PCP's what the deal?
#1
I'd like to sell my wife's car and release some of the capital. We've always bought our cars outright and changed every 2-3 years so I was thinking about these PCP deals instead.
Am I right in thinking that you put a deposit down and pay a fixed some for 2-3 years and then get another new car?
What are the pitfalls?
Where can I get the best deals?
She'd like a 206 Peugeot BTW.
F
Am I right in thinking that you put a deposit down and pay a fixed some for 2-3 years and then get another new car?
What are the pitfalls?
Where can I get the best deals?
She'd like a 206 Peugeot BTW.
F
#2
really depends on your situation.
A pitfall is you may be tied to one make. Sometimes the GFV is not great.
Try someone like Alliance and Leicester. They do a deferred loan of up to 50%. So is kinda similar but your not tied in to one make.
Matt
A pitfall is you may be tied to one make. Sometimes the GFV is not great.
Try someone like Alliance and Leicester. They do a deferred loan of up to 50%. So is kinda similar but your not tied in to one make.
Matt
#4
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I've got the same quandry with a new Civic Type-R.
Whether to pay in full over 5 years, pay for 3 years and then hand it back/take another ? Or just get a loan at a cheaper interest rate ? I'd be interested to hear peoples experiences.
Whether to pay in full over 5 years, pay for 3 years and then hand it back/take another ? Or just get a loan at a cheaper interest rate ? I'd be interested to hear peoples experiences.
#5
It's often easier to take out a 5 year bank loan then pay it off when you sell the car.
Alternatively you could look at www.freeway.ltd.uk, but their APR seems quite high. Personally I'd prefer to have a loan that isn't secured on the car, as it gives you the flexibility to sell when you want to.
I think the AA do PCP-type stuff now as well.
[Edited by carl - 7/22/2002 1:02:06 PM]
Alternatively you could look at www.freeway.ltd.uk, but their APR seems quite high. Personally I'd prefer to have a loan that isn't secured on the car, as it gives you the flexibility to sell when you want to.
I think the AA do PCP-type stuff now as well.
[Edited by carl - 7/22/2002 1:02:06 PM]
#6
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PCP deals In my expereince are only really good if you intend swapping your car every 2-3 years, any longer and your better off buying it outright.
A lot of places tie you to one manufacturer which is another thing to bear in mind. I guess the sum you get guaranteed is higher if u swap it for another car from that manufacturer. That said Im sure Honda said the value was the same if I wanted to go buy another make of car - not 100% sure on this though.
I decided a loan was the best for me so that I could sell the car without having to settle the loan first (what I had to do with my nissan bought on nissan finance). Suprisingly my bank (natwest) did a good deal. Loan is payable monthly over 4 years but I can pay any additional money I want to so if I get a bonus etc I can pay that into my loan account. This means my monthly payment is flexible as long as I make the minimum.
A lot of places tie you to one manufacturer which is another thing to bear in mind. I guess the sum you get guaranteed is higher if u swap it for another car from that manufacturer. That said Im sure Honda said the value was the same if I wanted to go buy another make of car - not 100% sure on this though.
I decided a loan was the best for me so that I could sell the car without having to settle the loan first (what I had to do with my nissan bought on nissan finance). Suprisingly my bank (natwest) did a good deal. Loan is payable monthly over 4 years but I can pay any additional money I want to so if I get a bonus etc I can pay that into my loan account. This means my monthly payment is flexible as long as I make the minimum.
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Dont forget that PCP's invariably you end up paying more interest than a personal loan, due to the calculations being made on the gfv.
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