Pcp/Hp?

Sarah69

Hi, I'm taking my second driving test and hoping to pass at the beginning of October. My parents will be buying me a second hand car either Pcp or Hire purchase, I shall be helping towards the monthly payment. What is the best way to go out of the 2?

National_Debtline

Hi Sarah


I wouldn't say there is a definitive answer to your question - what is best for you will depend on any number of variables, some of which you may not be able to predict. I'd have a read of the following guides that explain the distinctions between the different types of car finance in plain English:


http://www.financingyourcar.org.uk/


http://www.which.co.uk/reviews/cars/article/car-finance-explained


Personally, as a relatively recent new driver myself, I'd be more inclined to look for a car you can afford to buy outright and effectively wear it out - you'll still be developing as a driver and I'd say you are better off making beginner's errors (like mine!) in a motor that you can afford to eventually write off.


Good luck with your test!


Dennis
@natdebtline