Brain leak..pcp v hp help

Moley27272

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

Moley27272

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

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

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? 

Moley27272

the Apr for HP is 13.9%
I thought hp was cheaper long term ?

prettyandfluffy

Moley27272 said:

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.

Veteransaver

It's more of an HP than a PCP deal. Tiny final payment.

fatbelly

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

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

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

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 = 27,681.44

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

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

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.