Having major probs with our 12 yr old car and thinking it may be time to replace it. Thinking about a PCP has anyone bought a new car recently?

What's a PCP?

Sorry, Personal Contract Purchase. Leasing with the option of buying at the end of the term.

The modern equivalent of Hire Purchase - if you can remember that far back!

Certainly can.

What limitations are there on PCP?

Does it have to be a new car?

Is age of the buyer limited and over what period?

Does it include maintenance?

Is it arranged through the dealer you buy from?

I used to sell PCP´s and Contract Hire many years ago.

Normally it is a new car and would not include maintenance. You put down an initial sum and at the end of 2,3, or even 4 years there is a final payment to be made if you wish to keep the vehicle. If not you can just return it and start again. The more the vehicle tends to keep its value the higher the final payment is but then the less your monthly payments are.

With many new vehicles for the first two or three years maintenance and servicing is included in the initial price which keeps down your running costs too. Buying a car outright just means that it depreciates rapidly.

With regard to the age involved of the "buyer" more depends on your credit rating.

Anyway it is a much easier option it appears in the UK than it is here in Spain.

I seem to recall that it was called something else in my day. and then there was a 'balloon' payment at the end.

No I don't think PCP is big in Spain for private buyers - but with the poor car sales I have seen some offers arranged by some manufacturers - best to check round the dealers or buy a car magazine and see what's on offer.

The balloon payment is the final payment or hand the car back and take out a new contract.