PCP or PCH car leasing?

[somapop]

Having had a few cars on finance and PCP deals I’m now firmly in the camp of buy what you can afford cash and own it.

What were some of the pains of PCP/finance deals if you don''t me asking?
I agree by the way, but it's looking unlikely I can drum that type of cash quickly.

I try and have as little as possible on finance. Got a mortgage but no credit cards or loans.

Apart from the wifes car and my van!
But … my van i paid my bank loan off after 4 years (7 year loan) so now thats mine, and the wifes car loan will be paid earlier too.

Its a bloody lovely feeling when that last repayment is made and the standing order is cancelled

I'm in the situation where after coming out of a separation a few years ago, I was left with absolutely nothing and had to start from scratch.
I've spoken with a broker recently and I'm looking to buy a place, which whilst it won't be extravagant, I'll at least have my own place (and having carried out a big refurb on our family home, I'm quite handy in that regard).

I could possibly take a few k out of that to drop a larger deposit on a car, but I don't really want to take too much off.
There's very little bang for your buck house wise these days and I want to stay as local as I can (and still close to my children).

I promised myself if I got a certain promotion at work last year, I'd use that to fund a car.
Not ideal I know, and I'm averse to financing. I had a credit card once when I was in my mid 20's, I saw the danger pretty quickly and after paying that off, never owned one again.
I'm also pretty frugal (not tight, which is different!) - I've had the heating on for 20 mins over the winter, and got by through wrapping up/wearing a solidly warm 'oodie'!

I think either way with a car you're going to get hit. My es ran the family car down (and scrapped it) then the smaller run around car she needs for work isn't doing well. I paid out £200 for her towards a fix last month (she needs it for her work). I wouldn't mind but her new bloke has a very expensive Merc. So they have a few cars whilst i have none.

Work have a scheme with Octopus for electric cars (lots have taken up this offer) but living in a flat, I won't have access to a charger on tap, so that's out.

So I'm left with looking at financing a car, possibly one a few years old to bring down the cost (unless better deals suggest otherwise).

The only other option is taking a bit of the money towards the house (£5l - £10k max) then having a bank loan for the rest (again, something a couple of years old)? Or PCP/PCH. But I need something relatively soon.
And I like VWs - our family car was a VW and I loved that motor - solid! :)

So that's where I'm at!

Thanks!

 

[Bluesince1979]

What were some of the pains of PCP/finance deals if you don''t me asking?
I agree by the way, but it's looking unlikely I can drum that type of cash quickly.


I'm in the situation where after coming out of a separation a few years ago, I was left with absolutely nothing and had to start from scratch.
I've spoken with a broker recently and I'm looking to buy a place, which whilst it won't be extravagant, I'll at least have my own place (and having carried out a big refurb on our family home, I'm quite handy in that regard).

I could possibly take a few k out of that to drop a larger deposit on a car, but I don't really want to take too much off.
There's very little bang for your buck house wise these days and I want to stay as local as I can (and still close to my children).

I promised myself if I got a certain promotion at work last year, I'd use that to fund a car.
Not ideal I know, and I'm averse to financing. I had a credit card once when I was in my mid 20's, I saw the danger pretty quickly and after paying that off, never owned one again.
I'm also pretty frugal (not tight, which is different!) - I've had the heating on for 20 mins over the winter, and got by through wrapping up/wearing a solidly warm 'oodie'!

I think either way with a car you're going to get hit. My es ran the family car down (and scrapped it) then the smaller run around car she needs for work isn't doing well. I paid out £200 for her towards a fix last month (she needs it for her work). I wouldn't mind but her new bloke has a very expensive Merc. So they have a few cars whilst i have none.

Work have a scheme with Octopus for electric cars (lots have taken up this offer) but living in a flat, I won't have access to a charger on tap, so that's out.

So I'm left with looking at financing a car, possibly one a few years old to bring down the cost (unless better deals suggest otherwise).

