PCP car deal or straight finance

Frozen_up_north

Thatsthespirit wrote: »

Can somebody help me. If I put £2000 down payment on a car and pay £x amount per month for 3 years and then a final payment of £3500 (and I actually pay it) is this finance or PCP?

It sounds like PCP to me. You will have to check the cost of finance that way vs a straight loan, from say a bank.

PCP from a main dealership is often based on buying a new car, look at the savings of buying a 6 month old “demonstration” car with 5000 miles on it, they are often sales/managers cars. Dealers often have these at a reasonable discount over the new price.

zooks

Thatsthespirit wrote: »

Can somebody help me. If I put £2000 down payment on a car and pay £x amount per month for 3 years and then a final payment of £3500 (and I actually pay it) is this finance or PCP?

PCP with a final £3.5k balloon payment.
Used car PCP is usually quite expensive to boot. What APR are they quoting?

Thatsthespirit

Cheers both.

APR is 2.52%. As I say, not that it probably matters to any of you or the circumstance, but I was intending on paying final payment in full. At least I know it's PCP...

JP1978

Factor in with PCP that at the end, there will be little or no equity so if you want to go into another vehicle, you are likely to need to find another deposit.

Check the cost per mile if you go over the allowed limit, it is sometimes cheaper to have a lower mileage limit and and pay the excess ppm charge (put some ££ aside each month to cover it).

Dandytf

I was offered PCP earlier this year though was given a choice,
I’m old school and opted for afew years finance as my previous clios have lasted a few years after finance finishes.
PCP new car sounds nice though I’ll never have a few k final payment and prefer after a few years to save on constantly paying finance.