I can’t get my head around what’s best, cash or PCP.

RRS 5.0SC AB, New with 98k spec, intend to keep for between 1.5 to 3 years... should I buy cash or finance with PCP?

What do you think is most cost effective? MY19 5.0SC Dynamic AB - Boss Grey, Black Pano Roof, 22” Gloss Black Alloys, Ebony/Ivory Massage Seats, Carbon Fibre Finishers, HUD, DTV and the all important Cabin Ionisation...

You have other choices but none has the lower monthly payments of the PCP....... or the option to leave the car and keys on the dealership’s hands at the end of the contract and walk away with no penalty (which they wouldn’t like because they assume you will,come back for another car at the end). For a 5.0S/C I would think that knowing from the start what depreciation has been factored in is invaluable - if you buy the car outright then you have no idea if you will be able to sell the car without a huge loss - ok all RRS have big depreciation but big petrol engined SUV’s plummet downward. Also if you finance the car with somebody else’s money then you have another interested party to involve when you have a dispute with the maker and if you read the forums that has helped some members a lot as soon as they ask the lender to step in. You don’t have that extra fall back if you use purely your own money. 2020 Pangea Green 1st Edition D240 New Defender 110 is here and loving it
2018 Melting Silver Mini Countryman PHEV - soon to be replaced
2015MY Corris Grey SDv6 HSE Dynamic, the best car I have ever owned, totally reliable only a cou0le of rattles in 3 years, now no longer in my care
Also in my garage is a 1996 TDi300 Defender 90 County HT made into a fake CSW

Last edited by Tim in Scotland on Wed Jun 06 2018 8:20am. Edited 1 time in total

Further to what Tim has said above it's also Horses for courses - if you can make your £98k work in a better way for you rather than sticking it all in a depreciating asset then PCP or HP is for you. I guess it all comes down to affordability and personal finances.

Speaking to my Ferrari dealership they only sell around 5% of cars on cash payment and 95% are financed - and yes this includes cars such as La Ferrari's costing over £1m.

I guess people with so much money have better things to do with their money than have it all in cars....

Footballers do it too


http://www.thisismoney.co.uk/money/cars/ar...uyers.html

Really interesting reading. Makes sense, thanks.

I can keep the money invested earning 7-10% returns and use the PCP at 6.9%, although need to pay tax on the gains.

I've sort of got the feeling if I wanted to ditch the car half way through the PCP term it would be less painful than selling the car if I owned it outright. MY19 5.0SC Dynamic AB - Boss Grey, Black Pano Roof, 22” Gloss Black Alloys, Ebony/Ivory Massage Seats, Carbon Fibre Finishers, HUD, DTV and the all important Cabin Ionisation...

On a PCP you can sell the car whenever you like and settle up - no tie in's...

Have to echo the thoughts above re: PCP.

Just did the same after many years of buying cars for cash (or as good as) and ironically the exact same vehicle as yourself too.

My payments/costs are fixed and the 3 years it runs suit my situation so it was a no-brainer!

That's settled then.

Only thing is, I'm self employed and don't pay myself a salary. Do you think that would make PCP complicated? MY19 5.0SC Dynamic AB - Boss Grey, Black Pano Roof, 22” Gloss Black Alloys, Ebony/Ivory Massage Seats, Carbon Fibre Finishers, HUD, DTV and the all important Cabin Ionisation...

How do you survive lol ?

You may need to go via another lender like Oracle or Magnitude as they would look at dividend income too...JLR finance will need a monthly salary...

^^^

Complicated in which sense? I'm a contractor, pay myself a base salary + dividends, so if you mean eligibility it should be fine as the vehicle is the security.

Ok, great. I meant if you haven't a suitably high salary it might be difficult to set up. Was thinking more of lending like mortgages, but as you say the car is collateral.

I don't even pay myself a salary as have income from property rental. Just dividends when needed.

As well as being a karate man that bruises on the inside, I'm also a serial cash buyer for several years so a bit rusty on lease stuff. MY19 5.0SC Dynamic AB - Boss Grey, Black Pano Roof, 22” Gloss Black Alloys, Ebony/Ivory Massage Seats, Carbon Fibre Finishers, HUD, DTV and the all important Cabin Ionisation...

A man of relative leisure then

I did my PCP with JLR Finance, they asked for last 3 years of work history which I completed online but no specific income details.

PS: Noticed in your sig you have Wade Sensing; car I bought was a cancelled order and has that too although can't see me ever using it!

A 52 year old man of relative leisure but includes a 2 year old and one on the way....

Wade sensing... what was I thinking??? I’m putting it down to keyboard shakes! MY19 5.0SC Dynamic AB - Boss Grey, Black Pano Roof, 22” Gloss Black Alloys, Ebony/Ivory Massage Seats, Carbon Fibre Finishers, HUD, DTV and the all important Cabin Ionisation...

LOL I'd blame the two year old and make him pay it back once he's working age

Rest of your spec is very similar to mine; I love the HUD, pano roof, LED laser light & 22" alloys.

Excuse for a pic I think ....

love that

^^^

Cheers mate