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How is Personal Contract Plan finance calculated

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?

Comments

  • 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.
  • PNPSUKNET
    PNPSUKNET Posts: 4,265 Forumite
    one other thing you have to remember is that you dont own the car, go over the anual millage and they will hammer you
  • PNPSUKNET wrote: »
    one other thing you have to remember is that you dont own the car, go over the anual millage and they will hammer you

    Absolutley their excess mileage rate was 14 pence per mile!
This discussion has been closed.
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