PCP Financing Advice
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Woah, hold on... You know that any Euro6 diesel - post 2014 - is perfectly OK within the ULEZ?I also want a petrol engine (i live in London and the incoming ULEZ zone makes diesel a non-starter)
Franchise dealers sell approved used cars, too.As mentioned earlier i'm no car expert and only feel comfortable buying from an authorised dealer so i guess there's a bit of a premium to pay there too.0 -
Haha, i guess there could be some truth in that.I might be wrong (and overstepping the mark, so apologies if I am!) but it does seem to me that you want to buy a brand new car, but use the finance so it doesn't feel like you have just spent £23k...
Without wanting to derail my original question...
Being the car buying novice i am, does it make more financial sense to buy a 4 year old Audi Q3 for £17k or a brand new Nissan Qashqai for £23k given a new car will be covered by warranties and exempt from MOTs for 3 years plus maybe some other benefits of a new car i'm not aware of?0 -
Probably the £17k Audi. At least it's suffered its steepest depreciation years, and hopefully will hold its value alright in the new few years.
The trick is getting the car at a competitive price. I spend a good whole keeping an eye on the market and getting a good idea of what is a good price. I then try and haggle the price further while also trying to take advantage of used PCP deposit contributions to get further discounts (then settle). I haggled £500 off my last car, then got a further £1000 off using the finance deposit (along with 2 free services). I spent 6months watching the market (including going to auctions!) so knew it was well priced to begin with. The further discounts made it very competitive.
You will get a warranty from a main dealer and a £40 MOT doesn't bother me personally....0 -
The Qashqai doesn't have the posh badge but it has more space than the Q3.0
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I was very much a novice when buying my first car (and still am to an extent) but one thing I did know was what I wanted the car for. Not too fussed about the badge, I wanted something I was comfortable in and was somewhat future proof when it came to size as I planned to drive it as long as possible. I purchased a nearly new Ford Fiesta.
Less than 6 months old and under 2,000 miles on the clock, I saved thousands off the price. In addition to this, I took out finance through Ford so got a bigger discount but just paid it off straight away so kept the price deal and avoided finance. Tax, insurance, service, tyres and a replaced clutch aside, I've paid around what equates to £110 a month for the car over the past 7 years.
Though the new car smell was nice, I could have saved a lot more if my car was a little older (but still the same model) and after driving this car for 7 years and doing about 70,000 miles, it's given me more comfort about buying an older vehicle as mine seems to be doing just fine.
So, my recommendation to you....
1. PCP is just a loan. Taking out a bank loan will be cheaper or take out the PCP, get all the benefits and just pay it off straight away.
2. Buying the same model car, even less than a year old, will save you thousands.
3. Buying the same model car, even less than a year old, will save you thousands.0 -
Thanks all for the advice.
I ended up purchasing a used Nissan Qashqi 2017 Tekna from an approved dealer for £16,000 (it was marked as a 'good price' on Carwow for £16,500 and i managed another £500 off).
It had all the spec we wanted (full leather interior, sat nav, panoramic sun roof, automatic transmission, petrol engine, heated seats, full surround parking cameras etc.), 1 previous owner with under 10,000 miles on the clock. So hopefully not too shabby a deal.
I have one last question... we have 2 x options for financing the car.
1.
Buy it cash for £16,000. This comes with:
1 years warranty
1 year RAC breakdown cover
2.
Finance it on a PCP for £15,895 (and settle up early). This comes with:
2 years warranty
2 years RAC breakdown cover
2 years free servicing
Free paint + interior protection
The earliest i can settle the PCP is after 6 months (i'd obviously do it the next day if possible).
So my questions are:
Is it better to opt in to the PCP to take advantage of the extra benefits?
And if i do, is there a clever way of structuring the PCP so i pay the least in the long run (i.e. pay more or less deposit, run it over a longer or shorter time etc.)?
Again, i will settle up after 6 months, this is purely to bag the additional benefits.
Thanks.0 -
Do you still get the warranty/RAC/servicing post-PCP settlement?
What would they cost separately?
Ignore the paint/interior protection - it's a high-margin bling upsell.
Obviously, the quicker you pay, the less interest you pay because you're borrowing less money for less time.0 -
Yes, so long as you stay on the PCP for a minimum 6 months.
If it was me, PCP for 6 months and take the goodies. Looks like a very good overall deal (and IMHO Soooo much better than where you started!) Good luck with the car."For every complicated problem, there is always a simple, wrong answer"0 -
It's absolute nonsense about needing to keep the finance for 6months. I got told 3 months, 6months and any other months in-between. I settled in 2 weeks and kept all of the perks.
When you go through the process you realise that there is no way they can enforce any sort of minimum period. The deposit contribution just acts as a discount off the car.
Looks through your T&C's and you will see no mention of a minimum period. Settle the next day and pay no interest.0
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