john sugar

Hello there,

Johns the name, muppets is my game
Serious question time though.
I am after a car at 30k, what would be the cheapest way to finance ??
I am looking at getting the car at the lowest possible monthly rate.
Got 1k for deposit & a car to trade though the car to trade will just clear off the finance.
Car is year an a half old.
Thanks

js

C_B_B

I'd have thought the cheapest way to "get your bum in the driving seat" as a car dealer once said to me was to go for a PCP. It'll be the route to the cheapest monthly payment.

john sugar

Can you explain please ??
i dont really care if i own the car at the end of the term

Proby521

iTrader: (1)

PCP I think works like a "balloon" payment scheme. Basically, if the car was £30K, you have a chunk of the money that you pay off monthly (maybe £20K of it) and the remaining £10K would have to be paid in FULL at the end of the term. It depends on the finance company/dealer to what deal/APR and percentage of loan you you defer. After you've paid off the 20K, you either refinance for the following 10K, or sell the car (and hopefully have enough to pay off the 10K!). Hope his makes sense.

Proby.

davedipster

I got my car on dealer finance, worked out cheaper than the best unsecured personal I could get at the time. The all important figure is the total amount to be payed.
Dealer finance as above can work out cheaper than an unsecured personal loan because your car is the security on finance.
If you just want a low monthly rate, be very careful and look at the total payable for the loan/pcp. Baloon payments can indeed give a low monthly figure but these added together with the final payment can work out very expensive. So much so people just give the car back and end up with nothing!

john sugar

Could i get it for around £500 a month ?

fast bloke

depends what type of car it is and what the residual is likely to be in 3 years

fast bloke

although 500 a month would let you borrow around 25k-26k on a personal loan of 60 months

john sugar

X5 3.0d on a 53 plate or a Touareg 05/55 2.5tdi Sport