New Car Options... PCP or Loan?

ATarrant

Hello,

I'm looking at options for a new(er) car, but i'm struggling between the choice of PCP/Lease or personal loan.

I currently do low mileage - average 6-8k. I would say that I am definitely a car person, and I'm in my late 20's. I'm reluctant to spend most of my savings on a deposit right now (saving for my next house), and I can afford £300(ish) a month.

Can anyone advise if these situations suit PCP? Has anyone had any nasty experiences with PCP? And does anyone know a good place to find deals?

Thanks in advance!

DUTR

ATarrant wrote: »

Hello,

I'm looking at options for a new(er) car, but i'm struggling between the choice of PCP/Lease or personal loan.

I currently do low mileage - average 6-8k. I would say that I am definitely a car person, and I'm in my late 20's. I'm reluctant to spend most of my savings on a deposit right now (saving for my next house), and I can afford £300(ish) a month.

Can anyone advise if these situations suit PCP? Has anyone had any nasty experiences with PCP? And does anyone know a good place to find deals?

Thanks in advance!

Well you already know you will see nothing at the end of the term for the PCP, you will pick up a decent car for £3k or better yet at £6K , 2years at £300 a month.

motorguy

ATarrant wrote: »

Hello,

I'm looking at options for a new(er) car, but i'm struggling between the choice of PCP/Lease or personal loan.

I currently do low mileage - average 6-8k. I would say that I am definitely a car person, and I'm in my late 20's. I'm reluctant to spend most of my savings on a deposit right now (saving for my next house), and I can afford £300(ish) a month.

Can anyone advise if these situations suit PCP? Has anyone had any nasty experiences with PCP? And does anyone know a good place to find deals?

Thanks in advance!

Avoid used car PCP deals. They tend to be at a high APR. For example, BMWs used car PCP rate is now 12.4% APR. :eek:

Roughly speaking cars depreciate by 50% every three years, so a £10,000 car loan over three years at £300 odd a month will give you an asset worth £5,000ish at the end of it.

I'd avoid diesels at those miles.

Best VFM of the non budget brands is probably something like an Astra, or for a slightly more driver focused experience a Focus.

Go for a budget brand like a KIA or a Hyundai and you'll get something with a decent manufacturers warranty remaining but a bit dull to drive.

£300 a month a PCP deal will get you a brand new car no doubt, but you'll get zero back at the end of the term.

With PCP @ £300 a month the worlds your lobster really, but its effectively costing you twice as much as a £300 loan as you've no return at the end of it.

[Deleted User]

If I was saving for a house I wouldn’t be getting a car loan of any sort.

Mercdriver

As above, if you are going to be trying for a mortgage at any point soon, don't weigh yourself down as while you might pass the mortgage company credit check, you may then fail their affordability check. I would prioritise bricks and mortar over four wheels.