ELI5 - How do people afford PCP on electric cars

Vicxas

Hey guys,

Im new to the whole world of PCP so please excuse my ignorance.

I seen the new Polestar 3 and it looks amazing, however they're looking for a 30k deposit and the nearly a grand a month for 3 years.

My question is, are people paying this amount or is there some secret option im not aware of? Or is this just the price you pay for electric these days.

Buddy Bubs

https://www.boards.ie/discussion/2058281054/eli5-how-do-people-afford-pcp-on-electric-cars

Come on, do the maths.

That's a 100k car. Your real question has nothing to do with PCP really. That's just a payment structure. The 30k deposit could come from a trade in. And the monthly payments may be manageable for someone with good income and perhaps no mortgage.

Is it worth it, up to you......I wouldn't be personally interested in that car at that price.

100k is not mass market stuff.

Theres EVs available from 30k now and a huge choice from between 40k and 60k. Much more palatable but not exactly cheap and cheerful either, 30k still way over budget for many people I know for cars.

And you can pay 150k if you want too for something serious.

ELM327

My model 3 was 54k when I bought it and it's about 8k cheaper now. I paid approx 7k down and 800 a month now on PCP. You're looking at 100k cars so the PCP will be more expensive.

I had a model X before this and have one on order now for whenever they come out in RHD. To make the payments palatable to me (1200 or less) a good deposit is needed. It's simple numbers really, you need to cover the purchase plus interest in either large deposit and or large monthly payments and or high GFMV

highgiant1985

https://www.boards.ie/discussion/2058281054/eli5-how-do-people-afford-pcp-on-electric-cars

No one needs a 100k car. So before you do contemplate taking out loans or going in to debt for such a thing strongly consider how would you get with that, the ballon payment at the end of the 3 years and any other mortgages / bills if you lost your job or income stream.

There are plenty of options available for far more reasonable prices. It might be nice to look at the more expensive things but you need to apply some cop on as well as to what's realistic for your own personal circumstances. Buying a 100k car via PCP is a dumb move for the majority of people.

jimbobmalones

I think the implied question is how do people afford such expensive cars. I have a very good job

as has my wife but between mortgage and children etc I would struggle to pay more than 400 per month

for a car. I'm guessing that many posters here on boards either have very large incomes, inherited wealth, are single/no kids

or a combo of these.

Water2626262

The hard reality is a lot of Irish people are rich and have six figure incomes despite what you read online. A lot of them use finance out of convenience more than anything. They might not have 100k cash on them but they might earn 10k net a month so paying 1500 a month is no bother to them. There is no cheat code to it. You can’t be on minimum wage and buy a Range Rover tomorrow.

ofcork

Thats true i know lads working in pharma as operators making 100k a year with ot.

Vicxas

Cheers lads. I guess my question was a veiled “how do you see people driving 231 7 series around”

Guess I should lay off those cups of coffee from the Circle K

whippet

https://www.boards.ie/discussion/comment/120181970#Comment_120181970

its all relative - different people spend different proportions of their income on cars depending on how much it means to them. Plenty of fur coat an no knickers as well. I knew a lad in his late twenties who spent well over half is monthly income keeping an M4 on the road - between finance, insurance and maintenance ... it was swapped for an old 320d when the missus insisted that saving for a house was more important.

On the other side my father in law drives a midrange boring EV despite being quite well off and his peers would be the S500 brigade.