PCP or HP - help

2»

Comments

  • Stateofart
    Stateofart Posts: 337 Forumite
    Fifth Anniversary 100 Posts
    HP is typically more cost effective (lower interest rate, the car ends up being yours). 
    PCP is usually for new cars - you are renting the car basically.
  • Moley27272
    Moley27272 Posts: 69 Forumite
    Fourth Anniversary 10 Posts Name Dropper
    interest rates are higher for HP. 13.9 percent for HP compared with 9.9 percent for PHP 
  • photome
    photome Posts: 16,606 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Bake Off Boss!
    interest rates are higher for HP. 13.9 percent for HP compared with 9.9 percent for PHP 
    What is the total cost though?


  • facade
    facade Posts: 7,493 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    photome said:
    interest rates are higher for HP. 13.9 percent for HP compared with 9.9 percent for PHP 
    What is the total cost though?



    Which is what I posted.

    Just calculate how much money you pay out in total for each case. If the car is going back then don't include the GFV.

    Subtract the GFV from the HP total as it will be close to the trade in value (PCP lenders have a pretty good idea what the car will be worth unless there are unforeseen circumstances, like Yet Another War, Yet Another Pandemic, or a truly massive increase in VED on EVs.)
    I want to go back to The Olden Days, when every single thing that I can think of was better.....

    (except air quality and Medical Science ;))
  • happyc84
    happyc84 Posts: 330 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    perhaps a bank loan would give a lower APR rather than HP from the dealer.

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