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Original poster

PCP Deals

6 replies

Dunmovin · 02/08/2015 21:14

Would I be mad to sign up to one of these? Are you really just leasing a car under a different name? Is it better to do one of these deals than HP? I feel like there's a massive catch and I'm not seeing it. Can anyone help?

OP posts:

penisland · 04/08/2015 07:24

Yep pretty much a lease but with the option to buy it at the end. Effectively all you are doing is paying the depreciation. If you're happy with that then great, there is no real catch.

WMittens · 04/08/2015 21:26

As above, really.

You have some slight extra protection over a lease in that once 50% of the total amount has been repaid you can give the car back with no extra penalty. The caveat to that is on some of the low deposit deals, you might not reach the 50% repaid point before the final balloon payment is due.

AmyBecker · 02/10/2015 14:08

Yeah PCP is a great option for people who aren't fully committed to the one car, as when you're contract's up it gives you the option to pay the balloon payment or trade it in for a new car.

Plus you'll have to be cautious on mileage as some PCP deals may charge an add on fee if you go over their annual mileage figure.

WMittens · 02/10/2015 22:45

Plus you'll have to be cautious on mileage as some PCP deals may charge an add on fee if you go over their annual mileage figure.

Depending on the finance company, the excess mileage figure is often so low that it is actually better to get a lower mileage limit (lower monthly payments) and then pay the excess mileage.

jamtartandcustard · 07/10/2015 14:47

they have cheaper monthly payments but that's because there is a big payment at the end. you are basically hiring the car for, say for example 36months, and then paying £x000 to buy it at the end, or hand it back and possibly have nothing.
I would personally pick HP over pcp, and unless it is 0% finance, I would rather pick a bank loan as many offer better rates and more flexible time scales.

AmyBecker · 07/10/2015 15:20

I think PCP deals aren't too bad, definitely have to do your research and see if it works best for you though.

I know multiple people on PCP deals and it works out pretty well for them, I think it works best for people who aren't set on one car as they're the type that'll want to change their cars every 2-3 years.

Flexibility and convenience is the main thing with them really.

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