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PCP finance.

[Deleted User]

Ok so after a while of my brother and I trying to figure out the benefits of PCP we can't find any.

He's looking at getting a new Audi and we've been looking into pcp, he changes every 2 years or so and might have 15 k miles maximum on the clock so we thought pcp might suit him better.

You got to come up with a large deposit if you don't have a trade in and while your monthly payments appear low when you add in the fact you need a new deposit for the new pcp after 3 years your 300 a month pcp suddenly turns into 600+ pm.

So what's the benefit over hp or bank loan ?

The only hing with hp or loan is you pay the full interest where as pcp yup don't ?

Either way I see little benefit on a normal loan and trade in and re finance after 3 years or so. Only thing is VW bank has much lower interest than any other bank or finance.

For me doing 20-25 k miles a year pcp would leave me with not much on the gfv.

It seems to me that people could get caught out at the end because you can be damn sure you won't have much over the gfv to use as a deposit.

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DaveyDave

Can people stop using this thread to give reasons why PCP isn't an option for them? For Christ sake, yes you can get whatever Passat you want and have it paid off in 3 years. Someone getting the bus in Dublin could also save €1,800 a year on bus tickets and get a nice bicycle. Or, save a small deposit and spend €1,800 a year on PCP on a brand new Polo. There's a million ways you could spend that money, everyone is different.

It depends on what you want to do, but can we please stop saying "at least my 2k banger is mine and I'm not spending all my money each month". Some of us want to have a new, top of the line car rather than something that you own that has a cd player as an extra feature.

There's plenty of reasons why we choose PCP. In fact, there's just as many different reasons why we all choose PCP, as there are reasons why the rest of you didn't.

Just because some of you think paying X a month is too much doesn't mean everyone else does. There's plenty of people out there getting nearly new second hand cars with bank or credit union loans also spending X a month for the next few years but seemingly that's not an issue, even though it's similar financially.

If people want to keep talking down about why PCP is a bad idea can we just start a separate thread?

Sorry it's just getting on my nerves. Yes, one month PCP will pay for your cars servicing for two years but on the flip side we don't go into the bangernomics thread saying how you should get PCP because you'll never need to do the NCT. To each their own.

Fol20

dil999 wrote: »

It's much more valuable to have 10k in the bank and having a car outside financed by pcp than it is to having your own car outside that has a nominal 10k price tag. It could take 6 months to access the cash in the car. 10 minutes to access the cash in the bank

It depends on the person. I’m neither for nor against pcp. In some situation it can make sense to pcp it especially if it’s 0pc interest but on the other end if there is extra fees and interest. That his money you can potential save if you buy it outright. I think neither option are right or wrong it just depends on what is better for the person.

maidhc

DaveyDave wrote: »

If people want to keep talking down about why PCP is a bad idea can we just start a separate thread?

The title of the thread is "PCP Finance"; it is pretty broad. If that includes people thinking PCP is a bad idea compared to other ways to buy a car, so be it. I'm also one is neither for it nor against it. However I think it is a very niche product and not something that should be used as broadly as it is.

26000 Elephants

DaveyDave wrote: »

Can people stop using this thread to give reasons why PCP isn't an option for them?

Different opinions give people a better insight to the market. If it wasn't for dissenters, a lot more people would still believe that the GMFV of their car was the deposit for their next one.

I think PCP is a great idea for those who can easily afford it. But you really need to understand the pratfalls, because no salesman will explain it to you.

hanky2016

Just sorted my new car upgrade on PCP. Old car was 152 A3 saloon S-line upgrading to new A4 S-line, €6000 to come up with and new payment is €373 while the monthly on the A3 was 343.

acronym Chilli

hanky2016 wrote: »

Just sorted my new car upgrade on PCP. Old car was 152 A3 saloon S-line upgrading to new A4 S-line, €6000 to come up with and new payment is €373 while the monthly on the A3 was 343.

Do need to mention the GFMV/balloon-payment for anyone to know if the deal is good. Full price also of interest.

Nonoperational

JaCrispy wrote: »

Wow, some people here spend more on a PCP payment in 1 month than I spend in 24 months on car maintenance :eek:

'Tis great to have money all the same

[Deleted User]

dil999 wrote: »

It's much more valuable to have 10k in the bank and having a car outside financed by pcp than it is to having your own car outside that has a nominal 10k price tag. It could take 6 months to access the cash in the car. 10 minutes to access the cash in the bank

This 100%.

Even many of the very wealthy still get mortgages and finance/lease their cars as it's bad financial management to tie lots of money up in things that can be financed and paid back over time while keeping the buck of your cash in savings and/or investments.

JaCrispy

Nonoperational wrote: »

'Tis great to have money all the same

So it's a visual representation of how much money you make?

In a one mile radius from me, there is a unemployed family driving a 171 Avensis and a successful GP (probably earning a 6 digit+ salary) driving a 99 Octavia. So who is doing right here? Serious question.

mickdw

The gp is an idiot
The unemployed family shoukdnt be able to afford a new car but are obviously working the system and can possibly well afford it.

air

mickdw wrote: »

The gp is an idiot

Quite the leap

Brian Scan

mickdw wrote: »

The gp is an idiot.

There's a lot of it about.

