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Author: Subject: Buy New or Secondhand - PCP or Cash?
perksy

posted on 11/11/19 at 07:16 PM Reply With Quote
Buy New or Secondhand - PCP or Cash?

Not really looked at PCP's etc before and struggling to get my head around it all and getting conflicting comments

You can buy a new car for 18,600 via Carwow (Mazda CX3) Retail is normally 22.400

However a 17 plate car of the same spec secondhand is 14,200

Would you buy new or secondhand ?

Would you use cash or PCP or something else ?

Car would be kept for around 8 years as we don't swap and change often

Confused.com here at the moment


Thanks

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David Jenkins

posted on 11/11/19 at 08:22 PM Reply With Quote
My main concern with PCPs would be the annual mileage limits - I've heard 8k or 10k quoted, and we do around 12k per annum.





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Slimy38

posted on 11/11/19 at 09:27 PM Reply With Quote
The only time I'd consider a PCP is if I was looking to replace the car with new every 2-3 years. For any other situation I'd go for cash or personal loan.

It's the mileage, damage costs and the end payment that puts me off PCP for any length of time. All of which could land you with a hefty bill to keep the car.

Of course, I'd also never buy a new car as cars still have ridiculous depreciation from new. I tend to go for three years old at their youngest. My wife's car was five years old, mine was ten when I bought it and is about to pass fourteen!

Take a look at MSE;

https://www.moneysavingexpert.com/car-finance/personal-contract-purchase/

[Edited on 11/11/19 by Slimy38]

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snippy

posted on 11/11/19 at 09:32 PM Reply With Quote
PCP beware

One thing to be wary of if buying on PCP which has just happened to a couple of my work colleagues is this. If after the 5 years or so you decide you don`t want to keep the car and hand it back, or if you also decide not to go for another new car they go over the car with a fine tooth comb making a note of any tiny stone chips, scratches etc. One work colleague was presented with a bill for 800 on an Astra for repairs to be made before it could be sold on. The car was mint as it had hardly been used over the 5 years. I think this will turn out to be the next Civil Claim scam (like PPI) in years to come. They successfully argued the repairs and got the price down to 160.
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ianhurley20

posted on 11/11/19 at 10:11 PM Reply With Quote
I usually try to buy ex Motability cars. They are often 3 or less years old and low miles with agood service history. Then we keep them until we feel the need for a newer one. My wifes is currently 12 years old and 44k miles and mine is 4.5 years old and 35k miles. It's always worked for us.





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SJ

posted on 11/11/19 at 10:22 PM Reply With Quote
I bought new and by coincidence a Mazda (6 estate, not CX3).
From a broker for cash it was cheaper than anything I could find second hand under 18 months old and 5k less than the dealer.

I'll keep it for at least 10 years after which it will owe me nothing. Also won't matter if I put 100 or 200k miles on it, well as long as it still works. As a non turbo petrol I'm expecting it to last quite well.

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cliftyhanger

posted on 11/11/19 at 11:25 PM Reply With Quote
Last 2 cars have been bought at a year old. First one had 7k on the clock, current one 1K. Both at about 50% retail price or 2/3 what I could get a new car for.
I wouldn't touch a PCP/lease because the damage claims when returned, a friend got charged as the tyres (contis) were not the original brand... just not worth the hassle. I would use savings or a loan as first choice.

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WallerZero

posted on 12/11/19 at 07:58 AM Reply With Quote
Personal loan and 2nd hand for me.

By doing a loan it means you control the monthly payments, duration and have no worries about any costs when handing it back (simply resale) which, only occurs when you want it to. My last car was bought via 3 year bank loan and cash. My plan was to do the same again once the loan was paid off but actually, that monthly repayment is now going straight into savings - and has been for over 18 months whilst the car keeps going strong!