The only other option is taking a bit of the money towards the house (£5l - £10k max) then having a bank loan for the rest (again, something a couple of years old)? Or PCP/PCH. But I need something relatively soon.
And I like VWs - our family car was a VW and I loved that motor - solid! :)

So that's where I'm at!

Thanks!

Sorry if i came across as cunty. I didnt mean to.

 

[Johnny Mars Bar]

What were some of the pains of PCP/finance deals if you don''t me asking?
I agree by the way, but it's looking unlikely I can drum that type of cash quickly.


I'm in the situation where after coming out of a separation a few years ago, I was left with absolutely nothing and had to start from scratch.
I've spoken with a broker recently and I'm looking to buy a place, which whilst it won't be extravagant, I'll at least have my own place (and having carried out a big refurb on our family home, I'm quite handy in that regard).

I could possibly take a few k out of that to drop a larger deposit on a car, but I don't really want to take too much off.
There's very little bang for your buck house wise these days and I want to stay as local as I can (and still close to my children).

I promised myself if I got a certain promotion at work last year, I'd use that to fund a car.
Not ideal I know, and I'm averse to financing. I had a credit card once when I was in my mid 20's, I saw the danger pretty quickly and after paying that off, never owned one again.
I'm also pretty frugal (not tight, which is different!) - I've had the heating on for 20 mins over the winter, and got by through wrapping up/wearing a solidly warm 'oodie'!

I think either way with a car you're going to get hit. My es ran the family car down (and scrapped it) then the smaller run around car she needs for work isn't doing well. I paid out £200 for her towards a fix last month (she needs it for her work). I wouldn't mind but her new bloke has a very expensive Merc. So they have a few cars whilst i have none.

Work have a scheme with Octopus for electric cars (lots have taken up this offer) but living in a flat, I won't have access to a charger on tap, so that's out.

So I'm left with looking at financing a car, possibly one a few years old to bring down the cost (unless better deals suggest otherwise).

The only other option is taking a bit of the money towards the house (£5l - £10k max) then having a bank loan for the rest (again, something a couple of years old)? Or PCP/PCH. But I need something relatively soon.
And I like VWs - our family car was a VW and I loved that motor - solid! :)

So that's where I'm at!

Thanks!

It always seems cheap and a great idea at the time, but when the novelty of the shiny new toy wears off and you're still paying 300 quid a month several years later, it's less fun. And the thing with PCP and leasing deals is they NEVER END. Ever. You hand the car back, get mugged off by the dealer for the odd supermarket car park ding and then the whole cycle starts again.

Her "new bloke having an expensive Merc" is exactly why you shouldn't play this game. He's the mug for forking out shitloads of money every month for a lump of plastic shit.

I've played the game before and now drive an old Land Rover. It's already depreciated as much as it is going to and is now holding its value. Yes there's always things that'll need sorting on older cars but by far - FAR - the most expensive thing you'll pay for on any car is depreciation. It's brutal and invisible. And newer cars' value sinks quicker than united's title hopes every September.

Get into a finance deal on any new-ish car and you'll be in negative equity on it from day one, so it's impossible to get out of the deal. The exception recently being during covid - I bought a brand new car during lockdown on a bit of a whim, regretted it 6 months later and thankfully with the market being insane managed to sell it and clear the finance but those instances are rare. Told myself there and then really that car finance is mostly a mugs game.

The only time I'd ever do it is if I knew the car I was financing wasn't going to be a depreciating liability, but an appreciating asset. Those cars are rare but they do exist. Classic Defenders and Minis, stuff like that.

All this is just personal opinion and if people are happy paying for a status symbol then it's their money and fair enough, just expressing my own personal view.

Addition: did I read your post right that you're looking to take equity out of your house to buy a car?! Mate do not do this, that's fucking mental. You're taking money out of an appreciating asset and placing it into a rapidly depreciating liability. DO NOT DO THIS.

