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

 

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

 

Thx Matt, I'll check them out.

Anyone else? Surely you lot haven't all bought your cars outright?

F

 

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.

 

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]

 

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.

 

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.

 

Floyd YHM