Looking at buying a new used car for £16,000 and looking for a PCP deal.
Best through the dealer is 9.5% APR but found one online for 6.3% APR. Anyone know of anything better?
What sort of car are you after?
A used one.
A new used one.
Anyone know of anything better?
A bit more detail about the car may help!
FWIW - unless it's a nearly new model, I wouldn't do PCP on a second hand car. You can easily come unstuck at the end of the term with big balloon payments.
You could also end up with an expensive car that is out of warranty, and if turned into a lemon and you needed to get rid, it could cost a lot to get out of the deal.
PCPs are really designed to get you into new cars cheaply.
There are some good loan rates about at the moment. I've just got a loan rate of 3.8 %
The last loan, same amount, was 9.9 %
I wouldn't do a genuine PCP deal for a used car as above. Instead go for a loan for a longer period than you'd take for the PCP
eg: PCP would be say 20% deposit, repayments for 60% of the value over 3 years, then 20% to pay at the end. Including interest at PCP rates, which won't be as low as they are for a new car PCP because the point is to get you (or in my case my wife) obsessed with having new cars. plus they'll probably also offer a dealer deposit contribution to get you in the new car as well.
Instead - pay 20% deposit and get the other 80% on a 4 year loan. Pay that for 3 years and at the end of 3 years what have you got? 20% of the loan left to pay after which the car's yours, or you can sell the car and pay off the loan.
Hopefully at that point the car is worth more than the 20% remaining (if you've looked after it / kept to decent mileage, as you would have to with the PCP) then it'll be worth more than 20% so any excess is there for a deposit for the next one. Plus if you ask for a loan settlement figure after 3 years on a 4 year term, there won't be as much as 20% left because the level repayments will assume interest accruing over 4 years, and you'll only be gathering it for 3. And good loan companies (the banks etc.) don't stack all the interest up front as they may have in the past.
Alternatively you can continue to pay the rest of it off over another year which you can't do with a PCP, it's lump sum only (although you could get a loan to cover the lump sum but it'll be small value short term so higher interest rate)
AFAICS, the only reason to do PCP would be to get a dealer contribution and a lower interest rate as enticement to get you used to a new car. For a used one - personal loan.
(someone will of course be along to say that you have to save up for it over the next 20 years and pay cash otherwise the next credit crunch is entirely your fault but YMMV)
There are some very cheap leasing deals, the OP's question is a little vague to say the least!
Check out pistonheads.com best leasing deals and see if anything is good for you there
Some of the special offers are crazy in that the payments would not even cover the depreciation for the car over the period of the agreement.
HAving a PCP as suggested above which is longer than the intended period is also a useful way of reducing payments
The lease market seems to be geared to 2 year deals so much that they can be cheaper than 3 and 4 year deals (which seems crazy!)
i don't know how new the car you are looking at, but as an example my previous Polo was second hand but because of the PCP interest rate it actually cost more than the brand new car i replaced it with, which had a higher ticket price.
As others said PCP is best for new cars
We were looking at a s/h BMW 4 series coupe.
We had the cash, but at 1% pa on manufacturers finance and only 10% deposit we bought a new one. Didn't ask about PCP.
If spending £16k I'd be looking at the 'whole' cost to purchase, might be cheaper to spend more (for less monthly outlay).
Depends what you are looking for but I'm in favour of leasing over PCP.
Piston heads as per above is a great place to look - typically first couple of days in the new quarter is when best deals seem to be around - last qtr was golf r estates and Leon cupra blacks for 5 or 6k over 2 years including initial payment this quarter was golf GTI s / A4s for similar money.
If you do want to go down PCP route rates and manufacturer contributions on new cars are far more favourable than used.
Have a look at moneysupermarket. I've just got a loan over 5 years at 3%, works out the same price as a pop but I'll own the car after 5 years rather than give it back after 4
Thanks everyone. We are looking at getting a 2015 Nissan Qashqai for £16K. The PCP finance deal I have been able to negotiate is at 4.3% down from 14.5% over 4 years so works out as £167 per month.
We will probably replace the car in 3 years time.
Most lease deals seem to be considerably more expensive but of course there is not the deposit to be paid. I might check these over again.
I did look at the new car option and got some massive discounts using carwow.co.uk but even with 0% interest it still worked out about £50 more per month.
I'll check out the personal loan options as we did think about this but they were harder to get.
