New car - to lease/pcp or buy cash?

[mrscampbellblackreturns]

So am looking at getting a new car. We could pay for it cash and I said that is what we planned to do to the dealer and he seemed to think it would be advantageous to get it on pcp.

The car is a nice one but I would want to get a new one after 3 years and this is why he suggested pcp as guaranteed residual value.

I have tried googling which makes sense and am none the wiser.

So anyone massively pro doing one over the other?

It really depends on your priorities.

If you want to buy a car and keep it for the long haul, while budgeting for repairs, then cash all the way - this will work out cheaper in the long run.

If you want to get a new shiny car every 3 years (for example), without worrying about unexpected maintenance costs, then PCP is usually the most cost effective way to do this, and you will have a set payment each month.

Obviously buying a car outright and driving it until it’s no longer economical to repair and needs to be scrapped, is the most sensible option financially, but as I said if having a new shiny car is a priority to you then PCP is probably the best option for you.

However, be aware that the salesman is most likely pushing the PCP as he will make more commission on that than selling you a car outright for cash.

Thank you! I did wonder about the commission because I am cynical.

But yes I do want a shiny new car every 3 years so may look more into PCP.

If you want a new car every 3 years then PCP makes more financial sense than buying new and trading in.