AIBU to buy a car on PCP???

[MoonbeamSprinkles]

I have never bought a car before and I'm totally confused about what's for the best.

I have just passed my test and am looking for a Kia Picanto 3, I'm not the most confident driver so I like the fact it has reversing cameras etc.
I have about 8.5K saved and earmarked for the car.

My options are

1. Buy a 3 year old car outright for about 8.5k.

2. Buy a nearly new car for around 12k and dip into rainy day savings.

3. Buy a new car on PCP put down a 5k deposit and keep the 3.5k for the monthly payments and hand the car back at the end.

The dealership offer very low rates on PCP but it looks too good to be true, I've never had a credit card or loans and I hate the thought of being in debt.
It would be nice to have a brand new car that I could 100% trust though.

If I have a PCP contract and I want to trade my car in would I need to put another cash deposit down when I give it back?

Any advice would be helpful, I'm a long time lurker of mumsnet and you always know whats what when it comes to cars.

I'd get a Skoda Citigo, Vw Up or Seat Mio (all the same car) because I've had the Skoda and thought it was a great car.

I’ve been looking at these and they do look good, the Skoda and the seat are only available as electrics now so I was a bit worried about getting parts.
And vw up seems to come with a brand premium.

The reversing camera is really just so I feel more confident to go places where there’s lots of parked cars, I’d probably be fine but what’s happened in the past is I’ve driven junks and then got panicky when had to go new places.

don’t forget that the insurance will be more expensive on a newer car.

Not really

Also I’m in my mid thirties so insurance isn’t really a problem, I’ve been getting very reasonable quotes.

Not sure I'd put a big payment down on a pcp deal. It will make ur monthly costs small but then u have to give the car back.

I've bought cars outright, bought on loan repayment, bought on pcp and now I just lease. It's even cheaper than pcp and they pay the car tax.

Most folk on here will tell u to buy outright it's a waste of money etc. I love getting a brand new car every couple of years. Not money water if u can easily afford it.

I've also never had to service it at a dealer. You are allowed fair wear and tear. Any scratches or dents up to 2.5cms I think.

@MoonbeamSprinkles

I'd get a Skoda Citigo, Vw Up or Seat Mio (all the same car) because I've had the Skoda and thought it was a great car.

I’ve been looking at these and they do look good, the Skoda and the seat are only available as electrics now so I was a bit worried about getting parts.
And vw up seems to come with a brand premium.

The reversing camera is really just so I feel more confident to go places where there’s lots of parked cars, I’d probably be fine but what’s happened in the past is I’ve driven junks and then got panicky when had to go new places.

Relying on technology to make you a better a driver isn't the way to go.

Practice, practice, practice! Reversing is the same as going forward.

@BarbaraofSeville

If you do go for PCP OP, they'll likely want to sell you a load of extras. Refuse all of them, they're overpriced. If you want breakdown cover or Gap insurance, you'll almost certainly get it much cheaper elsewhere.

They’ll probably throw in breakdown cover - Toyota does. Gap cover is pretty reasonable but don’t buy scratch/chip insurance, it’s worthless.

I’ll go against the grain with reverse camera/parking sensors. I was in an onstreet space that had been made so tight, it was virtually impossible to get out of last week. I’ve been driving for over 30 years and I’d never have got out of it without them. As it was, it was back and forth about five times to get out.

Relying on technology to make you a better a driver isn't the way to go. Practice, practice, practice! Reversing is the same as going forward.

I know. I know

It’s just having the confidence to go out and practise on my own without a safety net.

I’ve lost my bottle with driving so many times in the past. I’m a good driver but I lose confidence so want to take the path of least resistance.
My thinking is an 8k car that I drive is better than a cheaper car that sits on my drive because I don’t have the bottle to go out on my own with.

Buy outright or get a car loan. Avoid pcp, a con!

To all the people saying they would never buy a depreciating asset, you are literally paying the depreciation on a PCP car, and that depreciation is far higher on a new car than a 2 or 3 year old one.

You would be far better getting a bank loan for the same monthly amount as you pay PCP, even better if you've got a deposit to put down. You then buy a nice nearly new car.
The best thing I once it's payed off you have a free car that you are no longer paying for, that should you wish to you could trade in and buy another car without being stuck to one manufacturer like most people are with PCP as the equity only stand with the dealership they bought it from.

OP go option one without a doubt, possibly even get something half the price and a few years older, hate to say it most of us bumped into things in their first cars and its a lot less concerning on something you haven't just dropped all your savings into.

Also I'd wonder what the situation is if someone else damages your PCP car? I've had a wing mirror smashed off by someone who didn't stop, and other small dints from other peoples doors over the years. Owning my car outright has meant I could have it fixed (or not, for small dints) and shrug it off.

I've just had it fixed in the same way as I would if I owned the car outright, I'm not sure what difference PCP makes. I hit a telegraph pole and needed a new wing and alloy and the PCP wasn't mentioned and I didn't say anything when I traded it in.

Relying on technology to make you a better a driver isn't the way to go.

