Buying a caravan on PCP
- Thread starter LizziePope
- Start date
It never appealed to me. Instead of having an asset you are basically renting it but it would be far easier to deal with problems via Black horse if you get the odd really bad caravan that gets turned out.
I know people that have had cars/trucks on contract/rented hire, the problem is when you return the vehicle the leasing companies want them back in mint condition, I can just imagine a caravan going back after a three years with awning pole dents various scratches and the like not to mention is everything in working order on the caravan,
Not quite true that they want them back in mint condition. I've had several company cars over the years, which are basically just lease cars through a third party like Black Horse paid for by work. All the big finance / leasing houses subscribe to a code of industry practise and they are pretty reasonable about the state of the car on return. They accept minor scratches and scrapes to alloys, stone chips in paintwork etc and make it quite clear what the limits are on dings you would need to repair. So I wouldn't rule it out on those grounds ....
I think a caravan is a different kettle of fish, why would you want a caravan for only three years, it is your baby we give our caravans a name, we look after them, I'm sorry I have to go now, I'm so upset about thinking that I would want to return my Baby to a caravan dealer to make more money out of it, 
PCPs were also discussed earlier last month. See http://www.practicalcaravan.com/forum/general/53642-practical-caravan-s-tourer-of-the-year-2017#422548
Yet more debt for people to get themselves into and with nothing to show at the end of it. Yeah great idea.
I cant see why people have such issue with the scheme?
With a pcp you are basically paying the depreciation ( which everyone has to deal with) with a bit of interest. Thiere is a big misconception that you dont have anything to show for it after paying for it for 3 years. Well you arent buying all the caravan only the part that you would lose anyway
Example buy a caravan for 20k after 3 years its worth 10k you will pay the 10k plus interest then hand it back or buy it , if your caravan is worth more more then you win if the market changes and your caravan isnt so popular then you still hand it back without anymore outlay.
That 10k over the 3 years is lost anyway in depreciation at the end of the 3 years its still worth the same if your purchased cash, hp or pcp?
Ive purchased numerous cars on pcp's over the years, then after 3 years just hand them back and buy another, if the trade value is more than the final payment then that goes against the deposit for the next one never ever worried about it being an asset because im not buying all the car.
In the car world they offer big incentives to buy on pcp, take up this offer then pay it all off after the first payment if you have a problem with pcp's these offers are normally thousands?
Also dont forget these offers make the world of owning a caravan much easier so so will keep the new sales of caravans buoyant, which in turn makes more vans on the secondhand market.
With a pcp you are basically paying the depreciation ( which everyone has to deal with) with a bit of interest. Thiere is a big misconception that you dont have anything to show for it after paying for it for 3 years. Well you arent buying all the caravan only the part that you would lose anyway
Example buy a caravan for 20k after 3 years its worth 10k you will pay the 10k plus interest then hand it back or buy it , if your caravan is worth more more then you win if the market changes and your caravan isnt so popular then you still hand it back without anymore outlay.
That 10k over the 3 years is lost anyway in depreciation at the end of the 3 years its still worth the same if your purchased cash, hp or pcp?
Ive purchased numerous cars on pcp's over the years, then after 3 years just hand them back and buy another, if the trade value is more than the final payment then that goes against the deposit for the next one never ever worried about it being an asset because im not buying all the car.
In the car world they offer big incentives to buy on pcp, take up this offer then pay it all off after the first payment if you have a problem with pcp's these offers are normally thousands?
Also dont forget these offers make the world of owning a caravan much easier so so will keep the new sales of caravans buoyant, which in turn makes more vans on the secondhand market.
http://www.blackhorse.co.uk/CaravanGoodConditionGuide/
This is worth a read. Sorry not for me. I couldn't relax worrying about all the blemishes that get picked up B)
This is worth a read. Sorry not for me. I couldn't relax worrying about all the blemishes that get picked up B)
With you on that point Dustydog, especially with the dogs. Not that we've got any blemishes yet. I would still rather just save up and trade in, in the normal fashion without having to pay monthly payments on anything. Just a personal thing but would do the same with the car and don't like debt of any kind. You never know what the future holds and when you can't meet payments. Any sort of payment protection is yet another expense to think of. We reckon on about 6500-7000 every three to five years to change the van.
I am with DD and Martin, Another thing is once you have found a layout and a particular Caravan, that you like, maybe in the next three years the new caravans are not what you are after, especially with what I think the Quality standards dropping.
This is more than acceptable and nothing more than I would expect from any lease vehicle you take, I am now thinking when we are changing our van we will be going down this route.
Good point Hutch, we can't get our current layout from the current manufacturer and don't like the take other manufacturers have on the same layout.
EH52ARH said:
How you buy or "hire" your caravan won't affect the way manufacturer's change models, so you're still faced with the same layout dilemma whether you own outright or Lease.
However I think you are referring to the fixed length of your lease/PCP agreement, But in most cases there is buyout clause such that you can actually buy the item you have been leasing, but often leasing cost plus the buyout charges are disproportionate to the market value of the item. So that has to be one of the factors you need to consider before you agree to one of these schemes. Perhaps a straightforward loan may be a better option fro you.
