Car Loan, pcp or hp

aphill24

Hi all, what is the best way to finanace a car? We have around £4k equity in our car and change it every 9-12 mnths.
The dealer wants us to take out a pcp contract where we can take that equity out of the car and put it in a savings account. I have always been wary of pcp contracts as I think they tie you in, what have your experiences been on this type of finance deal?

downhiller

Just received my first ever lease/PCP car today. It's a 3 year lease funded completely by my company car allowance so no outlay for me. Reading the paperwork, I'm only tied in for one year. If I returned the car within a year I'd have to pay the remaining balance of the first year. After that I can hand it back so it's not too restrictive.

victoria797

downhiller wrote: »

Just received my first ever lease/PCP car today. It's a 3 year lease funded completely by my company car allowance so no outlay for me. Reading the paperwork, I'm only tied in for one year. If I returned the car within a year I'd have to pay the remaining balance of the first year. After that I can hand it back so it's not too restrictive.

Which leasing company is your contract with? x

downhiller

I used https://www.lingscars.com

Wacky site but the prices were the best i could find and the service was exceptional

victoria797

downhiller wrote: »

I used www.lingscars.com

Wacky site but the prices were the best i could find and the service was exceptional

hahhahahaha OMG i just burst out with laughter looking at that site's first page,my friends have asked me to bookmark the site as we could have fun with it later in the evening when we were drunk.They even have different music for personal and business sites.I hope you are not messing wiith me lol.Absurd is not the word!!!

But the prices are good though.I was going to go for either nationwide car leasing or arval .Did they deliver the vehicle? How long did it take?

downhiller

Just over 4 weeks from order to delivery

pheonixrising21

aphill24 wrote: »

Hi all, what is the best way to finanace a car? We have around £4k equity in our car and change it every 9-12 mnths.
The dealer wants us to take out a pcp contract where we can take that equity out of the car and put it in a savings account. I have always been wary of pcp contracts as I think they tie you in, what have your experiences been on this type of finance deal?

Can I ask why you change your car every 9-12 months? And if you do, how are you managing to maintain £4k equity? The first few months is the time you lose the most on the car... just a little confused about that. None of my business really, but just curious. I like to swap my car regularly, but usually when the warranty is due to expire.

With regards to PCP, how do you think that they tie you in? As I understand them, you can get a settlement figure from the finance company at any point and pay it off, just like HP.
Also, it is my understanding that you can take your PCP car to another dealer and/or manfacturer to trade in, just like with a HP agreement.

nomoneytoday

Will you earn more in your £4k savings account than the interest on the PCP??

aphill24

pheonixrising21 wrote: »

Can I ask why you change your car every 9-12 months? And if you do, how are you managing to maintain £4k equity? The first few months is the time you lose the most on the car... just a little confused about that. None of my business really, but just curious. I like to swap my car regularly, but usually when the warranty is due to expire.

With regards to PCP, how do you think that they tie you in? As I understand them, you can get a settlement figure from the finance company at any point and pay it off, just like HP.
Also, it is my understanding that you can take your PCP car to another dealer and/or manfacturer to trade in, just like with a HP agreement.

Hi I work for Ford Motor co and a lot of employees change their car after 9-12 mnths as 9 is the minimum time you have to keep the car. The discount we get is not like it used to be but if you change a small car on a regular basis you can maintain any equity in it. This is not the same for Mondeo or Kuga as they lose a lot more money in that first year. It's all about trying to keep the cost of motoring to a minimum and with the equity we pay £113 on Hp oner 48 months. Changing the car again this time the payment is exactly the same for the next 48 mnths but we save on a service, tyres and tax by changing it before the 12 mnths is up. Hope this explains