Loan v PCP

lucy_w86

What do people think would be the better option given the fact that banks are difficult to get a loan from?

nomoneytoday

Depends on the APR and your affordability.

It's like comparing apples to pears though. A loan doesn't have a balloon for example..

qploans

you are right it is really a difficult task to get a loan from a bank. as far as i think taking a personal loan from a private organization is very easy as well as very beneficial

welf_man

Post 3 reported.

Zapp_from_Planet_Zogg

PCP as in Personal Contract Purchase?

Who do you think provides the finance for a PCP deal?

Banks underwrite both PCPs and cash loans. Neither is more likely to be accepted than the other as the same bank lending criteria will apply.

The fact that a PCP defers a lump of capital repayment until the end of the agreement is neither here nor there, you are still financing the same amount of money, just not immediately making capital repayments on some of it under PCP.

In my opinion, PCP/HP/LP are much more sensible ways of buying a depreciable asset like a car. A cash loan is a very bad idea for these things.