nowhereboy Posted March 22, 2016 Share Posted March 22, 2016 Does anyone have any experience with buying a car via PCP? Decided after test driving a few skylines and evo's that I really don't want another old jap car in my life right now. I could do without the stress of worrying about this part breaking, that part breaking etc. My Mrs really like's the new Type R and with her approval buying one is looking attractive I've always fancied something with boost and have always been a Honda fan so it seems like a pretty good way to go. I'm test driving the Type R next Saturday. I've been speaking with a surprisingly helpful and non pushy salesmen from Honda Sunderland called Paul. I realize PCP is never going to be an investment in the long run, what Is attractive to me is the affordable monthly payment, servicing included and full warranty, not to mention a brand spanking new car for the first time in my life, proper peace of mind for once. The deal with Honda is approx 7k deposit and £300 a month for three years. Balloon payment at the end for approx 15k or you can trade for a new one. I can part ex the Z for the deposit if I choose to go for it. What do you guy's think? Is this PCP thing a really bad idea? The way I see it, the car is a toy not an investment, I will lose money but I'm always losing money on car's anyway Quote Link to comment Share on other sites More sharing options...
KyleR Posted March 22, 2016 Share Posted March 22, 2016 PCP is good if the deal is right, unfortunately I don't think £6k a year for a Civic is. After 3 years you're probably going to want to change to something else, therefore hand the car back. There are much better deals out there for better cars, such as £240 p/m for a M135i for 2 years with about £3k deposit. Quote Link to comment Share on other sites More sharing options...
Ekona Posted March 22, 2016 Share Posted March 22, 2016 I had the 911 on PCP. Essentially you're looking at paying £18K for the use of a new car, unless you decide to pay another £15K at the end to keep it. If you're happy with the sums then go for it, just work out when your break even point is so you can hand it back if you need to get out of it quickly. It's usually pretty close to the end of term anyway, but I'd certainly be haggling the numbers as low as possible still. I'm not convinced the CTR will be worth £15K in three years either, so if that's the case it would work massively in your favour just to hand it back and walk away. Are they available on regular lease deals at all? Quote Link to comment Share on other sites More sharing options...
hensh65 Posted March 22, 2016 Share Posted March 22, 2016 Astra VXR 13 plates are selling for around 15K(retail) so you would expect the Type R to be around the same maybe slightly more. I would personally look at something for sale around the 20Kish mark, 7K for the Zed would be roughly around £300 on HP. 13 plate M135i 3 door with 24K on the clock. £20K 12 plate Exo X FQ300 with 24K on the clock £20798 09 plate Cayman 2.9 with 29K on the clock £21995 13 plate Impreza WRX STI type UK with 15K on the clock £20495 I would bet you would have some value left in the car after 3 years with one of these cars with that deposit. Obv not to everyones taste,,, just examples Quote Link to comment Share on other sites More sharing options...
Ekona Posted March 22, 2016 Share Posted March 22, 2016 ^^^ Much better idea, however that doesn't cover off his servicing and warranty requirements. In theory I absolutely agree with you, I'd much rather buy something older but better, but I can see the attraction of a new vehicle. 1 Quote Link to comment Share on other sites More sharing options...
hensh65 Posted March 22, 2016 Share Posted March 22, 2016 Man maths should always prevail and pick the faster car I have never spent £20K plus on a car but surely the dealerships selling these would give you some sort of extended warranty for a 3 year old car? Obviously not as easy as manufacturer warranty but its still something to help you sleep. Quote Link to comment Share on other sites More sharing options...
brillomaster Posted March 22, 2016 Share Posted March 22, 2016 if you want a new CTR, it will have to be a CTR! plus, the missus's approval is worth its weight in gold, happy wife happy life. Sure there are always better cars out there if you look at used cars, but again if you want a brand new car then that's what you'll have to do. I say check the costs work for you and if you're happy paying £11k over 3 years with nothing to show for it at the end of the period, then go for it. you're only young once. 1 Quote Link to comment Share on other sites More sharing options...
