To PCP or not to PCP...

A

ArthurMcB

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Im in the market for a car change.

Typically i woukd be very happy with a 1 or 2 or 3 yr old car. I have never bought a new car.

I want to go fully electric and am thinking of going PCP

The garage is offering me 12k on current car which I am ok with and together with a 2,500 cash deposit id pay 350pm over 36 months.

Car i am looking at is advertised at 38500 cash brand new.

I do have the cash to buy it outright but i like the idea of having maintenance covered by garage and been able to go back in 3 years and upgrade (esp as its an electric) and have a guaranteed value locked in which im told is about 15k.

Im just confused about whether PCP is a good deal or not and would live to get peoples views.

Is there a way to crunch the numbers to help decision making?
 
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Is it 0 or very low percentage financing? Then absolutely do on an EV as it gives you downside protection on the depreciation (you can just hand it back at the end if you wish).

You may be misunderstanding the future value tho, that's just the value you can buy it for at the end of the term.

If its worth more you can a) just buy it or b) trade it and the value of the car in excess of the gmfv will be part of your next deposit.

If it worth less you can just hand it back and walk away if you wish.
 
Blackrock1 said:
Is it 0 or very low percentage financing? Then absolutely do on an EV
Click to expand...
Are you sure about that? @Brendan Burgess's posts here seem to deal with this in a more nuanced way...

Key Post - What is the best way to finance a new car, PCP, HP or term loan?

This Key Post / thread aims to serve as a quick overview of the options available to finance a new car purchase, explaining some of the pros and cons of each approach. Obviously, funding a car purchase from savings is the preferred method should you have the available funds. There are three...
www.askaboutmoney.com
 
If you are 0% finance & have the final lump sum; then PCP is a reasonable option.

However, I'd check out 2 year old EVs also; if you have the cash available, I think you'll get a decent deal.
 
If PCP was 0% I guess that would make PCP more viable. I like the idea of paying monthly rather than such a large outlay up front. And i like the idea of the garage covering maintenance and there being a GMV at end of 3 yrs, esp for an EV.

I have read the thread that Clubman shared and im struggling to see any points in favour of PCP.

Does anyone think its a good in any circunstances?
 
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ArthurMcB said:
Is there a way to crunch the numbers to help decision making?
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If the GV is the final balloon payment then I think it's a little expensive
So it's €14.5k down €12.6K finance and final payment of €15K gives you €42.1K for a €38.5K car
So for me buy for cash or look at a second hand one for even bigger savings

Maybe it how's I view cars now but I probably wouldn't buy new and I'd now run it into the ground before thinking about changing
 
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You get a lot of a car for 30k if you bought something 1 or 2 years old, depreciation almost certainly lower than buying new, buy a Japanese EV and very little actually goes wrong with them, toyota for example give a warranty that battery efficiency is still 70% after 10 years
 
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