PCP help

meat_n2_reg

Hello 

I know PCP is not very money savings however my wife wants a new car , currently have a 2019 citigo which is now too small for our needs 

We are interested in a new fabia as have been pleased with Skoda 

Thinking of buying with PCP due to £750 discount & reduced servicing plan 

We tend to change our cars every 3 years 

Never purchased via PCP before not sure if its best to use part-x from citigo (7K) as deposit on PCP to keep monthly payments low or am I better to put a small deposit with higher payments ?

We don't plan on keeping Fabia for more than 3 years and will keep rolling PCP with different cars 

Would appreciate your help 

Thanks 

ontheroad1970

Remember that the value of the car being pit in each 3 years may not leave much equity for a deposit so you will very likely need a fresh deposit at the end of each PCP period.   The  equity of the car is often not paid until close to the end of the deal period, especially if the payments are set fairly low without a high deposit.  Don't assume that there will be enough equity to give you the deposit for the next deal.  Also bear in mind that you don't have to go back to the same dealer or manufacturer each time.  You can take the car anywhere to use the car as a part ex, and see if much or anything is remaining towards the next deal.

DrEskimo

Higher deposit will reduce the amount borrowed, which will reduce the total interest paid.

But it would be far better to take the PCP and then settle the finance in full to save on interest, whilst still benefitting from the deposit contribution and servicing plan.

Don't get draw in to the idea that PCP is better 'as you can change every 3-yrs'. You can do that no matter what you buy or how you buy it (leasing aside..). Buy a used car and trade it in after 3-yrs for another used car. It's exactly the same process and will save you a tonne of money in both interest and depreciation.

Krakkkers

Save up for 3 years and buy a car for cash.
Actually when i bought my last car they really did not want me to pay cash, offering all sorts of throw ins to tempt me to take a finance deal.