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  • FIRST POST
    • tir21
    • By tir21 11th Sep 17, 11:08 AM
    • 948Posts
    • 181Thanks
    tir21
    PCP - lower deposit or higher deposit
    • #1
    • 11th Sep 17, 11:08 AM
    PCP - lower deposit or higher deposit 11th Sep 17 at 11:08 AM
    depending on whether you intend to keep the vehicle or go onto another PCP - should that be factored into tbe deposit you intend to put down
Page 1
    • Quentin
    • By Quentin 11th Sep 17, 11:30 AM
    • 32,811 Posts
    • 16,841 Thanks
    Quentin
    • #2
    • 11th Sep 17, 11:30 AM
    • #2
    • 11th Sep 17, 11:30 AM
    The bigger the deposit the lower the monthly payments.

    So see what difference it makes to the total payments and see if you could get it cheaper by either paying the bigger deposit or investing the money for interest and make the decision
    • facade
    • By facade 11th Sep 17, 5:48 PM
    • 2,838 Posts
    • 1,442 Thanks
    facade
    • #3
    • 11th Sep 17, 5:48 PM
    • #3
    • 11th Sep 17, 5:48 PM
    If you are intending to keep the vehicle, pcp is not the way as you have to fund the balloon payment, on which you have been paying interest for the whole term. You want a loan, or straight HP at the lowest possible rate.
    I want to go back to The Olden Days, when every single thing that I can think of was better.....

    (except air quality and Medical Science )
    • tir21
    • By tir21 11th Sep 17, 10:08 PM
    • 948 Posts
    • 181 Thanks
    tir21
    • #4
    • 11th Sep 17, 10:08 PM
    • #4
    • 11th Sep 17, 10:08 PM
    If you are intending to keep the vehicle, pcp is not the way as you have to fund the balloon payment, on which you have been paying interest for the whole term. You want a loan, or straight HP at the lowest possible rate.
    Originally posted by facade
    thanks but dont you often get a dealer contibution with a pcp. I assume that would not be possible with hp
    • Clive Woody
    • By Clive Woody 11th Sep 17, 11:12 PM
    • 4,380 Posts
    • 5,000 Thanks
    Clive Woody
    • #5
    • 11th Sep 17, 11:12 PM
    • #5
    • 11th Sep 17, 11:12 PM
    thanks but dont you often get a dealer contibution with a pcp. I assume that would not be possible with hp
    Originally posted by tir21
    From what I understand you can go with the PCP, take the dealer contribution and any other offers then very shortly afterwards repay the finance in full with funds from another source such as savings or a loan.
    Rugby Union - The Greatest Game
    • neilmcl
    • By neilmcl 12th Sep 17, 10:05 AM
    • 10,029 Posts
    • 7,007 Thanks
    neilmcl
    • #6
    • 12th Sep 17, 10:05 AM
    • #6
    • 12th Sep 17, 10:05 AM
    thanks but dont you often get a dealer contibution with a pcp. I assume that would not be possible with hp
    Originally posted by tir21
    Not really, most dealer "contributions" will be for both PCP and HP. Don't forget PCP is just another form of HP.
    • iolanthe07
    • By iolanthe07 12th Sep 17, 10:34 AM
    • 4,861 Posts
    • 4,595 Thanks
    iolanthe07
    • #7
    • 12th Sep 17, 10:34 AM
    • #7
    • 12th Sep 17, 10:34 AM
    I have just had £1500 knocked off the price of a Kia Rio 3. I had intended to pay cash, but the dealer contribution was only available with PCP and the interest comes to less than the £1500, so a bit of a no brainer, really, given the current absurdly low interest rates on savings. I put down the maximum deposit allowed and shall keep the car at the end of the deal, so no mileage issues.
    I used to think that good grammar is important, but now I know that good wine is importanter.
    • neilmcl
    • By neilmcl 12th Sep 17, 11:01 AM
    • 10,029 Posts
    • 7,007 Thanks
    neilmcl
    • #8
    • 12th Sep 17, 11:01 AM
    • #8
    • 12th Sep 17, 11:01 AM
    I have just had £1500 knocked off the price of a Kia Rio 3. I had intended to pay cash, but the dealer contribution was only available with PCP and the interest comes to less than the £1500, so a bit of a no brainer, really, given the current absurdly low interest rates on savings. I put down the maximum deposit allowed and shall keep the car at the end of the deal, so no mileage issues.
    Originally posted by iolanthe07
    So you've effectively wiped out any "savings" in interest payments. Why not just pay off the finance in cash and have some benefit from the £1500 you've saved.
    • iolanthe07
    • By iolanthe07 12th Sep 17, 3:46 PM
    • 4,861 Posts
    • 4,595 Thanks
    iolanthe07
    • #9
    • 12th Sep 17, 3:46 PM
    • #9
    • 12th Sep 17, 3:46 PM
    So you've effectively wiped out any "savings" in interest payments. Why not just pay off the finance in cash and have some benefit from the £1500 you've saved.
    Originally posted by neilmcl
    Do they let you do that? Surely they must be aware of this loophole and closed it. Actually, I would still be £600 better off, but I'm not taking delivery of the car until November, so I'll see if they'll let me do what you suggest.
    I used to think that good grammar is important, but now I know that good wine is importanter.
    • neilmcl
    • By neilmcl 12th Sep 17, 5:10 PM
    • 10,029 Posts
    • 7,007 Thanks
    neilmcl
    Do they let you do that? Surely they must be aware of this loophole and closed it. Actually, I would still be £600 better off, but I'm not taking delivery of the car until November, so I'll see if they'll let me do what you suggest.
    Originally posted by iolanthe07
    There is no loophole. You can settle the finance any time you like although you may have some interest to pay. You can also cancel the agreement without penalty within 14 days as with any credit under the terms of the Consumer Credit Act. Neither of which will risk you losing the dealer contribution.
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