Not sure if this is the right place but it is technically a money issue so here goes...
Our 8 year old car has been written off following an accident. The insurer will pay the market value as we were not at fault, however we will need to replace it fairly quickly.
We had held the car from new, looked after it well and intended to drive it until it stopped, just hadn't planned for that to be quite so soon, so don't have funds to add to the pot.
So our options seem to be - use the insurance money to buy a similar (old) car and hope we pick well, or to buy new under PCP and use the insurance money to make the payments. This obviously leaves us not owning anything in 4 years' time, but we get to drive a new car in the meantime, mostly under warranty, with no MOT required.
Buying an older car still leaves us with a risk of owning nothing in 4 years' time, along with the risk of something going wrong.
Interest rates on PCP deals seem quite low, and while over 4 years would cost a bit more than the insurance value, we don't have to pay it all at once. So the PCP idea seems very attractive to me but I'm not sure if I'm missing something?