Bank loan or PCP

[MoonShineReady]

My very old car has broken down beyond repair and I need a new used car as soon as possible. I have some money saved up but would have to either borrow an additional 6K from the bank or do a PCP type of purchase.

The car will cost around 13-14K. What's best PCP or bank loan? I have no idea as my previous car, which was already quite old, was given to me by my parents as they didn't need a second car any longer.

I have a Kia Picanto X Line, bought from new, now six years old. I have three friends with Picantos, all been great cars, no problems with them. I might get another one next year.

I think you also get any remaining 7 year warranty with secondhand Kias too.

Sorry, that doesn't sound like a PCP to me. You can never end up in negative equity as long as you make all your loan payments - one of the key points of a PCP is it's the finance company that takes the hit if the car is worth less than they thought it would be. See guides on MSE etc.
They can only charge you extra at the end if there is damage to the car or excessive mileage beyond what you signed up to. Those fees can be very high.

No help with the finance/loan debate but I’m looking in this price bracket too.

Best deals I’ve found so far are approved VW and approved Seats, our local garage is Pulman and they offer 2 year warranty as standard.

there was a period of time where it did happen. It shouldn’t have and you were told it wouldn’t happen. But the values of certain cars suddenly dropped and the arse fell out the market. People were lucky if they got away with just handing it back

PCP is a terrible deal in almost every case. Get a loan!

I drive a Corsa, like millions of others, and I would choose the same next time.