balloon scheme for car purchase

muddled

Hello there,

I would welcome some thoughts about whether balloon schemes are good methods for car purchase or would we be wasting our money each month?

Our car is on its last legs and we will need to replace it the next few months. Someone has mentioned purchasing it through this scheme but we are not sure about the details of the scheme and if we will end up paying more. It sounds like rental/hire purchase to me.

Muddled

Anihilator

What you need to bear in mind is that at the end you have to find the lump sum. It is a good deal if you want a new car every few years and have no quarrel about never owning the car.

Personally would go for HP myself. The car will cost the same and if you cant afford a new car every 2/3 years - I assume this if your driving a banger - at least in a few years you will own the car and not be paying for it monthly.

plane_boy2000

Consider leasing - sometimes it can be cheaper than PCP products. Downside is that you never own the car, and have no automatic right to buy at the end, but the lease company will probably let you if you wanted to.

hewhoisnotintheknow

i prefer the old fashioned method of saving the cash up and buying it outright, this isnt good for everyone of course!

muddled

Dear All,
thanks for suggestions. Sorry not to have replied earlier but have had a really bad cold...
Muddled