[isleaiw1]

Originally Posted by rich100

Have both also.


Playing devils advocate though I suspect that this forum may not be truly representative of the population as a whole.Perhaps it's not even true of the forum, I don't know.

I think more generally there is a tendency to fund things through borrowing, coupled with a need for instant gratification.

investment may not be a priority for some and possibly treated with suspicion given its perceived risk and complexity.

It's a shame because it doesn't necessarily have to be that way. A passive index fund as a start point for example is not complex and by its nature mitigates risk to some degree through its diversification.

Sorry I think I've drifted away from the point... oh yes something about VT

Don’t come being all logical and reasonable, this thread is all about massive generalisations .....

And yes unlikely to be truly representative but at least it was some facts...

[ZeroFx]

Originally Posted by isleaiw1

Another blanket assertion... shall we have a little check - if you have a PCP and a pension plan, please reply to that effect.

I will go first - I do (and an investment plan)

PCP debt is off the charts. They think its the next miss selling scandal and financial crisis rolled in to one.

they say the average family doesnt even have 2 months money in savings. But they all seem to have new cars on the drive on PCP.

Lets not stand here and claim PCP buyers are doing it because their cash reserves are invested in Berkshire Hathaway.

They are on PCP because they are 1 bad month away from being broke.

"According to the report, 32% of the UK’s workers have less than £500 in savings and 41% have less than £1,000. Almost 30% are concerned about their level of debt while 43% of workers do not have anyone in their household they could depend on to support them financially in the event of hardship. Fewer than half of employees (44%) feel they have progressed in their careers over the last five years; only 40% feel they have good opportunities to progress in future."

[isleaiw1]

Originally Posted by ZeroFx

PCP debt is off the charts. They think its the next miss selling scandal and financial crisis rolled in to one.

they say the average family doesnt even have 2 months money in savings. But they all seem to have new cars on the drive on PCP.

Lets not stand here and claim PCP buyers are doing it because their cash reserves are invested in Berkshire Hathaway.

They are on PCP because they are 1 bad month away from being broke.

"According to the report, 32% of the UK’s workers have less than £500 in savings and 41% have less than £1,000. Almost 30% are concerned about their level of debt while 43% of workers do not have anyone in their household they could depend on to support them financially in the event of hardship. Fewer than half of employees (44%) feel they have progressed in their careers over the last five years; only 40% feel they have good opportunities to progress in future."

Wouldn’t disagree, but you said most people with a PCP don’t have a pension, and yet auto enrolment exists these days.... so I think you were wrong, whatever else you say.

[ZeroFx]

Originally Posted by isleaiw1

Wouldn’t disagree, but you said most people with a PCP don’t have a pension, and yet auto enrolment exists these days.... so I think you were wrong, whatever else you say.

I didnt know we were being so literal.

Should i change the statement to "a pension worth shit"

[aquazi]

Originally Posted by ZeroFx

I didnt know we were being so literal.

Should i change the statement to "a pension worth shit"

I have enough in my private and final salary pension + income from investments to be able to retire within 10 years (and i am closer to 35 than 40!)

And enough savings to pay for my PCP.

I guess i dont meet that generalisation!

[Alice Coupe]

Originally Posted by ZeroFx

That said next time around ill likely go back to buying the hard top for around 25-27k which seems to be the sweet spot in depreciation & resale value.

Originally Posted by ZeroFx

I said a PCP is the most expensive way to finance a car because of how they accumulate interest. If someone has one pot of 30k then spending it all on a car is not a smart move. Neither is buying a 440i on a PCP either.

Most people taking out PCP's probably barely have a pension let alone an investment plan.

So you'll happily sink £27k in to a car but not £30k?

For the final time (from me on this thread anyway), PCP is not necessarily the most expensive way of buying a car. (Not necessarily the cheapest either) I've explained why earlier so not going to waste time doing it again.

Don't believe me. That's up to you.

What i will say though is I only have one debt - my PCP. I don't earn mega bucks but it's above average. I own my home, I will retire at 55 and my wife will retire with me but she will not collect her pension until 60+? So I obviously have a comfortable pension plan. The rest was achieved mainly through investments.

