Best way(s) to purchase a car

quiet_riot

Well-Known Member
Joined
2 Jun 2006
Messages
21,803
Location
Block 221
Team supported
City
I'm currently entering the last year of my PCP agreement, and starting to consider the next move.

As far as I can see there are several options:

- pay the final payment and keep it
- give it back, walk away
- pay the final payment, part ex it and start again



etc etc.

What I'm asking is, what do I do next to get the most out of my money, is PCP even the most economical way to do it? Obviously getting a brand new car means you miss MOTs etc,

How do you approach vehicle ownership, Bluemooners?
 
I bought mine cash,but its a good question pal.

I don't think PCP's are as attractive as they used to be.Maybe consider leasing as an option?

If you fancy paying cash for a classic mini,give me a shout ;-)
 
I've literally bit the bullet today and got myself out of the finance racket with cars.

Sure its cost me as i've sold the car and had to top the finance up but i've bought a £2k BMW 1 series and its great and better still, it's mine with no monthly payments to be found.
 
I've literally bit the bullet today and got myself out of the finance racket with cars.

Sure its cost me as i've sold the car and had to top the finance up but i've bought a £2k BMW 1 series and its great and better still, it's mine with no monthly payments to be found.
I think buying an older,reliable,well serviced,motor outright is the way forward for many.Just keep a bit aside for any unforseen mishaps and you should have reasonably worry free motoring,and cash in your pocket for other essentials
 
Thanks.

I mean, other than paying monthly, are there any advantages to PCP? I realise you'd still have to pay it off if it was written off/stolen during the contract, but that still applies if you've bought it cash - you'd still be carless and out of pocket.
 
Thanks.

I mean, other than paying monthly, are there any advantages to PCP? I realise you'd still have to pay it off if it was written off/stolen during the contract, but that still applies if you've bought it cash - you'd still be carless and out of pocket.

I think the main advantage is that you always have a relatively new, serviceable under warranty vehicle. If you go for cash and hit a problem, you can end up very out of pocket!

I bought mine for cash when about 3 years old, so I presume the first owner hadn't picked up the purchase option after a PCP agreement. I didn't fancy the mileage quotas of going for a new PCP car, but might consider it in the future if my circumstances change.
 
Thanks.

I mean, other than paying monthly, are there any advantages to PCP? I realise you'd still have to pay it off if it was written off/stolen during the contract, but that still applies if you've bought it cash - you'd still be carless and out of pocket.

The pro is you always get to drive a new shiny car mate and its what i felt i wanted but as with any financial commitment, it either gets unaffordable for whatever reason or you think wtf am i doing here paying all this money every month for a car i will never own and the finance companies and car salesmen know this.

Sure you can pay a balloon payment at the end but they bet on a majority not having it and happy to sign their lives away again on more finance.

My brother is a car salesman and he doesn't sell cars, he sells finance which tells you everything.
 
One car PCP the other bought outright. One car has everything covered, one I have to pay for when things go wrong. Guess who drives the bought outright car?

It's swings and do dahs really though, if you can afford to buy a new car outright and get a service deal thrown in then it's not bad. If not the PCP way is not bad either as you pay a fixed monthly fee, have the car under warranty and have enough left in 3/4 years to pay the car off. This only works if you have the capital to start again with a new deposit though.
 
Never buy a depreciating asset. So that should rule out paying the balloon payment unless you have enough equity in the car to buy it and sell/part ex at a profit.

I always have a PCP and swap it usually 50% into the term and my payments normally stay the same.

The downside is you’re always paying a car finance payment. I find that by the time my car is paid off and owned by me I want another and refinance, so I end up in that situation anyway.

If you’re happy to finance a car and stick with it long after it’s paid off, and don’t care if it depreciates in value then Hire Purchase is the way to go.
 
When you come to the end of a PCP deal and you don't take the option of keeping the current car..do you have to pay another initial deposit like at the begining or do you just swap the car and start again?
 

Don't have an account? Register now and see fewer ads!

SIGN UP
Back
Top
  AdBlock Detected
Bluemoon relies on advertising to pay our hosting fees. Please support the site by disabling your ad blocking software to help keep the forum sustainable. Thanks.