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Post by jasehutch on Oct 12, 2018 19:46:20 GMT
My son has an Astra on PCP, he knows what the cost is each month with no unexpected expensive repair bills.
Only thing is it must be looked after or they will sting you at the end of the contract.
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Post by davidwilson on Oct 12, 2018 19:56:35 GMT
Mate of mine has just finished one of those deals. He’s paid out every month and at the end has nowt to show for his money. Nowt zilch Bugger all. Not for me. That’s interesting in that you didn’t mention any unexpected problems. |
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Post by davidwilson on Oct 12, 2018 20:12:53 GMT
My son has an Astra on PCP, he knows what the cost is each month with no unexpected expensive repair bills. Only thing is it must be looked after or they will sting you at the end of the contract. I think the PCP can be a good way to buy a new car. I have seen deals at 0% finance and others where manufacturers pay towards a deposit that effectively wipes out the interest. Then after say 3 years if the car is worth more than the final payment one can decide what to do, or should the car have depreciated horrendously just hand it back. As long as I can get a good deal I like the idea of not having all my capital in the car - unless I decided to pay the final payment and keep the car. I think the looked after bit is reasonable, but it does mean that minor dings can’t be ignored! With a PCH rather than a PCP though I think some packages are better than others, and I am still looking for catches! |
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Post by charliefarlie on Oct 12, 2018 20:19:00 GMT
Mate of mine has just finished one of those deals. He’s paid out every month and at the end has nowt to show for his money. Nowt zilch Bugger all. Not for me. That’s interesting in that you didn’t mention any unexpected problems. Well they did burgle his wallet for a couple of hundred quid on account of a couple of minor marks... |
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Post by charliefarlie on Oct 12, 2018 20:24:47 GMT
Mate of mine has just finished one of those deals. He’s paid out every month and at the end has nowt to show for his money. Nowt zilch Bugger all. Not for me. But how much did he pay in that time? was it less or more then the depreciation he would have lost in the same time in the same car? When you rent a car on holiday you have nothing to show for it at the end either. Co Car the same.... pay your BIK every month plus the cost from your salary package every month and nothing to show at the end of that either (and when I have had Company Cars, it cost a darn sight more than £2,000 a year!) It's just a different way to sort out your transportation  Surely we here aren’t nieve enough to think the companies make no money ? Cant see how car rental is relevant. To me paying out decent money for justbthe use of s car with nowt to show for it at the end is daft. |
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Post by davidwilson on Oct 12, 2018 20:26:50 GMT
That’s interesting in that you didn’t mention any unexpected problems. Well they did burgle his wallet for a couple of hundred quid on account of a couple of minor marks... There is a fair wear and tear clause so I thought this might happen. |
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Post by charliefarlie on Oct 12, 2018 20:35:33 GMT
Well they did burgle his wallet for a couple of hundred quid on account of a couple of minor marks... There is a fair wear and tear clause so I thought this might happen. The only clause I would trust is Santa and he’s a fake.... How on earth folk assume they can come out on top of these deals beats me... |
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Post by davidwilson on Oct 12, 2018 20:46:04 GMT
But how much did he pay in that time? was it less or more then the depreciation he would have lost in the same time in the same car? When you rent a car on holiday you have nothing to show for it at the end either. Co Car the same.... pay your BIK every month plus the cost from your salary package every month and nothing to show at the end of that either (and when I have had Company Cars, it cost a darn sight more than £2,000 a year!) It's just a different way to sort out your transportation Surely we here aren’t nieve enough to think the companies make no money ? Cant see how car rental is relevant. To me paying out decent money for justbthe use of s car with nowt to show for it at the end is daft. The companies all make money or they go bust. I suppose they are using their bulk purchasing power to bargain more with the manufacturers than an individual could - like the fleet buyers. A PCH is just car rental but for a longer term than a week. We all pay out money to use a car. It just depends how we want to load the payment. If I pay £20000 cash and sell it later for £10000, I have nothing to show for the £10000 it has depreciated and I have had 20k tied up. If I rent for the same time and it costs me £10000 then I am no worse off but I can be doing other things with the other £10k. To be honest I have been old School and paid cash but I like to see if there is a better deal to be had! |
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Post by philip42h on Oct 12, 2018 21:30:26 GMT
Surely we here aren’t nieve enough to think the companies make no money ? Cant see how car rental is relevant. To me paying out decent money for justbthe use of s car with nowt to show for it at the end is daft. The companies all make money or they go bust. I suppose they are using their bulk purchasing power to bargain more with the manufacturers than an individual could - like the fleet buyers. A PCH is just car rental but for a longer term than a week. We all pay out money to use a car. It just depends how we want to load the payment. If I pay £20000 cash and sell it later for £10000, I have nothing to show for the £10000 it has depreciated and I have had 20k tied up. If I rent for the same time and it costs me £10000 then I am no worse off but I can be doing other things with the other £10k. To be honest I have been old School and paid cash but I like to see if there is a better deal to be had! So, to develop on your example ... If you spend £20k cash on a car and then sell it three years later it will cost you the depreciation plus the loss of interest on the £20k that you had tied up in the car. If you do a lower mileage and look after your car well the car may be worth a little more than £10k when you sell it; if you thrash it it could be worth somewhat less than £10k. If you borrow the £20k to purchase the car it will cost you exactly the same in depreciation plus the cost of servicing the interest on the loan. But you'll still have the benefit of the £20k you have in the bank. If the manufacturer is offering a 0% APR deal alongside a PCP deal you will be a little better off. If you are paying 5% APR on the 'loan' you will be rather worse off at the end of the day. Now, if you lease the car you simply pay rent for it and hand it back at the end of the day - your £20k remains in the bank. However, the rent you pay must cover the owners costs and depreciation. The lease company will 'borrow' the money needed to buy the car and then charge you the interest on their loan, plus the same cost of depreciation, plus their profit. They will also use their buying power to get a fleet deal and discount on the initial purchase - so generally more profit for them rather than saving for you. So a lease arrangement would, typically, be the most expensive way to run a car for a private individual. (For a business the arithmetic may well be different with the benefit to cash-flow and the lease costs being set against profits.) PCH is only likely to be attractive if the manufacturer wants to structure a special offer that way ... but then you are equally likely to be able to get a good deal / discount on an outright purchase of the same model. |
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Post by Hoovie on Oct 13, 2018 9:29:26 GMT
I'm not sure about the "equally likely" bit.
