PCP finance vs used? The modern car buying puzzle
Personal Contract Purchasing is more popular than ever, but we show which used cars you can buy with a year's worth of PCP payments
There was a time when we'd buy our cars on hire purchase or with a bank loan, and once it was paid for, we would probably start the process all over again. But nowadays, thanks to the rise of the Personal Contract Purchase plan (PCP), we don't even wait until we've paid for our car - we just hand it back after three years (or even less) and get a new one. In effect, we've got used to funding the depreciation on our cars so we never actually own them.
It's an attractive proposition for many. For a fixed monthly fee, you can have a car that's always within warranty, never needs an MoT and could have servicing taken care of, too. What's not to like? Well, for starters, there's the cost, as you pay for the privelige of running a new car.
To show you just how big that cost is, we've looked at what you'll typically pay annually when signing up to a PCP, and what you could buy outright in the same class for the same money. Of course, we're comparing a new car with one showing its age, so you need to take into account the fact that maintenance and fuel bills will be higher, as will road tax costs, over the period of ownership.
But you won't have to worry about a deposit or about sticking to the mileage limits that come with PCP deals, and best of all, you'll be able to call the car your own.
Click the links below or to the side to see our pick of the cars you can grab for the price of a years finance payments...
Best used PCP alternatives:
- • City car/supermini: Seat Ibiza
- • Compact family car: Vauxhall Astra
- • Compact executive car: Audi A4
- • SUV/crossover: Toyota RAV4
- • MPV: Ford Galaxy
- • Sports car: Mazda MX-5
Now check out our sister site Buyacar for some great PCP car deals...
- 1Introduction - currently readingPersonal Contract Purchasing is more popular than ever, but we show which used cars you can buy with a year's worth of PCP payments
- 2City car/supermini: SEAT IbizaWe found a 1.4 Sport model of the popular Polo-based supermini for just £2,100
- 3Compact family car: Vauxhall AstraA practical choice, you can pick up a Vauxhall Astra for £3,000 without too much trouble
- 4Compact executive car: Audi A4Just £4,800 could buy this classy and efficient Audi A4
- 5SUV/Crossover: Toyota RAV4The spacious and capable Toyota RAV4 could be yours for around £4,800, making it a compelling buy
- 6MPV: Ford GalaxyHugely spacious yet pretty fun to drive, the Ford Galaxy looks like great value at £4,200
- 7Sports car: Mazda MX-5For a bit of drop-top fun, nothing beats a Mazda MX-5 - and one could be yours for just £4,200