the mad wife thinks she needs a 4x4, I think I need an estate, so atm she drives a Nissan X Trail to do about 6 miles a day commute, it's fairly new (old shape) and paid for, so running costs aren't really an issue, and I take it to work now and again to give it a blast and avoid any dpf issues. I am about to buy a newer car to replace my daily driver so I am happy...

 The point is, do people think getting a brand new 4x4 Octavia vRS estate on pcp makes any sense ? Just over £2k down and around £220 a month seens fine to me to have a car that should suit us both, and we can sell the Nissan and stick some money in the bank.

 I am usually sensible about stuff like this, but I love the look of the car, but can't get my head around the fact that I won't own it, and does it really matter ?

 A chap at work who has always bought new, nice cars has just got a £40k BMW on a pcp and he is as happy as Larry, but I can't get my head around it...

 Any advice appreciated....

Play with the maths - Drives me mad!

 

£220 a month over 2 years plus deposit = 7k approx.

7k for 2 years driving. Hand it back, start over. Check the miles cap is OK for you.

 

Or divide the 2k over the 23 payments = ~£300 per month

 

I got the two years from Simpsons website, most I've seen in the past are towards 4 years.

 

I don't own my house for a few years yet, doesn't bother me!

 

OR

 

Save the 2k and £220 a month and love the x-trail

 

Sorry its general musings, not advice, I should be in bed, gotta work tomorrow!

the mad wife thinks she needs a 4x4, I think I need an estate, so atm she drives a Nissan X Trail to do about 6 miles a day commute, it's fairly new (old shape) and paid for, so running costs aren't really an issue, and I take it to work now and again to give it a blast and avoid any dpf issues. I am about to buy a newer car to replace my daily driver so I am happy...

 The point is, do people think getting a brand new 4x4 Octavia vRS estate on pcp makes any sense ? Just over £2k down and around £220 a month seens fine to me to have a car that should suit us both, and we can sell the Nissan and stick some money in the bank.

 I am usually sensible about stuff like this, but I love the look of the car, but can't get my head around the fact that I won't own it, and does it really matter ?

 A chap at work who has always bought new, nice cars has just got a £40k BMW on a pcp and he is as happy as Larry, but I can't get my head around it...

 Any advice appreciated....

 

I'd go for personal contract hire if you don't want the option of buying at the end of the term - monthly cost will be much cheaper compared with PCP.

One advantage of PCPs is there is usually a bit of financial support for the dealer to sell them. often makes the car cheaper than taking out an HP loan. Plus don't forget you can hand the car back and walk away when you have paid off half of the total amount and if the car had say, slipped into negative equity

One advantage of PCPs is there is usually a bit of financial support for the dealer to sell them. often makes the car cheaper than taking out an HP loan. Plus don't forget you can hand the car back and walk away when you have paid off half of the total amount and if the car had say, slipped into negative equity

 

There often is a manufacturer incentive but, unless I'm missing something, PCH will always work out cheapest if you have no intention of keeping the car, or at least will never own the car, which the OP seems to be unable to get his head around the matter.  If that is his intention, then surely you want to have the car you want and pay least amount for it over the term?

 

I had, and still have this debate with myself, whether to buy a used car outright and run it for a few years or jump on the leasing (PCP or PCH) bandwagon - the argument being why invest money in something that depreciates so vastly - the only thing that gets me is, unless you have spare cash for another deposit at the end of each term then you wouldn't be able to afford another car - or if you have the cash for a deposit you just keep throwing money down the neck of another two year lease for example and never get off the merry-go-round.

 

For argument sake, the OP is, according to his figures, looking at parting with a tad over £7k (if the term is 24months). If he changed his cars every 24 months for 10 year then that totals £35,300, with nothing to show for it.  That's a lot of dosh and it's not unheard of for modern cars to run 10 years.  If he bought one outright or with a little on finance it would be thousands left in the bank if he kept it for the same period.

 

I guess it comes down to how often he wants to change his cars?

. If he changed his cars every 24 months for 10 year then that totals £35,300, with nothing to show for it.

Although he will have had 10years worth of motoring in new cars and the pleasure of changing regularly. That's what he would be paying for I suppose. Whether or not that's worth it depends on your point of view really.

No different to spending £35k on holidays over 10 years, nothing to show for it but the memories lol ;-)

Edited 27 January, 201610 yr by Furbytom

If Grumpy can find out how much back end money there is in the PCP he might be able to get a better deal. On the face of it, PCPs aren't as cheap as HP agreements (although the PCP is an HP agreement ) but thanks to incentives they often work out the cheapest way to purchase. I'm sure Grumps will work it out 'long hand' and then squeeze the dealer till he whimpers

I'm still confused.....

