UK Mini PCP? - MINI Cooper Forum

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post #1 of 14 (permalink) Old Aug 8th, 2017, 01:02 PM Thread Starter
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UK Mini PCP?

Good Afternoon All,

Heading over to the Mini Dealership sometime soon and was wondering what are your experiences of the PCP in the UK?

What kinda credit rating do you need?

Also this will be my first Mini, What kinda options should I add I am just getting the Cooper (Not the S as that is to much on insurance)

Many Thanks

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post #2 of 14 (permalink) Old Aug 8th, 2017, 03:13 PM
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I buy my cars rather than rent them so I can't help you out here buddy, but from what I understand about PCP is it's slightly cheaper than HP and at the end of the term i.e 3 years you either pay the car off or hand it back and take out another plan against a new car. This is false economy in my opinion but I do like to hold on to my cars longer than the average Joe

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post #3 of 14 (permalink) Old Aug 8th, 2017, 05:32 PM
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I buy my cars rather than rent them so I can't help you out here buddy, but from what I understand about PCP is it's slightly cheaper than HP and at the end of the term i.e 3 years you either pay the car off or hand it back and take out another plan against a new car. This is false economy in my opinion but I do like to hold on to my cars longer than the average Joe
If the APR is the same and for the same length of agreement, then a PCP will be more expensive than a straight loan or HP as you borrow more money for longer.

Don't forget that you pay interest on the final payment which is usually MUCH larger for a PCP that HP. If you add up deposit, payments and the final payment (plus any admin charges!) invariably HP is cheaper.
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post #4 of 14 (permalink) Old Aug 8th, 2017, 06:21 PM
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My wife's car was about £9500 and all in I'm paying £10,551 for the car and that is over 4 years. My final payment is just over double what it is normally then the car is mine. I only have 10 months left to pay. Not having a brand new car doesn't bother me as they say that the minute you register it then you have lost £3000 straight away.
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post #5 of 14 (permalink) Old Aug 9th, 2017, 09:48 PM
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Unless you run a business/have investments and can make more than the interest rate by investing the retained capital, I would pay cash.

Unless one falls into this category or gets a travel allowance from work that you can lease a car with, cannot see any reason for a private individual to pay say £17500 for a £15000 car

PS the cooper is a great choice for first car you are totally right about insurance. I think it's also best value if you compare the cost of upgrading one -> cooper and the cooper -> cooper S, the cooper gives great bang for buck there is big diminishing returns going to the S!!! (Though if money is no object I am not hating on the S haha)
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post #6 of 14 (permalink) Old Aug 10th, 2017, 08:27 AM
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Unless one falls into this category or gets a travel allowance from work that you can lease a car with, cannot see any reason for a private individual to pay say £17500 for a £15000 car
Even 2 years ago, PCP accounted for nearly 60% of all new private car sales.
It allows people to drive something without having to save for it. Or you could say drive something they can't afford.
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post #7 of 14 (permalink) Old Aug 10th, 2017, 08:51 AM
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Even 2 years ago, PCP accounted for nearly 60% of all new private car sales.
It allows people to drive something without having to save for it. Or you could say drive something they can't afford.
When the recession kicked in in 2008 the amount of "new" cars quickly dissapeared from my street when the dreamers lost their jobs!

I lost my business in July 2007 and because I usually purchase my cars outright I still had my wheels. Thankfully none were on finance at the time

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post #8 of 14 (permalink) Old Aug 11th, 2017, 01:00 PM
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Even 2 years ago, PCP accounted for nearly 60% of all new private car sales.
It allows people to drive something without having to save for it. Or you could say drive something they can't afford.
Yes but my point is instead of making say 36 monthly payments of £200 you could save £200 a month and probably only have to save for 30 months to pay cash. (bad maths example but you get the point)

That said I know Im in the minority apparently Bentley sell almost 50% of their cars on finance now. You would have thought their customers just buy their cars without a second thought!!

