To be honest I had never heard of PCP until I saw this thread and had to go and ask Mr Google about it. I found an excellent page that explained it so that even I could understand it.
After reading about PCP, I now realise that this is what the salesman who sold me the 308 was trying to get me to sign up to. I just couldn't figure out how I could get a car loan then 3 years down the line, hand the car back to the dealer and get another car from them but
not still have to pay for the first car. It all makes sense now
I'd say that if the circumstances are right for you and you want to have a car that is always new or not very old
and you still have a good few years left to work then yes, go for it. The repayments for the term will be cheaper than a standard loan on the same car and if the worst happens and you are struggling to keep up the payments you know at that at the end of the term you can hand it back and walk away.
Unfortunately, due to past circumstances I was unable to get a PCP deal and had to get a less favourable loan for my car but happily, things have turned around and I may well be in a position to do so in 12 months time. I would have to look into it carefully as I'll still have 2 years left on the car loan so would have to find out if I would have to setle the original loan in full first.
In the end, it all boils down to what you feel is the best for you. You have the choice of paying the balance and keeping the car at the end of the term or handing it back to go onto another vehicle. I retire in 6 years so with my car already being six years old I would want a newer car so it's not too old when I'm no longer earning. If I could get it on PCP with a better deal than a standard loan and I knew I could pay off the ballon at the end then yep - i'd go for it.