Would you buy another diesel?

ChuckMountain

Yes but that's always been the case to a certain extent.  Buying a car on PCP if you can't afford the payment means you have to sell the car and clear the outstanding amount, as you don't own the car.  

The trouble with PCP, before this current issue, is that you were always pretty much in negative equity until very close to the end of the loan arrangement.

The options are generally wait till the end or till 50% payment and VT without any additional charges.

Anything else at any point and you are likely to lose out.

duffbeerdrinker

Surely the current PCP deals will allow for the current uncertainty surrounding diesel cars?
There's no way they will want to lose out in 3 years time when you hand the car back.

ChuckMountain

The residuals still look similar to me and haven't really changed much if anything.

Faust

I lifted it from the Telegraph as there can be issues with blocking and pay wall.  If you go back a few posts you will see what it says as I copied it to my post.

IronGiant

It's OK we found it, and it doesn't specifically mention PCP, just finance in general and the dangers of negative equity.

Faust

No idea as I've never used one.  It has always seemed to me to be an expensive way to buy a new car, plus they appear to link mileage to payment periods.

I buy my cars cash.  Once purchased I immediately put money in the bank every month for my next one and within two years the money has been saved.  However, when I bough my last new car I had an epiphany.  I though to myself, I treat my cars with love and reference and when I trade them in they look brand new and someone else is getting the benefit of all the TLC.  

So I decided to hang on to it and not change after two years.  10 years later that same car is still going strong, still looks brand new, has only done 65,0000 miles and has cost me virtually nothing. My days of wasting a shed load of money on cars are long gone.

duffbeerdrinker

You and I think exactly alike.  If you're paying cash then you should avoid a diesel like the plague.

Faust

I noticed this regarding PCPs in the FT as well -

   

Mr Hill says: He goes on to say that a PCH (personal contract hire) may be more advantageous than PCP because although you can walk away with nothing further to pay it will have cost you more money than a PCH.  Finance companies/car dealers are already making urgent adjustments to the GMFV for diesels to reflect the collapse in prices.

Faust

Absolutely correct.  There's no way I'm putting my hard earned/hard saved cash into another diesel.  These PCPs remind me of phone contracts i.e. it's always better to pay up front.

It does make me wonder if your average family unit actually pay for anything these days as everything seems to be built on credit.  Foundations of sand if you ask me as it's reckoned the average family is only ever one missed salary away from disaster.

It seems a crazy way to live, but hey what do I know.

ChuckMountain

Yep you live in a crazy world ....

Just of interest, when was the last time you bought a new car?  By new I mean brand new.

The cheapest way of buying any new car these days is highly unlikely to be cash ....