To buy or not to buy

BarryGough

I'm thinking of buying a new car.

the finance options are vast has anyone experience re ;-

PCP V's HP ?

im not that sure which would be the best option re cost and security

many thanks in advance

thegirlintheattic

I went with HP because I had a substantial deposit and want to keep the car past the fiance agreement (and would likely not have a lump sum for the PCP final payment).

I think PCPs are better if you either have a low deposit or don't want to own the car after the agreement is up (so you essentially get a new car every three years).

verityboo

I have found 2 advantages with PCP's. Firstly manufacturers seem to have better offers on new cars compared to HP or cash (Bigger discounts, free servicing etc) and secondly, you are protected in case the bottom falls out the market. My next door neighbours Range Rover Sport was worth £8K less than the guaranteed future payment at the end of the PCP so he just handed it back.
As said above though, a PCP only really works if you are going to change the car when the 2 or 3 years are up

forgotmyname

Still a lot of money to pay to rent something.

For a years worth of payments i buy a car and use it for approx 4 or 5 years and sell if for approx half what i paid.
£2000 ish. More than enough for a decent car.