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  • FIRST POST
    • samhawtin8
    • By samhawtin8 11th Jan 18, 5:58 PM
    • 3Posts
    • 0Thanks
    samhawtin8
    pcp finance or loan
    • #1
    • 11th Jan 18, 5:58 PM
    pcp finance or loan 11th Jan 18 at 5:58 PM
    I'm after a new car but what the best cheapest way to get one!! pcp finance or take out a loan and and but the car out right. I've recently paid off debts to help with my credit score so I don't want to make a mistake that could damage my score.
Page 1
    • BeenThroughItAll
    • By BeenThroughItAll 11th Jan 18, 6:00 PM
    • 4,680 Posts
    • 4,092 Thanks
    BeenThroughItAll
    • #2
    • 11th Jan 18, 6:00 PM
    • #2
    • 11th Jan 18, 6:00 PM
    I'm after a new car but what the best cheapest way to get one!! pcp finance or take out a loan and and but the car out right. I've recently paid off debts to help with my credit score so I don't want to make a mistake that could damage my score.
    Originally posted by samhawtin8
    Pays off debt to get a better 'score'.

    Uses better 'score' to take out debt on a depreciating asset.

    That is illogical, Captain.
    • samhawtin8
    • By samhawtin8 11th Jan 18, 6:09 PM
    • 3 Posts
    • 0 Thanks
    samhawtin8
    • #3
    • 11th Jan 18, 6:09 PM
    • #3
    • 11th Jan 18, 6:09 PM
    unfortunately I need a vehicle for work but I don't have the finances to buy one on my own! hence the above question..........have you a more constructive reply
    • BeenThroughItAll
    • By BeenThroughItAll 11th Jan 18, 6:11 PM
    • 4,680 Posts
    • 4,092 Thanks
    BeenThroughItAll
    • #4
    • 11th Jan 18, 6:11 PM
    • #4
    • 11th Jan 18, 6:11 PM
    unfortunately I need a vehicle for work but I don't have the finances to buy one on my own! hence the above question..........have you a more constructive reply
    Originally posted by samhawtin8
    Drip. Drip.

    Yes. There is no cheap way to buy a new car. What happened to your old car? Why do you need a new car for work? My car's 14 years old this year and yet I use it for work every day. Did earlier, in fact.
    • samhawtin8
    • By samhawtin8 11th Jan 18, 6:17 PM
    • 3 Posts
    • 0 Thanks
    samhawtin8
    • #5
    • 11th Jan 18, 6:17 PM
    • #5
    • 11th Jan 18, 6:17 PM
    my car is also 14years young I travel around Calderdale with work and my car just cant handle it any more the clutch is going the brakes need doing and speedo has stopped working, its got over 105.000 on the clock and the MOT runs end of march........ I'm just after advice on which would be the best option
    • BeenThroughItAll
    • By BeenThroughItAll 11th Jan 18, 6:51 PM
    • 4,680 Posts
    • 4,092 Thanks
    BeenThroughItAll
    • #6
    • 11th Jan 18, 6:51 PM
    • #6
    • 11th Jan 18, 6:51 PM
    my car is also 14years young I travel around Calderdale with work and my car just cant handle it any more the clutch is going the brakes need doing and speedo has stopped working, its got over 105.000 on the clock and the MOT runs end of march........ I'm just after advice on which would be the best option
    Originally posted by samhawtin8
    Repair the existing car. It will be cheaper than buying a new car.
    • Cornucopia
    • By Cornucopia 11th Jan 18, 6:58 PM
    • 10,109 Posts
    • 10,038 Thanks
    Cornucopia
    • #7
    • 11th Jan 18, 6:58 PM
    • #7
    • 11th Jan 18, 6:58 PM
    I'm after a new car but what the best cheapest way to get one!! pcp finance or take out a loan and and but the car out right. I've recently paid off debts to help with my credit score so I don't want to make a mistake that could damage my score.
    Originally posted by samhawtin8
    The only ways in which a car loan could adversely affect your credit score are (a) if you default on the agreement, or (b) if you want to apply for a mortgage and your car loan creates a "dent" in your affordability calculation.

    In terms of "cheapest", it is a complex question, and depends in part on information that you have not provided: what car, how old, kept for how long, what usage, how many miles per year?

