PCPs - Do's & Don'ts

Discussion in 'Cars, cycling and transport' started by Setanta12, Dec 1, 2016.

  1. Setanta12

    Setanta12 Frequent Poster

    Posts:
    946
    Looking at new car (new to me, someone else's cast-off) and I see that PCPs are also offered for second-hand cars .. .. .. ..

    Where's the down-side here?
     
  2. cremeegg

    cremeegg Frequent Poster

    Posts:
    1,394
    If you know the car you want and are happy to pay for it, under most PCP schemes there is no downside. (I say most because I don't know which one you are looking at, but generally they do not over charge for credit, some even give free credit).

    So is it too good to be true ?

    Well, yes and no.

    The reason car companies offer these schemes is not to make money directly from the schemes, it is to make it easier to buy a more expensive car.

    If you have €10k to spend, a pep scheme might induce you to sign up for a €15k car. Thats why they do it.

    If you have the discipline to only spend the €10k then you are really getting a free lunch, the car company makes its extra from the average buyer who is tempted into the bigger car by the ease of PCP finance.