PCP with big deposit

MX5huggy

I’ve got a PCP quote but they’ve not taken into account the value of the current car £19.5k (owned out right) is this normal? 

So after the deposit £2000 I’d be left with £17.5k to find a home for. 

motorguy

MX5huggy said:

I’ve got a PCP quote but they’ve not taken into account the value of the current car £19.5k (owned out right) is this normal? 

So after the deposit £2000 I’d be left with £17.5k to find a home for. 

You would, yes.  

How long do you plan to keep the new car and what made you go for PCP?

daveyjp

PCP providers only make money by lending you as much as possible.  

Are you taking a PCP deal because it's advantageous to you?  Either 0% or big deposit contribution and pay it off asap.

If not will you earn more on the £17.5k than the interest on the PCP?

scrappy_returns

Are you not better off with a HP deal?

neilmcl

MX5huggy said:

I’ve got a PCP quote but they’ve not taken into account the value of the current car £19.5k (owned out right) is this normal? 

So after the deposit £2000 I’d be left with £17.5k to find a home for. 

Who is this with? Most dealers will have a maximum deposit of between 30% and 40% of the total purchase. HAve you asked them to take a higher deposit?

MX5huggy

I’ve not gone PCP yet. We have cash available to buy outright but would then have to cash in investments or take a different loan for another planned purchase. But the £17.5k would leave us with more than we need. 

The car will be kept at least until my mother (72) stops driving. 

Figures are a bit muddled ATM I think the PCP has about £1500 discount. APR is 2.9% cost of credit £2700 on £35720, £495pm x 47 + £2000 deposit + £13129 final

Do I have to pay the excess mileage charge if I make the final payment to own it? 

HP good idea, but I expect the rate won’t be favourable. 

ontheroad1970

MX5huggy said:

I’ve not gone PCP yet. We have cash available to buy outright but would then have to cash in investments or take a different loan for another planned purchase. But the £17.5k would leave us with more than we need. 

The car will be kept at least until my mother (72) stops driving. 

Figures are a bit muddled ATM I think the PCP has about £1500 discount. APR is 2.9% cost of credit £2700 on £35720, £495pm x 47 + £2000 deposit + £13129 final

Do I have to pay the excess mileage charge if I make the final payment to own it? 

HP good idea, but I expect the rate won’t be favourable. 

The APR is often identical on HP as to PCP.  If you make the final lumps payment the mileage won't matter

AdrianC

MX5huggy said:

Figures are a bit muddled ATM I think the PCP has about £1500 discount. APR is 2.9% cost of credit £2700 on £35720, £495pm x 47 + £2000 deposit + £13129 final

So you'd be looking at £17.5k upfront + £13k balloon leaving about £5k+interest to pay on the monthlies.

Over 4yrs, that's going to be a bit over £100/mo.

Do I have to pay the excess mileage charge if I make the final payment to own it?

No, just the balloon - which has been calculated based on the contracted mileage.

bazzyb

AdrianC said:

MX5huggy said:

Figures are a bit muddled ATM I think the PCP has about £1500 discount. APR is 2.9% cost of credit £2700 on £35720, £495pm x 47 + £2000 deposit + £13129 final

So you'd be looking at £17.5k upfront + £13k balloon leaving about £5k+interest to pay on the monthlies.

Depending on who the lender is, the maximum deposit allowed on a deal like that will be around about the £10k mark, possibly up to £12k.  I'm not aware of anyone who would allow a 50% deposit on a PCP deal.

neilmcl

MX5huggy said:

I’ve not gone PCP yet. We have cash available to buy outright but would then have to cash in investments or take a different loan for another planned purchase. But the £17.5k would leave us with more than we need. 

The car will be kept at least until my mother (72) stops driving. 

Figures are a bit muddled ATM I think the PCP has about £1500 discount. APR is 2.9% cost of credit £2700 on £35720, £495pm x 47 + £2000 deposit + £13129 final

Do I have to pay the excess mileage charge if I make the final payment to own it? 

HP good idea, but I expect the rate won’t be favourable. 

The deposits are simply representative examples, you will be able to increase it if you so wish.

Excess mileage is only payable if you hand the car back to the finance company.

ontheroad1970

bazzyb said:

AdrianC said:

MX5huggy said:

Figures are a bit muddled ATM I think the PCP has about £1500 discount. APR is 2.9% cost of credit £2700 on £35720, £495pm x 47 + £2000 deposit + £13129 final

So you'd be looking at £17.5k upfront + £13k balloon leaving about £5k+interest to pay on the monthlies.

Depending on who the lender is, the maximum deposit allowed on a deal like that will be around about the £10k mark, possibly up to £12k.  I'm not aware of anyone who would allow a 50% deposit on a PCP deal.

In the past, Mazda's 0% deals have specified a 50% deposit, so they do exist.