Pcp

Frith123##

Hi

I have very recently passed my driving test and would like to take out a new Seat Ibiza on PCP. I am wondering if PCP is the best idea for myself.

I have seen offers for a brand new Seat with deposits in the region of £150 and monthly repayments of the same value, some come with the first years insurance. These offers are usually for a term of little over 4 years.

I wondering whether this is a good idea or alternatively taking out a loan with my bank for a lower interest rate and paying for the car out right.

Any advice will be appreciated.

Kind regards

bengalknights

The decision is down to you, but take intco consideration how long you want to own it for and the cost of interest actually stated to how much you can get with a loan.

bazzyb

How old are you? There may be some restrictions on the 'free' insurance which you get for the first year.

Many people find it makes sense to go for a less expensive car when they first start driving - why do you want to go for a new car so soon?

forgotmyname

You need to have held your licence for at least 1 year with the SEAT deal and then you get a Telematics box also.

Nasqueron

Look for 0% finance if you want PCP, better value - a first car doesn't have to be the best looking ideal car if you want to be able to pay for insurance etc in the long run

neilmcl

Nasqueron wrote: »

Look for 0% finance if you want PCP, better value - a first car doesn't have to be the best looking ideal car if you want to be able to pay for insurance etc in the long run

Not necessarily. If a dealer is offering a 0% deal you can be pretty much sure they making up for it in other ways.

Nasqueron

neilmcl wrote: »

Not necessarily. If a dealer is offering a 0% deal you can be pretty much sure they making up for it in other ways.

If a car costs xyz (which you'd research first) and you turn down all their commission making insurance type addons and your finance is 0% on xyz it's clearly better value than paying xyz + interest

Whether the maths of getting a discount by negotiating and paying interest works out less or more is something you decide before you buy

F1F93

Nasqueron wrote: »

If a car costs xyz (which you'd research first) and you turn down all their commission making insurance type addons and your finance is 0% on xyz it's clearly better value than paying xyz + interest

Whether the maths of getting a discount by negotiating and paying interest works out less or more is something you decide before you buy

Except there is no such thing as 0% interest - the interest will always be there as it's a seperate finance provider. All the dealer can do is absorb some (or all) of the cost. He will then pass this on to you in one way or another.

Using your analogy, if you wanted 0% finance, the cheapest the car will be is xyz+interest. The dealer might sell you the car for xyz+interest, and let you take out 0% finance so you pay xyz+interest in total. Or you can buy the car for xyz and pay interest, so you pay xyz+interest.

You can't have 0% finance and the cheapest price, it doesn't work like that.

bigadaj

F1F93 wrote: »

Except there is no such thing as 0% interest - the interest will always be there as it's a seperate finance provider. All the dealer can do is absorb some (or all) of the cost. He will then pass this on to you in one way or another.

Using your analogy, if you wanted 0% finance, the cheapest the car will be is xyz+interest. The dealer might sell you the car for xyz+interest, and let you take out 0% finance so you pay xyz+interest in total. Or you can buy the car for xyz and pay interest, so you pay xyz+interest.

You can't have 0% finance and the cheapest price, it doesn't work like that.

Depends on how keen the seller is.

There's no absolute correlation between 0% finance and selling price, there should be according to economic theory but it's not always the case absolutely.