PCP or Finance - I made the wrong choice!

chanz4

you do know that the 0% deals cost the dealers cash, there isn't any such thing as 0%

Nearlyold

What you could also try is to have a word with the Dealer Principal and explain your situation you never know he might be prepared to see what he/she could do. There is no point in just cancelling the finance as you have already correctly stated, as it's you who has to repay the credit, the finance company does not and cannot just recall the money from the dealership as Poppasmurf has mistakenly informed you.

And yes you are right they can make money either from the finance or the car or a combination of both and I'm speaking from experience

verityboo

ed67812 wrote: »

..........................

In short, I've overpaid a fair whack in opting for PCP which has no advantages over finance. In short, feel free to call me a moron & learn from my mistake.

One point to mull over is that PCP's do have one advantage. You can give the car back after 3 years irrespective of how little it's worth.

Our neighbour gave back his Range Rover Sport as the trade in value was £8k less than the balloon payment when the economy went to pot! With any other type of finance he would have lost that extra money but the PCP protected him. With the VW story in the news it shows what unexpected events can crop up

I say just enjoy the car

DCFC79

poppasmurf_bewdley wrote: »

If you are still within the 14 day cooling off period, could you not cancel the PCP deal and take the Vauxhall interest free deal?

But £13k for a Corsa!!!!!!!!!!!!!!!!:eek::eek::eek:

Is alot for a corsa.

ed67812

Is alot for a corsa.

But I keep telling you, it's a really nice Corsa!!! It's got loads of go faster bits and things that light up.....I did test drive a cheaper one, but just (for once in my life) wanted the cool sporty one. You're only (sort of) young once!

CKhalvashi

DCFC79 wrote: »

Is alot for a corsa.

But we paid £9000 for a brand new Peugeot 206 1.4, and it wasn't the highest spec.

Comparitively, bearing in mind the more than 10 year time difference, I don't think it's such a bad deal after all.

andyfromotley

The cost of interest etc of the pcp if you wish to own the car in the end is £950

This doesn't include any costs incurred for the balloon payment. Assuming that you will need a loan for that, £6037 over 3 years at the MSE best buy rate of 4.3% will cost you another £400 in interest.
So your total cost of buying this car on a PCP and then a loan is £1350.

Interest free £12700 over 5 years is £211 per month and costs nothing although i assume they will add on the utterly ridiculous finance fees so in reality the cost is actually £298. Obviously the key to this deal is what price would you pay for the vehicle. If the vehicle is going to cost more than £1350 the PCP is a better deal.

A five year loan of £12700 over 5 years at the MSE best buy rate of 3.6 is £231 per month and will cost you £1176 in interest. Again the cost paid for the vehicle is critical. But as you are a cash buyer there are nearly always deals available close to or equal to the sweetened PCP price. Funnily enough they don't have any nonsense finance fees either!

I don't think you made a terrible deal but i would always opt for a personal loan as i think they are much less restrictive and you are much more likely to end up keeping the car longer and not refinancing into a new car. (thus ending up with an asset, not a liability) But given the above you can sleep fairly soundly and enjoy your new car.

Nearlyold

If it's a 0% APR deal the fees have to be Nil (APR calculations take any fees into account so if fees aren't Nil the APR can't be 0%)

loskie

some decent corsa lease deals about.

andyfromotley

Nearlyold wrote: »

If it's a 0% APR deal the fees have to be Nil (APR calculations take any fees into account so if fees aren't Nil the APR can't be 0%)

Doesn't apply to balance transfer CC's i guess!?