F1 Nut wrote: ↑Tue Jul 27, 2021 1:42 pm
OmniCognateSnr wrote: ↑Tue Jul 27, 2021 11:12 am
sd1985 wrote: ↑Tue Jul 27, 2021 9:46 am
Im the same, I invest my car money and take PCP. I have done ok with this method over the last 4 years. I have also been given a good part exchange cost for my 2 year old Macan gen 2 to spec the gen 3
Still think cash is best way to buy if you have it.
I bought a Macan 3 years ago for £57K and selling it for £43k - so its only cost me £14k over a 3 year period. If i'd bought the same car on PCP the dealer asked for a £6k deposit plus £8k per year in PCP payments (so in total that's £30k over 3 years (deposit + pcp payments).
So in summary i've ended up taking a hit for £14k (depreciation) versus £30k if i'd gone down the PCP route... so saved about £16k over 3 years (i.e. £440 per month)! If i'd invested that money instead of putting it into a car, im not sure i'd have made £440 per month. So i always buy cars in cash now.
if you have enough spare, cash is always the best option. However, I am fine with the monthly payments but can't really afford to lose £64k from my bank balance right now. I am hopeful that if one of the deals comes in that I am working on that the commission will cover the cost of the car, but with all things sales I can't guarantee that.
I think people have different personal circumstances and some options work better for some.
Absolutely, everyone's circumstances
are different. I have put a significant amount of money into my childrens trust funds, which are performing better than the cost of the interest of the PCP deal, therefore I will continue to put my cash where it's working harder.
The above from sd1985 might be a little simplistic, but is based upon a specific point in time too. What if the vehicle was worth £25k after 3 years and not £43k? With PCP, you can walk away, if you've bought cash, you're £2k down. Also, if the vehicle is in positive equity, that's not lost on a PCP either. You can sell the car, settle the contract and pocket the difference or roll it into another car if you wish. PCP also enables you to voluntarily terminate once 50% of the borrowed amount has been paid, something you cannot do with a lease. So if residuals do plummet, you can exit early.
And for anyone buying an ICE over the next 2-4 years, who knows what will happen with legislation and subsequent effects on residuals. Will petrol cars be banned from city centres in years to come? Probably, at some point!
PCP's can only really be considered better or worse when you factor in the individuals entire personal financial circumstances.
[/quote]
I Agree its all about personal circumstances, and every has a different situation when it comes to buying a car.
For me its also about buying the right car in the right spec, to improve your odds of better residuals. I also find porsche hold value much better and don't see that changing due to how they evolve cars and how you can't buy a cheap Porsche from any OPC globally. They stick to a general price point which helps residuals. I dont see the move to electric damaging those residuals either due to these reasons.
I'm also buying the new ICE macan GTS, and despite what you've said about ICE engines, my bet is that with this being the last ICE GTS Macan you will ever be able to buy, it will do very very well with residuals in 3 years (when i plan to sell). So i already have a price range in mind and done the maths. For example, i pay £74k in cash, i'd expect £40-£50k in 3 years, closer to £50k if i P/E and it will have low mileage with good spec. So depreciation of roughly £24k-£34k. Conversely, the dealer offered me PCP at £8k deposit, £12k yearly PCP payments. So £44k over 3 years.
So a saving of between £10k-£20k through buying in cash - probably £15k in the middle feels about right (£420 per month). If i took the cash and invested it, i could probably generate a decent return, but would have to work for my 5,6,7,8 % with no guarantees.
But its my personal opinion, no right or wrong answer here and dependent on circumstance. Also ICE will still be mainstream for years to come based on the latest data etc.