Working PCP

Plantation768

Hi Guys,

I would like to finance a nice car, but I want to do so in a way where I will either lose minimal amount of money or break even (I have heard people can break even on PCP deals or even end up with more money back?)

I'm looking at a car of £43,500 and I have two options one is the dealership deal, and the other through capital car finance.

I have £18,000 to comfortably play with as a deposit.

The dealer's deal:

£43,500
£350 dealership contribution
APR 8.7%
Final payment: £21,968.71

Capital Car Finance offer no contribution but the APR is 4.8%.

I guess my question is, which of the two is better? Dealer or third party? And how can I do this without losing a lot of money (is it even possible?)

Thanks for help, I'm sorry if it's stupid I've just never financed a car before and don't know what to expect

spiro

More info would help like monthly payments, mileage and final payment for both deals.

motorguy

Plantation768 wrote: »

Hi Guys,

I would like to finance a nice car, but I want to do so in a way where I will either lose minimal amount of money or break even (I have heard people can break even on PCP deals or even end up with more money back?)

I'm looking at a car of £43,500 and I have two options one is the dealership deal, and the other through capital car finance.

I have £18,000 to comfortably play with as a deposit.

The dealer's deal:

£43,500
£350 dealership contribution
APR 8.7%
Final payment: £21,968.71

Capital Car Finance offer no contribution but the APR is 4.8%.

I guess my question is, which of the two is better? Dealer or third party? And how can I do this without losing a lot of money (is it even possible?)

Thanks for help, I'm sorry if it's stupid I've just never financed a car before and don't know what to expect

With that amount of deposit, i would not be going for a PCP deal. It will give you a false positive because your monthly payments will be low.

Also 8.7% APR is nothing to write home about.

As has been said though before giving a defnitive answer, we'd need more information on the (Year if not new) Make, Model, engine, monthly payments, your long term plans for the car (ie, do you plan to hand it back or pay the residual), etc.

System

£18k? I'd buy a car you can afford outright in cash, if necessary taking out originally on finance to get any deals and paying the finance off in full within 14 days. If you want to be even more canny look at one around a year old. £18k could get you a car that was £43k new price that is around 2 to 3 years old.

foxy-stoat

Tarambor wrote: »

£18k? I'd buy a car you can afford outright in cash, if necessary taking out originally on finance to get any deals and paying the finance off in full within 14 days. If you want to be even more canny look at one around a year old. £18k could get you a car that was £43k new price that is around 2 to 3 years old.

Yeah but £18,000 wont get you a NICE car - you need to spend £18K + £3500 in monthly payments for the length of the term THEN pay another £22K to keep the nice or, or just hand it back and wonder where that £21.5K went.

I dont think this is a serious thread.

WaywardDriver

Assuming 36 month plan and buy car at end of deal then dealer costs £258 per month, total £49,261; Capital Car £193 and £46,903 or £759 and £45,322 if buying outright with no final payment. Could try asking dealer to match Capital Car rate.

Plantation768

I did try asking them to match, they said 8.7% was the lowest they could do (though I doubt it is).

It is serious, I'm just wondering what the best way to go about it is without losing too much money, obviously I expect to lose some, but realistically, if I buy the car after 3 years and then sell it on, what kind of deposit would I be looking at?

I plan on doing about 5k miles per year, I have had a look online and it says after 3 years I would lose about £7000 if I was to do this (seems reasonable, is this true?)

The model is an Audi TTRS, it's not a new one it's a 66 reg 2016 model.

foxy-stoat

Plantation768 wrote: »

It is serious, I'm just wondering what the best way to go about it is without losing too much money, obviously I expect to lose some, but realistically, if I buy the car after 3 years and then sell it on, what kind of deposit would I be looking at?

I plan on doing about 5k miles per year, I have had a look online and it says after 3 years I would lose about £7000 if I was to do this (seems reasonable, is this true?)

Based on your numbers and a PCP calculator you will pay;
£18,000 + 36 x £796 a month = £46,656 and have an option to buy it for another £22,000.

I think you will lose a lot more than £7000.

You could buy a 6 year old TTRS for £18K cash and its yours.....

System

Plantation768 wrote: »

I plan on doing about 5k miles per year

At that mileage I'd just hire an Uber driver with an upmarket car, it'll work out far cheaper.

WaywardDriver

TT RS new cost = £53,000, after 2 years = £43,500 (dealer) = 82% retained value, you project after another 3 years = £36,500 = 69% retained value - seems optimistic. Has the one you're looking at lots of extras which won't help depreciation-wise?
If serious google for lowest depreciating cars and then go and buy that Ferrari.

Mobeer

Have you looked at a new TT RS as a comparison? Audi are offering £1200 deposit contribution and 6.5% APR. You could also negotiate a discount of list price - as an example Coast2Coast are estimating about £4000 discount. Bigger discounts might be available on more ordinary TTs.


As regards your quote:
"I have heard people can break even on PCP deals or even end up with more money back?"

Don't think this means that people ended up paying nothing for a car. What might be possible (especially on a new car, not a used one) is to get more of a deposit contribution than the financing costs. This makes the PCP deal "effectively free", but you still have to pay for the car.