To ask if anyone here works in PCP finance?

[Flossyfloof]

I’m in the market for a new car and was originally going to pay cash. All the showrooms I have been to are pushing the PCP route very strongly. Yesterday I sorted out the car I really want. They are offering a massive discount if you do a PCP. He actually said that you can put down a deposit, take out a plan and just pay it off immediately. He was very clear that you only pay interest on what is left owing on the car. Seems too good to be true - I get a better deal if I set up this plan but can pay it off immediately, so I get a much better deal than I would if I paid cash upfront.
I’ve never had a PCP - they weren’t a thing when I bought my current car. Please can anyone advise?

I don't like them. I just replaced my car and paid cash.

I suppose if you can pay it off right away it sounds okay unless there are complex consequences eg if the car breaks down eg did you buy it from the loan company or the showroom, insurance - may be you need one policy for a few days and once you pay it off another one? I have not looked into it so hopefully someone who knows more about it can come on and let us all know.

I bought my last car on PCP I think, as you've said they were willing to give further discount for taking out a policy..
I had been planning on paying cash on the balance after PX but I took out the policy then paid it off the day after collecting my car...
So I think what you've said sounds reasonable.
Make sure there's no minimum period you have to have the policy running for before you pay it off though.
Audi tried to tell me I had to have the policy open for 6m before I could settle but there was nothing in the T&Cs and no penalty for early settlement.

PCP has been around for years. We have had it, without any problems and have always had a good price on px back. But in away, I think I would prefer to own the car at the end.
Bargain hard though, ask for more discount, and for a lower interest rate and a full tank of fuel.

Thanks I can’t believe there isn’t a catch - but will definitely read the small print!!