PCP Comparison tool

kevin63

Does anyone know of a tool to compare PCP deals? I've got 2 deals on the exact same car (1 owner 62 plate Fiesta) but I can't decide which one is best.

First deal I have is:

Deal 1

Value: £8750
Deposit: £1000
Tax: £105

Finance: £7855
Monthly x36: £190.84
Balloon Payment: £2,700.78

Total (Including deposit): £10571.02

Second deal I have is:

Deal 2

Value: £8950
Deposit: £1000
tax: £105

Finance: £7950
Monthly x36: £174.08
Balloon Payment: £3918.30

Total (Including deposit): £11185.18

It seems on first glance deal 1 is the best choice due to the end Total but i just want to make sure I'm not missing anything as deal 2 has a lot less cheaper monthly payments.

I'm more thank likely going to PX at the end of the 36 months if that helps which is what is putting me off deal 2 as the balloon payment is so high it will affect my equity.

Advice would be appreciated. I'm set on PCP also.

1jim

It depends on what you are going to do at the end of the 3 years, if it's keep the car get the lowest overall cost. If you defanetly will change at 3 years or sooner get the cheapest at 3 years

But, is this the car you want at the price you want to pay? Just bought a brand new picanto, got about £1k off the price by negotiating on price with aid of an Internet broker price, got just over £2k on my part ex so monthly payments are just under £90 on pcp deal. What's the apr on your deal? Mine was 4.9% apr.

kevin63

APR is 13% which is high but i can't find a new fiesta with cheaper monthly payments. I read online that apr is always higher when it comes to second hand cars so probably explains it.

1jim

Wow, that's high. Is it worth looking at a personal loan to check out repayments?

eschaton

Can't you save up and buy it?

You are just throwing between £2716 & £3235 away on interest over 3 years.

Dealers must love PCP deals. I went to look at a car last Wednesday and the first thing the salesman asked me was if I was looking to buy on PCP.

kevin63

It is really high. Problem is with new cars though they usually require a PX or a high deposit which I do not have right now.

I've just come across this promotion however which looks really tempting: http://www.fiat.co.uk/uk/promotions/fiat-punto-s7

Makes the fiesta deal look awful. I'm guessing however a punto is going to loose its value a lot quicker than a fiesta.

kevin63

On second thoughts no colour option and the mileage is set at 6k. Not good.

eschaton

kevin63 wrote: »

It is really high. Problem is with new cars though they usually require a PX or a high deposit which I do not have right now.

I've just come across this promotion however which looks really tempting: http://www.fiat.co.uk/uk/promotions/fiat-punto-s7

Makes the fiesta deal look awful. I'm guessing however a punto is going to loose its value a lot quicker than a fiesta.

Like for like I would pick a Fiesta over a Punto but the Punto is a lot cheaper and brand new so the Punto would win in this case.

Why not run a lower cost car for a few years and save up? Then when you have enough saved up, go out and buy a car you can afford without throwing money away in interest.

bodgerx

kevin63 wrote: »

Does anyone know of a tool to compare PCP deals? I've got 2 deals on the exact same car (1 owner 62 plate Fiesta) but I can't decide which one is best.

First deal I have is:

Deal 1

Value: £8750
Deposit: £1000
Tax: £105

Finance: £7855
Monthly x36: £190.84
Balloon Payment: £2,700.78

Total (Including deposit): £10571.02

Second deal I have is:

Deal 2

Value: £8950
Deposit: £1000
tax: £105

Finance: £7950
Monthly x36: £174.08
Balloon Payment: £3918.30

Total (Including deposit): £11185.18

It seems on first glance deal 1 is the best choice due to the end Total but i just want to make sure I'm not missing anything as deal 2 has a lot less cheaper monthly payments.

I'm more thank likely going to PX at the end of the 36 months if that helps which is what is putting me off deal 2 as the balloon payment is so high it will affect my equity.

Advice would be appreciated. I'm set on PCP also.

Both deals involve you paying around 10-11k for a car that at for only one moment in its life is worth 9k tops. Assuming you paid the final payment. At this point it will be worth at the very most 3-4k. That is not a good place to be in.

I've just paid 10k cash (using money saved and interest that the Bank paid ME) for a 3 year old car with 24,000 miles that cost 22k when it was new.

Which to you sounds like the best option?

I would say option 3:

Take your 1k and buy a used car.

Then put your £200 per month payments over 3 years into a savings account (or a conservative ISA investment fund).

After this time you will have 7200 + 500 for you used car + interest and you can buy the car you want out right.

Do that again for the next 3 years and then you have 8k in the bank and a nice used car.

kevin63

bodgerx wrote: »

Both deals involve you paying around 10-11k for a car that at for only one moment in its life is worth 9k tops. Assuming you paid the final payment. At this point it will be worth at the very most 3-4k. That is not a good place to be in.

I've just paid 10k cash (using money saved and interest that the Bank paid ME) for a 3 year old car with 24,000 miles that cost 22k when it was new.

Which to you sounds like the best option?

I would say option 3:

Take your 1k and buy a used car.

Then put your £200 per month payments over 3 years into a savings account (or a conservative ISA investment fund).

After this time you will have 7200 + 500 for you used car + interest and you can buy the car you want out right.

Do that again for the next 3 years and then you have 8k in the bank and a nice used car.

Thanks for your reply dude, breaks it up and after much thought have decided against proceeding with a used car on PCP.

I have however found the toyota aygo on 3 years PCP under £150 a month with my 1k deposit which is top spec, 1 years free insurance and 2 years free servicing. If you factor in my insurance costs for the first year this is very tempting, espcially factoring in the cars tax band and mpg.

Will have a think anyway as you're always going to loose money buying a new car.

Thanks.

OddballJamie

What spec and engine size is the Fiesta?