Sorry prof, no loan or PCP if I can't buy it outright I don't want to know. I'd rather have a 20 year old van and know it's mine and I'm happy with it than a new van that's not.
Also, why pay interest on something at any percent when the return on any savings is so low?
Also, why pay interest on something at any percent when the return on any savings is so low?
You have to look at the overall picture , after finding that i had no protection on something that went wrong i will always have some sort of finance for that added protection.
As ive said before there are very good finance offers on pcp's which you don't get on a cash sale.
If you always plan to keep changing then it works for you plus why would you want to tie up so much of your cash in one go?
What happens if your circumstances change? At least with a pcp you can hand it back after x amount of payments and no you dont lose all that money that you've paid for it as don't forget you are paying for the money your van loses with age anyway.
As ive said before there are very good finance offers on pcp's which you don't get on a cash sale.
If you always plan to keep changing then it works for you plus why would you want to tie up so much of your cash in one go?
What happens if your circumstances change? At least with a pcp you can hand it back after x amount of payments and no you dont lose all that money that you've paid for it as don't forget you are paying for the money your van loses with age anyway.
Martin24 said:
I'll go along with that,, so after three years of paying every month and you don't like caravanning you hand back the caravan hopefully not having to pay for 'Chips Away' to come out and sort any dents out before handing back the van, at least if you owned the caravan you sell it,
Still the misconception of a pcp?pitpony said:
Caravan costs £20k residual after 3 years £10k , your payment over the 3 years £10k plus interest, after 3 years hand van back if worth more quids in if not no loss, fair wear and tear is covered abuse the van then yes expect to get stung (if you try and trade an abused van the part ex will be lower)
Buy caravan outright for £20k your payments will £20k over the 3years an extra £10k , sell it after 3 years , dealer doesnt want your van as he has some on his forecourt already , or you are trying to buy a popular layout which he knows he can sell all day so offer you a low part ex or simply doesnt want your van?
The pcp method takes the guesswork out as you know the worse case senario.
Ive never lost on the pcp's ive had, the cars has always been worth more which was my deposit for my next one, when 4x4's become unpopular my trade value was £3k under my guaranteed pcp price so again never lost out.
Its not everyone's cup of tea but please stop this "nothing to show for it at the end" as you are paying off the money you lose anyway when you tow it off the forecourt.
Also a bonus get a better deal with no part ex so in effect you are a cash buyer.
Parksy
Moderator
We bought the caravan that we now own from new and paid for it via a bank loan.
We finished the loan some years ago and the caravan is ours, but if we sold it depreciation over 9 years would reduce the price to a fraction of what we originally paid which makes it worth hanging on to for us.
We're highly unlikely to consider buying a new caravan in the foreseeable future, but if we were tempted I'd consider a PCP lease amongst the other options.
We are both pensioners, non smokers with no pets or children to affect the condition of a caravan and we'd be unlikely to do any significant damage so why not?
A brand new caravan every few years for the same financial outlay as a loan or hire purchase, by the time we become too old to enjoy touring the re-sale value of a caravan that we'd bought would be meaningless to us anyway, so in our case if we did want a brand new caravan (we don't!) what's not to like?
I can understand some caravan owners not being interested and some may be in the extremely fortunate position not to require finance of any sort, but yes, if the monthly payments were ok we'd definitely consider a PCP.
We finished the loan some years ago and the caravan is ours, but if we sold it depreciation over 9 years would reduce the price to a fraction of what we originally paid which makes it worth hanging on to for us.
We're highly unlikely to consider buying a new caravan in the foreseeable future, but if we were tempted I'd consider a PCP lease amongst the other options.
We are both pensioners, non smokers with no pets or children to affect the condition of a caravan and we'd be unlikely to do any significant damage so why not?
A brand new caravan every few years for the same financial outlay as a loan or hire purchase, by the time we become too old to enjoy touring the re-sale value of a caravan that we'd bought would be meaningless to us anyway, so in our case if we did want a brand new caravan (we don't!) what's not to like?
I can understand some caravan owners not being interested and some may be in the extremely fortunate position not to require finance of any sort, but yes, if the monthly payments were ok we'd definitely consider a PCP.
I totally agree with Parksy, A PCP is just another way to access caravanning. Its not going to be right for everyone, but that doesn't mean its wrong or bad.
Each person has to do their sums , and consider what they want out of the deal, and then sort out their finances accordingly. Just because it doesn't match with an individual's circumstances does not mean they have to condemn it for everyone else.
Each person has to do their sums , and consider what they want out of the deal, and then sort out their finances accordingly. Just because it doesn't match with an individual's circumstances does not mean they have to condemn it for everyone else.
The van we are running now 2½ yrs old "bought" new. Had decided on the van we wanted had the 'readies' available. Whilst sat in the office negotiating spotted an advertisement on the wall behind the salesman from a finance company offering 0% finance on new vans. Asked the rep about it - his reply was "it was only for show customers as an inducement to buy at the show". (NEC) - Me -- not very happy with that answer even though at this point we hadn't come in for finance. so the wife and i had a minute or two alone and decided on finance. Told the rep. we wanted that offer as well, "Can't do that" - as we got up to leave, "i'll give B---- H---- a ring" hey presto we had 0% finance for a year, with the protection that that gives, and our money still in the bank. so can see we're not against finance on the right terms. PS. The van has turned out to be if not the best we've had very close to it.. one warranty job done at last service - new front window the inner two walls had marked, no qualms replacing it. Nothing fallen off or anything untoward. Satisfied customer, amazingly yes!
