PCPs - Do's & Don'ts

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

  1. Setanta12

    Setanta12 Frequent Poster

    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

    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.