PCP vs Personal Loan

Peach23

Hi All,

Looking for some advice and people's past experiences.

Looking to buy a new car and I essentially have two options for what I want.

Option 1 ) Brand new Seat Leon FR 1.4tsi and after finance contributions and discount the car is £250 deposit from me, £238.95 a month over 4 years at 4.9% APR with a £7200 final payment.

Or

Option 2) 9 month old 16 plate Seat Leon FR 1.4tsi with 4000 miles on the clock, £13,500. I have done a soft search and it looks like I will be accepted for a loan with 3.1% apr so for a 5 year loan it's £239.55 (£13,300 loan, £200 from me in cash)

My thinking behind it is that if I want to get rid of the car even after 2/3 years the car would be worth more than the outstanding amount of the loan, I only do around 5-7 thousand miles per year. Or would a PCP be better as it would be (possibly) worth more at the end because it's newer?

Any pointers or information would be greatly appreciated
Thanks

daveyjp

5 years is a long time to be paying for a car, especially one with a VAG 1.4TSi engine.

Peach23

I know - I would probably sell after about 2/3 years and clear the loan, essentially like a PCP but more flexible.

My other option is a lease at £220 a month which is cheaper than both. I look after my cars but I read lots of horrors about people being stung for tiny marks on the car!

F1F93

Check out broker sites such as drivethedeal. A brand new Leon FR 1.4tsi was coming in at £14,500ish, which over 4 years, £250 deposit and 4.9% Apr was coming up as £191.44 a month before options.