Are PCPs running used car choice?

[Scaf]

Just livin the life!

View attachment 82796

Can you spell dyslexia.

 

[MarkMas]

More likely to be a MB CLK or SLK than a Bentley and needs a soft set up rather than a bone shaker ride, so that's M cars out of the running.

I guess that extras give little return come sale price, so add a lot to a PCP cost; such as nice wheels, nice paint and upgraded colour leather.

I'm a big fan of these:

https://www.honestjohn.co.uk/carbycar/infiniti/g-convertible-2009/

 

[MarkMas]

Can you spell dyslexia.

I can now.

 

[bigbob]

I'm a big fan of these:

https://www.honestjohn.co.uk/carbycar/infiniti/g-convertible-2009/

SL for me. I've had three over the years and would have another if Mrs BB did not already have another two seat convertible. No point in having two convertibles in Scotland, mind the airscarf on the Merc would be useful.

 

[Gazcw]

More likely to be a MB CLK or SLK than a Bentley and needs a soft set up rather than a bone shaker ride, so that's M cars out of the running.

I guess that extras give little return come sale price, so add a lot to a PCP cost; such as nice wheels, nice paint and upgraded colour leather.

E class cab will give you all that and if you can find a premium or premium plus all the toys too.

 

[Felonious Crud]

I like the luxury feel of a quality interior so buy Jaguar XJ, normally ex dealer principle car / demo so get all the bells and whistles (most of which never get used) but the Jag gorgeous and a Greta place to be.

Is it vegan, angry and hates people older than 15?

 

[GeoffCapes]

SL for me. I've had three over the years and would have another if Mrs BB did not already have another two seat convertible. No point in having two convertibles in Scotland, mind the airscarf on the Merc would be useful.

Ditto. Depending on your budget an SL400 give you a **** of a lot of car for a fraction of the cost new.

 

[alfatwo]

As a PCP is only a way of spreading the cost of a car purchase, much as having a mortgage spreads the costs of buying a house, I don’t see this as a reason it itself to effect specification.

Spec is a personal issue and many people see most “extras” as pointless fripperies. And this applies whether you are paying cash for the car, or buying it on finance. And as I understand it, White is very popular in Essex and Cheshire.

I have recently specced a new 911 and a Roma, and in both instances my extras were very modest and way bellow what the average buyer goes for. But I just didn’t see the point. Naturally I wanted to choose the interior and exterior colours, and nice wheels, but beyond that the base spec was fine for me.

I was always lead to believe by my dad paying on the knock wasn't a good idea
If you cant afford to pay cash, you cant afford it!
It only goes down hill after that...

Dave

 

[Ewan]

I was always lead to believe by my dad paying on the knock wasn't a good idea
If you cant afford to pay cash, you cant afford it!
It only goes down hill after that...

Dave

Not all loans lead to ruin. For most people, for example, it’s better to have a mortgage to buy a house rather than spend money on rent for years while saving up sufficient to buy a house outright, upfront, for cash.
But I agree that some borrowing/lending is irresponsible, and that can be dangerous. Subprime anyone?!

 

[alfatwo]

Ewan, Lets face it everyone knows or should know borrowing money to buy a car is a fools game!
Buying property is different, you can spread the cost over 25 years or so
Dave

 

[Guy]

As a counterpoint; why use your own money when borrowing is so cheap? Investment performance should easily outperform interest rates. Also, the OEMs often only provide 'assistance' through loan contributions. BMW often provides a £5k deposit contribution and 1% APR. Cash makes no sense in this case.

 

[mjheathcote]

As a counterpoint; why use your own money when borrowing is so cheap? Investment performance should easily outperform interest rates. Also, the OEMs often only provide 'assistance' through loan contributions. BMW often provides a £5k deposit contribution and 1% APR. Cash makes no sense in this case.

But then you loose a packet on depreciation buying new!
Can't win.

 

[Ewan]

When I bought a new Volvo for my father a year or two back, if I had it on 0% finance it was £5k cheaper than if I had simply paid cash! And of course, that meant I could keep the cash invested in appreciating assets (rather than a depreciating Volvo). So a complete no-brainier, and an example of exactly why not all finance is a bad idea.
But yes Dave, one should not use finance to buy a car one can not afford.

 

[Guy]

But then you loose a packet on depreciation buying new!
Can't win.

Agree. Just comparing the Cash vs PCP options. If you want/need something new, PCP is normally much cheaper than cash. Personally, I am looking to remove depreciation as far as possible. Very few new cars appeal anymore and depreciation curves continue to steepen. When I started driving, it was not atypical for a car to halve its value in 7 years, today it is not far off 2 years!

 

[bigbob]

As a counterpoint; why use your own money when borrowing is so cheap? Investment performance should easily outperform interest rates. Also, the OEMs often only provide 'assistance' through loan contributions. BMW often provides a £5k deposit contribution and 1% APR. Cash makes no sense in this case.

Sometimes but it depends on the car APR and your own likely investment return. Lower interest rates tend to be linked to lower inflation and, therefore, lower total nominal returns on risk bearing assets but its been all over the place for the last decade and a half. Bear in mind that the FTSE100 on a capital basis is still lower than it was at the end of the 90's so it is easy to not do well from investments. Sure the BMW offer makes complete sense but APRs on a lot of other cars are nearer 6 or 7% and that is hard to consistently beat in the current world without taking on a lot of risk.

 

[Scaf]

Agree. Just comparing the Cash vs PCP options. If you want/need something new, PCP is normally much cheaper than cash. Personally, I am looking to remove depreciation as far as possible. Very few new cars appeal anymore and depreciation curves continue to steepen. When I started driving, it was not atypical for a car to halve its value in 7 years, today it is not far off 2 years!
[/QUOTE}
Former owner of my XJ must have lost 50% in 1year and I still expect to see a further 50% in the next 3 years.

 

[Guy]

Sometimes but it depends on the car APR and your own likely investment return. Lower interest rates tend to be linked to lower inflation and, therefore, lower total nominal returns on risk bearing assets but its been all over the place for the last decade and a half. Bear in mind that the FTSE100 on a capital basis is still lower than it was at the end of the 90's so it is easy to not do well from investments. Sure the BMW offer makes complete sense but APRs on a lot of other cars are nearer 6 or 7% and that is hard to consistently beat in the current world without taking on a lot of risk.

Agree with you Bob, once it reaches 6% APR then the PCP loses a lot of attractiveness. Easy to borrow money at under 3% though from the retail banks.

 

[Trev Latter]

When I bought a new Volvo for my father a year or two back, if I had it on 0% finance it was £5k cheaper than if I had simply paid cash! And of course, that meant I could keep the cash invested in appreciating assets (rather than a depreciating Volvo). So a complete no-brainier, and an example of exactly why not all finance is a bad idea.
But yes Dave, one should not use finance to buy a car one can not afford.

We had a similar thing with our Golf. Couple of years ago. Very low rate on the finance, £1500 from the manufacturer, £1500 from the dealer, free servicing and a few other goodies thrown in. We’d have happily paid cash, but it worked out cheaper overall to buy on finance. We don’t change on a regular basis, more usual to change when they’re fast approaching end of life/ not worth spending any more money at, so we normally get our money’s worth.