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Brain leak..pcp v hp help

Moley27272
Posts: 69 Forumite

in Motoring
Can someone please tell me if this looks right. Am I paying £27,671 after the term to own the car??

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Comments
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if HP its £357 x 59 months = £21,063 . If I add deposit of 8k thats £29,063 to own the car at the end of term ??0
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Under the 1st example - your total cost to own the car after 48 months is:
8500 + 17941.44 (48x373.78) + 1230 + 10 = 27,681.440 -
LightFlare said:Under the 1st example - your total cost to own the car after 48 months is:
8500 + 17941.44 (48x373.78) + 1230 + 10 = 27,681.44
Yes , thank you. To compare with HP its £357 x 59 months = £21,063 . If I add same deposit of 8.5k thats £29,563 to own the car at the end of term. Is that correct?0 -
the Apr for HP is 13.9%
I thought hp was cheaper long term ?0 -
Moley27272 said:the Apr for HP is 13.9%
I thought hp was cheaper long term ?1 -
It's more of an HP than a PCP deal. Tiny final payment.2
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LightFlare said:Under the 1st example - your total cost to own the car after 48 months is:
8500 + 17941.44 (48x373.78) + 1230 + 10 = 27,681.448500 + 17567.66 (47 x 373.78) + 1230 + 10 = 27,307.66
Borrowing 23990 as a loan at 9.9% will cost
602.44 x 48 = 28917.311 -
Thank you LightFlare for taking the time to work this out for me. I'm surprised HP works out more expensive long term than PCP. The balloon payment is so low its worth me paying the £1,230.00 at the end of term. I also get £500 dealer contribution. I convinced myself I must have missed something. From everything I have read about PCP its never the favoured option over HP.
Thanks
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fatbelly said:LightFlare said:Under the 1st example - your total cost to own the car after 48 months is:
8500 + 17941.44 (48x373.78) + 1230 + 10 = 27,681.448500 + 17567.66 (47 x 373.78) + 1230 + 10 = 27,307.66
Borrowing 23990 as a loan at 9.9% will cost
602.44 x 48 = 28917.310 -
Moley27272 said:Thank you LightFlare for taking the time to work this out for me. I'm surprised HP works out more expensive long term than PCP. The balloon payment is so low its worth me paying the £1,230.00 at the end of term. I also get £500 dealer contribution. I convinced myself I must have missed something. From everything I have read about PCP its never the favoured option over HP.
Thanks
@fatbelly has the correct figures and deserves any thanks
as @Veteransaver says it’s not a typical PCP configuration which may be why it’s true cost is as it is.
You are paying a high deposit and high monthly payments - usually PCP will have one of those set lower to have a bigger balloon payment at the end.
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