The Forum is currently experiencing technical issues which the team are working to resolve. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Brain leak..pcp v hp help

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

«13

Comments

  • Moley27272
    Moley27272 Posts: 69 Forumite
    Fourth Anniversary 10 Posts Name Dropper
    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 ??
  • LightFlare
    LightFlare Posts: 1,420 Forumite
    1,000 Posts First Anniversary Name Dropper
    edited 19 March 2024 at 7:59PM
    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
  • Moley27272
    Moley27272 Posts: 69 Forumite
    Fourth Anniversary 10 Posts Name Dropper
    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? 
  • Moley27272
    Moley27272 Posts: 69 Forumite
    Fourth Anniversary 10 Posts Name Dropper
    the Apr for HP is 13.9%
    I thought hp was cheaper long term ?
  • the Apr for HP is 13.9%
    I thought hp was cheaper long term ?
    If that's so, it would probably be cheaper to get a bank loan.
  • It's more of an HP than a PCP deal. Tiny final payment.
  • fatbelly
    fatbelly Posts: 22,823 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    edited 19 March 2024 at 11:10PM
    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
    I make it

    8500 + 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 = 28917.31
  • Moley27272
    Moley27272 Posts: 69 Forumite
    Fourth Anniversary 10 Posts Name Dropper
    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
  • LightFlare
    LightFlare Posts: 1,420 Forumite
    1,000 Posts First Anniversary Name Dropper
    fatbelly 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
    I make it

    8500 + 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 = 28917.31
    Correct ofc - saw the 48 month term and did t register the payments directly underneath that said 47
  • LightFlare
    LightFlare Posts: 1,420 Forumite
    1,000 Posts First Anniversary Name Dropper
    edited 20 March 2024 at 7:59AM
    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
    Don’t thank me - my maths was a little “wonky”
    @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.

Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.5K Banking & Borrowing
  • 252.9K Reduce Debt & Boost Income
  • 453.3K Spending & Discounts
  • 243.5K Work, Benefits & Business
  • 598.1K Mortgages, Homes & Bills
  • 176.7K Life & Family
  • 256.6K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.