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Discussion Starter · #1 ·
Just thought I'd open a can of worms here so to speak, as I've seen it debated on other threads. I went the PCP option for the first time, who else has done it for their new Peugeot?
 

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For me it's horses for courses really. There are pros and cons to all the different options around buying (or not buying a car) So long as you are happy with the decisions you make then who cares if someone else has a different opinion.
 

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Agreed, some owners like to pay from capital, others from income-when PCP can be attractive.

Best solution is very much a personal one.

I got mine on PCP... the interest rate at time of purchase was very good - I think this has since increased though for newer purchases.
 

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defiantly a personal choice really.

I have gone from HP to PCP, and now with the pug i have done lease. I feel the technology in cars is moving so fast that i prefer just getting a new car every few years as well as saving the money.

i think my next car might be different but for now i am not fussed about owning the car at the end
 

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Your just offsetting the debt which gives you a degree of implied flexibility. I have purchased my last 2 cars this way and will do with the 3008. I have so far always bought the car at the end of the term as you will always generally get a a much better deal selling it privately or choose to hold on to it for year 3-5 where you really get some good value.

Where it could be a smart move is with the diesels, if they get pilloried heavily by the government looking for a scapegoat, it may be handy to be able to terminate the contract at the end and walk away.

But if you really just want to change a car every 2-3 years you should stop fooling yourself with the belief that you own anything and simply just lease the car as in effect that is all you are doing.
 

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Your just offsetting the debt which gives you a degree of implied flexibility. I have purchased my last 2 cars this way and will do with the 3008. I have so far always bought the car at the end of the term as you will always generally get a a much better deal selling it privately or choose to hold on to it for year 3-5 where you really get some good value.

Where it could be a smart move is with the diesels, if they get pilloried heavily by the government looking for a scapegoat, it may be handy to be able to terminate the contract at the end and walk away.

But if you really just want to change a car every 2-3 years you should stop fooling yourself with the belief that you own anything and simply just lease the car as in effect that is all you are doing.
I totally agree Pinkaardvark. I too have bought a number of cars on PCP, ended up buying 2 and keeping them in the family but the last one ( a Peugeot 2008) I gave back. I intend to keep this one if all goes well with its reliability, bought it on PCP terms because of the low interest rate offered. If it proves to be unreliable or my circumstances change it will go back and its that flexibility I find most beneficial part of PCP deals
 

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Discussion Starter · #8 ·
It's good to see positive feedback for the PCP. This is my first new car and the reduced payments of the PCP meant we could afford it. The matter of whether I own the car or not is of no importance to me anyway - I'm driving round in a '17 plate Peugeot 3008 SUV, just the same as a cash buyer.
 

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defiantly a personal choice really.

I have gone from HP to PCP, and now with the pug i have done lease. I feel the technology in cars is moving so fast that i prefer just getting a new car every few years as well as saving the money.

i think my next car might be different but for now i am not fussed about owning the car at the end
I'm with you on this. Technology is moving fast. I wanted a plug in hybrid but they are 12 to 18 months away (aside from the long in the tooth Outlander) so I'm leasing.

Only real difference between PCP and leasing is worrying about the sale of the car at the end of it or some dealer offering you a stupidly small amount on PX for the next one.

My lease on the GT Line is far better than any PCP I could find and I only wanted it for 2 years too. So I'm very happy with leasing and will do the same for my wifes next car later this year. Hopefully a fully electric.
 

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Like I said it's all on what works for you at the time.

I've owned cars and spent all my wages trying to keep them on the road, I've owned cars that haven't cost me a penny, I've PCP'd cars and kept them the full term and then chopped it in for a new car and PCP'd cars and used the halfway termination clause to give it back but I've never bought a PCP car at the end of a term and now for the second time I'm leasing my car.

For my needs and my job (I'm a wedding photographer) I want a car that has a higher probability of being reliable and that gives me the use of a courtesy car if I need one and that looks professional. I like to change cars frequently and I like low monthly payments so that steered me towards a lease. The only downside to leasing is you're fixed into the term which on our current car has been a ballache as we would have given it back ages ago if we were on a PCP.
 

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As you will probably know already I am purchasing my 3008 with PCP, as I have with my two previous Ford Focus Titanium Xs. I could have bought outright but prefer to have the capital available. From memory the Ford interest rate was lower than I was getting with my Santander 123 account so it was a no brainer. Even now the Santander interest rate has gone down to 1.5%, in effect the finance is only costing me 0.4%. My intention was to perhaps buy my GT at the end of the term but I feel the residual value Peugeot have placed on the car is rather optimistic and it is quite possible it will be worth a lot less. This together with the current debate about diesel emissions has made me decide to hand the 3008 back in three years but at least I shall have that choice to make when the time comes. Who Knows, the value could even go up to £20k to £22k and I’ll make a nice profit or should it be not such a heavy loss?!
 

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It comes down to the cost as well obviously. I got in early with the lease deal back at the start of January. My GT Line 1.2 with paint and keyless is £265 a month on lease. Im very comfortable with that. It covers the first and second year tax and is a 2 year lease deal...10k a year.

My QQ on PCP was £279 despite getting a CRAZY discount on it and then hardly got much for it when I sold it at the end of 3 years.

It all depends on the figures and type of car as to the best finance method for you.
 

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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.
 

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Purchase for me

I seem to be the odd one out here as I buy my cars. I keep them for 5 years or so depending on mileage but always have a loan that is shorter than that period. I put the loan amounts aside after it is paid off to use towards the deposit on the next car or for repairs if needed. That way you also don't get used to having the money to spend then find it hard to pay the loan when you start paying it again. This time this plan enabled me to have enough deposit with part ex and cash to take advantage of 0% finance.

I also have a cautious approach to some areas of life. One of them is that I don't know what my circumstances will be in 2 or 3years so don't want to be in the position that I can't take out a new deal and end up being without a Car.
 

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Being retired we don't have to worry about such arrangements, but I'm tossing up about selling some good performing shares or waiting longer.
Super low interest rates for a loan aren't much use either.
Disadvantages of being retired I guess.
 
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