    There's also the question of what "cheapest" means in this context? Cheapest for monthly payments, low/no deposit, cost per year, cost per mile? Eventually own the car, or not own it? Replace frequently or keep for the long term?
    Last edited by Cornucopia; 11-01-2018 at 7:02 PM.
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    • neilmcl
    • By neilmcl 11th Jan 18, 7:52 PM
    • 11,100 Posts
    • 7,920 Thanks
    neilmcl
    • #8
    • 11th Jan 18, 7:52 PM
    • #8
    • 11th Jan 18, 7:52 PM
    unfortunately I need a vehicle for work but I don't have the finances to buy one on my own! hence the above question..........have you a more constructive reply
    Originally posted by samhawtin8
    Then get a smaller loan that you can afford and buy a newer used car.
    • bazzyb
    • By bazzyb 11th Jan 18, 8:15 PM
    • 1,194 Posts
    • 3,276 Thanks
    bazzyb
    • #9
    • 11th Jan 18, 8:15 PM
    • #9
    • 11th Jan 18, 8:15 PM
    To clarify, when you say you want to buy a 'new' car - do you mean brand new, or simply 'new' to you (ie a used car)? The latter would be the cheapest option.
    • consumers_revenge
    • By consumers_revenge 11th Jan 18, 9:21 PM
    • 3,107 Posts
    • 1,639 Thanks
    consumers_revenge
    my car is also 14years young I travel around Calderdale with work and my car just cant handle it any more the clutch is going the brakes need doing and speedo has stopped working, its got over 105.000 on the clock and the MOT runs end of march........ I'm just after advice on which would be the best option
    Originally posted by samhawtin8

    Ford focus by any chance?
    • force ten
    • By force ten 11th Jan 18, 10:10 PM
    • 1,697 Posts
    • 1,136 Thanks
    force ten
    as usual lots of judgmental posts and not much help

    The car dealers love PCP and a lot of the cars leaving the showroom are financed in this manner, the attraction for the buyer is low monthly payments so you get in a new car for low monthlies but are faced with a large balloon payment if you want to keep the car at the end of PCP term

    dealers love PCP because most people just hand the car back and jump in a new car after three years selling their sole to the dealer for another term

    dealer finance has higher monthly payments but if you can get zero or very low APR with some dealer and manufacturer contributions and want to keep the car for the duration then this may be a better way to buy the car as it is yours at the end of the agreement with no large balloon payment

    if the dealer finance is not being offered at low or zero APR then a low cost loan may be the way to go if you have a good credit rating and can get a 2.8% apr loan then this may be cheaper than the dealer finance offering

    but as said there is no real cheap way to buy a car but you have to way up your options and your needs and go with what is best for you

    I personally like to save for my cars and usually try and keep them around five years so as soon as i buy a new car i start saving for the next car and five years down the line i have the means to replace my current car
    • G_M
    • By G_M 11th Jan 18, 11:14 PM
    • 44,442 Posts
    • 52,766 Thanks
    G_M
    If the manufacturer is offering a decent contribution to the deposit on a PCP agreement, sign up to that to get the discont on the purchase price.

    Then get yourself a 0% credit card deal and use that to pay off the PCP asap to avoid the interest charges.
    • Clive Woody
    • By Clive Woody 12th Jan 18, 10:54 AM
    • 4,461 Posts
    • 5,065 Thanks
    Clive Woody
    If the manufacturer is offering a decent contribution to the deposit on a PCP agreement, sign up to that to get the discont on the purchase price.

    Then get yourself a 0% credit card deal and use that to pay off the PCP asap to avoid the interest charges.
    Originally posted by G_M
    Assuming the finance company will accept credit card payments to clear the PCP.
    Rugby Union - The Greatest Game
    • Tarambor
    • By Tarambor 12th Jan 18, 2:14 PM
    • 3,048 Posts
    • 2,211 Thanks
    Tarambor
    my car is also 14years young I travel around Calderdale with work and my car just cant handle it any more the clutch is going the brakes need doing and speedo has stopped working, its got over 105.000 on the clock and the MOT runs end of march........ I'm just after advice on which would be the best option
    Originally posted by samhawtin8
    105,000 isn't a reason to get rid. Mine has just passed its MOT 2 days ago with no advisories...at 127,000 miles. My previous car I put through its last MOT under my ownership at 168,000 miles. Check its history, it only ever failed one MOT in its entire lifetime at 155,000 miles and even then just for one seized rear caliper. https://www.check-mot.service.gov.uk/ reg no EG04DVP.

    Clutches are consumable items as are brakes, every car with them will need them doing at some point or another. A non-functioning speedo is usually the sender unit which is a cheap fix with plenty of change out of 100 if you pay someone to do it.

    Repairing your car is infinitely cheaper than the 5000+ you'll lose in depreciation in the first year of ownership of a brand new car.

    If you really really must get another car then look at one that is 2-3 years old where the largest chunk of its depreciation has already been paid for by someone else, it'll be fairly low mileage and have a good 80-100,000 miles of life left in it at the least and it'll most likely still have some manufacturers warranty . Buy it on a loan and then at least you'll own it at the end of the 3/4/5 year deal.
    Last edited by Tarambor; 12-01-2018 at 2:19 PM.
    • consumers_revenge
    • By consumers_revenge 12th Jan 18, 2:18 PM
    • 3,107 Posts
    • 1,639 Thanks
    consumers_revenge

    If you really really must get another car then look at one that is 2-3 years old where the largest chunk of its depreciation has already been paid for by someone else, it'll be fairly low mileage and have a good 80-100,000 miles of life left in it at the least and it'll most likely still have some manufacturers warranty . Buy it on a loan and then at least you'll own it at the end of the 3/4/5 year deal.
    Originally posted by Tarambor

    Funny enough this is exactly what I decided on last night and you saying it means I did make the right choice :-)
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