I've retired and now do low mileage, should I go for a PCP deal on a new car?

I get a new car every 2-3 years by trading in + cash on a good deal on a pre-reg BMW. As I am now retired, and only do about 5000/6000 miles per year, I was wondering whether I should consider abandoning this habit and going for a PCP arrangement?

Asked on 17 February 2017 by barryellis

Answered by Honest John

Do your sums. Work out how much per month your current car is costing you based on what you can get for it as a p/x compared to what you paid. Then compare that to the monthly payments on a PCP (adding a monthly equivalent of the deposit). The downside of a PCP is getting out of one if your circumstances change. That isn't easy.

Tags: low mileage buying and selling pcp finance consumer advice

Dear Honest John,

Please help me choose my next car. I would like it to have:

Similar questions

Why can't I get the full customer savings on a Clio through Renault's scrappage scheme?

Your scrappage scheme guide quotes a total discount of £4250 off a new Renault Clio, irrespective of whether cash, HP or PCP is used. However, I can get nothing better than an offer of £3500 - which includes...

This Skoda PCP deal seems too good to be true, what's the catch?

I like the Skoda Yeti 150PS 4WD SEL 'Drive' with £1500 'free' extras. Skoda is offering a PCP plan of 0% finance plus £1000 contribution to the deposit and after three years the vehicle can be bought at...

What are the pros and cons of leasing versus buying a new car?