Michael.
I see where you are coming from. My SIL has her cars on PCPs. IMO A very expensive way to drive a new modern car. But she may well laugh at me as she goes around in her 65 plate Landie. Sadly it's not hers but she can rub shoulders with the landed gentry and feel she has arrived
On the surface there is no question a PCP is going to give you a new caravan.
Sadly it's not yours and even if you can afford the final payment to keep it, which most PCP punters can't , you will have paid way over the odds from a conventional all cash or cheap bank loan.
So there is no collateral, no residual value and ownership at a pretty inflated
price
We were fortunate to trade a previous unit and pay the balance in cash or a new TA 8 years ago. Cost £17k. I have twice this year been offered £10k px on a new
Model. Not quite your 50% depreciation .
I am a sceptic but no fool. We have seen PPI, Endowment Insurance mortgages, shared housing association purchases and even rent to buy never mind buy to rent.
Let's be honest. Black Horse and the subscribing dealers are here to make money. Do they care about us ? NO!
Sadly not everyone can buy their own houses. Renting as we all know is dead money. Isn't a PCP another term for renting?
I emphasise I may sound prejudiced but in my book as much as I'd love it perpetual motion is still a fantasy.
I see where you are coming from. My SIL has her cars on PCPs. IMO A very expensive way to drive a new modern car. But she may well laugh at me as she goes around in her 65 plate Landie. Sadly it's not hers but she can rub shoulders with the landed gentry and feel she has arrived
On the surface there is no question a PCP is going to give you a new caravan.
Sadly it's not yours and even if you can afford the final payment to keep it, which most PCP punters can't , you will have paid way over the odds from a conventional all cash or cheap bank loan.
So there is no collateral, no residual value and ownership at a pretty inflated
price
We were fortunate to trade a previous unit and pay the balance in cash or a new TA 8 years ago. Cost £17k. I have twice this year been offered £10k px on a new
Model. Not quite your 50% depreciation .
I am a sceptic but no fool. We have seen PPI, Endowment Insurance mortgages, shared housing association purchases and even rent to buy never mind buy to rent.
Let's be honest. Black Horse and the subscribing dealers are here to make money. Do they care about us ? NO!
Sadly not everyone can buy their own houses. Renting as we all know is dead money. Isn't a PCP another term for renting?
I emphasise I may sound prejudiced but in my book as much as I'd love it perpetual motion is still a fantasy.
Dustydog said:Michael.
I see where you are coming from. My SIL has her cars on PCPs. IMO A very expensive way to drive a new modern car. But she may well laugh at me as she goes around in her 65 plate Landie. Sadly it's not hers but she can rub shoulders with the landed gentry and feel she has arrived
On the surface there is no question a PCP is going to give you a new caravan.
Sadly it's not yours and even if you can afford the final payment to keep it, which most PCP punters can't , you will have paid way over the odds from a conventional all cash or cheap bank loan.
So there is no collateral, no residual value and ownership at a pretty inflated
price
We were fortunate to trade a previous unit and pay the balance in cash or a new TA 8 years ago. Cost £17k. I have twice this year been offered £10k px on a new
Model. Not quite your 50% depreciation .
I am a sceptic but no fool. We have seen PPI, Endowment Insurance mortgages, shared housing association purchases and even rent to buy never mind buy to rent.
Let's be honest. Black Horse and the subscribing dealers are here to make money. Do they care about us ? NO!
Sadly not everyone can buy their own houses. Renting as we all know is dead money. Isn't a PCP another term for renting?
I emphasise I may sound prejudiced but in my book as much as I'd love it perpetual motion is still a fantasy.
Well said DD I think I could happily live the rest of my life having not arrived. Oh and the usual trade in we have found to be around the two thirds mark in years to 3-5 and as you say, hang on in there a bit longer like you have and you are absolutely quids in.
We bought our last caravan outright as we believe it may possibly, be our last one, for the forseeable future at least.
Two years ago when I retired , through different reason we didnt get out in it much, I would hate to think I am making payments to have a van sitting in storage,. I understand that my van in storage is depreciating, But its our and we love the layout, same wIth our car, and as I will soon be a pensioner, I belive the PCP payments, would be better used keeping the youth of the country in employment in my local, Rose and Crown. Serving a beer and a glass of wine to SWMBO. :cheer:
Two years ago when I retired , through different reason we didnt get out in it much, I would hate to think I am making payments to have a van sitting in storage,. I understand that my van in storage is depreciating, But its our and we love the layout, same wIth our car, and as I will soon be a pensioner, I belive the PCP payments, would be better used keeping the youth of the country in employment in my local, Rose and Crown. Serving a beer and a glass of wine to SWMBO. :cheer:
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