Car Finance

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   Seems more and more people I know are opting to finance cars on Personal Contract Purchase or PCP.
Just wondered what everyones thoughts on the system are. Partically in line with BMW's.
I have always bought cars with a personal loan or in effect straight HP. I sleep easier at night knowin the car will be mine in a couple of years and I'll be able to draw a few grand out of it for deposit on the next one.
What are the REAL advantages of PCP, I cant see any other than you get a nice shiny new motor every couple of years and the dealer dips your pockets for payments, servicing and potenially any excess miles or damage you do to his car.

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BMW328i Members Profile Send Private Message Find Members Posts Add to Buddy List Really Senior Member I Joined: 17-March-2006 Location: glasgow Status: Offline Points: 306	Topic: Car Finance Posted: 05-July-2006 at 15:04
	Seems more and more people I know are opting to finance cars on Personal Contract Purchase or PCP. Just wondered what everyones thoughts on the system are. Partically in line with BMW's. I have always bought cars with a personal loan or in effect straight HP. I sleep easier at night knowin the car will be mine in a couple of years and I'll be able to draw a few grand out of it for deposit on the next one. What are the REAL advantages of PCP, I cant see any other than you get a nice shiny new motor every couple of years and the dealer dips your pockets for payments, servicing and potenially any excess miles or damage you do to his car.

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stevie53 Members Profile Send Private Message Find Members Posts Add to Buddy List Really Senior Member II Joined: 14-January-2003 Status: Offline Points: 2486	Posted: 05-July-2006 at 19:09
	I've never liked that PCP idea, I like you have always stuck to the personal loan idea. this way I can mod the car in anyway I want without having to explain myself to bloody dealers, I also like to have something to show for my years of repaying loans. I've always looked at these schemes being aimed at someone with money to burn. It's set up too much in the favour of dealers and not enough towards the customer.
	///2000 E39 M5 Imola Red/// NO MORE una volta lei ha avuto l'italiano lei non andr� mai tedesco di nuovo haha

Rossi Members Profile Send Private Message Find Members Posts Add to Buddy List Bavarian-Board Contributor Joined: 07-May-2005 Status: Offline Points: 3311	Posted: 05-July-2006 at 19:26
	Don't know? I've always paid cash for cars.

stephenperry Members Profile Send Private Message Find Members Posts Visit Members Homepage Add to Buddy List Bavarian-Board Contributor Joined: 20-April-2004 Location: Elgin Status: Offline Points: 7213	Posted: 05-July-2006 at 19:35
	it's just a cheap way of getting your a*se into a brand new car for subsidised monthly payments, starts off with your deposit, which is usually your trade-in, then your "low" monthly payments for 3 years, then the baloon payment at the end, which if you want to keep the car you'll have to probably take out a bank loan to settle the debt, thus adding another few years onto your term (not appealing, you're probably sick of the car by then) or you can give them the car back and walk away (not very appealing - as stevie says, nothing to show for all that money), or three you trade her in for the new model, with your agreed value of the car going towards your deposit next time and the whole cycle starts again nice way for the manufucturers and dealers to keep getting repeat business, and of course you have to stick to an agreed mileage, not damage the car, and get it serviced at stipulated intervals by a main dealer... there is also a risk that if the market slumps against the price you paid for your car, as happened in thousands of cases over the last two years, you may be left with not enough equity in it to finance the deposit of your next PCP, which means you'd have to downsize the car to one with a lower deposit (e.g. Ford Mondeo -> Focus -> Fiesta -> Ka) Edited by stephenperry
	2007 Ford Mondeo 2.0 TDCI Titanium X Auto 1983 Ford Sierra XR4i 2000 Alpina B10 3.3 #118 1999 BMW 323Ci 1995 BMW 318i SE 1994 Vauxhall Omega 2.0 GLS 1995 Ford Mondeo 1.8 LX 1990 Honda Concerto 1.6 EX 1986 Ford Orion 1.6 GL 1989 Ford Fiesta 1.1 Firefly

