Cash vs PCP

[Reilly]

Newbie here!

Thanks to Sadiq Khan's plan to extend the ULEZ zone to all of London, I'm going to have to change from my 2.0TDi.  I'm looking at getting the 1.8 Corolla Design Hatch.

The question is whether to buy for cash or PCP.  A lot of my firends are now buying by PCP, but I'm a bit old fashioned and like to own the car.  I guess the key factor is depreciation.  Does anyoe have an idea of the likely depreciation from new to 3years c. 5k pa mileage?  The Money Calculator reckons 11.9% or £,083 based on £26k purchase price.  This seems very low as autoexpress expects between 47% - 50%.

Pros and cons of cash v PCP would be good too.

Craig

[Obsidian Estate]

I've only ever bought with cash. To be honest depreciation is not something I worry about. I buy the car I like, not the one that will lose the least amount of money over 3 years.

[FROSTYBALLS]

To be honest, with the situation the used car market is currently in at present, it will  be hard to predict with any accuracy what depreciation will be like in a year, let alone 3 years.

[TonyHSD]

Exactly, if the trend continue and politically  and economically remain at the same or even worse situations the value may even going up, it’s crazy how cars can even earn you cash these days instead of loose. Either way you buy Toyota hybrids are best investment currently and perhaps until they get banned or fuel is no more available to purchase. 🚗👌👍

[Spo2]

33 minutes ago, Reilly said:

Newbie here!

Thanks to Sadiq Khan's plan to extend the ULEZ zone to all of London, I'm going to have to change from my 2.0TDi.  I'm looking at getting the 1.8 Corolla Design Hatch.

The question is whether to buy for cash or PCP.  A lot of my firends are now buying by PCP, but I'm a bit old fashioned and like to own the car.  I guess the key factor is depreciation.  Does anyoe have an idea of the likely depreciation from new to 3years c. 5k pa mileage?  The Money Calculator reckons 11.9% or £,083 based on £26k purchase price.  This seems very low as autoexpress expects between 47% - 50%.

Pros and cons of cash v PCP would be good too.

Craig

Buy the car on PCP if it comes with 0% APR and a £1000 contribution from Toyota (if they are still offering). Put your remaining car money in a saving account- seems you can get a bit higher interest now. You can settle anytime by paying the balance but do it when your free 0% APR ends- this will maximize your return.

[Flatcoat]

Cash is no longer always king when it comes to car purchases. You may find better deal for taking Toyota finance and even if it isn’t 0%, if that finance comes with a contribution then use it and then pay off the balance after a couple of weeks. 

[Hornet3D]

When I collected our new car from the Toyota dealership I commented that I was surprised how much I received as trade in for my almost nine year old Honda CRV.  He smiled and showed me a list on a web site that showed the range of trade in values over the last six months and the value had increased every month.  Great for buyers now but it has to come to an end at some point.

[Flatcoat]

Imagine how much more you would have got selling privately! Many Dealers are taking the ‘p’ out of buyers with trade-in values. The offers I had from some last year were thousands (as in over £4k) less than I sold my car for privately. It is a lesson that car buyers need to remember, do your homework before stepping foot in the showroom. A car is the second most expensive purchase for most people after their house and so many just roll over in front of the salesperson, I used to be married to one so know how much some deals can make the dealers! 
I suspect trade values for SUV’s and prestige cars are already on the slide in favour of economy cars. One of the big car supermarkets has stated they are re profiling their stock to reflect the shift in demand demand for economy over luxury. 

[Spo2]

9 minutes ago, Flatcoat said:

Imagine how much more you would have got selling privately! Many Dealers are taking the ‘p’ out of buyers with trade-in values. The offers I had from some last year were thousands (as in over £4k) less than I sold my car for privately. It is a lesson that car buyers need to remember, do your homework before stepping foot in the showroom. A car is the second most expensive purchase for most people after their house and so many just roll over in front of the salesperson, I used to be married to one so know how much some deals can make the dealers! 
I suspect trade values for SUV’s and prestige cars are already on the slide in favour of economy cars. One of the big car supermarkets has stated they are re profiling their stock to reflect the shift in demand demand for economy over luxury. 

