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PCP or PCH for Car
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# 1
zayn
Old 10-04-2012, 3:32 PM
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Join Date: Nov 2008
Posts: 69
Question PCP or PCH for Car

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
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# 2
PedroMatias
Old 10-04-2012, 3:39 PM
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Join Date: Nov 2011
Location: Lancaster
Posts: 247
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Quote:
Originally Posted by zayn View Post
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
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.
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# 3
zayn
Old 10-04-2012, 3:41 PM
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Join Date: Nov 2008
Posts: 69
Default

Quote:
Originally Posted by PedroMatias View Post
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.
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..
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# 4
zayn
Old 11-04-2012, 1:58 PM
MoneySaving Convert
 
Join Date: Nov 2008
Posts: 69
Question

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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