nowhereboy Posted March 22, 2016 Author Share Posted March 22, 2016 Upon further investigation it would appear that in three years time I'll owe about 15k and the car is likely to be worth around that too. Financially it's no problem, we will be keeping the EP3 type R and splitting the bills/ sharing the use of the new one, so basically we will be paying £150 a month each to have a brand new Type R on the drive. When I look at it like that it sounds great, but walking away with nothing in three years is not so appealing. I could always buy the car outright at the end but it would mean another loan over a couple of years split between the both of us. I may well be bored by then. Saying that I could always begin modifying it then anyway. These are good for 400 +BHP no problem I dunno, I don't want to tie myself down forever but I've never had a new car and really fancy treating myself. When I look at what the Z has cost me over the three years I've had it, I've spent thousands anyway. Quote Link to comment Share on other sites More sharing options...
Ekona Posted March 22, 2016 Share Posted March 22, 2016 Personally I'd be looking at something different since you already have an EP3 there. New MX5 not tick any boxes? Beautiful looking car, easily modifiable, and a convertible for the summer days. If you can get one, a FRS will be a better car and hold value infinitely better. Quote Link to comment Share on other sites More sharing options...
jimboy2 Posted March 22, 2016 Share Posted March 22, 2016 I have a new car on order and it's going to cost me 300 ish a month. I have been paying the same for the last 4 years on a personal loan so have got used to that money not really existing on payday. Very rare buying a new car on finance is going to be a good financial decision. But I have just given myself the mindset of F##k it and worry about it later. It's also quite nice being able to spec a new car and then knowing it's being built for you. (Although my 9 months waiting list is becoming tiring) and a full warranty is good piece of mind too. 1 Quote Link to comment Share on other sites More sharing options...
Richf Posted March 22, 2016 Share Posted March 22, 2016 We have both our DD cars on pcp, always used to be a cash buyer and its tempting when there is so little return on savings but the sweeteners with pcp can be pretty attractive ie 0% apr, free servicing etc We tend to keep our daily drivers 5 or 6 years , what the car is worth at the end of 3 years is pointless its the same as any finance deal , ie what is the cost of credit ? If you buy a car with a HP loan , with cash or with pcp it will be worth the same after three years Quote Link to comment Share on other sites More sharing options...
nowhereboy Posted March 22, 2016 Author Share Posted March 22, 2016 (edited) Personally I'd be looking at something different since you already have an EP3 there. New MX5 not tick any boxes? Beautiful looking car, easily modifiable, and a convertible for the summer days. If you can get one, a FRS will be a better car and hold value infinitely better. While I agree the new MX5 is a great looking car it just isn't a car I'd buy, I know it's not all about big BHP but I'm looking for something with more power than the Z, not less. I'm pretty much set on the type R to be honest, as above it's not a great financial decision, but it's a car I've wanted since before it even came out, there's no point in settling for second best. The only other car's I'd really like are rear wheel drive coupe's but nothing under 50k takes my fancy and that's way out of budget. Edited March 22, 2016 by nowhereboy Quote Link to comment Share on other sites More sharing options...
Ekona Posted March 22, 2016 Share Posted March 22, 2016 Don't discount stuff over £50K: Check the figures! For example, back in 2010 £10K + £900pcm put me into an E92 M3 or a 911. The only difference was the balloon, which was completely irrelevant as like you I only looked at the monthly outgoing. The exact same money put me in a much better car, so do go and ask around first. Quote Link to comment Share on other sites More sharing options...
gangzoom Posted March 22, 2016 Share Posted March 22, 2016 ^^ Hold on OPs 'deal' is £7k+£300/m(36 months), that's £17k in total. £10K down + £900/m for 36 months is £40k+ in total, more than double the cost. Many of the best PCP deals these days are like best treated as lease deals with some manfac are activity discounting a lot on certain. Golf R and M135i had good deals going last few years. The Leaf PCP deal I got was similar essentially a lease deal when I hand the car back after 24 months. I cannot remember the list price of a Civic R, but £17k in finance costs than £15k for the final payment is £32k. As long as your know the costs involved and can afford it than go for it. Quote Link to comment Share on other sites More sharing options...
