1st time PCP - Advice please - Toyota C-HR

xsy77

Hi guys,

I have found a used Toyota C-HR that I like and the dealer is offering 0% finance on it under a PCP deal. Seems like a decent offer to me but I've never done PCP before and very confused on what to do with the balloon payment at the end.

The 0% offer is only on the 24 month term but I think I would like to keep the car afterwards. The balloon payment is ~£9k which I think my only option is to pay cash? Is that correct?

I did look at putting about £14k on a CC but I unsure how I tell how much credit I would be given when applying. Anyone know this? I did look at some of the premium cards, but none were 0% so didn't seem like the right approach.

Any advise on how to get the best deal on a C-HR would be greatly appreciated .

Grumpy_chap

First off, are you getting the car at a competitive price? 
Sometimes, Dealers can mask an inflated car price through a clever finance package.

If you then take the 0% finance, there is no immediate benefit in clearing the loan early.  Can you put extra monthly amounts (£375) into a savings account so that it is ready to clear the balloon in two-year's time if that remain what you wish to do then?  That would be the simplest way to make this work.

xsy77

Grumpy_chap said:

First off, are you getting the car at a competitive price? 
Sometimes, Dealers can mask an inflated car price through a clever finance package.

If you then take the 0% finance, there is no immediate benefit in clearing the loan early.  Can you put extra monthly amounts (£375) into a savings account so that it is ready to clear the balloon in two-year's time if that remain what you wish to do then?  That would be the simplest way to make this work.

Yeh it seems to be a competitive price. There are some cheaper on AutoTrader (£500-£1000 cheaper) but none that do PCP / 0% and not with the Toyota Warranty etc. (not sure how much that would be worth).

Grumpy_chap

So, can you afford the PCP plus £375 per month?

xsy77

Grumpy_chap said:

So, can you afford the PCP plus £375 per month?

I mean technically yes. I could also buy the car cash with savings but it doesn't seem logical or smart if I'm being offered 0%

Grumpy_chap

I agree.
The numbers were just what you need to cover the balloon at the end.
Obviously, none of that is a concern here.  Buy the car on PCP 0% finance and keep the £9k to clear the balloon in 2 years assuming that remains your choice at that time.
You've described a fair deal, so go ahead and hope you enjoy the new car.  The CHr is a lovely car.

photome

If the finances work, go for it, I have driven 2 in the last few months, The GR sport  and the Excel, much preferred the Excel, which model are you looking at

xsy77

photome said:

If the finances work, go for it, I have driven 2 in the last few months, The GR sport  and the Excel, much preferred the Excel, which model are you looking at

Yeh the deal I'm looking at is for the Excel 122hp model. Thinking of plonking an OpenPilot system in it (Which I am told is compatible with this model) to make it in to a poor-man's tesla

JadEle

I have a Corolla on PCP, does anyone know if after the 24 month deal, and you decide to keep the car, is it possible to refinance the balloon payment through Toyota and pay it off over another 24 months?

NBLondon

xsy77 said:

Grumpy_chap said:

So, can you afford the PCP plus £375 per month?

I mean technically yes. I could also buy the car cash with savings but it doesn't seem logical or smart if I'm being offered 0%

Then Grumpy_chap is right.  If it's the right car for you  1) Take the deal 2) Leave the £9K in the best savings account you can find  3) Just before balloon is due, pull that £9K out ready to pay off.  4) Enjoy any interest the £9K has built up (or pay for some petrol at least)

Grumpy_chap

xsy77 said:

photome said:

If the finances work, go for it, I have driven 2 in the last few months, The GR sport  and the Excel, much preferred the Excel, which model are you looking at

Yeh the deal I'm looking at is for the Excel 122hp model. Thinking of plonking an OpenPilot system in it (Which I am told is compatible with this model) to make it in to a poor-man's tesla

Excel is definitely the best version of CHr to choose.  There is a more expensive version, but it doesn't add anything of real benefit.

I have no idea what the OpenPilot is.

Hope you can do the deal and enjoy the car.

Let us know how you get along.