 

[blueparrot]

It always seems cheap and a great idea at the time, but when the novelty of the shiny new toy wears off and you're still paying 300 quid a month several years later, it's less fun. And the thing with PCP and leasing deals is they NEVER END. Ever. You hand the car back, get mugged off by the dealer for the odd supermarket car park ding and then the whole cycle starts again.

Her "new bloke having an expensive Merc" is exactly why you shouldn't play this game. He's the mug for forking out shitloads of money every month for a lump of plastic shit.

I've played the game before and now drive an old Land Rover. It's already depreciated as much as it is going to and is now holding its value. Yes there's always things that'll need sorting on older cars but by far - FAR - the most expensive thing you'll pay for on any car is depreciation. It's brutal and invisible. And newer cars' value sinks quicker than united's title hopes every September.

Get into a finance deal on any new-ish car and you'll be in negative equity on it from day one, so it's impossible to get out of the deal. The exception recently being during covid - I bought a brand new car during lockdown on a bit of a whim, regretted it 6 months later and thankfully with the market being insane managed to sell it and clear the finance but those instances are rare. Told myself there and then really that car finance is mostly a mugs game.

The only time I'd ever do it is if I knew the car I was financing wasn't going to be a depreciating liability, but an appreciating asset. Those cars are rare but they do exist. Classic Defenders and Minis, stuff like that.

All this is just personal opinion and if people are happy paying for a status symbol then it's their money and fair enough, just expressing my own personal view.

Addition: did I read your post right that you're looking to take equity out of your house to buy a car?! Mate do not do this, that's fucking mental. You're taking money out of an appreciating asset and placing it into a rapidly depreciating liability. DO NOT DO THIS.

There isn't a definitive DO or DO NOT.Everyones circumstances are different, what's right for one person might be wrong for another.

 

[rowarta]

I've just come across this site as an aggregator/comparison site for PCH deals, https://www.leaseloco.com/

 

[roach3]

Hi folks.
Apols for dragging this back up from the depths!

Was looking over this again this week. I asked a few Qs on a VW T-Roc forum which has helped.

Essentially it might be best to go via something like Car Wow (tend to have slightly better deals than dealerships apparently).
But it's probably best for me to take a trip to a VW dealer (there's a large one on Stockport perched on the M60).

I'm still not 100% sure on what kind of financing deal I should go for, but PCH looks like a good bet.

I have to admit I'm a little bit apprehensive about the visit to the dealership (hard sell etc). I've not owned a car for so long, I'm a little out of sorts with all this. But the important bit is I need a car now, but also want something it will be a pleasure to drive.

Case of just popping down with a bunch of questions, having a look at a few cars and options then taking it from there (do you have to schedule an appt or just rock up?)

For what it’s worth I bought a brand new troc rline June last year.
We had to wait 6 months due to the global semi conductor shortage but it was actually cheaper than a 1 year old used troc.
Unbelievable I know but it was true as you just could not find a new 23 model year car
At the spec that I wanted.

Anyway the car has been fantastic and can highly recommend if you go for one of these.

Edit: haven’t followed the thread so wasn’t aware of your financial status
I put down a 10k deposit which was a trade in plus cash on a pcp deal this gave me a sub £300 per month payment and should
Mean I have a decent equity should I decide to go again(unlikely as I’m an foc).

I’ve also got a 8 year old golf gtd which I’ve had for 6 years it has 10k on the clock and has now got 92k it’s been the most reliable car I’ve ever had.
Just the usual service on it and apart from brake pads and tyres it’s wanted nothing.
Point I’m making is you could probably pickup one of these with 50-80k miles for around 5-7 k good reliable motor 50 mpg
The fucker has got me points over the years as it’s quite quick for a diesel lol

 

[Johnny Mars Bar]

There isn't a definitive DO or DO NOT.Everyones circumstances are different, what's right for one person might be wrong for another.

Taking money out of your house to buy a car is insane no matter who you are.