Wayne370Z Posted March 22, 2016 Share Posted March 22, 2016 (edited) I have never cared much for the idea of PCP. Always seemed to me like it wouldn`t be your car just someone else`s that you had use of for a monthly fee until you made the big payment at the end which I suspect most can`t afford to do or just don`t want to pay when it comes to it. I know you can just give it back and walk away but then you have no car or if you take another on PCP straight away do you then have to find another big deposit to start it off again? Much prefer straight forward loan which might mean more each month but at least you know it`s yours and all paid for in 3 years or whatever. Edited March 22, 2016 by Wayne370Z 1 Quote Link to comment Share on other sites More sharing options...
Richf Posted March 22, 2016 Share Posted March 22, 2016 Its no different to a loan, the car still isnt yours until its paid off Quote Link to comment Share on other sites More sharing options...
davey_83 Posted March 22, 2016 Share Posted March 22, 2016 go for it while you're in a position to do so mate Quote Link to comment Share on other sites More sharing options...
Ekona Posted March 22, 2016 Share Posted March 22, 2016 ^^ Hold on OPs 'deal' is £7k+£300/m(36 months), that's £17k in total. £10K down + £900/m for 36 months is £40k+ in total, more than double the cost. You missed the point. The exact numbers aren't comparable, what I'm saying is that for precisely zero extra spend I got a car that was worth £30k more. Quote Link to comment Share on other sites More sharing options...
nissanman312 Posted March 22, 2016 Share Posted March 22, 2016 I've had similar ideas for the missus but I've decided to put my 500 a month into overpaying a buy to let mortgage over 5 years as I have zero pension And I'll have something at the end so she can drive her old civic lol On the other hand if you can afford the ctr go for it very quick car I had a play with one a few weeks ago and I was very impressed 1 Quote Link to comment Share on other sites More sharing options...
hensh65 Posted March 22, 2016 Share Posted March 22, 2016 I really like the CTR but at £30K+ and FWD I just dont think it would be for me. No matter how clever that front diff is, it wont stop 300+BHP nose diving. If they became as affordable as the FN2 did after a few years then that would be a different story. Buying new in that price bracket, there just isn't much choice other than the German drabs. You don't want to be 1 of the many with the Golf R or S3. I did see a m235i for 30K. Fair play if you go for the jap mobile. 1 Quote Link to comment Share on other sites More sharing options...
un1eash Posted March 22, 2016 Share Posted March 22, 2016 There are big discounts on M135i's at the moment, worth getting a PCP quote on one of them. Quote Link to comment Share on other sites More sharing options...
Robchriscross Posted March 22, 2016 Share Posted March 22, 2016 The new CTRS are already dropping there's some on auto trader now for £26k great car though will be my next car very practical and fast too Sent from my SM-G920F using Tapatalk 1 Quote Link to comment Share on other sites More sharing options...
sipar69 Posted March 22, 2016 Share Posted March 22, 2016 PCP isn't a bad option if you are looking to keep monthly payments low and will be happy to change the car at the end of the term. £15k balloon payment seems quite high though. Quote Link to comment Share on other sites More sharing options...
nowhereboy Posted March 22, 2016 Author Share Posted March 22, 2016 I'm already settled on the civic now, it's that or nothing to be honest. Going for the test drive on Saturday anyway, I'll let you all know how it goes. I just checked my credit score tonight and found a default notice from a £20 phone bill that I knew nothing about which has ruined my squeaky clean score, not even sure I will be accepted for the pcp. So frustrating, I've paid back every debt ever owned and lots of big bills etc and it's ruined by a 20 quid phone bill. I can probably get my parents to get it under one of their names worst comes too but I really don't want to do that. Not sure how this will affect things. Quote Link to comment Share on other sites More sharing options...
Irn Bru Posted March 22, 2016 Share Posted March 22, 2016 I would doubt a single black mark against would be enough to decline you, but these days you just never know, can only try, but might be worth mentioning it to the sales rep, he may use a couple of different finance companies Quote Link to comment Share on other sites More sharing options...
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