So as Leo did, you'd be much better off paying the final balloon payment and either keeping the car for a few more years
or selling it privately then rolling onto a new PCP contract and paying more for a car then you should
To PCP or not to PCP...
- Thread starter ArthurMcB
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or selling it privately then rolling onto a new PCP contract and paying more for a car then you should
Blackrock1
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What point are you making? I mean you'd be better off not buying new in the first place if you want to extend your argument. Whatever you are into but this rhetoric that pcp is inherently bad is a bit silly.
Well I thought my point was clear enough to understand, maybe have another go at trying to understand what I wrote
and no where in this thread have I ever said that PCP is "inherently bad"
I have no issues with buying a car using PCP in fact I'd go as far as saying if you don't have the resources to buy the car for cash then PCP is a good option but where I'm finding it hard to understand or comprehend is if rolling from one PCP contract to another is a good deal for the buyer
To me so far I'm yet to be convinced that it is a good deal for the buyer
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Blackrock1
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It's a good idea where
A interest rate is 0 or very low and
B you want to limit the impact of depreciation as it sets a floor
Blackrock1
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If you could keep the passive aggressive attempt at condescendion to a minimum it would aid the discussion I think. I know you didn't say it's inherently bad but that has been stated in this thread by other posters.
You say yourself you are struggling to comprehend if rolling a pcp is good for a consumer or not after previously saying on Leo's case buying the car outright at the end was the a good idea.
A pcp is just the financing method, trading your car to buy a new one is a standalone decision regardless of how you financed a purchase, I'd argue it's rarely a sensible decision financially speaking but people buy cars for more than financial reasons.
I'll say it again, if you can get 0 percent or an interest rate below prevailing inflation pcp can be a good way of financing a car, it offers protection against depreciation to a point (important with evs at the moment as the market is still volatile)
At the end of 3 or 4 years you can either pay the final payment and keep the car, you can trade it in against a new car (from any brand or dealer) if its trade value is higher than the gmfv, you can sell it privately and repay the final payment and pocket the difference or you can hand it back and walk away if it's value is lower than the gmfv.
Taking the above into account whar concerns your or is unclear?
Blackrock1
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At 5.9 percent it wouldn't be for me either, are you particularly wedded to this car or are their other evs you may be interested in, happy to give some thoughts if you start a separate car thread!
I'll ignore this
Yes I think what Leo did was the smart move, he bought the car after 3 years for less then it was worth and then traded it in for more two years later
What he didn't do was roll onto another PCP contract after 3 years and that is the bit of my point that you are failing to see or answer
I'll phrase it another way, is a PCP contract still good value for the buyer if they keep rolling it on??
Totally agree with this and everything you've said after except the "deprecation" bit
and that's just because I personally don't factor it in when I'm buying a car for reasons stated earlier but it doesn't mean you point is incorrect
Blackrock you have clarified it a lot for me, thanks.
We re not wedded to a car. We want an EV SUV thats 1 or at a push 2 yrs old with less than 20,000 kms. Have a car to trade in thats worth 12k and overall budget is about 45k (i.e 12k trade in + 33k cash or financed).
Want range of a minimum of approx 400kms.
We like peugeot 2008 or 3008 as an example. Kia may also be a decent option.
At this stage having read this thread we re leaning towards paying cash + trade in. However, 0% pcp does appeal when i think about mitigating depreciation.
We re not wedded to a car. We want an EV SUV thats 1 or at a push 2 yrs old with less than 20,000 kms. Have a car to trade in thats worth 12k and overall budget is about 45k (i.e 12k trade in + 33k cash or financed).
Want range of a minimum of approx 400kms.
We like peugeot 2008 or 3008 as an example. Kia may also be a decent option.
At this stage having read this thread we re leaning towards paying cash + trade in. However, 0% pcp does appeal when i think about mitigating depreciation.