The reality is that most people are not good at haggling and screwing the last penny out of a salesman (sure, many are, but they are in the minority).
I for one don't tend to haggle that much on the sticker price when in a showroom. I just don't do it!
But then I don't buy brand new cars either and look at used or nearly-new with the 'right' sticker price that interests me to start with (A good example being my Citroen DS5 - six months old and £10,000 off new list. 3 years later I lost just £4,000 in depreciation).
If someone liked to buy brand new and wasn't a haggler, then the various prepackaged PCP and PCH could be a money saver (and in the very first example David gave of the Octavia, I am not sure the best haggler could beat that paying cash)
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Post by davidwilson on Oct 13, 2018 10:42:49 GMT
Thanks Philip and Hoovie for the last two replies they have given me more to think about. I suppose over the 40+ years I started buying used and new cars before settling for a long time to buying new Japanese cars. I used to haggle hard but once I got a really good deal for a new Nissan and waited for August 1st delivery but when the day arrived the dealer had gone bust and so no car for me! I guess I always remember that - obviously it wasn't down to just my deal though!
I understand paying cash, or Hire Purchase, or a bank loan but things change and I try to keep abreast of these changes and if I think it is wise I will move to other methods. For instance I am open to switching my electricity supplier but I don't need a smart meter to tell me how I am using the electricity. Water meters seem a fairer way of paying for water yet I also like the idea of unlimited supply and choose to continue to pay more for that option. I suppose it would be great if there was a fixed price for everything but there really isn't. So I am rather late in the day wondering whether a PCP is the way to finance a car. I think it may be for me for some cars but not for others. There are many variables so it will come down to what is the best way of financing the car at the time. The interest charged on the PCP is a big factor for me and it is likely that I would only use a PCP on a new car where the interest is zero, or very low, or offset by a deposit contribution.
The PCH is a new concept to me and I was hoping that someone may have used this as a means of using a car or two and would be able to comment on the pros and cons. Charlie's information that extra payment was required for the odd mark or two was useful and the nearest I have got to feedback from someone who has used a PCH. There look to be many companies offering PCH and this competition may well keep the prices keen so that hopefully the fleet discount will be reflected in the price the leasee pays.
The jury is out!
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Post by davrav on Oct 13, 2018 10:48:12 GMT
Is there a 'PCH' protection insurance available that would cover minor damage at a cost effective premium I wonder?
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Post by Ravasher on Oct 13, 2018 11:08:49 GMT
My friend currently has Peugeot on a scheme for his daughter. She’s only 20 and they’re on a “fuel as you go” I think he said. Peugeot pay for everything including insurance and servicing. Not sure what they pay a month though. I suppose for a younger driver it’s a good deal.
My brother in law has a BMW on a lease plan and he pays around £300 a month he reckons it’s a good thing but not for me
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Post by charliefarlie on Oct 13, 2018 12:46:19 GMT
The big thing for me to be honest I will not have credit at any cost. I even pay the council tax and water bill up front rather than monthly.. I work on the basis if I haven’t got the coin I do without till I’ve saved the coin.
But whichever way you do it the finance side is and never can or will be free.
Jaguar for instance have a zero % offer on the XF but you have to pay list and no discount. So how is it bloody free then.
Where there is a scheme there is a schemer .
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Post by Hoovie on Oct 13, 2018 22:17:46 GMT
Is there a 'PCH' protection insurance available that would cover minor damage at a cost effective premium I wonder? I take out GAP insurance with ALA on every car bought since I used it in my stolen RAV4 back in 2013. One option you can add to the GAP is SMART repair insurance for minor scrapes. So it is available that way and so maybe standalone as well? |
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