Looking for views on pcp on 141 car..

hawkelady

Hi , currently in the market for a 7 seater and the Zafira is the one in mind. We will be trading in an 07 Zafira (1.6 petrol) ..
I'm looking at a 141 that I can get for 14k with my own. Seems a decent deal compared with other zafira's. The dealer has offered me a pcp deal which means it will be lower monthly repayments than the hp price , 287pm.. It also means I can trade up to a newer car in 3 yrs time by just continuing the monthly repayments.
Does anyone have any experience with this as in is it a good idea ? There are a few rules like the car has to do less than 15k km a year and has to be maintained ( not by main dealer btw). Those are no issue with us ..
I'd like feedback good or bad as I'm thinking I might go for it basically cause I'll know I can upgrade a lot sooner than I normally would. Thanks for taking the time to read this

colm_mcm

What will you most likely do when it's time to hand back the car?

hawkelady

colm_mcm wrote: »

What will you most likely do when it's time to hand back the car?

Add your reply here.

I honestly don't know.. If my financial situation stays the same I'd probably keep going and get a newer car as we can manage the repayments handy enough. But having said that if the 141 is a gem of a car and we really like it we might consider holding onto it.

colm_mcm

Realistically you won't just hand it back and be done with it, so in reality you'll be paying back the PCP a lot longer than with HP, whether that's through refinancing with a new car, or taking out a loan for the settlement to buy the car.
Just keep in mind that the reason the PCP amount is cheaper is because you're not financing eventual ownership.

billy few mates

colm_mcm wrote: »

Realistically you won't just hand it back and be done with it, so in reality you'll be paying back the PCP a lot longer than with HP, whether that's through refinancing with a new car, or taking out a loan for the settlement to buy the car.
Just keep in mind that the reason the PCP amount is cheaper is because you're not financing eventual ownership.

Can you explain that please..?

pippip

billy few mates wrote: »

Can you explain that please..?

Its basically that when your PCP plan comes to an end (3years) you then need another financial plan (non PCP) if you wish to complete the ownership and pay the final lump sum.

MarkN

pippip wrote: »

Its basically that when your PCP plan comes to an end (3years) you then need another financial plan (non PCP) if you wish to complete the ownership and pay the final lump sum.

PCP on a 2 year old car with *only* €14,000 to finance seems excessive to me. Credit union/bank etc would be better for that money. I know the APR might be higher but you're not deferring paying anything which again coming back to 14k, seems silly to be deferring anything. Borrow that amount over 4/5 years and your repayments won't be much different but you can do what you like with the car after 1-5 years as it's all your money and you'll own the car from day one. If you can sell your current car you'll have to borrow less again and your car value won't be swallowed up into the PCP deal either.

Ogogo

Does anyone else get a sinking feeling that there is going to be an awful lot of weeping and gnashing of teeth in a couple of years time when many of the current PCP deals mature.

Some of the current PCP deals probably work well for someone who is well informed and financially responsible and in many cases are significantly cheaper than traditional bank financing which bizarrely is at 7 - 8% for most personal loans. I get the impression from some questions posed here, and discussions I have heard elsewhere that many people haven't grasped the concept.

Anyone think its time for our financial regulator to run an add - on a bus - where someone stands up and says, "I don't know what PCP is"?

Because, I suspect that there will be an awful lot of former motorists taking the bus in a few years time.

MarkN

Ogogo wrote: »

Does anyone else get a sinking feeling that there is going to be an awful lot of weeping and gnashing of teeth in a couple of years time when many of the current PCP deals mature.

Some of the current PCP deals probably work well for someone who is well informed and financially responsible and in many cases are significantly cheaper than traditional bank financing which bizarrely is at 7 - 8% for most personal loans. I get the impression from some questions posed here, and discussions I have heard elsewhere that many people haven't grasped the concept.

Anyone think its time for our financial regulator to run an add - on a bus - where someone stands up and says, "I don't know what PCP is"?

Because, I suspect that there will be an awful lot of former motorists taking the bus in a few years time.

At least the people who stood up on the bus found out a tracker mortgage actually saved them money, over the term of the mortgage. PCP is a great way for someone to buy a new car for a relatively lower cost but it's a long term commitment of changing cars or it's a dressed up 5 year (plus) loan. Once people understand that then it's all good.