can someone explain pcp/hp and other forms of car buying/leasing?

[Zornyan]

OK, the jazz I went to look at was a shit heap that needed a ton of work/money to get right.

this is primarily for Mrs.zornyan, we often/sometimes share for trips to see her family up north and small trips around town.

her a3 is a pain in the ass, I want to set fire to it and do a dance and it's hot melting chassis.

so, we've been looking and seem some deals like this

http://www.marshall.co.uk/ford/used-...dr-start-stop/

(I'd rather a fiesta if possible) but basically, what's the better way of paying monthly for a car like this? we don't want to own it at the end (unless it works out stupidly cheap to buy?) ideally this is just for like 3 years so she's got a decent car that I don't have to work on myself much, as I really don't have the time lately due to work.

but yeah, if we could get a little run around for that kinda 70-90 a month bracket that would be ideal, but I don't have a bloody clue about what pcp hp or whatever is?

any advise appreciated!

[nismo]

If you don't want to own and change every 3 years then you could go lease hire. But look in to gap insurance if you are going that route.

[chrisyboi s14]

Lease if you're going to keep for the full term and stick to mileage.

Pcp if you get bored easy or want to own the car at the end maybe have some money in it.

I put in a really low deposit on my c63 and probably won't have that much in it come the end of my term.

[sideways14a]

For a new car its hard to ignore pcp (or lease) as you can get some epic deals if your lucky.

[Mark]

FFS dont get a KA its just a Fiat 500 with slightly better suspension. Get a Fiesta (1.0 100ps if you can).

[Zornyan]

FFS dont get a KA its just a Fiat 500 with slightly better suspension. Get a Fiesta (1.0 100ps if you can).

http://www.marshall.co.uk/ford/used-...1.0-zetec-3dr/

something like that?

so with hire purchase you just pay the monthly fee and then get a chance to buy at end? and with the pcp you just pay enough each month to pay it off with the goal of owning it?

about 6-7k for a low mileage fiesta is what I'm looking at.

[sideways14a]

First thing up your budget, you wont get much for that per month.

PCP is designed to give you a lump sum at the end of your payment deal to get a decent deposit.
I have a new Mx5 on PCP, i have 36months at 310 quid with a 2(or 3 cant remember) thous deposit.
At the end of the 36 months i still have 9k to pay on the car (its 23k) so i can either refinance for that 9k and keep the car or chop it in for a new car.

Now here is the pcp bit, the Mx5 "should" be worth 12k when i change it, as i have 9k outstanding i have 3k to put to a deposit for another car.

[chrisyboi s14]

The equity you have in your car will always be around your deposit, so you never really make money in equity.

Just a higher deposit reduces monthlys, around £25 per month for every £1000 deposit.

[Mark]

http://www.marshall.co.uk/ford/used-...1.0-zetec-3dr/

something like that?

so with hire purchase you just pay the monthly fee and then get a chance to buy at end? and with the pcp you just pay enough each month to pay it off with the goal of owning it?

about 6-7k for a low mileage fiesta is what I'm looking at.

No thats an 80ps which are dogshit slow

HP is the whole cost of the car split over the term so you own it at the end and whatever its worth is yours. PCP is paying off the depreciation which leaves you with what its worth at the end to pay if you want to keep it or you refinance for a newer car.

[AdamRPS13]

I've been thinking about this recently and was going to ask a similar question before i saw this thread.

I'd like to have something nice and new that i can just get in and drive and forget about owning and focus on the Nissan as a project car. Which one would be better suited to me?

[sideways14a]

Thats why i went pcp, i was utterly fed up of working on cars and just wanted a nice motor that WORKED whenever i got in - if it coughs it goes back to the dealer for repair.

PCP will end up cheaper (well lease will usually) than HP - make sure you get the mileage correct though.

[AdamRPS13]

Thats why i went pcp, i was utterly fed up of working on cars and just wanted a nice motor that WORKED whenever i got in - if it coughs it goes back to the dealer for repair.

PCP will end up cheaper (well lease will usually) than HP - make sure you get the mileage correct though.

I'll look into it, wonder what i can get for sub £300 pm

[sideways14a]

Quite a lot, you could get an MX5 like mine for that.
Fiesta ST3 can be picked up for circa 210 a month which is a good deal.

[AdamRPS13]

Quite a lot, you could get an MX5 like mine for that.
Fiesta ST3 can be picked up for circa 210 a month which is a good deal.

I need something fairly big if i'm to replace my current work horse which is a vectra cdti (EW). I'm quite liking the new shape Skoda Octavia estates but kinda skeptical getting anything vag with a 2.0 tdi engine in for obvious reasons.

[Zornyan]

No thats an 80ps which are dogshit slow

HP is the whole cost of the car split over the term so you own it at the end and whatever its worth is yours. PCP is paying off the depreciation which leaves you with what its worth at the end to pay if you want to keep it or you refinance for a newer car.

whats the difference between the 80 and 100ps models?


no..not just the 20ps before someone points that out!

is about 6k a good enough budget for a fiesta circa 40k and less miles with an ok spec?

[sideways14a]

The 100 is a far far far better car.

[Mark]

The 100 has a turbo which makes it far more driveable.

[Zornyan]

The 100 has a turbo which makes it far more driveable.

ahhh....are the turbo lumps pretty good fuel wise? fairly reliable?

[zeppelin101]

The mileage thing is an awkward one, especially if you hand the car back early.

The reason I say it is awkward is because it *could* be classified as a penalty charge, but there is no recompense if you finish up under the end of term mileage you have specified, which given the type of contract it is there *could* be. From what digging I have done when both myself and my partner handed cars back no one really has a fixed handle on it and the legislation wording is horrific. With Toyota, it was never brought up even though I was on top of the limit with 11 months to go. Meanwhile Peugeot with my partners car tried to charge her pro-rata when handing back early. I kicked up a massive fuss about this and the charge eventually got waived and she only paid for the odd dents on it.

They are very, very slippery come hand back time about what is classified as average wear and tear with PCP if you hand back at the end. You should expect them to charge you for any interior or exterior damage of any kind, it is incredibly unlikely you will get away with anything.

[CrazySx]

PCP = Personal Contract purchase. You agree a deposit and repayments/mileage over a fixed period. What ever the car is worth after this period, you have the option to buy it for a lump sum or chop it in for something else and agree a whole new deal.

Hire purchase as mentioned above is the total cost of the car divided into equal payments over a fixed term. You more or less own it unless you can't keep up the payments then they take it back.

PCP is great if you know u can afford the car but not right now, but want it now!

Sent from my SM-G920F using Tapatalk