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Pcp plans to buy a new car

(5 Posts)
OnlyHereForTheCamping Sat 27-Aug-16 18:10:24

We have never considered this before but it seems like a good deal, any thoughts?

19lottie82 Sun 28-Aug-16 10:03:03

You don't "buy" the car with PCP, well unless you make the large balloon payment at the end of the term, rather than hand the car back. Would you be doing that?

Crisscrosscranky Sun 28-Aug-16 10:38:28

It's not a 'good deal' it's a finance arrangement that means at the end of the term you have 3 options:

1. Pay balloon payment and own the car
2. Hand the keys back and walk away (presuming you haven't gone above agreed mileage and car is in good order)
3. Hand car back and use any 'equity' in it to finance a new car.

I had a bad experience- got mine on PCP when I worked 2 miles from home and walked to work in the summer- my annual mileage was about 8000. I had to move roles to a 40 mile a day return commute. I ended up paying the balloon payment (around £5k) as my excess mileage charges wouldn't have been much less. sad

OnlyHereForTheCamping Sun 28-Aug-16 10:43:55

I do understand the mechanics of it. We do need to iron out the mileage side. The balloon payment at the end is still a good price for a 4 year old car.

Sorry to hear you had a bad experience with it

OnlyHereForTheCamping Sun 28-Aug-16 10:45:30

And thanks for the replies!

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