Car PCP recommendations and rates

FINCH1983

Been looking at purchasing a used car , ive noticed most dealers are quoting the same sort of numbers 6.9% to 8.9%.

Car is circa 27k.

Anybody know of any companies offering better rates or i could consider a personal loan.

Regards

Michael

ontheroad1970

PCP and used.  Don't do it.  (By and large).  Not at those rates.  A standard HP will be cheaper overall as you are reducing more capital and not always paying interest on the bubble as well as the monthlies.

FINCH1983

I was going to see about a personal loan, ive never done pcp ive always bought with cash or part bank loan. Just seems excessive paying that high interest on it and to be honest i would probably keep the car anyway.

ontheroad1970

FINCH1983 said:

I was going to see about a personal loan, ive never done pcp ive always bought with cash or part bank loan. Just seems excessive paying that high interest on it and to be honest i would probably keep the car anyway.

Bank loans, provided you have a decent credit history are generally the best way to go.  You can get around 3% and the bank holds no interest in the car.  There aren't often deals on used finance, and the APR tends to be higher than new.  I got 3 years 0% on an 18 month old Mazda 5 years ago, and I still have the car, but these deals don't come up that often.  

motorguy

FINCH1983 said:

I was going to see about a personal loan, ive never done pcp ive always bought with cash or part bank loan. Just seems excessive paying that high interest on it and to be honest i would probably keep the car anyway.

Go down the cheap personal loan route even if it means putting it over a longer term than you'd have on a PCP.  Well worth it with the cheap rates.

On a £27K car you'd likely be paying £5,000 - £7,000 in interest charges at that high PCP rate.  Completely nuts.  

kobe84

motorguy said:

FINCH1983 said:

I was going to see about a personal loan, ive never done pcp ive always bought with cash or part bank loan. Just seems excessive paying that high interest on it and to be honest i would probably keep the car anyway.

Go down the cheap personal loan route even if it means putting it over a longer term than you'd have on a PCP.  Well worth it with the cheap rates.

On a £27K car you'd likely be paying £5,000 - £7,000 in interest charges at that high PCP rate.  Completely nuts.  

Not to mention the one huge advantage of a personal loan, is that the car will be yours from the outset, not the finance company's, so no worries about mileage rates, damage, selling it on etc, although by and large these can still be dealt with on a PCP albeit with more of a headache.

motorguy

kobe84 said:

motorguy said:

FINCH1983 said:

I was going to see about a personal loan, ive never done pcp ive always bought with cash or part bank loan. Just seems excessive paying that high interest on it and to be honest i would probably keep the car anyway.

Go down the cheap personal loan route even if it means putting it over a longer term than you'd have on a PCP.  Well worth it with the cheap rates.

On a £27K car you'd likely be paying £5,000 - £7,000 in interest charges at that high PCP rate.  Completely nuts.  

Not to mention the one huge advantage of a personal loan, is that the car will be yours from the outset, not the finance company's, so no worries about mileage rates, damage, selling it on etc, although by and large these can still be dealt with on a PCP albeit with more of a headache.

Practically noone hands the car back to the finance company at the end of the term so pretty much a moot point.  You can sell a car with finance on it, as long as the finance is cleared at the point of sale, or is sold to a reputable trader.