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post #9 of 14 (permalink) Old Aug 11th, 2017, 06:23 PM
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Even 2 years ago, PCP accounted for nearly 60% of all new private car sales.
It allows people to drive something without having to save for it. Or you could say drive something they can't afford.
That is a really interesting stat Johnny. Recently during various grinds round the M25 I'm looking around at the other cars and thinking 'Wow, there are so many 15, 16 and 17 plate cars. And so many Mercs, Beemers, Audis, Jags, Porches. Many are £40-£60k cars. How do folk afford to lash out that much on their cars?"

Of course PCP. So none of them actually OWN those fat new cars, they are just sort of renting use of them long term. Makes me feel better.

I found the good old bank loan useful. Maybe banks don't do that any more? Don't know, haven't asked.
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post #10 of 14 (permalink) Old Aug 11th, 2017, 07:09 PM
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I bought my Clubman with cash and clever credit card jiggery pokery. I laid down a hefty deposit and took out finance for the remainder. With finance you have a 14 day cooling off period so I used that time to find a good credit card with the longest 0%APR and found one with 23 months 0%APR on all purchases/ balance transfers within 60 days of taking it out. So after the 13th day I used my card to clear the finance which had no interest on it may I add as it was within the cooling off period then had 23 months of 0%. It was a bit cheeky but it worked out very well for me.My next car will most likely be purchased this way if needs must!

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post #11 of 14 (permalink) Old Aug 13th, 2017, 12:45 AM
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That is a really interesting stat Johnny. Recently during various grinds round the M25 I'm looking around at the other cars and thinking 'Wow, there are so many 15, 16 and 17 plate cars. And so many Mercs, Beemers, Audis, Jags, Porches. Many are £40-£60k cars. How do folk afford to lash out that much on their cars?"

Of course PCP. So none of them actually OWN those fat new cars, they are just sort of renting use of them long term. Makes me feel better.

I found the good old bank loan useful. Maybe banks don't do that any more? Don't know, haven't asked.
Yes this is why these days I would always stick to buying a more "exotic" car if I wanted a flashy car.

Not that I treat it as a competition with others on the road, just the fact that most of the Mercs, Audis, Beemers are financed devalues it for those of us who have done the right thing and saved. So I would rather buy a Lotus or Mustang for the same price as it shows you have done it the old fashioned proper way!! (As these are difficult or extremely uneconomical to finance.)

Remember the good old days when driving a new car was an achievement and something to be proud of. Again I am not saying it's a competition or anything just it was something to be proud of as it showed you had worked hard and bought the car. Now all it shows is you signed the dotted line so some months you will have to feed your kids frozen food to pay for the lease haha.
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post #12 of 14 (permalink) Old Aug 13th, 2017, 06:11 PM
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Lotus are currently doing 0% finance on a '50:50' deal - you pay 50% up front and then nothing for 24 months and then the second 50%... so tempting but even a basic Elise is serious money nowadays (mine was £22k in '01!).
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post #13 of 14 (permalink) Old Aug 14th, 2017, 09:57 PM
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I have thought about and looked into this a few times. My last car was on PCP (Mazda MX-5 ltd edition), sadly had to sell it after 2 years as I was finding it really difficult to drive with a dodgy knee. I really look after my cars and did well out of selling it privately and paying the finance off. Obviously sold it for a wedge less than I paid for it but did well with the car and don't regret buying it.

When selling the MX-5 I was really struggling with what to replace it with and was very reluctant to get finance on a car I wasn't 100% on. Anyway I decided to scratch an itch and get a Mini for a run around whilst I decided on a what to get. A year later I still have the Mini and adore it. I keep thinking of buying a new but I own mine outright and like that I don't have a monthly payment to make. I keep looking at new Coopers / Cooper S but doubt I would like it that much more to merit paying out £200+ a month and not actually owning the car. For that reason, I'm sticking with Black Betty
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post #14 of 14 (permalink) Old Aug 15th, 2017, 09:06 PM
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I'm starting to like some F56's, saw a nice black JCW.
But with a decent spec they're like £30,000
So I couldn't justify spending £300 or whatever they'd cost, especially as I mostly take the bus to work and I'd rather pay my mortgage off early
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