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How is Personal Contract Plan finance calculated
Financial_Savvy
Posts: 385 Forumite
in Loans
I am looking to purchase a new car for my missus, the local dealer are giving us a deal on new vehicles.
If I take the cost price, minus the deposit this I thought gave me the balance I need to finance? However because they can calculate the guaranteed future value of the car they don't finance this part?
but if I use a loan calculator the figures don't quite add up.
I can borrow money much cheaper than the PCP finance deal.
should I finance myself if I can borrow money cheaper?
If I take the cost price, minus the deposit this I thought gave me the balance I need to finance? However because they can calculate the guaranteed future value of the car they don't finance this part?
but if I use a loan calculator the figures don't quite add up.
I can borrow money much cheaper than the PCP finance deal.
should I finance myself if I can borrow money cheaper?
0
Comments
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Think of a PCP 2 loans, 1 for the depreciation which is like a normal loan, and then another for the GFV, which is just an interest only loan. You will pay more in interest, however will get your monthly payments down. Look for a balloon loan calculator.0
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one other thing you have to remember is that you dont own the car, go over the anual millage and they will hammer you0
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