 I like to change my cars often, in fact I would swap every week, whilst the mad wife tends to keep hers for at least 2 years, in fact she loves her  current X Trail, but doesn't like the new shape one, so in a couple of years she will be stuck as to what to buy.......I am quite happy driving an old shed to work and back, and do tip runs etc as long as I can have the use of a 'nice' car now and again. So to me a 4x4 sporty estate would/should suit us both fine, but I baulk at the thought of having to spend the thick end of £30k for a car that does less than 5k miles a year, so a pcp/pch on a car would suit me, knowing I can give it back/swap it every couple of years and not lose 50% of my initial investment, and I can still have a 'shed' for work ( having said that I am just about to spend £10k on a 'shed' so that goes some way to show what a clown I am....) I have nearly convinced her, but I have yet to convince myself.

 I might have to ask the dog for advice, he has more sense than both of us put together, and he is stupid beyond belief........

Try and guestimate the depreciation of a new car over the week you will own it and compare it to the cost of a PCP plus deposit. Simples

Try and guestimate the depreciation of a new car over the week you will own it and compare it to the cost of a PCP plus deposit. Simples

Ah but if it will be the mad wifes car, we will keep it 2 years, and if spending £25k on a car, some finance will be needed, so realistically pcp/pch makes more sense, doesn't it ? plus there is the 'give it back' factor, plus selling the X Trail means some money in the bank, I'm even more confused now, I've just got in from work and I need a drink........

When buying and selling new cars, I found that over the last 15 years or so, that PCPs could nearly always be 'manipulated' to give the cheapest alternative. usually it only took around 3 hours of haggling if I was buying

Right...... I can do haggling no problem, 3hrs to save a couple of grand is a good wage... I now have to totally convince Shelagh that she needs an octavia vRS 4x4 estate, hmmmmm could be tricky...

I'd have that drink before trying to convince Shelagh. I'm about to have a drop of the Cask strength Aberlour  (62% ABV) Should help me sleep

Top Whisky for getting piddled

 

Cask Strength loopy juice

Top Whisky for getting piddled

 

Cask Strength loopy juice

I got a bottle for Christmas of the very same.... it died before the new Year sadly..........

I got a bottle for Christmas of the very same.... it died before the new Year sadly..........

That's why I bought 2 bottles last time I was in Waitrose (only shop there for whisky)

So, when you decide which car you'd like, haggle with the dealer for the PCP option then compare that with a PCH option then decide which is the best deal for you......you like to change your cars frequently so some form of lease is better for you given depreciation. Common sense thus dictates you choose the cheapest option over the term. Sorted! Enjoy!

So, when you decide which car you'd like, haggle with the dealer for the PCP option then compare that with a PCH option then decide which is the best deal for you......you like to change your cars frequently so some form of lease is better for you given depreciation. Common sense thus dictates you choose the cheapest option over the term. Sorted! Enjoy!

 

 

Chubbs you have been on here long enough to know that using the words 'common sense' when referring to Grumpy is verging on an Oxymoron. he will get what Shelagh tells him... probably and that's how it should be too

Oh, like that is it?  I've just traded in my wife for such behaviour so I'm on the prowl! I wonder if you could set up a business plan for leasing of the opposite sex (or the same if that's your bag) - that'd be far less hassle and cheaper in the long run!

Hmmmmm...... the test drive might be interesting

Hmmmmm...... the test drive might be interesting

 

Made me chuckle! I think you'd have to follow the principle of 'sold as seen' otherwise there'd be too many tyre kickers!

Part-ex valuation might be a little difficult too. I'm guessing the Black book would be replace by a Little Red Book for pricing? And what about regular servicing?

Oh, like that is it?  I've just traded in my wife for such behaviour so I'm on the prowl! I wonder if you could set up a business plan for leasing of the opposite sex (or the same if that's your bag) - that'd be far less hassle and cheaper in the long run!

 

Ladies of negotiable affection are an alternative that might suit your needs.

Ladies of negotiable affection are an alternative that might suit your needs.

Oh no, that's not my cup of tea vicar!

Part-ex valuation might be a little difficult too. I'm guessing the Black book would be replace by a Little Red Book for pricing? And what about regular servicing?

Yeah, part ex would depend on how well maintained and how often serviced, with value inversely proportionate to servicing frequency! Not sure there'd be much of a second hand market, certainly beyond two owners. Ok a bad business idea!