Is PCP........... the next debt crisis???

[garyboy]

I got pcp .. and I am not sure myself if its a good thing or not.?

I have noticed though that bike dealers don't seem to mind if you customise your bike, as long as you put it back to std (for part exchange).

[Peirre]

So what would you do if you where considering another car/bike and actually had money spare in the bank? ie: £30-40K. Would you PCP, buy new for cash, buy nearly new (cash or finance), buy new on finance, or other?

[ledwardio]

So what would you do if you where considering another car/bike and actually had money spare in the bank? ie: £30-40K. Would you PCP, buy new for cash, buy nearly new (cash or finance), buy new on finance, or other?

If I had that money aside, and didn't need it for anything else, then I would probably use it to buy new - unless there was a way for the money to earn more squirelled away somewhere than the cost of the interest on the finance - doubtful given current interest levels.

[-Ralph-]

So what would you do if you where considering another car/bike and actually had money spare in the bank? ie: £30-40K. Would you PCP, buy new for cash, buy nearly new (cash or finance), buy new on finance, or other?

Depends what the opportunity cost is, where else could you invest that money, and get a better return that what the PCP is costing you vs buying cash.

[AlanHolt]

So what would you do if you where considering another car/bike and actually had money spare in the bank? ie: £30-40K. Would you PCP, buy new for cash, buy nearly new (cash or finance), buy new on finance, or other?

I'd still look for a low mileage bike 2 or 3 years old. My ZX10R has only devalued by around £1500 in 5 years, but it took me months to find the right bike at the right price initially. Theres no way I could have as much fun on a £25,000 bike as I could on something costing a few grand. If you spend a few grand, you're buying a toy, if you spend tens of thousands, you're either investing in a show piece or you like wasting money.

[Chasbmw]

When interest rates go up, which is likely, then PCP deals will get a lot more expensive and people will find out that they don't have enough equity in the old vehicle to pay the deposit on a new PCP deal and the whole caboodle comes to a grinding halt.

[TomBoyNI]

So what would you do if you where considering another car/bike and actually had money spare in the bank? ie: £30-40K. Would you PCP, buy new for cash, buy nearly new (cash or finance), buy new on finance, or other?

Looking at the depreciation in a new bike / car buying cash upfront makes no sense in my opinion. I'd be far happier with the money in my bank and renting a car.

Take a new car costing £16-£18k for example. An 11 month old model coming in at £10.5k. If you lost £7.5 in a year you'd be pi$$ed!

You would pay less in the monthlies over three years than you would lose in driving it out of the garage.

[-Ralph-]

You would pay less in the monthlies over three years than you would lose in driving it out of the garage.

Ahem..... anyone else want to reply to this? I'm fed up for one night.



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[waynecoluk]

I have my car on lease. It seems to be the way forward for what I want.
A small deposit and surprisingly low monthly payments. I've worked out that after 3 years I would have only just paid off the depreciation pretty much. So whats the point in buying new? My old car was on PCP and I simply would not have been able to afford it any other way and it made sense for me.
The good news for anybody after a 3-4 year old car or bike is that there should be shit loads out there to choose from.
Everyone's a winner.

[jonny955]

I have my car on lease. It seems to be the way forward for what I want.
A small deposit and surprisingly low monthly payments. I've worked out that after 3 years I would have only just paid off the depreciation pretty much. So whats the point in buying new? My old car was on PCP and I simply would not have been able to afford it any other way and it made sense for me.
The good news for anybody after a 3-4 year old car or bike is that there should be shit loads out there to choose from.
Everyone's a winner.

Ummm...Where are all those ex PCP BMW GSs? I think they've been sent to overseas markets in an attempt to keep the secondhand prices buoyant - if so, this is a clever tactic by BMW.

Cars may be a different story.

Jon