PCP deposit

PierremontQuaker03

Sorry to hijack the post, but I was looking for a 0% PCP deal for a used car and I cannot find one - I presume they only exist for new cars. I was going to go for a PCP deal, looks on good in terms of allowing you to get a good car on the cheap, but when you look at the interest you pay over the term it has completely put me off. I am thinking of going down the leasing route now, and getting a car that I would not normally choose, but it is affordable, while I save up for the car I want in the future.

AdrianC

PierremontQuaker03 said:

Sorry to hijack the post, but I was looking for a 0% PCP deal for a used car and I cannot find one - I presume they only exist for new cars. I was going to go for a PCP deal, looks on good in terms of allowing you to get a good car on the cheap, but when you look at the interest you pay over the term it has completely put me off. I am thinking of going down the leasing route now, and getting a car that I would not normally choose, but it is affordable, while I save up for the car I want in the future.

Finance on new cars is underwritten and subsidised by the manufacturers, to shift metal.

They don't do that for used cars.

iainscomputer

jimrod_2 said:

DrEskimo said:

jimrod_2 said:

Thank you for this. APR is 7.9%. I'm funding it this way because it is going to be a work vehicle and I will be claiming business mileage allowance, which I've calculated will be sufficient to cover the finance payments, fuel, maintenance, etc. I don't have a significant deposit or vehicle to part exchange, so this is the only I can afford a suitable vehicle. At the end of the 3 year term I can hand the vehicle back, hopefully with some equity and start again with a new vehicle

It's the only way you can afford that vehicle, but it doesn't mean paying a load of interest to boot is the financially best way to do it. How much actual interest in £ will it cost you?

Your not handing it back if it has equity, you are trading it in. The exact same way you could trade the car in if you bought it outright without PCP. Don't be fooled into thinking it is somehow some magic advantage of paying loads of interest on a used PCP....

I will be paying about £3,000 in interest, borrowing £16,999 over 3 years with a £500 deposit. I'm fully aware that it is not a magic solution, but it is the only way I can keep my monthly payments below a certain amount and get the use of a suitable vehicle to do my job. I have looked into personal loans and HP, as these were my preferred options, but the monthly payments are greater than my budget

I borrowed £20k from Santander using a unsecured personal loan, the repayments are £359 over 60 months, this might not suit you. But this is only £1500 interest on £20k, your deal costs £3k less but the interest is double!