 

[117 M34]

My car is on pcp and I'm buying it in June by paying the balloon payment.
Going to get MOT done in May and as long as no major problems, pay the car off in June then I'm free of direct debit payments for it.
I could sell it to webuyanycar for a few grand more than it's going to cost me if u wanted.
Will probably keep it for a couple more years then get an electric one if the prices come down a bit.

 

[Johnny Mars Bar]

My car is on pcp and I'm buying it in June by paying the balloon payment.
Going to get MOT done in May and as long as no major problems, pay the car off in June then I'm free of direct debit payments for it.
I could sell it to webuyanycar for a few grand more than it's going to cost me if u wanted.
Will probably keep it for a couple more years then get an electric one if the prices come down a bit.

prices of electric cars are dropping like a stone as people are realising insurance companies won't go near them for repairs and are writing them off for very minor things, and the cost of charging them has rocketed. It's no longer the free/close to free fuel it was promised to be.

Earlier EVs are now getting quite old too which is interesting. Would you want to buy a 10 year old Tesla? I know I wouldn't.

 

[somapop]

It always seems cheap and a great idea at the time, but when the novelty of the shiny new toy wears off and you're still paying 300 quid a month several years later, it's less fun. And the thing with PCP and leasing deals is they NEVER END. Ever. You hand the car back, get mugged off by the dealer for the odd supermarket car park ding and then the whole cycle starts again.

Her "new bloke having an expensive Merc" is exactly why you shouldn't play this game. He's the mug for forking out shitloads of money every month for a lump of plastic shit.

I've played the game before and now drive an old Land Rover. It's already depreciated as much as it is going to and is now holding its value. Yes there's always things that'll need sorting on older cars but by far - FAR - the most expensive thing you'll pay for on any car is depreciation. It's brutal and invisible. And newer cars' value sinks quicker than united's title hopes every September.

Get into a finance deal on any new-ish car and you'll be in negative equity on it from day one, so it's impossible to get out of the deal. The exception recently being during covid - I bought a brand new car during lockdown on a bit of a whim, regretted it 6 months later and thankfully with the market being insane managed to sell it and clear the finance but those instances are rare. Told myself there and then really that car finance is mostly a mugs game.

The only time I'd ever do it is if I knew the car I was financing wasn't going to be a depreciating liability, but an appreciating asset. Those cars are rare but they do exist. Classic Defenders and Minis, stuff like that.

All this is just personal opinion and if people are happy paying for a status symbol then it's their money and fair enough, just expressing my own personal view.

Addition: did I read your post right that you're looking to take equity out of your house to buy a car?! Mate do not do this, that's fucking mental. You're taking money out of an appreciating asset and placing it into a rapidly depreciating liability. DO NOT DO THIS.

Ahh, no - not quite and it's a little complicated.
I was considering setting aside £10k I have in savings towards a car rather than adding towards a new place.
100% on a house being an appreciating asset, I'm just struggling a bit to manage a solution.

It's not a case of a status symbol, but something that will run smoothly (for myself and children) over the next few years (and, I'll enjoy owning and driving) is key. As I've said above, I walk and use public transport as much as I can, but I've just had enough of not being to get to places, takes my children out, heading out to places on a whim.
We're off to Cornwall in May so would like something in place by then (whichever solution I go with).
I may want to start dating again and you can see where a car fits in here too (again, not to be flash, but something reliable).

My next place will likely be a flat/apartment and time wise I don't want to have my head under a bonnet trying to fix an oldish car.
It's a fine balance and it''s not ideal but it's a need not a want at this stage.

Some great advice on here by the way, so a case of picking through it all to carve a solution that works best for me.
May indeed use that 10K (and anything after, use a bank loan rather than finance deal?) rather than dip into PCP/PCH.
I've no real experience in this and although I'm both sensible (and frugal when I need to be) I'd just need a solid motor that's going to drive well for the next few years and I actually enjoy driving.

Buying second hand comes with enough horror stories too however :(

Ultimately there's going to be a fair few trade offs here (and money pit either way).