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

I've done loans and higher purchase. Most recently paid around 240 a month and owned it in the end! Then everything started to cost, 1000s for new clutches, full brakes, gearboxes etc! Money pits once over 7 years old!

This time I did some research and chose the car I wanted. I then used a nationwide car broker site, Car Wow i think!? I got offers from 12,000 to 15, 500 for the same car! A citroen c3 aircross. I went for the cheapest deal, part ex my old car and now pay 134 a month for hassle free motoring.

We found Ford Finance for a new Puma on PCP was only 1.1% , but that was end of August so could have changed now.

@VinylDetective
Just checking with you, you’re not thinking the same way I did regarding the balloon payment and deposit...

If the balloon payment is £15k , taking out another PCP deal doesn’t equal a deposit of £15k off the next car ( yep, I actually thought that! ).

The dealer pays the balloon payment for you and they own the car.
You have no car, but no outstanding debt.
Then you talk about a new pcp deal.
If you have saved up a bit of money, you can use that as a deposit.
If you’ve looked after the car, done less than the agreed mileage or the dealer might be running a deal, then they’ll offer you £18k.
In that circumstance, you’ll have a deposit of £3k.

Apologies if you know all that!

If you can afford the monthly payments it’s probably better to take out your first PCP deal without a deposit.

The whole reason manufacturers love pcp and hp is because you've got swathes of people now queuing up to finance the huge depreciation on the most expensive part of a car's life without even keeping it when the car is becoming cheaper, kidded into believing its affordable because they have been lent the money and are paying it back monthly.

Why do you think so many people can suddenly "afford" to be driving round in premium brand cars? We're not all suddenly well off, we've just been cleverly persuaded to part with a bigger share of our income on cars.

I got HP and pay 530 for a BMW 420 Grand Coupe. The car will be mine after 2 years though.

Don’t go to the main dealers
Look on line it’s nearly always cheaper
I have an X1 in the Dealer they wanted £490 a month I got it for £410 on line
That’s with 20 thousand miles a year 3 year contract
I put down 1230 plus £150 admin fee
When the 3 years are up I hand it back and I will get a another car

If the balloon payment is £15k , taking out another PCP deal doesn’t equal a deposit of £15k off the next car ( yep, I actually thought that! )

It would be easy to think that but I know it’s not the case! I’ve been happily driving new cars for about eight years at 0% interest and with no deposit. I don’t take any depreciation hit and never need to MOT. It’s worry free so it suits me.

Ive got a 1 series and pay £420 a month.

You also dont have to wait till the pcp deal runs out. I.e you pay for a 4 year pcp deal... realistically the day after you could hand the car into a dealer for a part exchange. You would have to pay a considerable amount but a pcp doesn't mean you have to keep the car and pay for the balloon payment. You can do what you want with it.
The finance just needs to be paid off.

I paid £5000 for a 4 year old car. It's mine. I've had it 4 years and had no bills so far other than mot. So that's £104 per month it's cost me. I am planning on keeping it until it dies so probably another 10 years or so.

I think pcp works if you aren't "hard" on your vehicles. Ours always look like that have been blown up after a couple of years.

Sometimes it’s much cheaper to get a loan and pay for a car. I got a 3 year loan out and payed cash for my car, it worked out much cheaper because of the interest and I also owned the car at the end.

Have a look at Car wow and Orange wheels then tell the dealer what price you can get. It worked for me. Got 10,000 off my new car.

For me owning the car in the end isn’t a desirable outcome. I don’t want to own an old car. I want to drive a new one. Horses for courses I guess.

198 for a brand new C3 (haven’t even had it a month yet!) on a four year term

Jaguar F-pace, £585/mth

We've used PCP for the last 12 years because I think it's odd to regard a car as an asset, given the depreciation levels. It's not like a house. I really don't want to own it at the end, and am happy to hand it back for someone else to buy, and have a new one.

After a few bad experiences with 'owned' second hand cars I really loathe wasting time getting things fixed. It helps that DH and I have absolutely no interest in cars other than a way to get from A to B. So if you look at it as paying for a service ( like a season ticket or Council Tax) it does make sense for people like us to use PCP.

We've had new cars every three years with no/low deposit and very low interest. This has seen us through periods when we were both commuting by car, or when DH was but I still needed a car to take the dc to things.

Currently paying around £200 a month for a mid-range family SUV style 5-seater, which has been fab for taking dc to and from university etc. When they've all left home we'll get something smaller. Absolutely no regrets.

There are so many variables depending on deposit etc. Essentially as a rule of thumb I'd say sub £300 for a standard brand and £300 + for a prestige is where you want to be. Also don't rely on main dealers look at leasing agents such as WestMids or direct with someone like Hitachi finance or leaseplan. I gave up on main dealers this time and am driving a BMW X4 at £150 cheaper a month than through the main dealer. I also quoted on Mercedes GLC and CLA which were typically £100 less per month.

I've got an MX-5 RF and I pay £380 a month. I put in a low deposit as its on 0% so I'm using the rest of the deposit to top up the payments as they are higher than on my previous car.

PCP and hire purchase work well unless something goes wrong in your life and you can no longer afford the payments, it is not just a case of ‘handing the car’ back and finance companies will expect the outstanding payments, often thousands of pounds back. This is what the salesmen do not tell you about, I have first hand experience of this! I would never take one out again

Ive got a Yaris, £206 a month. Got it with £0 deposit and 0% interest and 10000 miles a year. Due for an upgrade in March. I just see PCP as a lease, I dont have any intention of paying the balloon and don't particularly want an old car

Cannot believe how much people spend on car finance.

We bought a Japanese brand crossover type car. Decent model with leather interior, all the add ons. 1 year old, less than 5k on the clock. We paid £20k cash.

Have now owned it 5 years. That's £333 a month. It's still in great condition. We will keep it at least another 5 years. By the time we get a new car, our cost pm will probably have been £150 or so a month.

To get the same car but keep replacing it with new models would cost at least double. Is it really worth it? It's just a car. No one is impressed by what you drive .

I got a 2014 'Peugeot 2008' last Nov, with 28,000 miles on the clock, & its £30 a year tax. (I was paying £20 a month on tax before)

I put £3000 down, pay £199 for 24 months, then it's mine.

It works out that I will pay £400 in interest over the 24 months, it was the cheapest way I could do it.

I can pay more off each month if I want to own it sooner.

We pay just over £200 a month for a brand new Seat Ateca FR sport. We were able to specify the colour and that we wanted automatic which most FR Sports aren’t. We did put down a £6000 deposit though. We also looked at Car Wow and went back to the main dealer who matched it no problem.

No one is impressed by what you drive

I’m impressed by what I drive. I’m very fussy about it. This is turning into the LV handbag thread. People prioritise their own spending and it’s nothing to do with anyone else.

If our car hasn't gone caput, and we're forced into changing there and then, we've always had six months hard saving, and then bought outright. This is usually a three or four year old car, and never a fancy new one. We tend to keep our cars for 5 to 7 years. This works for us, and less monthly outgoings if one of us made redundant, but it does mean we never have a fancy car.

I pay £158 per month for a corsa with £1500 deposit and DH has just bought a audi A3 with a £2600 deposit which costs him £330 per month