Buying and keeping long term is always cheapest option

PCP only worth considering if you want a brand new car and want to change it every 3 years.

It'll never be the cheapest option, but it would then be a toss up between:

1. Buying using your cash or a loan (hire purchase type arrangement) where you take on the residual value risk
2. PCP where the residual value risk is priced in upfront, and you have the option of buying the car at the end of the term if you want to (or if its worth more than the final payment due, say)
3. Lease - no residual value risk. Can't buy the car at the end.

But, see initial point, keeping long term is always cheapest as the biggest cost is depreciation which flattens out later on. Even if maintenance costs increase, it's nothing on the depreciation of a new(er) car.

I'm glad I'm out of the PCP trap and own our cars outright. They're now 7 and 8 years old respectively, will be changing one of them later this year, but for logistical reasons only (it's not big enough).

Posted By: SimonOTBC on June 20th 2022 at 13:04:43

Message Thread

PCP or Buy Outright (General Chat) - Charles21, Jun 20, 12:16:34
- Buy...My car is still worth more now than 28months ago when bought. (n/m) (General Chat) - promethian1, Jun 20, 19:25:37
- Have tended to buy outright and keep (General Chat) - Cardiff Canary, Jun 20, 15:32:13
- PCP. Only need to use the car, not own it. Plus (General Chat) - Azteca, Jun 20, 14:22:01
- Oh mine... (General Chat) - usacanary, Jun 20, 14:13:52
- Depends on many variables (General Chat) - Tony Martin, Jun 20, 13:57:54
  - Vmt. 3 new tyres on last 12 months, via maintenance cover (n/m) (General Chat) - Azteca, Jun 20, 14:25:30
- Bought ours outright and immediately regretted tying up a load of cash. (General Chat) - tudders, Jun 20, 13:20:50
- Buying and keeping long term is always cheapest option (General Chat) - SimonOTBC, Jun 20, 13:04:43
  - Also, kids (General Chat) - CWC, Jun 20, 14:05:09
  - Think that's my thoughts too, thanks (n/m) (General Chat) - Charles21, Jun 20, 13:21:32
- Buy and keep it forever (General Chat) - jamesward, Jun 20, 12:51:53
- Look at rates (General Chat) - Jester, Jun 20, 12:43:08
  - the Land of Stereotypes (General Chat) - Henclrikus, Jun 20, 13:21:50
    - um, for cod's hake. (n/m) (General Chat) - Henclrikus, Jun 20, 13:32:58
- I’ve only ever bought because I am an Old Git but interested to hear other views (General Chat) - Old Git, Jun 20, 12:36:41
  - I am leaning towards buying as I don't like the idea of (General Chat) - Charles21, Jun 20, 12:39:55
- Tend to PCP these days (General Chat) - eadie2001, Jun 20, 12:32:31
  - Surely the depreciation is built into the amount you pay for PCP? (General Chat) - mr carra, Jun 20, 13:38:13
  - ^^ A-level man maths ^^ (n/m) (General Chat) - SimonOTBC, Jun 20, 13:06:20

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