Part exchanging with dealers is not a good idea. Selling to online groups like Cazoo, Motorway, Carwow etc is a much better option- you get a better price and less hassle. 

[Kieranm9091]

5 minutes ago, Spo2 said:

Part exchanging with dealers is not a good idea. Selling to online groups like Cazoo, Motorway, Carwow etc is a much better option- you get a better price and less hassle. 

Get the part ex deal with them, understand what your car is worth to them and if you are happy with the finance, agree on that.

 

Prior to the final handover and sign off, get the quotes from carwow/motorway and sell there. Anything above your deposit amount is bonus for you.

[Hybrid21]

Certainly I traded my Volvo in to the dealer for my Rav, and they sold it for£4k more than they gave me 😮

In retrospect I should have sold it privately.

Iain

[Rosgoe]

I have bought both Toyotas on pcp I then put money away in a separate account to cover the final amount. When I traded in the auris got the best price from the dealer obviously could have got more privately but had enough of viewers pulling car apart with oh this wrong or I’m not happy with that !! 

 

[Gray86]

4 hours ago, Spo2 said:

Buy the car on PCP if it comes with 0% APR and a £1000 contribution from Toyota (if they are still offering). Put your remaining car money in a saving account- seems you can get a bit higher interest now. You can settle anytime by paying the balance but do it when your free 0% APR ends- this will maximize your return.

THIS^^ 0% means you aren’t paying for the privilege. Take that option, you can always settle the remainder at any point 

[Obsidian Estate]

2 hours ago, Hybrid21 said:

Certainly I traded my Volvo in to the dealer for my Rav, and they sold it for£4k more than they gave me 😮

In retrospect I should have sold it privately.

Iain

I'm in the same boat.

I got 10750 for my GT 86, I'd initially thought of putting up privately for 12 but decided I really couldn't be doing with hordes of morons. So traded it at a local Toyota dealer.

I think they had it up at 14k.

[Cyker]

Ugh my sympathies fellow victim of our moronic mayor KHAAAAN! I can't believe he got voted in for a second term to implement this ULEZ extension BS. The fact that some people still actually think it's anything to do with pollution rather than a desperate cash grab just makes me weep!

And that he lied about not extending it to the M25 when specifically asked about this during the first consultation for the extension! Grrrr!

I agree with spo2 - If they are still offering 0% finance, do that and haggle an extra £1000 off the car after you've already haggled them down. If you don't want it to drag out you can always settle the balance whenever you want.

If they don't, then buying it outright would be the better option (Although still see if you can haggle more money off  )

[AndrueC]

I bought my current Corolla on 0% finance. The final £10k payment is due in August. That'll give me a boost of £250pcm in September - just in time for next energy price hike which will probably soak it all up.

[Hornet3D]

5 hours ago, Flatcoat said:

Imagine how much more you would have got selling privately! Many Dealers are taking the ‘p’ out of buyers with trade-in values. The offers I had from some last year were thousands (as in over £4k) less than I sold my car for privately. It is a lesson that car buyers need to remember, do your homework before stepping foot in the showroom. A car is the second most expensive purchase for most people after their house and so many just roll over in front of the salesperson, I used to be married to one so know how much some deals can make the dealers! 
I suspect trade values for SUV’s and prestige cars are already on the slide in favour of economy cars. One of the big car supermarkets has stated they are re profiling their stock to reflect the shift in demand demand for economy over luxury. 

I am at the time of life that wringing the maximum amount out of any deal is really second to my desire to have an easy life.  It was almost a swap for an ex-demonstration Aygo so there was no period when I was without a car and I did not have the hassle of selling the car privately.  I don't doubt that I could have made more out of the deal but the whole exchange was smooth.

[twintopp]

due to the recent delays for chips , grandson sold bmw for great price but then had to rent car for nearly 4 months before getting new car, ended up catch 22. 

