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Cars on PCP

shabbagaz

shabbagaz

I'm not the Messiah!
Patron
Joined
Apr 9, 2004
Messages
14,230
Location
Preston
Had my current Fiesta for 5 years almost and I'm considering a change (insurance due end of March and car tax due end of Feb).

A few people at work always get their cars on PCP and have talked positive about it - just wondering if anyone on here does the same? Don't think I'll be in a position again to buy a car outright as prices have shot up.

Currently getting 'offers' in on Car Wow. It's not a definite I'll change this year, just weighing up my options. A hefty dental bill doesn't help which I had to get a loan for.
 
The positive is you can get a new car when you perhaps couldn’t have afforded one previously. The main thing I’d say to be aware of is the balloon payment at the end of the 3 or 4 year term. Make sure you factor this into your workings.

Of course after the term you can give the car back and walk away (depending on mileage and car condition) or get another new one with the same garage. This ties you into the same dealer and make of car which is fine if you like their vehicles. the more you get though the more likely it is you’ll end up in negative equity with them when you do decide to go elsewhere.

Other dealers may also give you a better deal depending on the settlement figure near the end of the deal and if the car is actually worth more than the balloon payment. As an example Mazda offered me just enough to clear what I owed on my car but Skoda offered me £3K more for it for buying a car off them.

A lot of the deals you’ll see advertised are usually with a fair sized deposit and for low mileage, usually 6000. If that’s all you do then fine. I’d advise to shop around and see what car you fancy and then have a look for whichever deal works best for you. You can often find a far better spec’d nearly new car for the same or less as a brand new one which is also worth looking at.

Then try and get servicing etc thrown in. They’ll give you the hard sell but there are so many deals out there you will actually be in a good position to negotiate. Plus car sales have dropped recently so they’ll be desperate to sell. March is also a good time as the new reg is out so you should be able to find deals on 69 plate cars as they’ll be looking to clear the stock.
 
PCP negates any up front discount you might be able to get if you were a "cash" buyer, they simply offer deals at retail price, deposits (1st payments) can vary too, mileage is a factor in the monthly payment price and if you want to just walk away at the end of the agreement over mileage and unfair ware and tear issues will cost you £££££££.

PCH (personal contract hire) is straight forward, you set the term and mileage and the car goes back at the end of the agreed term, again penalty charges will happen if it's over mileage and damaged. (recent Merc GLA 1.6 urban on a 4 year PCH 12k mpa at 6 payments down followed by 48 payments of £259 per month).

HP on a quality used vehicle takes away penalty charges, go for a dealer demo or something with a long warranty (Kia/Hyundai), you can also VT (voluntary terminate) your agreement (hand it back) after you have paid 50% of the HP payments without affecting your credit history.

We buy any car are part of Evans Hallshaw so getting a price from them and taking it into one of their dealers is always fun!!!
 
billymac said:
PCP negates any up front discount you might be able to get if you were a "cash" buyer, they simply offer deals at retail price, deposits (1st payments) can vary too, mileage is a factor in the monthly payment price and if you want to just walk away at the end of the agreement over mileage and unfair ware and tear issues will cost you £££££££.

PCH (personal contract hire) is straight forward, you set the term and mileage and the car goes back at the end of the agreed term, again penalty charges will happen if it's over mileage and damaged. (recent Merc GLA 1.6 urban on a 4 year PCH 12k mpa at 6 payments down followed by 48 payments of £259 per month).

HP on a quality used vehicle takes away penalty charges, go for a dealer demo or something with a long warranty (Kia/Hyundai), you can also VT (voluntary terminate) your agreement (hand it back) after you have paid 50% of the HP payments without affecting your credit history.

We buy any car are part of Evans Hallshaw so getting a price from them and taking it into one of their dealers is always fun!!!
Click to expand...

Great post Bill, although the details in the last paragraph have changed significantly.
 
Tino said:
The positive is you can get a new car when you perhaps couldn’t have afforded one previously. The main thing I’d say to be aware of is the balloon payment at the end of the 3 or 4 year term. Make sure you factor this into your workings.

Of course after the term you can give the car back and walk away (depending on mileage and car condition) or get another new one with the same garage. This ties you into the same dealer and make of car which is fine if you like their vehicles. the more you get though the more likely it is you’ll end up in negative equity with them when you do decide to go elsewhere.

Other dealers may also give you a better deal depending on the settlement figure near the end of the deal and if the car is actually worth more than the balloon payment. As an example Mazda offered me just enough to clear what I owed on my car but Skoda offered me £3K more for it for buying a car off them.

