Is PCP a good idea?

daveyjp

clayton16749 wrote: »

Thanks for all the opinions on PCP, useful to hear. I'm very much in the camp of I know very little about the mechanics of cars and don't want to be messing about paying for a garage to fix it, let alone fix it myself.


Can anyone recommend a good online broker for these deals - been to a Nissan dealership today and their figures for the Pulsar weren't quite what I was hoping.

Drivethedeal will give details of dealer/manufacturer PCP deals.

If Pulsar has poor residuals you will pay for it in the PCP.

If the Pulsar is what you want I'd compare it against buying a 2 year old Auris outright as a Toyota will have 3 years of warranty remaining.

motorguy

clayton16749 wrote: »

Thanks for all the opinions on PCP, useful to hear. I'm very much in the camp of I know very little about the mechanics of cars and don't want to be messing about paying for a garage to fix it, let alone fix it myself.


Can anyone recommend a good online broker for these deals - been to a Nissan dealership today and their figures for the Pulsar weren't quite what I was hoping.

The online brokers are were you need to start.

Drivethedeal - as already suggested. Or broadspeed.com.

Either of those will put you in touch with the dealer who will deal at that price - and will offer PCP deals, etc.

motorguy

daveyjp wrote: »

Drivethedeal will give details of dealer/manufacturer PCP deals.

If Pulsar has poor residuals you will pay for it in the PCP.

If the Pulsar is what you want I'd compare it against buying a 2 year old Auris outright as a Toyota will have 3 years of warranty remaining.

+1

I happened to be looking at hatchbacks recently there for a friend and its surprising how cheap a nearly new Auris can be bought for.

Andrew_Ryan_89

I would say, if you are financially well off then get PCP as you can afford the monthly payments, has no really affect on your cash flow and you get a new car every 2-3 years. If you are not, that buy it cash.

I bought my car cash and have no debt apart from my mortgage. It's such a good feeling when I get paid and the only thing going out is living cost. Also, the monthly paymnents that would have went towards the car, I save that, and some, every month.

Overall, 5 year down the line I would be better off then if I went with PCP and in 10 years, would have enough cash (from saving the money that would have gone towards PCP) to buy another car new outright.

Tinman1984

Hello,

I have a car on HP finance. There is £6500 left owing on the car and I want to get a new car on PCP which is worth more but the monthly payments are £50 a month cheaper than what I am paying now. Will this affect a mortgage offer in the future? Will it show up as much longer term debt as it will be over 3 years and my HP finance just has 2 years left on it?

Any help is gratefully appreciated.

Many thanks.

bigjl

Tinman1984 wrote: »

Hello,

I have a car on HP finance. There is £6500 left owing on the car and I want to get a new car on PCP which is worth more but the monthly payments are £50 a month cheaper than what I am paying now. Will this affect a mortgage offer in the future? Will it show up as much longer term debt as it will be over 3 years and my HP finance just has 2 years left on it?

Any help is gratefully appreciated.

Many thanks.

How do you think it will affect it?

neilmcl

Tinman1984 wrote: »

Hello,

I have a car on HP finance. There is £6500 left owing on the car and I want to get a new car on PCP which is worth more but the monthly payments are £50 a month cheaper than what I am paying now. Will this affect a mortgage offer in the future? Will it show up as much longer term debt as it will be over 3 years and my HP finance just has 2 years left on it?

Any help is gratefully appreciated.

Many thanks.

Is the car for yourself, are you planning on running 2 vehicles on finance?

Mercdriver

Tinman1984 wrote: »

Hello,

I have a car on HP finance. There is £6500 left owing on the car and I want to get a new car on PCP which is worth more but the monthly payments are £50 a month cheaper than what I am paying now. Will this affect a mortgage offer in the future? Will it show up as much longer term debt as it will be over 3 years and my HP finance just has 2 years left on it?

Any help is gratefully appreciated.

Many thanks.

Mortgage companies, especially over the last few years, care about how affordable your mortgage repayments will be. If they see multiple loan agreements they may be nervous about loaning you a mortgage.

Are you intending on keeping more than one loan agreement running, or will you be settling the current HP agreement before you start a PCP? Or after you have started a PCP? At which point are you looking to apply for a mortgage?

It could be that if your credit report shows you as still paying for one car and just having started making payments for a second, this may affect any offer that they might make. It will also depend on your other financial obligations, but anything that erodes your money after all your obligations are met can affect your financial standing with a bank/building society looking to give you a mortgage.

I don't know your financial position, but I would be very careful about almost doubling your car loans at the time you are looking to get a mortgage.