Bamboozled about new cars!

[BacksideInParsley]

DH and I earn good mid-range salary, he has a van (paid off) and I have a small car on PCP with contract coming to an end.

Help me decide whether to:

1. Keep car and refinance to HP contract to pay off remaining £6k and own small car

1. Trade in car for same make better model and pay £450 a month for nicer car on PCP that we can both use (T-Roc)

1. Find a cheaper option with small deposit

I've decided to just keep the car and put it on HP. Cant afford the luxury of a brand new car.

Look at a lease possibly - quick glance at leaseloco shows leases for £280-£300 on the t-roc, depending on mileage. If you don't usually keep cars you PCP then there's not a great deal of difference

If you are not dead set on a specific model then trying putting in what you would be happy paying monthly and the deposit and then sort by hottest deals first. Good for finding relative bargains.

Due to the increase in second hand car prices, its likely that the price in your contract to keep the car is much lower than it would cost you to buy the same car elsewhere, so good that you've decided to keep the car.

However have you looked at the cost of a personal loan to buy it, which is likely to be cheaper than HP?

Compare the cost of both types of financing the purchase and make sure you understand the difference between APR and flat rate, which is often shown on HP and misleading.