Can anyone tell me about pcp for buying cars or your experience with pcp please

[LardLizard]

I’m going to need to buy a new car, my mums offered me the money to borrow

But after going into the garage etc they have offering pcps and saying what a good deal they are etc

Just wondered if anyone could tell me what they think to them

Last car I bought, biught t brand new
Had a flexible bank loan and paid it off within 3 years

So was thinking of doing that again as I know I can borrow form my mum
But I don’t really like to

Haven't done it myself but did hear this program www.bbc.co.uk/programmes/b09hnwhr

Never had a car on pcp but a friend swears by it.

I’m nervous about balloon payments, I get the using the car as a deposit after 3 years and just getting another but then I worry about them quibbling about mileage and any scratches. And I don’t actually want a new car every 3 years!

Thanks for the advice and radio link me and dh are going to have a listen to that

I have a car on pcp for the first time. I hadn’t really considered it before now but the depreciation alone on my old car actually cost more per month than the monthly payments on my new car.

Nil deposit, monthly payment less than depreciation, known repair costs for 45months, hand it back and get a new car.

I traded in my old car and put the money in the bank. It took a while for me to get my head around it but it works, it is cheaper and it will force me not to keep a car longer than I should.

It's great in principle as it makes car finance cheaper, however if you ever want to own the car you will need to find the balloon balance.

Also, bear in mind that should your credit rating fall for any reason, you may not be offered credit to refinance another car leaving you in a situation where your only choice is to sell the car or give it back - neither choice leaving you with any capitol to buy another car.

I suppose it also depends on how long you keep your cars for OP. Four years here or as near as, usually takes me a while to get round to it as cars aren’t a priority for me when they are working well.

Same situation here op- watching with interest!

Check your sums and see what works out to be the cheapest. I got a good deal on 0% finance so for me:

(PCP) Deposit + 36 monthly payments at X + "balloon" payment of Y was cheaper than
(Bank Loan) Deposit + 36 monthly payments of Z
or whatever the options you are looking at

Make sure if you opt for the PCP then during the reduced payment period you are putting away enough to cover the balloon payment or have sufficient savings to cover it. That is if you are planning on owning the car, which I am as I do not need a brand new car every 3 years.

I have always had PCP, never bothered with the balloon payment - at that point I renew and get a brand new car!

Much cheaper than "owning" a car