[Mikw]

1 hour ago, Cyker said:

Ugh my sympathies fellow victim of our moronic mayor KHAAAAN! I can't believe he got voted in for a second term to implement this ULEZ extension BS. The fact that some people still actually think it's anything to do with pollution rather than a desperate cash grab just makes me weep!

And that he lied about not extending it to the M25 when specifically asked about this during the first consultation for the extension! Grrrr!

I agree with spo2 - If they are still offering 0% finance, do that and haggle an extra £1000 off the car after you've already haggled them down. If you don't want it to drag out you can always settle the balance whenever you want.

If they don't, then buying it outright would be the better option (Although still see if you can haggle more money off  )

It's worse than you think. Councils are being "encouraged" by central government to bring in Ulez - it's a conditon of getting central government funding for big projects. One way of paying for it i guess....

[Hornet3D]

22 minutes ago, twintopp said:

due to the recent delays for chips , grandson sold bmw for great price but then had to rent car for nearly 4 months before getting new car, ended up catch 22. 

That was part of my concern if I sold privately.  How long would I be without a car, how many cars would I need to look at, what did I do for transport in the interim, how far would I have to travel or would I need to arrange delivery.  As it was the Aygo was at the Toyota dealership just ten minutes drive down the road and I received more for the CRV than I would have done a few years ago, even selling it privately.   I test drove the Aygo on the Tuesday afternoon and on the Friday morning of the same week I drove the CRV in and the Aygo out, I may have made more money selling it another way but this had to be the most hassle free way to make the change.

[Leo63]

I purchased my Toyota Corolla by using PCP over 3 years so it was interest free. But before I walked into the dealership I did some homework by getting quotes for the car I used Car Wow and I walked to my dealership and I saved nearly £3000 off list price. I am coming up to nearly the 3 years of ownership of the car and we have decided to change our Corolla and we have ordered a Chr Gr Sport and the delivery time is about September the dealership as valued our Corolla which is more than the settlement figure and that price will stay the same if the new car is delayed but I had bought or paid off the Corolla the would have to be revalued before collection of the new car. I was unsure about using PCP to purchase the car as this was the first time I have bought a car this way but I was swayed by the interest free over 3 years.

[Notfer]

11 hours ago, twintopp said:

due to the recent delays for chips , grandson sold bmw for great price but then had to rent car for nearly 4 months before getting new car, ended up catch 22. 

Same sort of boat - Sold my Puma ST privately for a great price, however lucky enough to have access to other cars, so currently running around in a MK6 Fiesta until my Corolla decides to show up

[Kental]

0% has ended, now 1.9% but deposit allowance upped to £1250

[Reilly]

5 hours ago, Leo63 said:

I purchased my Toyota Corolla by using PCP over 3 years so it was interest free. But before I walked into the dealership I did some homework by getting quotes for the car I used Car Wow and I walked to my dealership and I saved nearly £3000 off list price. I am coming up to nearly the 3 years of ownership of the car and we have decided to change our Corolla and we have ordered a Chr Gr Sport and the delivery time is about September the dealership as valued our Corolla which is more than the settlement figure and that price will stay the same if the new car is delayed but I had bought or paid off the Corolla the would have to be revalued before collection of the new car. I was unsure about using PCP to purchase the car as this was the first time I have bought a car this way but I was swayed by the interest free over 3 years.

That's helpful, but what happens after the 3 years is up and you're still waiting for your new car.  Do you keep paying the monthly sum for it? I thought you'd either have to buy it out or hand it back after the three years.

[StreetHawk]

3 hours ago, Notfer said:

Same sort of boat - Sold my Puma ST privately for a great price, however lucky enough to have access to other cars, so currently running around in a MK6 Fiesta until my Corolla decides to show up

Same here.. just sold my Corolla and now driving a VW Up until the new Corolla arrives. 
 

The value of it had started declining week on week so didn’t want to risk waiting until end of May to sell. The Up is surprisingly good, did a 2 hour mostly motorway drive yesterday and it handled it easily with three of us on board. Not so good when collecting the shopping earlier today, had to pile some up on the back seats around my youngest! 
 

Will definitely appreciate getting back in a Corolla when it arrives.