Only reason I'd look at PCP was for a first car for children who don't need anything flash, simply A-B and safe! Plus, insurance is cheaper on new cars....*tin foil hat goes on*





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nero1701

posted on 12/11/19 at 08:52 AM Reply With Quote
I usually go with a 8 year old car, but the top of the line one,

My current car, BMW 335i with a few extras under the bonnet, paid 7500 with a huge service history,

I've done 10 k in 2 years and its been great. Only thing i've have to replace is tyres

410 BHP, for 7500!!

Its now 10 years old, no rust, few stone chips..

I do now fancy the Newish civic type R!! but ill wait another year or 2 for the price to come down a bit more

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nick205

posted on 12/11/19 at 12:00 PM Reply With Quote
My preference has always been to buy 2nd hand. Just seems better value for money and you own the car. Most cars are a one way cost in life and I don't like the idea of paying someone more than I have to for them. A 2nd hand one that's been looked after and gets looked after generally serves well. With 3 kids 2nd hand ones also make me worry less about the wear and tear the car endures.

This is my current wiew.

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motorcycle_mayhem

posted on 12/11/19 at 03:32 PM Reply With Quote
I'm nowhere near your financial league, being a 'failure', however... I do associate with those that are. In fact, most seem to use the PCP (lease) route, creates a good personal feeling, nice new car, great successful image if that's important. It's very important to most, so go there if it's a factor. I know a few that have had a LOT of issues when it comes around to car change time, etc., being charged quite a hefty penalty. However, if you like a new car every few years, it seems a good way to go, with caveats (termination costs, servicing costs, costs, costs, costs).

I've recently replaced the rear-ended 170K mile Corsa (that I would have kept until it died, but a phone zombie had other ideas) with a 2005 1.6 petrol 675 Focus. Lovely car, can't fault it, can't think of what more I'd need.

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perksy

posted on 12/11/19 at 05:53 PM Reply With Quote
Thanks everyone for your comments and the majority view is really clear and kinda what we were thinking

Its interesting in the few dealers that we have visited that its pretty much compulsory to sit down with the finance manager before you purchase, even if you are buying cash, No doubt the dealers make their money on the PCP or finance purchase angle


Thanks again

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Slimy38

posted on 12/11/19 at 10:25 PM Reply With Quote
quote:
Originally posted by perksy
Its interesting in the few dealers that we have visited that its pretty much compulsory to sit down with the finance manager before you purchase, even if you are buying cash, No doubt the dealers make their money on the PCP or finance purchase angle



Yep, that's been my experience with dealers too. I was always brought up to go to a dealers with a wad full of cash to get the best deal, nowadays you have to wade through all sorts of 'options' before you even get close to a cash sale, and even then it's not very good.

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cliftyhanger

posted on 13/11/19 at 07:42 AM Reply With Quote
The last 3 cars I have bought from proper garages. And had absolutely no grief about flashing the debit card and leaving in sensible time. I think if you are clear from the outset then all is well.
Should add I had agreed to buy and paid a refundable 100 deposit before viewing. And travelled approx 200 miles each time to collect. But that 200 miles saved from 1-3K on buying from local dealers.

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Mr Whippy

posted on 13/11/19 at 07:55 AM Reply With Quote
My little VW Up I got from the VW dealer, it's the first time I've gone that route to get a car but was fed up with constant old car repairs, I can do them all myself but it never seems to stop. I thought just buy an almost new one which is practically a blank canvas and I'll maintain it properly from the start.

Things I'd do differently though next time would be -

1) I wouldn't get finance with the dealer but my bank instead as the dealer has all sorts of conditions in the small print the bank doesn't

2) Would not pay for any "fixed price" BS deal which is just a scam of me paying them 50 not to change their service prices which I wasn't going to do anyway but they threw that at me and I missed exactly what it was at the time of dealing with all the paperwork

3) I would check very carefully the body work, I missed a small ding in the door (taken out later by a paintless dent removal guy for 80) but the dealer did not put it on the check list so I have no proof it was their when I got it

They did give me 1 year warranty which was handy and the whole headlamp needed replacing due to a blown DTRL and tbh their service and courtesy car was I thought 1st class. For that 1st year since it was still under the warranty (it's a 2016 model) I got the local garage to service it but from now on I will be doing it as their is no legal reason against me doing so and that will save me hundreds a year.

