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.

Another vote for option 1

Option 1 I suggest. PCP only benefits dealers and finance companies. If you look after the car, have it regularly serviced, and don't thrash the guts out of the car, I'd expect at least ten years use of it.

I’ve had my last three Kia’s via PCP …. Just trade it for a new one every three years. Services are included, no M.O.T, full warranty, and breakdown cover. Suits me fine.

Option 1.

Whatever you choose make sure it's exactly what you want. Settling for something 'that'll do' is a waste of money imo.

I had my test drive and I LOVED the car.

However the salesman was awful and basically said it’s impossible to get a second hand automatic picanto and I’d have to buy new or go elsewhere.

I’ve got an appointment at Toyota on Friday to test drive an aygo and by the looks of their website they actually have an auto picanto in stock.

Have a look at the Kia website there's 124 automatic picanto's for sale nationwide , when I bought mine it was in Kent and they said whist chatting they deliver nationwide , they had another going to Cornwall the next day
Don't let one nasty guy put you off ,

You absolutely can get a decent second hand car for less than £10k, all those who say you can't are talking bollocks.

I've never had a "new" car. All of my cars have been second hand, and I've never paid more than £2500 outright. As long as you're smart and do your research you can absolutely find a decent car which will last you years. My current car was 7 years old when I bought it for £2300 - it had low mileage for its age, one careful lady owner, and nothing wrong on MOT etc - I've had barely anything go wrong with it in the 5 years that I've now owned it. The worst I had was some rust/corrosion which wasn't expensive to get sorted.

But then again I'm someone who doesn't care about aesthetic. If the car has 4 wheels and drives me from a to be I'm happy. I don't care about scratch marks etc. So if you're like me and you just need a car to transport you then you absolutely CAN find a good value second hand car which won't break the bank.

Financing cars IMO (unless you have absolutely NO outright cash to buy a cheap one) is madness to me. As previous posters have said, they only decline in value.

A to B obviously!

Apologies all, somehow replied to an old thread! There was a more recent one on PCP I meant to reply to

Massive fan of Pcp or PCH (hire), surely scraping or damaging car is a problem whether you own or hire it? It still needs to get fixed. PCH has low deposit so doesn't eat unto savings as much, includes servicing etc, you get a new car, nicer than you could buy, and no or minimal repairs or unexpected expenditure. I love pch, works for us.