I was curious about the PCP option you guys were talking about, and after a couple minutes on Google I see that it's similar to a lease with a balloon payment at the end of the loan period. All of my cars have been financed on a standard 4 year loan from a bank. Whenever I'm ready for a new car, I trade in my current car plus about $2,000 for a down payment, then finance the rest for 48 months. Yes, this does add interest to the total cost of my car. However, I have excellent credit and I tend to wait for favorable interest rates. For the next car I'm considering reducing the loan period to 2 or 3 years to further reduce the total cost. The benefit for me is that I get a new car, which means a warrantee and little maintenance cost over the life of the loan. I tend to drive my cars for many years after the loan, and only look into getting a new car when the cost of servicing the vehicle becomes a large enough monthly expense.