking new Hyundai Tucson. I used PCP, I've always owned my cars outright before this and had the last one from new for 11 years. The reasons for going for PCP is that I wanted a new car but believe that cars will change so much in the next 10 years I didn't want to own one outright. So I traded in my old car worth about £1,200 for £2,000 and the dealer added £2,000. Also I can then trade in the 4 year old car for a brand new one.
Mine is a top spec Tucson for 4 years with 7000 miles for £300 pm.