PCP or HP

[Sheep_Flavour]

Hi Gang,

 

how are we?

 

I have bought a car on HP before but I have never done one with PCP before. I have heard a few stories where it’s not ideal because they will try and sting you on scratch’s and mileage etc but just wondered if anyone out there has done in recently and if anyone has anyone good stories about it?

 

it does seem cheaper than HP but then HP seems to have Less worries.

[ZMANALEX]

Much will depend if at the end of the agreement you make the final balloon payment, use the car as equity as a deposit for another car, or simply hand the car back and walk away

[Payco]

Did it on a new Lexus IS200 in 2003 and a new Audi A4 cabriolet. Sold them  both to friends on the understanding part of the payment was to pay the balloon off. Guess that’s a bit unusual but worked for me. You need to keep the car pretty spotless if you are going to hand It back  and move  into another car as they will penalise you on any imperfections. If you look at the depreciation on a new car versus the monthly payments the  maths for me say do it and change up when the term finishes. Only downside is it never really feels like it’s totally your own car. 

[GranTurismoEra]

PCP if you intend to move it on eventually HP if you plan to keep it long term. PCP on 6% or less is a decent deal. Usually lower monthly payments due to the balloon payment. 

[marzman]

I did PCP on my Mustang in 2018 on 0% interest with Ford.  Balloon payment was £18k, but the car didn't depreciate  and i sold it for £36k in 2021, pocketing £18k for myself. I basically had free motoring for 3 years!

 

Doubt you'd get that lucky again as it was a bit of a perfect storm, but I reckon cars aren't depreciating in line with their predicted curve at present, so there'll be plenty of equity left in a car on PCP come balloon payment time.  

[pintopete58]

Hi  Hp especially not long back it was only 3.3 % or save up for 3 years 

[GranTurismoEra]

18 hours ago, marzman said:

I did PCP on my Mustang in 2018 on 0% interest with Ford.  Balloon payment was £18k, but the car didn't depreciate  and i sold it for £36k in 2021, pocketing £18k for myself. I basically had free motoring for 3 years!

 

Doubt you'd get that lucky again as it was a bit of a perfect storm, but I reckon cars aren't depreciating in line with their predicted curve at present, so there'll be plenty of equity left in a car on PCP come balloon payment time.  

 

0% is very rare. Low volume sales might be a major factor in that

[Umster]

On 10/09/2022 at 19:58, ZMANALEX said:

Much will depend if at the end of the agreement you make the final balloon payment, use the car as equity as a deposit for another car, or simply hand the car back and walk away

This. If all things are equal in terms of monthly repayments, then it's all down to what you want to do at the end. 

 

PCP isn't as good as it used to be in terms of rates. 

 

I wouldn't stress over scratches and dings. If it's in a condition that you'd buy the car at the end of the agreement then you won't get hit with fees. Kerbed alloys, dents or scratches obviously incur a fee.

[ShortPaul]

I personally wouldn't be interested in either options, because officially your not allowed to modify it plus its never really your car🤔

[GranTurismoEra]

On 12/09/2022 at 19:22, ShortPaul said:

I personally wouldn't be interested in either options, because officially your not allowed to modify it plus its never really your car🤔

 

Modified mine with an exhaust. Nissan werent fussed as it was only the exhaust. Obviously anything exhaust related wasnt covered by warranty. Both times they were sold to trade. So was ok. If i was handing it back then yeah that could be an issue.