Cash vs PCP

[Composite Guru]

I PCP all my cars as long as you get 0% finance. 
Keep the money in the bank and invest it in something that makes money not loses it. 

[AndrueC]

On 4/2/2022 at 3:09 PM, forkingabout said:

Exactly what a lot of people forget - the CBP at the end of the PCP agreement they signed.

I don't often change vehicles so the C-HR will be a keeper.

I made sure I did the sums & saved up first ( lockdown & Covid helped ) so the CBP is sitting in a savings account before ordering a new car.

I'm financing the C-HR on Toyota's PCP as its 0% over 3 years & they had £1k deposit contribution.

CBP = Crippling Balloon Payment.

I could've bought it outright from savings but since it was 0% it made more sense (though not much these days) to keep the money in the bank. I've always known there was a large payment coming up so the money has always been ringfenced. It won't cripple me in the least 😄

[forkingabout]

18 minutes ago, AndrueC said:

I could've bought it outright from savings but since it was 0% it made more sense (though not much these days) to keep the money in the bank. I've always known there was a large payment coming up so the money has always been ringfenced. It won't cripple me in the least 😄

Same here - my CBP is sitting in a savings account earning some interest.

The 0% finance offer is pretty sweet. 

[JBond007]

I got the toyota pcp 0% and £1k contribution from toyota.  It is better than cash price.  If you are good with budgeting, this will be best option.  Also, i put the fund for the final payment into a safe etf fund, after 42mos, it should 1.5x to 2x.  Also consider inflation, why pay all now if you can defer with 0%?

[JBond007]

On 4/1/2022 at 6:49 PM, 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

It doesnt work that way, the buyer pay 4k more for the dealer warranty and confidence.  Buying directly from seller, no one will pay dealer price.   And the hassle of dealing with no show up, price bargaining,  not worth it.. imho

[Spo2]

On 4/4/2022 at 12:03 PM, JBond007 said:

I got the toyota pcp 0% and £1k contribution from toyota.  It is better than cash price.  If you are good with budgeting, this will be best option.  Also, i put the fund for the final payment into a safe etf fund, after 42mos, it should 1.5x to 2x.  Also consider inflation, why pay all now if you can defer with 0%?

Bit curious what etf fund you have put the funds in to get that multiple?

[Gray86]

Think Toyota have dropped the 0% offer now. 1.9% seems to be the best the can do - still much better than other manufacturers, but not as good as 0% 

[bigblock]

Actually alot of the time you never get to pay the final installment. The dealer will call you and ask if you want a replacement new vehicle long before the 42 months is up. My Corolla was only 24 months into a 42 month contract when I was asked if I would like a new Corolla for a very similar monthly payment and no deposit either. I declined as the spec was identicle to what I have now. Plus my current Corolla is perfect in every way. No rattles or annoying sounds etc. I will probably be approached again with another tempting deal but I will decide which way to go if it should happen. I think they like to keep you in the loop once your in it. I guess it all depends on sales at the time and how much stock is available and how desperate they want to move the market around.

[AndrueC]

1 hour ago, bigblock said:

Actually alot of the time you never get to pay the final installment. The dealer will call you and ask if you want a replacement new vehicle long before the 42 months is up.

Not had a call from my dealer but unless Toyota had a decent BEV on offer it'd be a waste of their time. It turns out that the weekend's golf didn't push the car over 20k miles so it just doesn't make sense to change.

[Hornet3D]

1 hour ago, bigblock said:

Actually alot of the time you never get to pay the final installment. The dealer will call you and ask if you want a replacement new vehicle long before the 42 months is up. My Corolla was only 24 months into a 42 month contract when I was asked if I would like a new Corolla for a very similar monthly payment and no deposit either. I declined as the spec was identicle to what I have now. Plus my current Corolla is perfect in every way. No rattles or annoying sounds etc. I will probably be approached again with another tempting deal but I will decide which way to go if it should happen. I think they like to keep you in the loop once your in it. I guess it all depends on sales at the time and how much stock is available and how desperate they want to move the market around.

I always think there is something to be said for sticking with the devil you know or as others say, if it ain't broke don't try and fix it.