PCP on a 3/4yr old car - is it worth it?

biged670

Thanks for the replies

System

Mercdriver wrote: »

We know you hate PCPs so your conclusion is very black and white. Have to correct you on the personal loan. On an unsecured personal loan the car is the OPs from the very beginning because the finance is unconnected to the car.

I was assuming an unsecured loan, same point still stands that unlike PCP they'll still have a car to run around in.

PCP can suit some people.

Indeed it can and those people are the car manufacturers and the dealerships. If you think PCP is gamed in any way other than in their favour then more fool you.

Arklight

It's impossible to say without seeing the rate of interest you are quoted and how this compares to a personal loan you could get.

PCP can work if you're looking at the total cost of the lease plus the balloon payment. Ultimately, it's just a way of calculating the cost of ownership.

One of the main reasons for taking out PCP on a used car is that the dealer will usually be willing to throw in a discount for all the commission he's getting for having flogged it to you. Ideally you'd take this then pay off the PCP right away when you get the vehicle.

The downsides are that you're effectively renting an older car that could conk out completely leaving you trapped with the monthly payments and an eventual balloon payment for a car that's worth nothing. But this could happen if you've bought the vehicle outright and have already sunk the money.