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I hope the OP can get over the assault on his (or her) freedom of choice, even if the replies are well-meant.
In general, from a financial perspective it isn't usually a great idea to borrow for consumption - different if it's a money earning asset of course, but he already has one if that is the case.
However - it's his money, and his choice, and he has decided to spend it on a new car. In any case, we don't know the OP's circumstances well enough to give financial advice - he might have expectations of inheriting a large amount for all we know.
To answer the questions, Retroglide -
There are now 'affordability' checks that are supposed to be done for loan applications (which would include PCP). The compliance for the lenders is a bit more stringent than it was a few years ago, but unless you are really stretched that probably isn't going to be a problem.
Yes you absolutely should negotiate the price, regardless of how it will be financed. One of the reasons dealers like PCP is that the buyer can take his eye off that particular ball and focus on the monthly payment. That can be manipulated by fiddling with the deposit and the final payment and comparisons are difficult.
My uncle, whose 11 year old car was failing, showed me a quote for a new car on PCP a couple of weeks ago. He was happy with the payments and ready to go ahead, he just wanted some reassurance.
The quote was based on full list price. He asked me what I thought. Two minutes on the internet reduced the price from £15,700 to £14,000 (Drive the Deal, as it happened). After another hour or so, we knew that we could get a late 2013 one with c. 3,000 miles for about £11,000. On Saturday we actually picked up a 3 month old, 2,100 mile example from a franchised dealer for £11,750 (he paid cash in the end anyway). He's nearly £4,000 better off as a result.
So if you do decide to replace your car, my advice would be -
- remember there is no such thing as an unmissable bargain, take your time. Until you have signed on the dotted line you are the one with the power. Don't be too eager to close a deal.
- separate the negotiation of the price on the new one from the sale of the existing car, so you can see what's going on, even if you decide to part ex it in the end. It helps if you know what you can sell your car for separately before you start.
- Look at nearly-new/pre-reg - the marques usually have a used car database online. Don't discount the idea of travelling for the right car at the right price - I live in Hertfordshire, but on 7th June I bought a pre-reg (registered 30.5.14) car from a dealer in South Yorkshire at about 28% less than list price OTR.
But first, leave it for a couple of weeks to see if the feeling goes away - if it does, it will save you a lot of money. My situation was slightly different as I was replacing a 12 year old car.
Best of luck.
Edited by Manatee on 20/06/2014 at 00:01
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