PCP - Positive Equity

[Casa1862]

1 hour ago, Malc said:

I know I'm living in a timewarp with my Ls400  but for heavens sake, do you guys feel happy paying out £718 a month, presumably from your after taxed income, for a car ? that's going to have zilch value to you when you do change to another ?

You'd be heaps of ££££ better off by popping that £718 ( plus the tax relief presumably making it possibly £1000 a month  ) into your pension pot and buying something you actually NEED for maybe a couple of  months effective payments, rather than maybe a status symbol AND into your pension pot, assuming a return tax free on FTSE equities , if that's your thing, of about 4% pa which grossed up year on year to your retirement will provide a better time for you later in life AND of course you can maybe take 25% of that in tax free cash anyway at the time.

Just my thoughts...............  from an OAP with more money than sense maybe and happy with the best built car ever on the road ..... and still  0 - 60 in 6.9 secs and 155 mph 

Malc

Problem is you might be dead or unfit to drive after you've finished putting all this money into your pension!! 

However, I'm no fan of PCP but there  is a middle ground, I picked up a new contract hire (PCH) IS300h Exec in 2015 for £185 + vat (plus 6 upfront payments), 2 year deal which in total cost me £6600 or £3300 per year, less than the car depreciated in the two years. Why pay all that interest and balloon payments when you can just return the car and get a new one. I'll admit that was a good deal but you can still get one for about £270 + vat now, got to be better than a £700 PCP and that's for a brand new one. Look out for the Lexus offers when they need to shift numbers.

[Malc]

6 minutes ago, Casa1862 said:

Problem is you might be dead or unfit to drive after you've finished putting all this money into your pension!! 

Yep, but you probably wouldn't be  ........  and then you'll enjoy it even more and in the meantime be able to pay your normal monthly outgoings for one's family without undue pressure .....

BUT of course it's always a personal choice whatever one does, but throwing £20 notes on the bonfire seems a little strange to me .........

.......... as I said. maybe it's coz i am an OAP , in a timewarp and with too much spare cash, possibly got there by not splashing out on a new car every year or two .......  just making do with my limo and 0 - 60 in 6.9 secs and 155 mph ( still ) 

Malc

[Spacewagon52]

On 09/06/2017 at 8:40 AM, stevet said:

Still can't see how you are in positive equity. PCP normally leaves you with nothing until right at the end. You have loaned £23200 (£29k - £7k + £1.2k) and car is worth about £14k in px so £9.2k left. You would have to of paid over £484 per month so far just to break even. That's £16200 just to rent a Hybrid for 19 months. You could have bought an ISF outright for that and it would be all yours and still be worth £15k now.

When you look at the hard figures here, it does make me wince a little. AND you don't even own the car! 

It is down to personal choice .... but that is nearly £500 each month ......... is it really worth it? I am like Malc, a bit too long in the tooth for these figures. 

But the point about age is valid ........ I asked a pension adviser what was the best thing to do with my pension pot? He asked me when I was going to die! Then he could give me the BEST advice! You can't live just for today but also you can't wait indefinitely for tomorrow! Life is a balance ......... it is just hard working out what should be in each pan on the scales.

[Casa1862]

12 minutes ago, Malc said:

Yep, but you probably wouldn't be  ........  and then you'll enjoy it even more and in the meantime be able to pay your normal monthly outgoings for one's family without undue pressure .....

BUT of course it's always a personal choice whatever one does, but throwing £20 notes on the bonfire seems a little strange to me .........

.......... as I said. maybe it's coz i am an OAP , in a timewarp and with too much spare cash, possibly got there by not splashing out on a new car every year or two .......  just making do with my limo and 0 - 60 in 6.9 secs and 155 mph ( still ) 

Malc

Fair enough, but you're also only one repair bill from the scrapyard!! 😁

 

[Spacewagon52]

1 minute ago, Casa1862 said:

Fair enough, but you're also only one repair bill from the scrapyard!! 😁

 

But he will have lost very little in depreciation! And there are other cARS OUT THERE!

[Malc]

3 minutes ago, Casa1862 said:

Fair enough, but you're also only one repair bill from the scrapyard!! 😁

Yep, I don't have private health cover I admit .....................

Malc

[stevet]

1 hour ago, Verbout said:

I agree Alan.

Totally.

[noby76]

2 hours ago, Verbout said:

Expensive keeping up with the Joneses.

By Dave Ramsees take, the Joneses are broke so no point trying to keep up..   i find his topics very interesting and educational as well..

 

 

[Verbout]

Interesting when he gets to the point.

[WhiteFSport]

So the dealership offered me enough to cover my remaining finance (anybody want to guess what I was offered?) and I've sought a potential replacement. Any thoughts?

http://www.csfmotors.co.uk/used-bmw-3 series-bury-lancashire-1209814 

[Malc]

a used BMtroublu over a later used Lexus ..............  are you nuts ?

Malc

[stevet]

4 hours ago, WhiteFSport said:

So the dealership offered me enough to cover my remaining finance (anybody want to guess what I was offered?) and I've sought a potential replacement. Any thoughts?

http://www.csfmotors.co.uk/used-bmw-3 series-bury-lancashire-1209814 

15K?

Don't forget to put some distinguishing mark on the BM to help find it in a car park :) 

[Casa1862]

Depending on the millage I'd say about £18k for a 15 plate.

£26k for a 4 year old BMW, I'd keep the Lexus.

[WhiteFSport]

1 hour ago, stevet said:

15K?

Don't forget to put some distinguishing mark on the BM to help find it in a car park :) 

 

1 hour ago, Casa1862 said:

Depending on the millage I'd say about £18k for a 15 plate.

£26k for a 4 year old BMW, I'd keep the Lexus.

Both are good estimates. I was offered a maximum of £19k for my Lexus. I've held back so far on the BMW, there are other options available out there, so I'm going to keep my eyes open for something else. As I said, I'm not in any particular rush, so I'm happy to bide my time and get something that's right for me. There is a very tempting BMW 340i with the PPK on the BMW approved website, but it's a little overpriced.

[dazed]

6 hours ago, WhiteFSport said:

So the dealership offered me enough to cover my remaining finance (anybody want to guess what I was offered?) and I've sought a potential replacement. Any thoughts?

http://www.csfmotors.co.uk/used-bmw-3 series-bury-lancashire-1209814 

You're barking mad

It's older, has higher mileage, costs more and won't be as reliable. I'm struggling to see the upside.

[200h]

in the gallery there is an image saying there is just under £20k of factory fitted extras

can this be possible as i thought the M sport had all the bells and whistles.as standard.

[noby76]

1 hour ago, dazed said:

You're barking mad

It's older, has higher mileage, costs more and won't be as reliable. I'm struggling to see the upside.

its faster and "may" handle better... but i will have an F-sport GS450h over one..