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On the flip side, using PCP means that you get a brand new car and it has a warrantee. You could buy a banger for £500 - but then you're always going to be wond
by edent 3y ago
On the flip side, using PCP means that you get a brand new car and it has a warrantee. You could buy a banger for £500 - but then you're always going to be wondering if today is the day it'll cost you £££ to repair. And if you can't get in to work, that'll cost you dearly as well.
£300 per month to basically not have to worry about any unexpected bills seems reasonable to me.
Plus you get the social value of having a "nice" car. The safety features are likely to be higher quality. And, as mentioned in the article, newer vehicles tend to be more efficient.
Basically, it is a fairly rational way to spend money.
- 2Gkashmiri 3y agoin my city at least, this PCP concept hasnt really taken off because companies arent offering it. what the people have done informally is something similar. 1. person "buys" a car and Hypothecates the same to a bank for paying the car dealer. usually 80-90-100% of the car value can be paid by bank meaning 0-10-20% of the car value can be given as deposit. 2. now that the new "owner" has taken the car, they start making monthly EMI payments to bank. 3. 1 year or 2 years from purchase, the owner wants to "sell" the car so what they do is, find a buyer willing to accept the outstanding loan amount. 4. the first "owner" has paid 2 things. 1 deposit and say 12 months of EMI. 5. first "owner" tells the buyer that "here, take hold of these future EMI entries and give me a portion of the amount i have paid till now as in #4" 6. the first "owner" takes cheques each dated monthly in future with the amount from the buyer which the first "owner" will deposit every month and if there is any failure, claim default in payment of cheque. 7. car remains in title of the first owner and Hypothecated by bank until last EMI is paid at which point the first owner "transfers" the car to new owner
- badpun 3y agoYou don’t have to buy a banger, just buy a new car and drive it for 20 years. You will save vast amounts of momey.
- okaram 3y agoSame difference, after 7-10 years, it becomes a banger, or at least it has enough problems that you worry.
- verall 3y agoMaybe if you buy British cars? Everyone I know driving 100k+ 10y+ cars from reliable manufacturers have no issues beyond regular maintenance. My father's Benz certainly spends more time in the shop though.
- badpun 3y agoI bought a new (made in Japan) Mitsubishi in 2013, still have it, and it didn't have any failure yet whatsoever. If you buy German, American or (shudder) French cars, then yeah, they will become problematic after 7-10 years, or even earlier. Just buy Japanese (so, not Nissan, and sadly also no longer Mitsubishi, since, after a merger, it's now a Japanese-European company), preferably made in Japan.
- Ekaros 3y agoOr buy lightly used car and then drive 20 years... The savings for getting one or two years old car is already substantial. I did this and now I'm stuck with manual Kia... But I don't really drive enough to care, so I'm fine...
- alphabettsy 3y agoPeople here in the US do the same bad math. Leasing is almost always worse even than buying with a loan.
- padjo 3y agoI have a car I bought on PCP so I understand that math, but when the dealers starts calling after one year trying to get you to re-up it’s a poor decision financially