PCP via Drivethedeal/Dealdrivers

Keith

Considering a new car, we have really driven our daily into the ground and we both feel it's time for one without the noises and general problems.

Looking at PCP as we'd be a in a very different position in 3 years, I'll be earning more and my Mrs probably won't be working so the freedom to change to another car or get rid is appealing.

Has anyone else done this? From what I've read it's basically a relayed dealer deal with the cost of the car reduced?

AdrianHi

Cost of the car isn't reduced, you put in a smallish deposit, make loan payment equal to depreciation plus a bit plus a finance charge for the whole value of the car, when it's 3 years old you trade in it or pay the residual value (likely to be around 40%-50% of new price).
These loans tend to be front loaded with interest payments so bad to get out of early, you usually need to know you can go the 3 years or at least get to the half way point when you can just hand the keys back.
Not necessarily a bad way to buy a car if you circumstances suit it, actually the most popular way for a private buyer to acquire a brand new vehicle.