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I am looking to replace the current car in the near future. I am used to buying cars second hand, usually 2-3yrs old.
The PCP Option of getting a car seems a feasible choice. Ok I would never own the car but every three years I could get a new car and extend the PCP agreement.
I would be interested in getting opinions on buying via PCP. Is it a good idea, or is it better getting private finance to buy a 2nd hand car?
Cheers.
I am currently 2 years into my current 3.5 year PCP deal. Like you, I previously bought 2nd hand cars through HP finance and thought that was the way forward, but have definitely been swayed to thinking PCP is a better deal for me at least. The driving has been totally stress and hassle free with the knowledge of warranty and I got servicing thrown in for free also. I may well change up before the agreement runs its length but will likely go for another PCP.
As above worry free so long as you get free servicing chucked in. Never put a big deposit in though. I've never put more than £500 in
I've just signed up for one for the wife's car. I've always bought 2nd hand, but I'm getting to the stage in life where I don't want the hassle and risk of running 2nd hand cars, especially for the wife car when she might be out and about on her own with the kids, and I think why the hell shouldn't I have a nice new car every few years when everyone else seems to be able to manage it. Leasing or PCP is the only way I can achieve that in an affordable way - I decided against Leasing as PCP is basically like leasing (in our case the dealer included a servicing and extended warranty package in the deal), but at the end of the term you have options and it won't cost any more money to swap cars, unlike leasing - unless you want to upgrade the car. My only apprehension with it is that it does seem to tie you into one manufacturer - i've not quite worked out yet how i'd transfer from a PCP deal from one manufacturer to a different one.
I'm three months into my first ever PCP deal - always done HP or loans in the past.
£14k 2011 Ford Kuga for £200/month over 3 years. If I'd gone for a regular HP agreement it would've been nearer £300/month and I'd be stuck with until it was almost 9 years old.
I know I'll never own the car but if I did buy it outright, I'd trade it in as soon as it was paid for anyway, so no big deal
Wobbliscott - I think you may be more tied into the finance company than the manufacturer. I got my Ford from a BMW dealer, with BMW finance.
I'd like an X3 when the three years is up, but not sure I could / want to afford one, so I'll be giving the dealer a ring about 3 months before the deal expires to see what else they have in dealer stock
I find PCP gives a poor return as it's a bit of a niche thing, if you want to make a quick buck a bag of smack cut with some own-brand weetabix does the biz.
Thanks John. So I guess the Finance company doesn't care how the final ballon is settled then. This one is a BMW with BMW Finance. Obviously there is a guaranteed future value of the car which they'd use for trade-in purposes, but after the term if I rocked up to a Jag dealership or some other, would they honour the guaranteed future value?
I guess not, but I am only guessing.
You could ask the BMW dealer to find you a Jag though.
Not sure they'd be entirely happy about it, but if they happened to have a Jag in dealer stock that they'd taken as a trade-in, that would probably go down a little easier