Pcp, will I be accepted?

legs12

Thanks for your help

System

Other than falling into the PCP trap, spending all that money over 3-4 years to walk away with nothing and having to start another PCP deal just to have wheels, there is nothing there that I can see which would prevent it.

DCFC79

A used car for £14.5k, you sure you want to do this ?

Its alot of money for a used car and on pcp.

[Deleted User]

How much are you currently saving a month?

[Deleted User]

You're really going to struggle to meet repayments on a 2 year PCP with that kind of disposable income - remembering that you also need keep some sort of savings buffer.

At the very least, if you're after a 3 year old car, you should consider keeping it for a lot longer than 3 years before upgrading again. You're looking at paying a lot for shininess.

Cornucopia

legs12 wrote: »

I'm planning to get the PCP over 2 years and the balloon payment is £6k which I hope the car will be worth and I can use as a deposit against a newer, higher spec car?

On the finance calculator from the lender, the repayments over 2 years were slightly less than those over 3 years. I assumed because the car will be worth more in 2 years than in 3 and I will be paying less interest?

The Balloon payment is the amount of money outstanding and still to be paid at the end of the finance term (unless you give the car back). Whilst salespeople tend to sell the prospect of there being spare funding available based on the Balloon payment being greater than the car's value, it is not guaranteed and cannot be relied upon to provide a deposit for a future purchase.

24 payments at £241 plus the £1500 deposit equates to £7284 - which will be your cost of ownership for the vehicle over 2 years, or £3650 for each year, or £300 per month. This is before fuel, insurance, etc. I'm also wondering what the APR is for this deal?

If you are thinking of paying that much, you might as well be looking at new deals, as the cost is unlikely to be significantly greater. For example, a 36 month Sportage lease starts from around £170pm + £1020 deposit.

MSE has an easy to read guide to PCPs... link