PCP Car Loan High APR

MoneySaver5

Hello,

This is my first post on here so I hope someone can help me. I've just taken a PCP out on a used car for £15000 and noticed that the APR is ridiculously high. 10% through Barclays.

My credit rating is reasonable and First Direct will loan me money at 5.9% APR.

I have signed the documents and collect my car tomorrow. Is there anything I can do to lower my monthly payments? I was thinking of repaying the middle portion of the loan from Barclays by using a loan from First Direct to lower my APR but not sure if this is possible?

Any advice greatly appreciated.

MountainMan101

You can do that, you have a cooling off period.

But be careful, its not as simple to compare. I'm with FD and they offered me 3.6% for £25k. But the higher APR on the PCP deal I signed yesterday is actually better for me as they bundled in GAP in insurance, two services (£900) and I need their goodwill to cash in PCP early for a new car.


PCP only really makes sense if you don't want to keep the car. I took mine over 4 years instead of 3, but I won't keep it 3 years. You just adjust the length to get the cheapest monthly figure.

foxy-stoat

Take out the loan if you can get it and buy the car that way.

Loving all these new posters who happily rack up 5 figures of debt on a car without reading the finance agreements!

k3lvc

Consider everything that MountainMan101 said - hopefully within the 10% APR PCP you got some other bundled items (GAP/Servicing/Cuddly Toy etc etc) and you need to take these into consideration before just comparing the APR. If you didn't then you need to hone your negotiation skills for the future.


If you're canny your can take all the goodies you've agreed and settle the higher APR PCP with a lower APR loan