[teaston]

Rant thread of the year!!

[lethbridge]

I bought my car with a 0% PCP and a hefty discount which dealer couldn't have improved on with or without the PCP. I reckon my car is worth £20k less than when I had it delivered in August. No intention of VTing it. Did I do wrong?

[sahajesh]

Originally Posted by lethbridge

I bought my car with a 0% PCP and a hefty discount which dealer couldn't have improved on with or without the PCP. I reckon my car is worth £20k less than when I had it delivered in August. No intention of VTing it. Did I do wrong?

Well...

Do you have a decent pension, extensive savings/can afford to pay the bills next quarter? Or do you feed the meter with coins when the lights go out?

Only that will allow us to make that determination.

[lethbridge]

Originally Posted by sahajesh

Well...

Do you have a decent pension, extensive savings/can afford to pay the bills next quarter? Or do you feed the meter with coins when the lights go out?

Only that will allow us to make that determination.

I found I needed the M3 as I can get more food parcels from the local Food Bank in the boot - the M4 meant I would have needed two trips - plus I can do some Uber work to give me the money for the meter - who needs a pension if you plan to shoot yourself after reading this thread?

[R0B]

Originally Posted by lethbridge

I bought my car with a 0% PCP and a hefty discount which dealer couldn't have improved on with or without the PCP. I reckon my car is worth £20k less than when I had it delivered in August. No intention of VTing it. Did I do wrong?

I'll give you 20k for it right now if it makes you feel better. Transferred within the hour. Deal? Cool.

[MashinBenzin]

Originally Posted by ZeroFx

I said a PCP is the most expensive way to finance a car because of how they accumulate interest. If someone has one pot of 30k then spending it all on a car is not a smart move. Neither is buying a 440i on a PCP either.

Most people taking out PCP's probably barely have a pension let alone an investment plan.

You do love an assumption don't you.

Where did I say that was all of my savings at the time or now?

I have a final salary pension, three separate personal pensions, two frozen and one of which takes 12% of my gross income, plus (what I view as) short and medium term investments via ISAs that i contribute too.

Thanks for the financial advice though, even though it would have cost me £20k doing things your way (and similar sums since).

[ZeroFx]

Originally Posted by MashinBenzin

You do love an assumption don't you.

Where did I say that was all of my savings at the time or now?

I have a final salary pension, three separate personal pensions, two frozen and one of which takes 12% of my gross income, plus (what I view as) short and medium term investments via ISAs that i contribute too.

Thanks for the financial advice though, even though it would have cost me £20k doing things your way (and similar sums since).

I didnt say you did.

I couldnt give a shit about anyones personal circumstances or deal on their car.

We were talking about PCP being the most expensive way to buy a car.

Whats the point in talking personal circumstances on a forum? You could be full of shit for all we know.

[isleaiw1]

Originally Posted by ZeroFx

I didnt say you did.

I couldnt give a shit about anyones personal circumstances or deal on their car.

We were talking about PCP being the most expensive way to buy a car.

Whats the point in talking personal circumstances on a forum? You could be full of shit for all we know.

Indeed anyone expressing comments could be making them up

😉

[Witney]

Originally Posted by ZeroFx

I didnt say you did.

I couldnt give a shit about anyones personal circumstances or deal on their car.

We were talking about PCP being the most expensive way to buy a car.

Whats the point in talking personal circumstances on a forum? You could be full of shit for all we know.

The point is that 1) personal circumstances and 2) actual deal on the car are relevant factors in whether PCP is in fact the most expensive way to buy a car. No-one is saying that PCP is always the cheapest way, far from it, but it is not always the most expensive way for an individual either.

[ossi1]

Originally Posted by Witney

The point is that 1) personal circumstances and 2) actual deal on the car are relevant factors in whether PCP is in fact the most expensive way to buy a car. No-one is saying that PCP is always the cheapest way, far from it, but it is not always the most expensive way for an individual either.