Nonoperational

JaCrispy wrote: »

So it's a visual representation of how much money you make?

In a one mile radius from me, there is a unemployed family driving a 171 Avensis and a successful GP (probably earning a 6 digit+ salary) driving a 99 Octavia. So who is doing right here? Serious question.

Couldn't care less what other people do to be honest.

JaCrispy

Nonoperational wrote: »

Couldn't care less what other people do to be honest.

Just what they think of you.

Nonoperational

JaCrispy wrote: »

Just what they think of you.

No. I buy a new car because I like new cars. It doesn't impact one whit on other people, or on my finances. It suits me down to the ground to do it by PCP because I'm going to get a new car every 3 years for the foreseeable future. God forbid I might actually enjoy it, sure one would only buy a new car to impress other people. Ridiculous frame of mind.

What's with people thinking they know what's best for other people.

bidiots

Nonoperational wrote: »

No. I buy a new car because I like new cars. It doesn't impact one whit on other people, or on my finances. It suits me down to the ground to do it by PCP because I'm going to get a new car every 3 years for the foreseeable future. God forbid I might actually enjoy it, sure one would only buy a new car to impress other people. Ridiculous frame of mind.

What's with people thinking they know what's best for other people.

You new here?

mickdw

There is no excuse for a seasoned gp to be driving around in a 300 euro car. Its just being a tight arse. Even if they have zero interest in cars, a gp should retain a car of reasonable quality to ensure reliability if nothing else.
No excuse whatsoever to be running such a car.

Comhrá

mickdw wrote: »

There is no excuse for a seasoned gp to be driving around in a 300 euro car. Its just being a tight arse. Even if they have zero interest in cars, a gp should retain a car of reasonable quality to ensure reliability if nothing else.
No excuse whatsoever to be running such a car.

My own gp drives a 2000 Avensis.He seems to be managing fine with it. He's not an idiot by any stretch of the imagination but he has no interest in cars.

mickdw

The gp here relies on his car for emergency house calls. I think running an 18 year old car in that situation is bordering on reckless.

mickdw

The gp here relies on his car for emergency house calls. I think running an 18 year old car in that situation is bordering on reckless.

limnam

mickdw wrote: »

The gp here relies on his car for emergency house calls. I think running an 18 year old car in that situation is bordering on reckless.

If it's that much of an emergency it's not a GP you need.

mickdw

I'm taking about rural ireland. Gp has to call out in emergencies. It is very common. Ambulance can be 1 to 2 hours away regularly. There is an excellent helicopter service to be fair but generally as I say, doctor will make that decision.

limnam

mickdw wrote: »

I'm taking about rural ireland. Gp has to call out in emergencies. It is very common. Ambulance can be 1 to 2 hours away regularly. There is an excellent helicopter service to be fair but generally as I say, doctor will make that decision.

Maybe we can ask the government to finance 172 Mercs for rural GP's.

Two incase he needs to leave one for a service.

dil999

There are plenty of people driving cars they can't afford. They're not all financing them through PCP. There are people who have taken out bank loans, Credit Union loans, used savings and have no money in reserve if a financial emergency befalls them. I know a doctor who drives a 171 Merc and an unemployed family who have a 2004 Focus.

acronym Chilli

mickdw wrote: »

The gp here relies on his car for emergency house calls. I think running an 18 year old car in that situation is bordering on reckless.

That's hyperbole and/or a lack of mechanical understanding.

What might be reckless is if he fails to do 60 second check on vehicle each day, a weekly inspection including fluid levels, and regular services. Or e.g. runs a diesel on short duty cycles.

Brand new vehicles break down too. No vehicle is immune to tyre damage. A well maintained older vehicle can be as reliable as any other.

And anyway, GP doesn't run blue lights. If she's concerned and cannot get to patient she'll bring ambulance into fray.

mickdw

limnam wrote: »

mickdw wrote: »

I'm taking about rural ireland. Gp has to call out in emergencies. It is very common. Ambulance can be 1 to 2 hours away regularly. There is an excellent helicopter service to be fair but generally as I say, doctor will make that decision.

Maybe we can ask the government to finance 172 Mercs for rural GP's.

Two incase he needs to leave one for a service.

They already do tbh as our local gp practice takes tops the table for payments for medical card customers. They can certainly afford to run a decent car. Back to my first point... it's just the doctor being a tight arse.

JaCrispy

mickdw wrote: »

Back to my first point... it's just the doctor being a tight arse.

That's a fairly simplistic way of looking at it. Even though he could afford a 172 car what makes him a tight arse for not buying one. Perhaps he is saving for a new practice, kids college fees or early retirement instead of spending 500euro a month to show off to the neighbours, family and friends how much money he is making.

JaCrispy

Nonoperational wrote: »

No. I buy a new car because I like new cars.

But why do you like new cars, as opposed to buying one that's 2-3 years old?

DaveyDave

JaCrispy wrote: »

But why do you like new cars, as opposed to buying one that's 2-3 years old?

Why buy new shoes when you can get nice pairs from a charity shop?

Casati

JaCrispy wrote: »

But why do you like new cars, as opposed to buying one that's 2-3 years old?

Why do some people buy new clothes rather than 2-3 year old clothes?