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PCP or bank loan for car?

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Pottymouth83 · 13/10/2021 23:01

Looking to buy a new car and can’t work out what the best finance option is. Previously had cars on PCP but we are currently without a car as it was written off by thieves.

We have about £10k saved we could put towards a car and are looking to spend about £25k-28k. When we’ve chatted to various dealers about PCPs they’ve all advised us not to put down a big deposit - they say £4K is about right- as although it reduces the monthly payments, it means you have a lot of equity tied up in the car and it makes no difference as ultimately you end up paying the same total amount. Would that same logic apply to a loan - ie is it a bad idea to get a circa £15k loan, add it to the £10k we already have and use that to buy a car instead of a PCP? Or is that more sensible as we would own the car outright at the end of the loan unlike with a PCP? I can’t work out what would be the best option??

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