Its interesting to note that PCP has taken off in what is an historically low period of Interest rates. Obviously the purchaser has control over their monthly payments but should the other monthlies (mortgage) go up as a result of an Interest rate rise I reckon we will see the whole concept come crashing down or threads like this being extremely common place.

I've yet to see the controls on mortgages put in place on these sort of loans and I understand the FCA are looking at it closely.

The truth is that some people simply cannot help themselves or lack the financial guile to plan for next week, let alone the future.

[ZeroFx]

Originally Posted by ossi1

Its interesting to note that PCP has taken off in what is an historically low period of Interest rates. Obviously the purchaser has control over their monthly payments but should the other monthlies (mortgage) go up as a result of an Interest rate rise I reckon we will see the whole concept come crashing down or threads like this being extremely common place.

I've yet to see the controls on mortgages put in place on these sort of loans and I understand the FCA are looking at it closely.

The truth is that some people simply cannot help themselves or lack the financial guile to plan for next week, let alone the future.

Just wait till mortgages shoot up and people are half way through a PCP with a shit load of negative equity and the economy takes a dive.

[ossi1]

Originally Posted by ZeroFx

Just wait till mortgages shoot up and people are half way through a PCP with a shit load of negative equity and the economy takes a dive.

I wonder if the NHS will bail out Mrs Miggins having subversively tempted her into that stupendous deal she simply couldn't refuse.

Dodgy times ahead, Interest rates creeping up, Brexit and two recent corrections in the financial markets..

[Goneinsixtyseconds]

Not everyone is comparing cash with pcp.

My choice to go the pcp route 5 years ago was a pure comparison between my company car cost per month and getting my own car with an allowance instead.

A 440i Gran Coupe works out £1-2k per annum cheaper than having a 320d for me as a company car. A like for like 320d would save me over £3k. No brainer. I didn't want to wait 3 years to save up £35k to buy one, and I didn't want to raid the savings we have on one side for our children to pay for it. I just went straight ahead with a pcp on 2.9% and zero deposit.

The fact I'm better off than I was before is enough for me. I know a lot of others that are opting out for the same reasons, especially as BIK charges for cars are getting higher and higher each year. Bordering on the ridiculous at the moment.

[JNW1]

Originally Posted by Goneinsixtyseconds

Not everyone is comparing cash with pcp.

My choice to go the pcp route 5 years ago was a pure comparison between my company car cost per month and getting my own car with an allowance instead.

A 440i Gran Coupe works out £1-2k per annum cheaper than having a 320d for me as a company car. A like for like 320d would save me over £3k. No brainer. I didn't want to wait 3 years to save up £35k to buy one, and I didn't want to raid the savings we have on one side for our children to pay for it. I just went straight ahead with a pcp on 2.9% and zero deposit.

The fact I'm better off than I was before is enough for me. I know a lot of others that are opting out for the same reasons, especially as BIK charges for cars are getting higher and higher each year. Bordering on the ridiculous at the moment.

We used to have a chap called Alex on this forum; he was also based around Chesterfield and also drove a 440i GC (coincidence or what?). Don't suppose by any chance you happen to know him?!!

[Witney]

Originally Posted by ossi1

Its interesting to note that PCP has taken off in what is an historically low period of Interest rates. Obviously the purchaser has control over their monthly payments but should the other monthlies (mortgage) go up as a result of an Interest rate rise I reckon we will see the whole concept come crashing down or threads like this being extremely common place.

I've yet to see the controls on mortgages put in place on these sort of loans and I understand the FCA are looking at it closely.

The truth is that some people simply cannot help themselves or lack the financial guile to plan for next week, let alone the future.

Bringing us neatly back to the option to VT a PCP deal. Hurrah!

[Goneinsixtyseconds]

Originally Posted by JNW1

We used to have a chap called Alex on this forum; he was also based around Chesterfield and also drove a 440i GC (coincidence or what?). Don't suppose by any chance you happen to know him?!!

No no, you must've had a night off last night. Ban wasn't permanent, changed name as I thought I might not last too long again. Was almost proved right on day 1.

Can we keep this on pcp/vt though?

I ruined and got locked a perfectly good Lobb thread last night by biting back.