Butkus

Has anyone bought their car using these schemes? What do they think? I'm considering buying a new WRX using a PCP scheme. Thanks.

SwissTony

iTrader: (19)

There has been other threads to this topic
cant remember how to link but here it is
Subaru finance - what APR to expect? for searching threads

Baby Blue

Good if your on a monthly budget, I have one but car is currently worth less than amount outstanding, despite having paid off £7k in 12 months! I'm not bitter [img]images/smilies/mad.gif[/img]

Dealer told me on Saturday that they are currently doing 3.54% flat rate, before any negotiations - approx 7.1% APR, which is not bad compared to a personal loan (typical (7.9% - 12.9% APR)

Whatever suits your personal circumstances.

BB

Bajie

PCPs are very bad.

Remortgage is arguably the best way.
Or save. Like a lot of my smarter friends did.
Not bitter. Learning the hard way isn't always easy.
lol@me

Reffro

PCP's are very good provided you avoid the pitfalls. Drop me a line to my e-mail address in my profile with your number and I will call you and give you the low down. Its easy to explain, but a bitch to keep typing.

logiclee

I was fed up of loosing money on cars and getting stung when trading in so i went for a PCP.

I know how much the car is going to cost me over the term. If its worth more than the GFV at the end of the term I can use it towards the next one or if not just hand it back.

I always keep my cars A1 with no scratches or dings etc so never had a problem at handing back time. A workmate did hand a Focus back with scratches, dings, kerbed alloys and destroyed boot interior. They made him pay £1500 !!!!

Lee

DeerHunter

you can negociate to 3% at the dealer! - dont give up

you will also get 3% if you shop around.

Also if you can get your business to front it if your self employed you will get a better business rate!

Butkus

I have the money, but I need to use it for my business, so I am better off having a monthly repayment type scheme, that's why I was thinking of this.

scooby-k

alliance & leicester do a similar scheme except its not tied to the car. check it out on their web site. its worth a look

logiclee

The only thing with A & L is that they don't give you a GFV so you could end up at the end of the term owing more than the cars worth.

Lee

bogie

Butkus,

Have you thought about personal leasing?

Based on MY03 WRX 10k miles per annum:

Put down a small-ish deposit (£1150inc VAT)

Then pay £340inc VAT per month for either 24 or 36 months.

After the agreed term, you owe nothing, just hand the car back and start again.

The lease company will also offer you the car to buy after the term for a very reasonable price, it saves them having to take it back and trade it to a dealer etc..

If you want PPP then it could either be paid extra in full after fitting or added to the monthly payments if fitted before delivery.

You can also pay a higher deposit and pay less per month if you choose.

If I didn't have my current scoob on HP I would go for this in a minute.

And NO I'm not linked to Subaru or a garage in any way, just passing on info. I have picked up to fellow scoobyers.

Mind you the speel sounds quite good.........maybe someone will offer me a job selling Scoobs?

Hope this is of interest.

Bogie

Butkus

Bogie, thanks. Do you have any links or names of companies that offer personal leasing?

logiclee

Stan Palmer banner on this bbs MY03 WRX £1000 deposit and £275inc VAT a month for Personal Contract Hire.

Lee

bogie

ButKus,

These prices were from Stan Palmers, give them a buzz on 01228 525051 and ask for Ian, good guy.

Lee the prices quoted on the banner add are for old bug eye MY02's they just haven't updated the banner add yet.
Bummer as a MY03 for these prices would be the dogs!

Bogie

Silverback

My MY03 WRX is on a PCP through a company called Freeway. This is the third car I have arranged through them in this way.

Main reasons I went PCP route is that my work gives me a monthly figure towards a car. I have to use very little of my own money (in terms of upfront deposit) and I pay a bit more (not in the case of the scoob!) to cover maintenance (servicing, tyres etc.)

So far, no problems but you do have to be aware of the pitfalls associated with excess mileage, accidental damage etc.

Depends on circumstance I guess.

Chins

Beware PCP's. Yes they give a Guaranteed value at the end, but these are set low enought that in 99% of the cases your car will be worth more.

Why are they bad:

FRONT LOADING

Dont think about settling early. Nearly all of your first 6 months payments go in front loaded interest. So lets say your paying £400 a month. You bought the car for £22,000 with a 2000 deposit. One year down the road your settlement would be roughly £17,500.

If you had used a std 5 year loan, with the same monthly payments, your settlement would be roughly £1,000 less.

Even if you keep the car for the term, if you look at the interest paid vs settling a 5 year (no early settlement penalty loan) at 3 years, you will still of paid £700 more interest.

IMPREZA STI OWNERS TAKE NOTE:

Most people buying new STI8's are usually victims of fashion. Look at all the people switching from the 7 to the 8. To make the move less painfull finance is key.

This applies to all cars, but if you have IF or Woolwich daily interest mortgages with reserves, these are great to finance cars. Use the reserves and set up a straight 3,4 or 5 year loan. Interest is calculated daily, there is no arrangement fee. Settle it 1 week after starting the loan and you'll only pay 7 days interest as a penalty.

The other way for STI owners who have fitted a PPP and want the minimum deposit is balanced payments. Most dealers/finance houses want a minimum of £25k to finance. These also work on a daily interest rate. Dealers hardly EVER talk about them as they make sod all commision. You will however as with nearly all finance deal pay an arangement fee.

I use Lombard which will do these on smaller amounts. I pay 6.5%, might get less next time. If anyone wants a contact and is financing a nice chunk of money, drop me a line and I'll pass on the details - FYI no commercial interest.

Jonathan

The man thats financed 20 cars in the last 3 years And yes I have lost loads.