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russbost

posted on 13/11/19 at 09:18 AM Reply With Quote
As you are looking for a Mazda, I would suggest a call to Romford Mazda 01708 735735 & talk to their sales people, I bought a Mazda 6 from them & they beat car wow by over 2k, I found prices from Car wow varied hugely depending if it was cash or finance, financed was around a grand to 1.5k "cheaper" (obviously not cheaper in the long run!!!). I realise Romford is nowhere near you, but worth a trip for 2k or more saving





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sdh2903

posted on 13/11/19 at 09:54 AM Reply With Quote
quote:
Originally posted by cliftyhanger
I wouldn't touch a PCP/lease because the damage claims when returned, a friend got charged as the tyres (contis) were not the original brand... just not worth the hassle. I would use savings or a loan as first choice.


I've had several lease (pch not pcp) cars and have never had any issues or any charges at hand back. In fact I've found them very easy to hand back. Every agreement I've had has stated that premium tyres must be fitted and not cheap ditchfinders and they list around 5 brands to use. So If theyve been caught out and charged then it's because they were trying to use cheapo tyres and not aware of their agreement. They all use the bvrla fair wear and tear guide which gives quite a lot of leeway on damage.

Anyway back to the OP. Everyone thinks that PCPs are the work of the devil. And in some cases that's true. However you can make them work to your advantage.

For instance they offer 0% on the pcp deal or extra dealer contributions for taking out the finance. In these cases it can be cheaper then at the end of the pcp take out a bank loan for the balloon payment and only pay interest on that portion of the loan.

If no deals on the finance then for a long term purchase I'd always go for a bank loan.

For the prices you've quoted I'd also sway towards the new and get 3 years of warranty cover as it's not a huge price differential and could easily be recouped with a couple of warranty claims if needed.

Edit. Just to say if your going for the used option. I doubt you'll get a good deal on the pcp either as they are usually much worse than on a new car.

[Edited on 13/11/19 by sdh2903]

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phelpsa

posted on 13/11/19 at 12:07 PM Reply With Quote
Recently changed to a newish car. Wanted to pay cash but the best deals were on PCP (deposit contribution, 3 years servicing included). Ended up taking the finance and paying it off 24hrs later. The process was really simple and cost 4.50 in interest to save 3k....
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mark chandler

posted on 13/11/19 at 11:07 PM Reply With Quote
A car is only new the day you collect, I always go for 3 years of age or more - top of the range where devaluation has hit hardest.

My father likes new cars, works out what he wants then orders through here

https://broadspeed.com/?gclid=EAIaIQobChMIx9qa9KXo5QIVB7LtCh2GeQ5vEAAYASAAEgJ5HfD_BwE

He used to be as fleet buyer!

Buying new get the base model with discount to reduce devaluation.

[Edited on 13/11/19 by mark chandler]

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sdh2903

posted on 14/11/19 at 07:55 AM Reply With Quote
quote:
Originally posted by mark chandler
A car is only new the day you collect, I always go for 3 years of age or more - top of the range where devaluation has hit hardest.

My father likes new cars, works out what he wants then orders through here

https://broadspeed.com/?gclid=EAIaIQobChMIx9qa9KXo5QIVB7LtCh2GeQ5vEAAYASAAEgJ5HfD_BwE

He used to be as fleet buyer!

Buying new get the base model with discount to reduce devaluation.

[Edited on 13/11/19 by mark chandler]


But in this case a same spec car is available that's nearly 3 years newer and only 4k more. That would be a no brainer for me. 3 years newer, full warranty and you've got an 8 year old car at the end of ownership instead of 11. On a higher depreciating car then yes I'd always go for the used option and let someone else take the depreciation hit.

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