options at end of PCP (Macan S Diesel)

[MCS]

Hi all - need some input. Very happy with my 2017 Macan S Diesel (pay £195 VED). In March 2020 my 3 year lease my PCP finishes. The dilemma is whether to buy outright (£30K) for a car that will have done 25k or chop for a new Macan GTS (with minimal extras). Continually using PCPs have never really appealed as I see no value in paying the ongoing finance costs. No option to buy new outright but I could just about pay off the guaranteed value. Downsides are cost of new tyres, brakes and brake pads and 40k service in 2021 (estimate at least £4k spend) with no warranty as well as impact on future diesels. Part of me thinks to buy outright and keep until Mk2 Macan comes out as a hybrid and / or EV. Have plenty of time yet....

For clarity car is not used daily as I commute in to work and now only do 5k miles a year max....hence petrol / hybrid / EV now not an issue although I feel EVs are 5 years off everyday practicality. Anyone who has had back to back cars on PCP out there?

[jonnydrama]

If it was me I'd buy it and shop around for parts. If Porsche don't supply them (but still N rated and a good brand) you'll get a full set of 21" tyres for £800. Parts alone for brakes will probably be about the same, have a trusted mechanic fit them, then have a bit of a haggle to get the service for a decent cost. You've then probably saved enough from your initial figure to renew the warranty for a further 2 years...

[PaulR]

My thoughts on PCP are well documented on this forum! My advice is never get a car on PCP but, if you do, get out of it as soon as you can. It's a prohibitively expensive way to 'purchase' a car. It's got to be the next mis-selling scandal - once everyone's done with PPI.

[MCS]

If it was me I'd buy it and shop around for parts. If Porsche don't supply them (but still N rated and a good brand) you'll get a full set of 21" tyres for £800. Parts alone for brakes will probably be about the same, have a trusted mechanic fit them, then have a bit of a haggle to get the service for a decent cost. You've then probably saved enough from your initial figure to renew the warranty for a further 2 years...

interesting approach - so rather than start a new PCP own outright and maintain accordingly....

[MCS]

My thoughts on PCP are well documented on this forum! My advice is never get a car on PCP but, if you do, get out of it as soon as you can. It's a prohibitively expensive way to 'purchase' a car. It's got to be the next mis-selling scandal - once everyone's done with PPI.

Thanks Paul - so return car ad then buy a used one outright? The issue is there is often a £6-7k price difference from a Porsche dealer and private - so my car would be £30k to buy outright but £36-7k form a dealer...so the money on interest is balanced out...DO you mean only ever buy a car cash?

[PaulR]

Thanks Paul - so return car ad then buy a used one outright? The issue is there is often a £6-7k price difference from a Porsche dealer and private - so my car would be £30k to buy outright but £36-7k form a dealer...so the money on interest is balanced out...DO you mean only ever buy a car cash?

My recommendation is a general one around avoiding PCP. You can search my posts for my ramblings on the subject. I purchased cash because I'm tight! I want the TCO of my car to be kept to the absolute minimum possible. And it's good advice never to finance a depreciating asset - if you can. (Many people get that the wrong way round, and claim it's a good idea to finance a depreciating asset.)

I wouldn't recommend returning the car unless it's worth less than the GMV. So assuming it's worth more, you'll want to take advantage of that. E.g. buying the car and either keeping it or selling privately. Or trading it in at original financing dealer and taking advantage of the equity that you have.

If you do decide to buy the car, the last thing I'd recommend is doing so on finance. You'll already have paid loads of interest on the PCP, so the last thing you want is to pay even more interest.