Thanks, I have seen a few posts about the pros/cons of PCP financing. It seems to be a bit of a minefield with all the various rates and options across each of the dealers.
I suppose what I am looking to tap into is why people are now inclined to buy a new car v a second hand one.
Is it availability of finance?
Keeping up with the Jones's?
Positive economic outlooks in the papers?
Higher disposable income?
A combination of the above?
What is the driving force behind choosing a new car when the rate of depreciation is so high in the first year
That bit I'm definitely familiar with, and was quite surprised by.You'll find they won't be chasing you for a deal either.
Pretty much. There's normally a condition that the car has a valid NCT. They ship them off to auction in the hope of getting 500 for them. No garage actually wants a 10 year old trade in, they're just hassle.Former sales guy I know told me there is no such thing as "scrappage scheme " either,if you pay 25 k cash for a new car, you pay no more than the guy with the 1999 micra trading in?
Not the point - they're comparing 2 different things. "It's cheaper to buy new" is the message PCP is trying to sell. But you own absolutely nothing at the end of 3 years.That they don't own it outright from the start is a minor detail in my opinion, you don't own a house either outright until mortgage is paid in full
That bit I'm definitely familiar with, and was quite surprised by.
Pretty much. There's normally a condition that the car has a valid NCT. They ship them off to auction in the hope of getting 500 for them. No garage actually wants a 10 year old trade in, they're just hassle.
Not the point - they're comparing 2 different things. "It's cheaper to buy new" is the message PCP is trying to sell. But you own absolutely nothing at the end of 3 years.
We're talking about PCP here (or at least I was). Do you understand how they work?What do you mean "you own nothing "?
If the car is paid off, it's yours
That they don't own it outright from the start is a minor detail in my opinion, you don't own a house either outright until mortgage is paid in full
We're talking about PCP here (or at least I was). Do you understand how they work?
You said "you own nothing after three years"
Sorry, but that’s wildly inaccurate.
I own my house, albeit with bank debt secured against it. But the salient point is that I own the asset.
With PCP, I own nothing. Someone else owns the asset, i.e. the car. In essence, I’m kind of renting it with a quasi-option to buy it.
Correct. That's how PCP works.You said "you own nothing after three years"
Correct. That's how PCP works.
If you want to own the car, you have to pay the GMFV. Which is being set very close to the expected future value to bring down the monthly repayment.
If you read back over the posts again, you will note I mentioned people generally only look at stage 2 - how much will this cost me monthly? I've even seen some car brands advertising the monthly cost with no mention of the actual price of the car.Stage 1. = deposit
Stage2. = monthly payments lasting 36 months
Stage 3. = pay balance
What big conspiracy am I missing ?
If you read back over the posts again, you will note I mentioned people generally only look at stage 2 - how much will this cost me monthly? I've even seen some car brands advertising the monthly cost with no mention of the actual price of the car.
A lot of people who enter PCP agreements don't actually understand how they work. PCPs, if understood, are great. But when someone tells me it was 'cheaper' to buy new than 2nd hand, I know they don't understand what it is they've signed up to.
There’s not much more risk buying a (say 2-4 year old) used car from a good dealership. 12 month warranty is pretty much normal, many used cars might still be covered original warranty.I know it's not cheaper than buying second hand, buying second hand is however riskier if you put the purchase cost savings aside, unless you stick very high miles on the car or damage it, you have nothing to fear from pcp, very few can afford upfront to pay 30k for a new car but buying new is peace of mind for people who have little time to waste fixing cheap second hands
I know it's not cheaper than buying second hand, buying second hand is however riskier if you put the purchase cost savings aside, unless you stick very high miles on the car or damage it, you have nothing to fear from pcp, very few can afford upfront to pay 30k for a new car but buying new is peace of mind for people who have little time to waste fixing cheap second hands
Absolutely. As an example, my last car was 14 months old from main dealer. Balance of original warranty. Bought for 1/3 less than list price of new car.There’s not much more risk buying a (say 2-4 year old) used car from a good dealership.
There’s not much more risk buying a (say 2-4 year old) used car from a good dealership. 12 month warranty is pretty much normal, many used cars might still be covered original warranty.
Of course there is more risk, you are taking ownership of something which someone else was in charge of,you don't know how they minded it
Why get a €30k car when you can’t afford a €30k car? Why not save up and get a reliable €10k car that you have had checked by a mechanic? What is forcing people to get unnecessarily expensive cars when the availability of suitable alternatives is huge?
Also on this,a couple around the corner got a new Tucson last year. They had it in the garage 5 times throughout the year with various issues. They eventually were given a new one to replace it this year because the issues kept reoccurring. The trick is to do your research and get a decent second hand car.
Easily checked by a reliable mechanic
So you think it's easy to get a reliable mechanic to trape across the country several times to check out a used car ?, good mechanics have no interest in those gigs
Before long, you'd have a grand spent,enough to pay the interest on your pcp loan
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