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I think it may be easy to buy a relatively bad PCP deal, because of the difficulty in comparing like for like when there's a lot of variables in the deal. But I

I think it may be easy to buy a relatively bad PCP deal, because of the difficulty in comparing like for like when there's a lot of variables in the deal. But I'm not sure that PCP is often a bad deal compared with outright purchase (whether on finance or not), because it creates a lot of certainty, particularly with good gap insurance, and doesn't require a lot of capital.

valuearb 9y ago
PCP should be the best way to purchase, just like leases should be. You just pay depreciation/cost of ownership/cost of financing, and don't have to worry about getting out of the car when you want a new one. But like leases, it sounds like the problem with the PCP is the financial complexity. The option at the end of a lease has actual value, and it's difficult for a consumer to value it properly. The interest being charged is also hidden, making it easy to hit you with a far higher rate. If you could buy a car on a PCP where the finance costs and end contract purchase price were reasonable and market competitive, it might be great. After all, a car shouldn't always be a forced savings plan where you are required to own it after 4 or 5 years.