[ZOGman]

PCP effect on ‘Street Cred’ with Cars?

I am noticing more and more ‘17 reg cars around.

Years ago I would ‘notice’ a new vehicle that someone could afford to buy.

Now I see ‘16 – ‘17 reg’s everywhere.

It seems that every Tom Dick and Harry can appear able to buy a new car.

I would now feel embarrassed driving a ‘17 Reg’ for fear that peoples would assume, - obviously ‘another PCP deal’.

I’ll stick with our relatively old Jag and Land Rover and wait for these ‘16-‘17 reg cars to flood the future market and then snap up my choice, for cash.

[Rob P]

I am noticing more and more ‘17 reg cars around.

Until the day after tomorrow from when there will be fewer and fewer.

Rob P

[avtur3]

It seems that every Tom Dick and Harry can appear able to buy a new car.

I would now feel embarrassed driving a ‘17 Reg’ for fear that peoples would assume, - obviously ‘another PCP deal’.

I think you'll find that PCP has dominated 'private' car purchases for at least the last 3-4 years, I'm sure I've seen it reported that as many as 80% of private purchases are accounted for by PCP. The Bank of England has voiced it's concern that so much unsecured lending is a significant financial risk.

In principal I don't think there is anything wrong with PCP, providing it is entered into responsibly. The problem is that many buyers are not fully informed as to what they are committing to and they are being misled by sales persons who are out to offer the most bang for the least buck and glossing over the small print, while collecting their commission.

My financial situation does not allow me (my decision) to consider PCP, too many variables to be comfortable with a 3 year commitment to an agreement but I'm 100% certain I could go out tomorrow and sign up for a PCP, I choose not to do that and and use cash at hand to buy my car.

I'm not driven by the need to have a '17 (soon to be '67) plate car on the drive but it appears many people are. I'm very happy with my recently purchased 10 year old Benz bought from fellow forumite (and top man) 'stickandrudderman'

[johnm]

Hmmm. I had to Google to find out what PCP is.........

I suppose if you change your car every three years and do average mileage or less it could be an attractive proposition.

I have a 23 year old Merc SLK and a 10 plate Subaru both bought for cash and I can't be bothered to buy a car unless I have to.

[romille]

A lot of people can have lower monthly payments for a new car on a PCP than a 3 year old one on HP. I also think another issue is that people are concerned about modern cars once they are out of warranty as the cost of diagnosing and fixing problems, especially with engine management systems can be substantial as only main dealers have the equipment to do so.

[JoeC]

Modern cars are pretty bullet-proof. Maybe I've been lucky?

[eltonioni]

So far as I know the main dealers don't have exclusive access to anything apart from trusting customers credit cards. There are plenty of independents who can do a better job for much less money on any hardware I've presented.

[papazulu]

PCP deals are sometimes used by manufacturers to discount their vehicles. They do this by using an unrealistic future value which keeps the monthly payments down.

PCP suited me for my current car as I didn't want to take the residual value risk of an electric car. I also anticipated that the battery technology would improve such that I would want a new one when the PCP was up.

It's now looking like I'll hand mine back in December and try to buy a similar second hand one back a couple of thousand pounds cheaper.

[MercianMarcus]

No matter how you pay for your car, you are wasting money that could be spent on flying.

Not sure what gives you street cred. I assume I don't have any. I'm ok with that.

MM

[Miscellaneous]

It seems that every Tom Dick and Harry can appear able to buy a new car.

I would now feel embarrassed driving a ‘17 Reg’ for fear that peoples would assume, - obviously ‘another PCP deal’.

There has to be around 70/30 in favour of new cars on the roads around here, but they ain't pcp, they are rental cars 'driven' by tourists.

Don't know where you are, Zogman, but there will likely be a bit of that going on too.

[bar shaker]

PCP makes perfect sense for my work car. I have a £60k car that costs me £600pm and after 3 years, I get another new car without the hassle of selling this one. Buying through a PCP also meant I got discounts that weren't available had I paid cash for the car.

The day will soon come where my £60k will be spent on a few older 'investment' cars, but I'm enjoying the gadgets and whistles of new cars, at the moment.

I hope I am not a social outcast for this.

[AlanB]

I've come to the conclusion that the best way to buy a car is to buy a cheap one. I bought one brand new 3 years ago, but want to change up to something bigger. The devaluation has cost me £6000 per year if I sell it (13,000 miles on the clock and 'as new' or £1.38 per mile) . Had I bought a £5000 car, and then sold it for £2500, the devaluation would have cost me £800 per year. Either that or buy a 3 year old model and maybe 'save' £4000 per year. My wife bought a Peugeot 2008 1.5 years old with 8000 on the clock (Ex Peugeot manager's car) for 50% of the new price.

If you really want a brand new model, then an out and out lease is probably the way to go as the cost of the lease is likely less than the devaluation if you were to buy. Our company does a car scheme, where you can lease a vehicle including all costs, such as insurance, tax, maintenance etc....for one monthly salary sacrifice payment. You get charged BIK tax but the saving on NI and Income tax can make it worth while I suppose....(if you want a new car).

My most economic car was a Fiat 127. It cost me £30, I drove it for a year, then swapped it for a microwave oven

[cockney steve]

@AlanB said

My most economic car was a Fiat 127. It cost me £30, I drove it for a year, then swapped it for a microwave oven

It was lovely and warm, on a frosty morning, but rather cramped and a tad slow, so he bought another car, didn't you?