Advice, sort of

Associate
Joined
18 Oct 2002
Posts
797
Location
Manchester
I have always bought cars that have been 3-4 years old and often financed this through bank loan, never paying more than 3%. Then I have used whatever collateral is left to purchase the next car.

You often see threads here regarding PCP,HP etc. I have often thought “ I wouldn’t mind a new car” which doesn’t come with its, one off expenses” e.g you had to replace a faulty lock, tyres, thermostat all not in their own expensive but add on to what you originally paid. So I “loan/rent” the car from the bank or pay higher “loan/rent via a dealer, but in this case I get a new car, without actually ever owning it, and yes costs will/ may incur if I have to correct any damage done to it, before I return it.

So what I am trying to say is the above fundamentally correct, and it comes down to owning or not owning the car at the end of the term, does it all play out?

New car, potential repairs not owning. Old car definitely some maintenance and you own the car but by then it is 6-7 yrs old and you might want a car and even with the collateral and deposit you cant afford it Maybe I have the usd car syndrome as I have never had a new car .it’s always been “one previous owner” job. So, what would you do take a punt down the PCP, blah route or stick to the tried and trusted pay for it keep it an extra year and move to the next car. I loathe having a car for more than 4-5 yeas as I start to pick holes where there are none, that’s just me.
 
Caporegime
Joined
25 Nov 2004
Posts
25,812
Location
On the road....
I've been the opposite, never liked the thought of buying a nice shiny new car and driving it out of the forecourt costing me a few £k instantly in depreciation because its now effectively used.

PCP, your renting, but still have to put your hand in your pocket to repair the thing (unlike a rental)

H.P. Yes, your paying interest but at least you'll own it at the end.

I nearly went pcp on a 3 series last year, instead I paid £6.5k for an old 7 Series (which I conceed is generally regarded as mad) but, I own it outright, its cost me less in maintenance than the pcp payments on the 3 by a long way and I own it.

Ultimately, it dosen't matter how you do it, a car is a hole in your pocket one way or the other, you've just got to decide how you want that hole to be fed!
 
Man of Honour
Joined
19 Oct 2002
Posts
29,508
Location
Surrey
I almost bought a car on PCP last year. I then decided to get a large bank loan instead. But at the last minute I realised I was stupid to get myself into debt over a quickly depreciating asset. So I have now gone back to looking for a cheap car to own for a few years.
 
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