stephenperry Members Profile Send Private Message Find Members Posts Visit Members Homepage Add to Buddy List Bavarian-Board Contributor Joined: 20-April-2004 Location: Elgin Status: Offline Points: 7213	Posted: 05-July-2006 at 19:35
	i still prefer a personal loan
	2007 Ford Mondeo 2.0 TDCI Titanium X Auto 1983 Ford Sierra XR4i 2000 Alpina B10 3.3 #118 1999 BMW 323Ci 1995 BMW 318i SE 1994 Vauxhall Omega 2.0 GLS 1995 Ford Mondeo 1.8 LX 1990 Honda Concerto 1.6 EX 1986 Ford Orion 1.6 GL 1989 Ford Fiesta 1.1 Firefly

stephenperry Members Profile Send Private Message Find Members Posts Visit Members Homepage Add to Buddy List Bavarian-Board Contributor Joined: 20-April-2004 Location: Elgin Status: Offline Points: 7213	Posted: 05-July-2006 at 19:46
	just looking at BMW Select, they don't give example � p/m figures (boo, hiss!) neither does Porsche Preferences, christ even Lamborghini does a PCP plan! Edited by stephenperry
	2007 Ford Mondeo 2.0 TDCI Titanium X Auto 1983 Ford Sierra XR4i 2000 Alpina B10 3.3 #118 1999 BMW 323Ci 1995 BMW 318i SE 1994 Vauxhall Omega 2.0 GLS 1995 Ford Mondeo 1.8 LX 1990 Honda Concerto 1.6 EX 1986 Ford Orion 1.6 GL 1989 Ford Fiesta 1.1 Firefly

BMW328i Members Profile Send Private Message Find Members Posts Add to Buddy List Really Senior Member I Joined: 17-March-2006 Location: glasgow Status: Offline Points: 306	Posted: 06-July-2006 at 09:06
	bm select used to give you examples for some reason theyve stopped. PCP = Too many restrictions and too much debt. Never thought of the market slumping and you being caught out taking the hit. interesting

Webdunk Members Profile Send Private Message Find Members Posts Visit Members Homepage Add to Buddy List Moderator Group M3 GT Register Joined: 16-October-2002 Location: Central Scotland Status: Offline Points: 5245	Posted: 06-July-2006 at 09:12
	Most expensive way to buy a car IMHO


Daz Members Profile Send Private Message Find Members Posts Visit Members Homepage Add to Buddy List Really Senior Member II Joined: 03-August-2004 Location: Dubai Status: Offline Points: 1497	Posted: 07-July-2006 at 10:44
	I don't think you can get hit like that these days stephen. Although I may be wrong of course, as I have never actually done this PCP thing. I think the dealers agree a value for the car at the end of the term in the contract. I believe this helps determine the monthly payments. probobly best for somebody with experience of doing it to answer for sure though. interesting topic though.
	2009 E92 M3 - Milltek

540 V8 Members Profile Send Private Message Find Members Posts Add to Buddy List Bavarian-Board Contributor Lick my badge Joined: 07-December-2005 Location: Running the asylum Status: Offline Points: 2280	Posted: 07-July-2006 at 20:23
	If you gotta borrow, get a personal loan, car finance is a rip off and can bite you in the ass! Mike
	Current:E34 540i Touring 6 speed manual(Mpower bodykit & suspension)& Chrysler Voyager 3.3 V6 auto Previous:E34 530iSE AC Schnitzer suspension. E28 525e auto-Standard

523 iAN Members Profile Send Private Message Find Members Posts Visit Members Homepage Add to Buddy List Really Senior Member II Joined: 17-September-2005 Location: close to Loch Lomond Status: Offline Points: 1258	Posted: 08-July-2006 at 00:15
	ive alway's felt that HP or any other finance deal is a bit like your driving a hire car ..... i started out (many moon's ago) when i was 16 and saved for my first car which i bought at 17 kept it for 3 year's while i was saving for my next car, ive stuck to doing it that way for 18 year's now and it work's i'll sometime's by the odd (been a few) car with my saving's, fix it up and sell it on at profit which all get's returned to my "car pool fund"
	2003-530i SE