Thread: Car Finance
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      01-12-2013, 04:44 AM   #17
Lieutenant Colonel

Drives: E90 335i M sport
Join Date: Jun 2011
Location: Leicester

iTrader: (1)

Originally Posted by marlie View Post
They have offered me about 9k off list price but after doing the maths on PCP (6.9 APR) I still end up paying the full list price if i wanted to keep the car after 4 years. They did bring the monthly payments down to 499 what i wanted but have really bumped the Final payment!! I believe it will be a beautiful car and has a great engine/cabin/looks but i just think after 4 years its gonna take a big hit in depreciation and i wont prob be left with any equity.
Regardless of how you pay for a new car depreciation is never going to go away. If you lease a car or hand the car back at the end of a PCP you can reduce the hit; ie what you have paid in 3 years might have been less than the depreciation if you had bought with cash. Ofcourse that leaves you with no car...

In the end it all depends on your views on finance and your disposable income. I personally cannot justify/afford to be paying 500 a months on a car for 3 years and than still be left with a large cash sum to pay or no car to show for it. Hence the newest car I've ever bought was already 2.5 years old. Yes you still loss money on depreciation but it's a lot less compared to a brand new car and I've yet to suffer any major mechanical problems with any of the used cars I've bought

Rember also at the end of the day it's only a car, it's defiantly not worth lossing sleep over, but it also happens to be most peoples 2nd biggest purchase, so do what ever feels most comfortable (which is different for everyone)