PCP's. Good or bad?

hobo28

Hi all

I'm looking at getting a new car and have always just taken a bank loan out with the lowest APR.

However, looking at the car I would like next, i would struggle to afford it via a traditional loan but can via PCP.

But I'm also very cautious as it all sounds a little too good to be true. I think my real fear is that after 3 years that my car is only worth the guaranteed value which means I now have to find a deposit from somewhere for my next vehicle as opposed to presently where my current car value is in effect the deposit.

Does anyone have any good/bad experiences with PCP's?

Thanks

Tight_Git_3

You will find that at the end of the 3 years they will pay the guaranteed value if the car is low milage and / or in good condition.
If you have exceeded the mileage stated in the small print, and there is a number of dings or scratches, they will load a penalty clause on top.

And as you say, you walk away with nothing at the end of it, but you do get a new motor.

It all depends on the plan offered by the dealer, and check to see what maintainance cover is thrown in. Some afe good, others not

zeon999

PCP is good if your after a mid range priced car nothing to cheap and nothing to expensive or it dont work out to well. You dont have to buy the vehicle at the end of the contract you can simpley hand it back and get a new car again on contract or however you fancy funding a new vehicle.

As already mentioned make sure you get a contract which covers you for enough miles per year cos the charge for going over the contracted miles per year is crazy money.

If you want to be on the safe side pay for an extra 5000 per year it is minimal difference in the contract price but as I say if you break the contracted mileage, the cost per mile for exess milage is very expensive.

I have used Total Fleet Services for my vehicle leasing for years now, they are one of the biggest contract hire companies in the UK and been around for a long time unlike alot of the new leasing companys sprouting up all over the place.

cimon

Hi, I am in the same position I am thinking about going for a new Nissan X-Trail Tekna (£26,000). I currently have an X-Trail coming up for 5 years old. Garage will supply brand new X-Trail Tekna by taking my current X-Trail and clear off outstanding finance approx £7,800 + £5000 deposit and then 3 years at £449. I also asked about mileage (8000 per year, 6 pence a mile over the 8000), but he says the 6 pence per mile only kicks in if you hand car back to finance company before the 3 years is up. Not to sure if it is "good deal" or "bad deal"???