Why not? I paid extra to have one fitted in my new car to make life easier for myself. I have no off road parking and find it easier to squeeze into tight spaces with a camera.

Buy outright or get a car loan. Avoid pcp, a con!

I've got a brand new car that I would never have been able to afford otherwise, I'm paying no interest and I can decide what to do with it after 3 years. I don't see how that's a con

The best thing I once it's payed off you have a free car that you are no longer paying for, that should you wish to you could trade in and buy another car without being stuck to one manufacturer like most people are with PCP as the equity only stand with the dealership they bought it from.

I traded in a Ford for a Hyundai and then Hyundai for a Mazda without any issues. These were at different main dealerships

Have you not considered putting your savings towards the purchase and just getting a loan to cover the rest? mpt HP or PCP just a straight old fashioned low interest bank loan. I did this with my last two cars and I'm changing again. My Lloyds bank loan allowed me to pay extra each month so I cleared it quite quickly.
Another choice is just to lease - see Ling's cars.

Relying on technology to make you a better a driver isn't the way to go.

Why not? I paid extra to have one fitted in my new car to make life easier for myself. I have no off road parking and find it easier to squeeze into tight spaces with a camera.

Fair enough I suppose. I just learnt to park better instead! But then again I'm not one for technology or wasting money on stuff I can learn to do myself!

Sorry that message was for @PinkSparklyPussyCat

I have never bought a new car on pcp or outright.
My first car was a £400 fiat punto that I scraped down a tree trying to reverse out of a parking spot. It then died in winter because I didn’t put antifreeze in the coolant which caused the engine block to crack when I tried to start it up one very cold morning.
My second car was a golf mk2 that was written off when a car pulled out into my path.
And my current and theirs car is a polo that cost me £750.
I have been driving 14 years and only now considering a new car now that I know I have experience and have got past the silly scrapes and bumps that most new new drivers have.
Could an alternative be that you buy a beater for a year and then buy new?

Go for option 1.

I got a new car on PCP soon after passing my test, and it was a very expensive mistake - I was very nervous anyway, and then got too scared to drive much it in case I pranged it, and my confidence went to shreds. It never felt like 'my car', it felt like I had borrowed someone else's very new car!
I ended up getting rid (and actually then not driving for a few years, but I realise this is an extreme case!)

I've recently started driving again after refresher lessons, and have bought a 6 year old car outright (also a Kia Picanto, coincidently!) - I love it. I love the fact it is not new, and already has a few little scratches - I won't feel bad if I add my own. And it feels like 'my car'.

Good luck!

Could an alternative be that you buy a beater for a year and then buy new?

So I actually passed my test a couple of years ago and bought a beater Renault cleo for this very reason.
It was the worst decision I’ve ever made. It was awful awful awful to drive, the clutch was so high I stalled all the time and I felt so unsafe on hills.
I lost all confidence in my driving, scrapped it and swore never to drive again.

Then about 6 months ago my mam put me on her insurance and basically forced me to drive her automatic brand new aygo with a parking camera. Oh my goodness, it was a totally different experience. I started to enjoy driving and I decided to do a pass plus in a manual.

Having just done that I want to keep the momentum up.

My financial situation has changed quite a bit since getting the beater so I could afford to take more out of savings rather than getting a loan if I needed to, I’d just rather not to.

I've recently started driving again after refresher lessons, and have bought a 6 year old car outright (also a Kia Picanto, coincidently!) - I love it. I love the fact it is not new, and already has a few little scratches - I won't feel bad if I add my own. And it feels like 'my car'.

This is me!!!! Thank you for posting this!

Which model did you get? Do you find the clutch easy? Is it easy to drive in general?

I put approx 4K down on my 2014 reg, I pay 200 a month for 2 years then its mine.

Interest came to about £520 in total. It was the best way for me to do it.

My car’s an automatic Aygo with camera. I can see why you’re smitten!

blossom

Are you my mam?

Think you should also look at PCH. 3 months up front, monthly rental and no option to buy at the end. Your outlay is comparatively low and you are effectively just paying for the depreciation on the car, which would be the same if you bought it outright. Hope that makes sense - look on leasing.com

PCH stands for personal contract hire, rather than personal contract purchase (PCP)

@MoonbeamSprinkles

blossom

Are you my mam?

I don’t think so but, given that I haven’t got a daughter, I’m open to adoption! 😊

@MoonbeamSprinkles

Ooooh well maybe you could help me.

If you had 8.5k to spend on a car, no kids so no need for a big boot, had just passed your tests so driving tech is a bonus, what would you buy??

Suzuki Swift

We love our Suzuki, we bought it 2 years old 5 years ago for a bit over 7k. Its a great little car and we have never had any issues with it. Fun to drive and very fuel efficient.

Unfortunately we will have to sell it soon because because commute has changed and it's not ideal for long motorway commutes. We should be able to get 4k or more for it.

I would suggest buying outright. Simply because it's your first car. You will probable get into a (small) accident and you will feel horrible if its a new car. The accident most likely not even be your fault but simply because you'r not used to anticipating other peoples stupid driving mistakes.

Also remember that because you just passed your test your insurance is going to be astronomical the first year.