Buying and keeping long term is always cheapest option

PCP only worth considering if you want a brand new car and want to change it every 3 years.

It'll never be the cheapest option, but it would then be a toss up between:

1. Buying using your cash or a loan (hire purchase type arrangement) where you take on the residual value risk
2. PCP where the residual value risk is priced in upfront, and you have the option of buying the car at the end of the term if you want to (or if its worth more than the final payment due, say)
3. Lease - no residual value risk. Can't buy the car at the end.

But, see initial point, keeping long term is always cheapest as the biggest cost is depreciation which flattens out later on. Even if maintenance costs increase, it's nothing on the depreciation of a new(er) car.

I'm glad I'm out of the PCP trap and own our cars outright. They're now 7 and 8 years old respectively, will be changing one of them later this year, but for logistical reasons only (it's not big enough).

Posted By: SimonOTBC, Jun 20, 13:04:43