PCP Help

[04philj]

thinking about buying my rocc on PCP but recently been having doubts, does anybody have any PCP experience they could tell me about positive or negative. Im currently thinking about putting down a 6k deposit so my monthly payments would be quite low.

Any help would be much appreciated, any suggestions of other finance is also welcome.

[CleanDiesel]

Mines ordered on a pcp, just make sure you can afford the buyout at the end. The car will be worth more than the cost of the final payment unless you've savaged it, in which case you'd probably have to pay it anyway.

And don't modify it until you've paid it off, unless you hve the lease companies permission. There hve been a few horror stories regarding that.

[Cuprabob]

Also make sure you will be happy with the car for the period of the PCP as they can be difficult / expensive to get out of mid-term.

Think about how much equity is left at the end of the term and if it's enough to cover the deposit on your next car.

[whiteDevil_170]

My car was bought on pcp over 3 years. I put down 5K so that the monthly payments was lower. Didn't fancy paying a ton of money a month in case something happens and then I couldn't afford the repayments.

Also just paid the balance of the balloon payment so now the contract has ended and the car is paid for. It's worth more than what I had to pay which is a good thing.

[dimexi]

I bought my last car (non-roc) on a PCP.. Even though you are guaranteed no negative equity, the amount the car was worth at the end was SOOO close to how much I had already paid, I had an excess < 1000£ to put towards my next car.

I wasn't really impressed, felt like I had just paid for rental for 3 years! Kind of wished I did a HP or something, and sold it privately after.

Pros and cons to both I guess.

[Tallguy]

PCPs were developed by car manufacturers to boost sales. You are effectively leasing the car unless you buy it at the end of the (3 year) period. I don't like the lack of flexibility particularly if your financial circumstances change. I would rather go the personal loan route to finance a car which is then yours from the outset.
PCPs also encourage people to choose cars they could not afford by traditional methods of financing.

[04philj]

Mines ordered on a pcp, just make sure you can afford the buyout at the end. The car will be worth more than the cost of the final payment unless you've savaged it, in which case you'd probably have to pay it anyway.

And don't modify it until you've paid it off, unless you hve the lease companies permission. There hve been a few horror stories regarding that.

but you wouldn't have to pay the the buyout amount, if you were going to upgrade the car anyway? thats what i was planning on doing.

[04philj]

I bought my last car (non-roc) on a PCP.. Even though you are guaranteed no negative equity, the amount the car was worth at the end was SOOO close to how much I had already paid, I had an excess < 1000£ to put towards my next car.

I wasn't really impressed, felt like I had just paid for rental for 3 years! Kind of wished I did a HP or something, and sold it privately after.

Pros and cons to both I guess.

"the amount the car was worth at the end" do you mean the future agreed value when you signed the contract or how much they valued your car at the end of the contract?

[CleanDiesel]

Mines ordered on a pcp, just make sure you can afford the buyout at the end. The car will be worth more than the cost of the final payment unless you've savaged it, in which case you'd probably have to pay it anyway.

And don't modify it until you've paid it off, unless you hve the lease companies permission. There hve been a few horror stories regarding that.

but you wouldn't have to pay the the buyout amount, if you were going to upgrade the car anyway? thats what i was planning on doing.

You'd just be throwing money away if you didn't. Look at the used price of a similar age/mileage scirocco and compare that to the buyout fee.

I can't remember the details of my pcp, but as my cars arrived in England today I guess I'll be in to sort the paperwork some time in the next week or two, so I'll report back with the figures. Off the top of my head I think the current used price for a similar age/mileage/spec scirocco was about 5k higher than the buyout.

[dimexi]

I bought my last car (non-roc) on a PCP.. Even though you are guaranteed no negative equity, the amount the car was worth at the end was SOOO close to how much I had already paid, I had an excess < 1000£ to put towards my next car.

I wasn't really impressed, felt like I had just paid for rental for 3 years! Kind of wished I did a HP or something, and sold it privately after.

Pros and cons to both I guess.

"the amount the car was worth at the end" do you mean the future agreed value when you signed the contract or how much they valued your car at the end of the contract?

*how much they valued it at the end", is what I meant. I guess that's not the ACTUAL market value, but it would have been quite an effort to sell the car privately and pay up the rest of the finance.

The future guaranteed value always avoids negative equity, and I think that's why I decided on a PCP back then