Car Finance / Best Option / Bank Loan, PCP or dealers car finance

4 replies
Found 24th Oct 2016
Hi All,
I'm looking for abit more advice please regarding purchasing a nearly new car (and the best way to do it).
I have been looking into the fine details now for a month or so, basically i'm wanting a Vauxhall Mokka that is around 1 year old (not wanting brand new from the dealers due to the depreciation hit once its driven off the forecourt - but with a 1 year old car it will also still have 2 years vauxhall warranty in the event there are any problems with the vehicle).
I have seen a few and can obtain one for around 11.5k - (the spec and mileage that im after).

I have been bamboozled with various different methods to purchase so would like to know from members experience what is the best way??

I have £1,000 that im willing to put in myself, meaning i would finance £10.5k

Is the best way to purchase by letting the vauxhall dealer do car finance on hire purchase or by getting a 10.5k bank loan myself over 5 years??
Vauxhall have also said they would be willing to let me do PCP on the car also over 5 years , however i would be restricted to a mileage allowance each year - then also at the end of the 5 years i would still need to pay a final amount to purchase the car - or i could then trade it back in for another new car.

There seems to be lots of different options so i would like to know what members think please??

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4 Comments

get a loan best option as the rates are so low if you have decent credit rating. unless you get a good 0% deal directly from the dealers..but they normally tent to charge premium prices so loan option be the best.

ill second the above. current rates are great. get a standard bank loan (not one secured on the vehicle) that way should you need to ship the vehicle on early for any reason you can maintain the loan if required and you wont be troubled with equity issues

Original Poster

Thanks for the above advice guys - i have just contacted my bank (Natwest, of whom ive been a long customer with).
They have said a 10.5k loan over 5 years would be at a rate of 3.9% APR, meaning monthly payments of £192.57 and the total repayable would be £11.5k
It would also not be secured against the vehicle.

I guess my next question really is - are there better deals out there than can beat Natwest? ...... i would be guessing Vauxhall car dealers dont do 0% finance and i would guess any car finance rate would be higher than 3.9% ??

Any more help would be great please guys.

compare around. some banks have really low rates and you don't need to be their customers. Santander banks rate for the amount you want is 3.6%
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