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Time for a new (S/H) car

Discussion in 'The Lounge' started by DaveS, Jun 27, 2018.

  1. GeoffR

    GeoffR Well-Known Member

    Credit rating will affect the interest rate but desired annual mileage will affect the monthly payment to a greater extent; ask for 6,000 miles PA and you will pay considerably less than someone, like me, wanting 12,000. A higher mileage results in a lower resale value at the end of the term and the finance company has to recoup the difference. Hence it can be cheaper to have a big car that does a low annual mileage than a small one with a high annual mileage.
     
  2. dream_police

    dream_police Well-Known Member

    I was considering getting a PCP on a car (not that I need another one, but whiling away time in the dealership when mine was in for a service). The figures he quoted where acceptable-ish, but when I realised that last year, since retiring and taking on a part time job, which involves distance driving, my annual milage has gone from just short of 12K to 18K. That he said would greatly increase the monthly payments.
     
  3. PeteRob

    PeteRob Well-Known Member

    I think many of the schemes rely on penalty charges for exceeding the set mileage to make them viable.
     
  4. dream_police

    dream_police Well-Known Member

    Yes. They can be quite expensive. I can't remember what he said the P/pm was, but it makes sense to pay for what you need/may need up front, certainly if you are over running by thousands.
     
  5. RovingMike

    RovingMike Crucifixion's a doddle...

    I can agree with Mazda as good. Had a 6 for 11 years with zero faults. Auto box as as good as new. Might point her at an auto version of the 2.
     
  6. GeoffR

    GeoffR Well-Known Member

    For me the biggest problem with the PCP is that dealerships no longer offer a simple HP plan all they have are PCPs with a big final payment to keep the car. I don't actually want to change my car every 3 years so I have to either find the money up front or get a loan from a bank. Whether this means I miss out on the best deals I don't know.
     
    Roger Hicks likes this.
  7. DaveS

    DaveS Well-Known Member

    Thanks for that link Andrew, it makes interesting reading.
     
  8. DaveS

    DaveS Well-Known Member

    Thinking about this, with the current state of car legislation / motor developments it might be a good idea to enter into a PCP and change every 3 years or so, just so you don't get stung with excess taxes for running a diesel for instance, while in a relatively few years electric will be the new normal.
     
  9. EightBitTony

    EightBitTony Well-Known Member

    I think the rise in PCPs is because many people find it easier to get bank credit at reasonable prices, so people do exactly as you suggest, take out personal loans to buy cars. So the dealerships had to find a way of locking people in (which I totally accept a PCP does) and offer 'better' monthly rates than a personal loan might appear to offer.
     
  10. Benchista

    Benchista Which Tyler

    Oddly enough, the car makers don't want you to keep your car forever... ;)
     
  11. Andrew Flannigan

    Andrew Flannigan Well-Known Member

    George Bernard Shaw has much to answer for. He wrote "The Applecart" as a parody but it seems like business reckoned "Breakages Limited" was such a good idea that they copied it for 40 years. :(
     
  12. Malcolm_Stewart

    Malcolm_Stewart Well-Known Member

    I've been driving Borg Warner style autos for many years - since 1991, starting with a Renault 21, followed by Renault Safrane and Honda Accord, and I've had no problems with the box. Most reliable was an Astra Estate ("G") which I had for ~12 years buying it off the Motability scheme. I'm now driving my 2nd Astra Estate (an "H"), and whilst it's needed a new a/c condenser two years ago, the box seems good. I'm definitely not a fan of other types of auto gear box, which I've suffered when hiring.
     
  13. PeteRob

    PeteRob Well-Known Member

    That is a perspective on the used car market that has yet to hit home. The PCP paradigm depends on 3 year-old cars having a strong market at prices well above the PCP residual valuation. The cost of replacing emission control systems starts to get very high with the latest technology and with increasingly stringent emission tests this adds an extra risk to buying used. The electric vehicle market, should it fully develop as the politicians would wish, has to deal with battery replacement.
     
    Roger Hicks likes this.
  14. Benchista

    Benchista Which Tyler

    It's not about product life, but about structuring financial products to encourage regular replacement. They are more than happy for second-hand markets.
     
    Andrew Flannigan likes this.
  15. nimbus

    nimbus Well-Known Member

    This is why there are heavy penalties for excess miles over the PCP limit.

    The battery question is the major concern with electric vehicles and what will likely condemn many to early graves. Renault probably have the right idea, you lease the batteries.
     
    Roger Hicks likes this.
  16. GeoffR

    GeoffR Well-Known Member

    Pharmaceutical companies don't want you to be healthy either and some of their products are designed to keep you coming back!
     
  17. Andrew Flannigan

    Andrew Flannigan Well-Known Member

    I think that as usual the politicians have seized the bright shiny object without noticing the large "timebomb" sign attached to it. Electric vehicles will not catch on in large numbers until (a) the prices drop to the current levels for equivalent vehicles and (b) until they attain the same level of convenience as current vehicles. 32% of British dwellings rely on on-street parking so long term charging is a non-starter. The real fix for this is to upgrade the existing petrol distribution infrastructure to swap batteries. That just won't happen without primary legislation and that won't happen without forcing manufacturers to adapt a single standard battery pack.
     
  18. Zou

    Zou Well-Known Member

    Leasing the battery only makes sense if you aren't bothered by the running cost. My work fleet has two electric vehicles and in both cases we opted for purchase as for the lifetime of the battery vs cost (given vehicle cost written off over a few years) it is hundreds at worst and thousands at best cheaper to buy outright. Other usage models may make leasing more viable, but c£50/month for battery was just not attractive for us.

    Edit, make that three electric vehicles, not two.
     
  19. GeoffR

    GeoffR Well-Known Member

    We already have three types of fuel; Petrol, Diesel and LPG none of which is interchangeable with any of the others. There would need to be more than one type of battery pack simply because there would need to be flexibility in vehicle size. If the standard battery were designed for, say, a Ford Focus sized car it might be too big for a Smart For2. Design it for the Smart and you may not be able to get two into the Focus. Standard sizes are needed to be sure, not just one though.
     
    Andrew Flannigan likes this.
  20. PeteRob

    PeteRob Well-Known Member

    Indeed, the running costs of electric vehicles should factor in ~£100 per month for battery lease*. It could be that, in time, the tax lost from fossil fuel duty gets wrapped up in lease costs. It depends on how the plans for road charging go. I can't see a future where personal transport can be allowed to get cheaper. The only way to solve congestion is to have fewer cars on the road.

    *last time I looked at Nissan costs for 30kWh battery.
     

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