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HP or PCP
Hi
Im looking to buy a second hand car for 10,000 i have 2000 to put down as a deposit. I have the option of HP or PCP. I would think that in 3 years time or so i will want to change the car so what option is better?
Aslo if i go for PCP am i better to put a smaller deposit down?
Thank you
Im looking to buy a second hand car for 10,000 i have 2000 to put down as a deposit. I have the option of HP or PCP. I would think that in 3 years time or so i will want to change the car so what option is better?
Aslo if i go for PCP am i better to put a smaller deposit down?
Thank you
0
Comments
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HP, pcp isn't as good as it looks and I have oneDon't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.0
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In this case i would go with HP0
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Hi
Im looking to buy a second hand car for 10,000 i have 2000 to put down as a deposit. I have the option of HP or PCP. I would think that in 3 years time or so i will want to change the car so what option is better?
Aslo if i go for PCP am i better to put a smaller deposit down?
Thank you
Hi joe,
you also have other options.
1. save up until you can afford to pay it in cash. (always the best option)
2. Buy a cheaper car for cash
3. A personal loan, usually cheaper and MUCH less restrictive (but nowhere near as good as options 1 and 2.)£1000 Emergency fund No90 £1000/1000
LBM 28/1/15 total debt - [STRIKE]£23,410[/STRIKE] 24/3/16 total debt - £7,298
!0 -
Thank you for your reply, when you say you have one is that HP or PCP? what is your reason for not wanting either?0
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bengalknights wrote: »In this case i would go with HP
What would be your reason for thinking HP would be better?
thank you for your reply0 -
PCP.
You save for a deposit.
You pay the deposit to a car dealer.
You then borrow the balance.
You pay interest on the full amount borrowed.
You make capital repayments of about half the amount.
After 36 months you owe even more money, own nothing and usually have no deposit.
HP
You save a deposit
You borrow the balance
You pay interest on the balance
You make capital repayments on the whole amount
After 36 months you own a car.
So if you decide on a PCP you need to repay the amount due and also save for a deposit for the new car. You also need to factor in the costs of any repairs, the MOT and the service which will probably be required as part of the PCP contract if you intend handing the car back.
With HP your monthly payments are higher, but no need to save a deposit or do the year three work.0 -
PCP mileage limits low, tyres servicing etc must be main dealer. if you wish to over pay it brings the balloon forward so no gain.Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.0
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