Looking at getting a new or used car but not sure what's the best option PCP or HP?
What's everyone's opinions
What's everyone's opinions
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PCP or HP?
- Thread starter ghostbustertab
- Start date
I was going to go hp with my current car. But I chose pcp because I wanted lower payments a month than hp. My intention was to own the car either way.
But I started thinking it’s the right decision rather than buying it out right. If the car is good at the end of agreement I’ll buy it. If I’m bored I’ll trade it.
My car is a diva and I’m only 2 years in. She costs me money for even the simplest of things. So I’m glad I’m not tied into hp.
I’d only do hp on a car that I am 100% certain that is the car for me and I won’t get bored.
The only uncertainty with it is that you can’t guarantee if that particular one will give you trouble making you resent your decision.
I’d also do hp to force myself from repeatedly swapping my cars to just own something for 8-10yrs (if it’s that good).
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But I started thinking it’s the right decision rather than buying it out right. If the car is good at the end of agreement I’ll buy it. If I’m bored I’ll trade it.
My car is a diva and I’m only 2 years in. She costs me money for even the simplest of things. So I’m glad I’m not tied into hp.
I’d only do hp on a car that I am 100% certain that is the car for me and I won’t get bored.
The only uncertainty with it is that you can’t guarantee if that particular one will give you trouble making you resent your decision.
I’d also do hp to force myself from repeatedly swapping my cars to just own something for 8-10yrs (if it’s that good).
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So may ways to look at it, think as said above its a personal thing and depends on your attitude to money etc there is no best way in general just what works for you in your situation.
For me i started leasing as i am really fussy with cars and finding the right car second hand for me has always been a task, then having a baby at the time driving around the country looking at cars became less appealing than before having the little one, i enjoyed the chase if you like BC (before child).
Then simple man maths for me looking at a loan for a car, the car i could afford at the time would have been a 3 year old octavia vrs so probably no warranty and the previous generation, when I looked at lease I could have the newer shape, brand new, delivered to my door and for less money a month and fully under warranty...and as I'm really fussy with cars the worst thing happened I got hit in it by an HGV, damage to rear passenger door, wing, wheel etc - went through insurance to repair it, nightmare had it re done 3 times and if it was my own car i would have sold it as in the end i wasnt really happy with work done, but on that last day I handed it back and walked away - so for me its working, is it cheap? I would say no personally, BUT it works for me for now.
For me i started leasing as i am really fussy with cars and finding the right car second hand for me has always been a task, then having a baby at the time driving around the country looking at cars became less appealing than before having the little one, i enjoyed the chase if you like BC (before child).
Then simple man maths for me looking at a loan for a car, the car i could afford at the time would have been a 3 year old octavia vrs so probably no warranty and the previous generation, when I looked at lease I could have the newer shape, brand new, delivered to my door and for less money a month and fully under warranty...and as I'm really fussy with cars the worst thing happened I got hit in it by an HGV, damage to rear passenger door, wing, wheel etc - went through insurance to repair it, nightmare had it re done 3 times and if it was my own car i would have sold it as in the end i wasnt really happy with work done, but on that last day I handed it back and walked away - so for me its working, is it cheap? I would say no personally, BUT it works for me for now.
If you’re only keeping a car for 2 to 3 years then PCH is better than PCP as payments will be lower per month and you can have a 24 or 36 month contract.
Both PCP and PCH are leasing agreements, but the PCP has the balloon buyout payment, whereas the PCH doesn’t. You can still buy the PCH car at the end too…
Ultimately, it’s your choice what you decide to follow, but people who change cars on finance a lot seemingly have to deal with the negative equity side which means lumping the difference onto the next cars finance and keeps you in a perpetual loop.
Both PCP and PCH are leasing agreements, but the PCP has the balloon buyout payment, whereas the PCH doesn’t. You can still buy the PCH car at the end too…
Ultimately, it’s your choice what you decide to follow, but people who change cars on finance a lot seemingly have to deal with the negative equity side which means lumping the difference onto the next cars finance and keeps you in a perpetual loop.
If (like me) want to change your car every 2-3 years. I dont have my own parking spot and can only get the parking space fpr 24 or 36 months at a time renting, the best route was leasing. Else I'd say PCP. At times when refinancing the ballon payment, u can get a loan from bank at lower APR anyway in most cases.
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