PCP

[RoyalGuard]

Just wondering what kind of deals you guys have got from your dealers, deciding whether to buy it outright or just keep it for 3 years, thanks in advance!

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[Jimboy2]

Don't think there are any deals to be had. It's just the deal that's on the website.

5.8% something?

 

[Mustang1878]

No deals, no discount, no rear mats and no flowers in the boot either, 5.8% as jim says, if you have smallish deposit of say around £3/4k you will find your monthly payments not a kick in the teeth off £550/£600 over 3 years with roughly £16k final payment based on 12k miles per year

 

[Jimboy2]

I'm planning on putting 10.5 down and the payments are around 350 ish a month.

 

[RoyalGuard]

I just bashed some figures it's cheaper to buy it out right based on current 3 year residual values, the depreciation payments are cheaper than that of the PCP,

Therefore I'm buying mine out right, I'm going to hope that there's still a shortage in 3 years lol, if not I might sell sooner who knows!

 

[Big_G]

Might work out cheaper to get a loan through your bank? i financed £22k over 5 years from Lloyds at 3.6%.

 

[benanderson89]

I was going to get PCP since trade in + cash will keep the monthly prices down (which is very important when I've got 8-cylinders firing away under the bonnet and a points card for my local petrol station).

However my dad just got a loan offer from his bank at 3.3% (best I can get is 7.8%) - he's said he'll take out the loan over five years and I DD him the money every month. Still very expensive though, around £400 a month when the PCP is going to be about £330.

I don't want to stretch myself too thin on a month by month basis.

 

[Jimboy2]

I was going to get PCP since trade in + cash will keep the monthly prices down (which is very important when I've got 8-cylinders firing away under the bonnet and a points card for my local petrol station).

However my dad just got a loan offer from his bank at 3.3% (best I can get is 7.8%) - he's said he'll take out the loan over five years and I DD him the money every month. Still very expensive though, around £400 a month when the PCP is going to be about £330.

I don't want to stretch myself too thin on a month by month basis.

Same dilemma I'm having. That 100 a month extra for the loan pushes the car to almost out of reach. Hence why I'm going to have to go the PCP route.
Probably going to regret it in 3 years time but who knows they might hold their money well so I can sell privately and upgrade to a newer model.

 

[SteveS]

I was going to get PCP since trade in + cash will keep the monthly prices down (which is very important when I've got 8-cylinders firing away under the bonnet and a points card for my local petrol station).

However my dad just got a loan offer from his bank at 3.3% (best I can get is 7.8%) - he's said he'll take out the loan over five years and I DD him the money every month. Still very expensive though, around £400 a month when the PCP is going to be about £330.

I don't want to stretch myself too thin on a month by month basis.

Are you thinking of getting rid of the car after 3 years? Presumably going the loan route you'd have more equity in the car after that time. If you weren't changing cars your payments would stay the same, the car would be yours after 5 years and there would have been no hassle trying to find/finance a zeppelin-sized balloon payment.

Obviously nothing I ever say should be taken as advice, especially the financial stuff ;)

 

[Big_G]

I was going to get PCP since trade in + cash will keep the monthly prices down (which is very important when I've got 8-cylinders firing away under the bonnet and a points card for my local petrol station).

However my dad just got a loan offer from his bank at 3.3% (best I can get is 7.8%) - he's said he'll take out the loan over five years and I DD him the money every month. Still very expensive though, around £400 a month when the PCP is going to be about £330.

I don't want to stretch myself too thin on a month by month basis.

Work out how much the balloon payment at the end is, divide that by the term & add it onto your £330. Then see which is cheaper ;)

 

[benanderson89]

Work out how much the balloon payment at the end is, divide that by the term & add it onto your £330. Then see which is cheaper ;)

Overall is very different to month-by-month IMHO.

I do 700~ish miles a month (about average) - but worst case scenario it'll be £300 a month in fuel. Closer to the time I'll see if I can stretch to £400 a month. If I get a pay rise and/or a bonus this year then it's a no brainier.

 

[Big_G]

Overall is very different to month-by-month IMHO.

I do 700~ish miles a month (about average) - but worst case scenario it'll be £300 a month in fuel. Closer to the time I'll see if I can stretch to £400 a month. If I get a pay rise and/or a bonus this year then it's a no brainier.

About the same mileage as me, although i've just taken over line management of mids/south consultants so my mileage may increase this year.
I'm paying £400 a month, lease on my Volvo S60 D2 was £375 so not that much more for me. End of the day i'll own the car and dont have to worry about excess mileage, etc.

 

[Monty]

Overall is very different to month-by-month IMHO.

Yes, some people look at 'overall' whereas some people focus on the monthly payment. I'm firmly in the 'overall' camp and the finance costs tend to put me off having things 'on the tick'.

However, other than getting you into a brand new car, there does seem to certain advantages to PCPs (and other fiance deals),

- There's a certain amount of protection and rights under credit laws, for example you can actually hand the car back after half the term.

- You don't have all the worries over resale, residuals, underseal, catch cans, insurance write offs, etc. etc. etc. - probably adds another 6 months to your life span!

 

[benanderson89]

About the same mileage as me, although i've just taken over line management of mids/south consultants so my mileage may increase this year.
I'm paying £400 a month, lease on my Volvo S60 D2 was £375 so not that much more for me. End of the day i'll own the car and dont have to worry about excess mileage, etc.

I'm not so fortunate, haha! I'm paying £358.54 for my Kia and about £150 a month in fuel. Jumping up to £400+ and £300 might be pushing it.

 

[Timewarp]

I might take a gamble on PCP - if it holds its value it will be worth much more than 15K in three years.

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