Anyone any experience of getting a car on PCP?

james32_uk

Basically I'm in an IVA and can use the £4.2k car allowance (£215 per month after tax) that I will shortly qualify for from my employer to source myself a car. I'm not allowed to get a car on credit or save the £200 due to my IVA which leaves me either HP or PCP.

Any ideas? Anyone in a HP or PCP agreement with any experience to share would be greatly received.

Thanks

livinginhope

Would you be able to take out HP or PCP with a bad credit history? although the finance is secured on the car I doubt they will lend to someone who has defaults etc,don't take my word for it,just thinking out loud.

shayshay

I worked in the motor trade for 8 years until recently and both HP and PCP are on credit. Apart from going to some dodgy finance companies car credit with reasonable rates is not great if your history is bad.

Both require a deposit normally and if you only leave a small deposit on either monthly payments will be that bit higher incurring more interest. If you need any more info on either just shoot.

james32_uk

Cheers!

I suppose what I want ot know is are the quotes being bandied about on websites realistic, or are they for people with super-high credit ratings? Also, what do they include in the price? Repairs? Tax? Insurance? If it doesnt include insurance does not actually owning your vehical affect your premiums?

shayshay

On HP your payment pay for the car nothing else. You have to pay for the next tax (if not already supplied), fuel, insurance, MOT, servicing etc. If you go for PCP you can get maintenance built in but for the majority if there is any problem it would be covered under the manufacturers warranty in most cases that is. Tax, insurance etc is still your responsibility.

Insurance wise it doesn't matter as you are being insured on what car you drive not who it belongs to. It may be possible to get a car on PCH (personal contract hire) which allows you to have the fixed monthly payment and at the end of the contract can hand the vehicle back just like on a PCP. You can get maintainance for this and the tax will be supplied by the funding company which will be part of your monthly payment. If you have a maintained contract this covers any service requirement and if you have it over 4 years they also cover the MOT. So your outlay is just Fuel and insurance.

james32_uk

Thanks for the info!

shayshay

Forgot to mention, PCH usually attracts a smaller advance payment (Not to be confused as deposit) of typically 3 monthly payments in total or in diff circumstances 6, still somewhat cheaper than 10-15% advised on a PCP for it to be benificial to the customer.

CLAPTON

i'm not in anyway expert here, but surely a real issue here is if you changed jobs/lost your job etc then you will be personally responsible for the payments even though your employer is not funding the car anymore.
so this is a credit agreement between you and the credit supplier and the fact your company gives you 215 a month is simply not relevant to the credit agreement. (nice for you of course)

james32_uk

One other thing, can you get PCP on second hand cars? Presumably a PCP would cost me around half on a 7.5k 2nd hand car than a 15k new car? Where should I look to find deals like that? Do most car showrooms offer that kind of facility?

Thanks

rog2

I would not advise any car finance that is secured, in any way, on the vehicle. They are not interested in any change in your personal circumstances, and, since the car legally belongs to them, they will take it away at the first sign of trouble (personal Experience).
I would reccomend that you buy the cheapest vehicle that meets your requirements, even if it means grovelling to your bank for an unsecured loan. They are more likely to take your £215 allowance into account.

shayshay

PCPs can be made available on second hand cars although different funders will have limits such as 6 months to one year old. With regards it working out to half the amount all depends on what the residual amount will be for the car at the end of the agreement and how much money you put down as deposit. PCPs are deisgned that if the customer puts down 10-15% deposit then the ideal scenario would be that if ou part ex at the end of the agreement then you should not have to place another deposit down and therefore tie you into that dealership for future cars. On a second hand car its not always possible as the car will have lost 20-30% in its first 3-12 months depending on the vehicle.

I have dealt with many companies who offer an allowance as well as their own company car that they pay for, so it would be muich easier if this is the case even if its a lower amount to go through the company although I understand it may not be the case.

Other than that there are many hire companies who will have special deals on longer term car hire which may be a quicker solution without the need for credit checking.