Advice on car purchase HP or PCP

DullGreyGuy

Frozen_up_north said:

Fozzie, as others have mentioned, you need to do the maths and beware of dealers pushing finance... they make a tidy sum themselves out of the finance arranged through them.

As an example, I bought a new Seat at the end of November 24, the cash price was £29K. The cost to buy it with VW group finance was around an extra £4K overall.

I bought it outright, there were various "fiddle factors" the salesman included... £3930 "discount" (loyalty and cash alternative amounts), plus 2 services, alloy wheel insurance and paintwork treatment, all for "free", yet were added to the bill before the discount. Talk about smoke and mirrors.

It really boils down to checking the overall cost to yourself and ignoring the sales pitch.

Thats only if you actually pay the interest... some will take the freebies and discounts of agreeing to finance and then early settle the finance thus avoiding most if not all the interest.

Fozzie_Bear

Just wanted to say thank you to everyone who responded and contributed to my questions. In round terms over 3yrs I would pay around £3000 interest on PCP compared with approx £1800 on HP. I have therefore decided to go the HP route and increase my deposit from savings which will further reduce the interest paid and also monthly payments. 
Thanks again
Fozzie Bear