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  • FIRST POST
    • zayn
    • By zayn 10th Apr 12, 3:32 PM
    • 69Posts
    • 6Thanks
    zayn
    PCP or PCH for Car
    • #1
    • 10th Apr 12, 3:32 PM
    PCP or PCH for Car 10th Apr 12 at 3:32 PM
    Hi All,
    i am considering a car with a value of 20k which i plan to keep for 35 months and hand back the keys after this as part of the PCP or PCH. What are the overall financial pro's and con's ?

    i understand currently

    1. PCP per month payments are cheaper but the entire loan get's added to your credit file which could have issues in the future

    2. PCH is a lease which only shows up on your credit file as a monthly payment without the entire amount being shown on your credit file.

    If anyone can please advise if i have missed anything ?

    Thank you
Page 1
  • PedroMatias
    • #2
    • 10th Apr 12, 3:39 PM
    • #2
    • 10th Apr 12, 3:39 PM
    Hi All,
    i am considering a car with a value of 20k which i plan to keep for 35 months and hand back the keys after this as part of the PCP or PCH. What are the overall financial pro's and con's ?

    i understand currently

    1. PCP per month payments are cheaper but the entire loan get's added to your credit file which could have issues in the future

    2. PCH is a lease which only shows up on your credit file as a monthly payment without the entire amount being shown on your credit file.

    If anyone can please advise if i have missed anything ?

    Thank you
    Originally posted by zayn
    With PCP, the 'buyback' value will most likely be less than the market value, so you should end up with a bit of cash left over if you sell and pay off the loan after 3 years. PCH is a straightforward 'term finishes, car comes back' job.
    Xmas 2012 challenge - £9,607.76 (55.77%) paid

    TOTAL DEBT - £17,227.93 £7,620.17
    • zayn
    • By zayn 10th Apr 12, 3:41 PM
    • 69 Posts
    • 6 Thanks
    zayn
    • #3
    • 10th Apr 12, 3:41 PM
    • #3
    • 10th Apr 12, 3:41 PM
    With PCP, the 'buyback' value will most likely be less than the market value, so you should end up with a bit of cash left over if you sell and pay off the loan after 3 years. PCH is a straightforward 'term finishes, car comes back' job.
    Originally posted by PedroMatias
    Thanks Pedro, what concerns me is the credit file. I don't like the fact that the entire value of the car is added to my file under PCP, this will cause me issues if within the next 3 years i consider moving home or another loan..
    • zayn
    • By zayn 11th Apr 12, 1:58 PM
    • 69 Posts
    • 6 Thanks
    zayn
    • #4
    • 11th Apr 12, 1:58 PM
    • #4
    • 11th Apr 12, 1:58 PM
    Can anyone please advise if both PCP and PCH show up on your credit file as a 20K loan, as i am being given conflicting information

    Thank you
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