PCP or Hire Purchase

Straignt

Does anyone have an opinion as to which might be a better option. Im am currently looking at getting a new Ford Fiesta and have these two options.
I could do hire purchase at €225 for 5 years. Or PCP at €175 for 3 years, and I would more than likely be changing the car for a new similar one every 3 years with this. If I was doing hire purchase I would likely keep the car until whenever it would start producing problems however many years that might be.
Where im not very clear about is in maybe 6, 9 or 12 years time when I may want to end the pcp it doesn't seem like my options are very good, I either have to walk away with noting or finance the current car I would have.

Straignt

Sorry I probably should have posted this in 'Buying'.

galvo_clare

What percentage deposit are you putting up? With a payment of €175 per month, I'd say it's at around 30% plus.
The thing is, in three years time, if you want the same deal you'll have to come up with a deposit again.
Ford will guarantee a minimum value for your Fiesta and almost certainly the real worth of the car will be greater than that minimum figure. What I can't see happening is you being left with enough equity in the car to give you enough of a deposit to get a similar deal for the next three years.

I'd be going HP and keep the car.

Straignt wrote: »

Does anyone have an opinion as to which might be a better option. Im am currently looking at getting a new Ford Fiesta and have these two options.
I could do hire purchase at €225 for 5 years. Or PCP at €175 for 3 years, and I would more than likely be changing the car for a new similar one every 3 years with this. If I was doing hire purchase I would likely keep the car until whenever it would start producing problems however many years that might be.
Where im not very clear about is in maybe 6, 9 or 12 years time when I may want to end the pcp it doesn't seem like my options are very good, I either have to walk away with noting or finance the current car I would have.

Straignt

galvo_clare wrote: »

What percentage deposit are you putting up? With a payment of €175 per month, I'd say it's at around 30% plus.
The thing is, in three years time, if you want the same deal you'll have to come up with a deposit again.
Ford will guarantee a minimum value for your Fiesta and almost certainly the real worth of the car will be greater than that minimum figure. What I can't see happening is you being left with enough equity in the car to give you enough of a deposit to get a similar deal for the next three years.

I'd be going HP and keep the car.

Thanks for the input I think I would be leaning towards the hp also, but the lower repayments on the pcp really attract me to it.
The deposit is €6,350 which is my car as a trade in, im not sure what that is as a percentage.
The minimum value I have been given is €6,400. 2012 Fiestas (3 years old) are going for about €12,500 at the moment. So I would imagine in 3 years time the pcp car would be worth between €10,500 and €13,500 which would be a minimum deposit of about €4,000 but likely more than that.

galvo_clare

On those figures the PCP looks doable as long as the value holds up. Remember to check any mileage restrictions too.

Good luck.

Straignt wrote: »

Thanks for the input I think I would be leaning towards the hp also, but the lower repayments on the pcp really attract me to it.
The deposit is €6,350 which is my car as a trade in, im not sure what that is as a percentage.
The minimum value I have been given is €6,400. 2012 Fiestas (3 years old) are going for about €12,500 at the moment. So I would imagine in 3 years time the pcp car would be worth between €10,500 and €13,500 which would be a minimum deposit of about €4,000 but likely more than that.