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  • FIRST POST
    • Qrbrrbl
    • By Qrbrrbl 2nd Aug 18, 10:08 PM
    • 18Posts
    • 11Thanks
    Qrbrrbl
    PCP, deposit and personal loans
    • #1
    • 2nd Aug 18, 10:08 PM
    PCP, deposit and personal loans 2nd Aug 18 at 10:08 PM
    Hypothetical question:

    Say I want to purchase a car (new or used, doesn't matter for the question) at a value of 25k, which has a GMFV of 10k after 3 years. A PCP deal would give me 9%APR over the term, whereas a personal loan can give me 2.5%APR over the same term. I have no cash funds of my own to serve as a deposit.

    Would it be possible, preferable, advantageous to take out a personal loan of 14k on 2.5%APR to use on a deposit, leaving just 1k on the PCP rate of 9%APR, rather than the full 15k on the PCP rate of 9%? Combined monthly payments of the two would potentially be lower than a pure PCP on 9% wouldn't they?

    Assuming excellent credit history, would you even be able to get a personal loan for this?

    Not asking about the relative (dis)advantages of PCP or anything like that, just interested in the hypothetical of trying to optimise a PCP deal.
Page 2
    • Cornucopia
    • By Cornucopia 8th Aug 18, 7:47 PM
    • 11,063 Posts
    • 11,665 Thanks
    Cornucopia
    Other than not having the option to buy are there any other disadvantages of lease over PCP?
    Originally posted by Qrbrrbl
    This is pretty comprehensive: https://www.simplemotoring.co.uk/tips-advice/pcp-versus-leasing-which-should-you-choose/
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