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# PCP Car finance?? I am confused

Has anyone bought a used car in this way as I have been today and bought one (pick it up thurs) and now at home I am beginning to wonder if I have done the right thing!

Its a nice little car but now think I will never own it, didnt want to go for the brand new cos of the depreciation thing but I am now wondering as they were offering good interest rates on brand new and would be able to get exact colour and things that I want.

Car Finance is a very expensive way to finance a Car. What is the APR?
Without seeing the T&C's I wouldn't know at what point you own it.

Original Poster

my part ex is valued at 2000 and they want me to pay £130 a month for 42 months and have a final option payment of 3300. The car in question is on the forecourt for £8200.

£130 X 42 = £5460 plus your cars value of £2000 = £7460 add a final option of £3300 = £10760.
If the forecourt price is £8200 and you will be paying £10760 you will be paying £2560 extra.
Can your Bank help with a loan of £6200? It may be a lot cheaper.

Have a look here and see what you would be paying if went for a Bank Loan:-
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hmm, a mate of mine got a car on finance, then found he couldnt afford to pay - so they repossed the car and he still had to pay them a couple of thousand. i would never do it.

If you still need help PM me, my dad was the one who originally taught and came up with the mathematics for PCPs back in the day and he'll happily explain whatever you want

I work in the job but not all the time so I won't advice without him, but always remember.

1) If you get a car on finance, halfway through the contract you can give the car back at no cost to yourself (as for 'dunnos' mate he either didn't know this and was done or wasn't halfway through)

2) Always take the loan out against the car if you get a bank loan, not yourself.

Its always useful to check GFV amounts also, not to mention how much they will charge you for going over your mileage limit if they are giving you a GFV.

EDIT

Also remember to haggle! lol

pawsntails

If you still need help PM me, my dad was the one who originally taught … If you still need help PM me, my dad was the one who originally taught and came up with the mathematics for PCPs back in the day and he'll happily explain whatever you want :)I work in the job but not all the time so I won't advice without him, but always remember.1) If you get a car on finance, halfway through the contract you can give the car back at no cost to yourself (as for 'dunnos' mate he either didn't know this and was done or wasn't halfway through)2) Always take the loan out against the car if you get a bank loan, not yourself.Its always useful to check GFV amounts also, not to mention how much they will charge you for going over your mileage limit if they are giving you a GFV.EDITAlso remember to haggle! lol

Can you explain to me why this 'deal' is going to cost the OP over £2500 extra for taking it just over £6000 on finance over 32 months?

lol, never said they were good value, it was at the companies request that he sorted out the mathematics. However if you really want to know I'll go ask.

Just out of interest why have you chosen a 3 1/2 year finance agreement aly? It seems odd, did you specifically pick that amount of time or did the salesperson come up with the figure? If its the latter I'd say there is defo room for manuevuer in costs as its unusual for them to do 42mths unless you request.

pawsntails

lol, never said they were good value, it was at the companies request … lol, never said they were good value, it was at the companies request that he sorted out the mathematics. However if you really want to know I'll go ask.Just out of interest why have you chosen a 3 1/2 year finance agreement aly? It seems odd, did you specifically pick that amount of time or did the salesperson come up with the figure? If its the latter I'd say there is defo room for manuevuer in costs as its unusual for them to do 42mths unless you request.

Yes I would like to know please. :thumbsup: Is there an 'automatic' APR for PCP finance?
This 'deal' does seem to be in everybody's favour but the OP's.

Original Poster

I didnt request 42 months he just gave me that figure, here is the final breakdown given to me just found out that £300 for gap insurance is included which I dont think I really need because of my deposit (might be wrong)

The APR will be around 12%. The final payment is £3034.80.

The APR’s on this kind of deal on a used car always looks slightly high but this is because of the balloon payment at the end. Dont forget it is unlikely you will pay the final payment so all you pay back is 41 payments of £130£5289 plus your deposit of £1950 so all you pay back in total will be £7240.

The screen price on the car was £8300 do you think he had more room to move on this price.
Think I got it for 8200.

Original Poster

pawsntails

Also remember to haggle! lol

Sorted it just got a loan online (was getting way too confused) going in with cash money.

Feel a lot better now :thumbsup:
Thanks to all

alycat

Sorted it just got a loan online (was getting way too confused) going in … Sorted it just got a loan online (was getting way too confused) going in with cash money.Feel a lot better now :thumbsup: Thanks to all

Nice one.
Thanks for the update.:thumbsup:

ur better off gettin a loan from the bank and buyin a car from autotrader etc

these car finance places are very very pricey

i wouldnt recommend it but i know sometimes ppl get pushed into or have no other option but this...