A lot of the deals you’ll see advertised are usually with a fair sized deposit and for low mileage, usually 6000. If that’s all you do then fine. I’d advise to shop around and see what car you fancy and then have a look for whichever deal works best for you. You can often find a far better spec’d nearly new car for the same or less as a brand new one which is also worth looking at.

Then try and get servicing etc thrown in. They’ll give you the hard sell but there are so many deals out there you will actually be in a good position to negotiate. Plus car sales have dropped recently so they’ll be desperate to sell. March is also a good time as the new reg is out so you should be able to find deals on 69 plate cars as they’ll be looking to clear the stock.
Click to expand...
Good info Tino, but re second paragraph, I'm now lead to believe that if you have finished your contract of say 3 years with a dealer, according to Arnold Clark who we have bought our last two cars with, you can now swap it anywhere. We did just that after having Citroen DS diesel for 3 years from lookers who were crap and not a bit as good as Arnold Clark, imo., then we actually purchased a Renault Captur 18 months ago, and 2 weeks ago I have also swapped my Mazda 6 sport td estate for a Renault Kadjar td. Gaz just go chat with them they can tailor any deal to meet your needs.
 
Cheers for all the advice.

Got two offers of "under £200" and £189 a month from two different dealerships. Have to say the info provided by Evans Halshaw was a bit vague!

Think I may just leave it until next year when hopefully I should be in a better position.
 
Sorry to bump this up again. Last year I stayed put with what I've got but I have been looking again at getting a new car. I've had a few PCP quotes through Carwow for the Fiesta Titanium X.

I've been largely dead set on getting another Fiesta but I'm wondering if any other makes and models that are worth looking at (the PCP quotes I've had, whilst affordable, are a bit pricey)?
 
My 4 year deal is up in Summer, I will owe a £2k balloon so am thinking of just paying this and keeping the car (Hyundai) and getting off the car finance treadmill for a few years to free up some cash.
 
The best way to ensure you don’t end up with a massive one off balloon payment is to, if possible, factor it into to your monthly payment. Just move that amount to another account each month.
 
What is PCP? The reason I ask is, that on Christams Eve, while pulled up at the lights outside English Martyrs Church I was hit from the rear (who err Mrs). Subsequently my car Kia Cede is to be written off ( even though it's still drivable but it is 9 years old) and I'll be offered the current value of the car. Bit of a pain in the arse (pardon the pun) I don't really want a brand new car, but aren't used car dealerships currently shut during lockdown?
 
As boring as they are I’d still consider stuff like Kia or Hyundai (and other brands)models with longer warranties so that if you ever do stay beyond the term you still are in warranty if your circumstances change
 
Henrys Cat said:
What is PCP? The reason I ask is, that on Christams Eve, while pulled up at the lights outside English Martyrs Church I was hit from the rear (who err Mrs). Subsequently my car Kia Cede is to be written off ( even though it's still drivable but it is 9 years old) and I'll be offered the current value of the car. Bit of a pain in the arse (pardon the pun) I don't really want a brand new car, but aren't used car dealerships currently shut during lockdown?
Click to expand...
You can’t visit a showroom. But you can view a vehicle on the internet and then talk to the sales guys over the phone and arrange a click and collect appointment, if you so wish. That however, may change in the near future, if we follow Scotland’s lead.
 
I think my daughters Hyundai i10 is about 150 on pcp.
It’s a great little car, very cheap on insurance as it’s group 2.
I actually prefer driving it than my company car Insignia.
 
mozzchops said:
I think my daughters Hyundai i10 is about 150 on pcp.
It’s a great little car, very cheap on insurance as it’s group 2.
I actually prefer driving it than my company car Insignia.
Click to expand...
We have a Kia Niro and love it.20201002_075955.jpg
 
I've a car I didn't want but it's actually turning out to be one of the best I've had.
Always had company cars and this one is no different. My last one had to go back but was told by the firm that there was no longer a choice (first time ever). The usual thing, cut backs, uncertainty with covid etc.
Anyway, it's a 2.0 VW Golf and it's way more spacious than I was expecting with ok performance. The ride is excellent and the tech stuff that comes with it is awesome though i'm not likely to use half of it (unless I can be bothered working out how to use it).
Highly recommended.
 
I still don't understand the lure of a PCP, why not pay monthly via finance or personal loan and then when its paid of after 3 or 4 years you at least have an asset to show for it, rather than have to stump up a large final payment or sign up to another PCP, its like renting a house for years, you've nothing to show for it at the end.
 
222Mark said:
I still don't understand the lure of a PCP, why not pay monthly via finance or personal loan and then when its paid of after 3 or 4 years you at least have an asset to show for it, rather than have to stump up a large final payment or sign up to another PCP, its like renting a house for years, you've nothing to show for it at the end.
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I know one bloke who's car finance is more than his mortgage Mark !
 
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