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Buying a new car on pcp?

  • 12-05-2015 2:03pm
    #1
    skippy.s
    Registered Users, Registered Users 2 Posts: 3 ✭


    Anyone here bought any cars on pcp? Trying to decide on pcp or car loan and would welcome some advice from learned souls


Comments

  • #2
    Atlantic Dawn
    Registered Users, Registered Users 2 Posts: 84,764 ✭✭✭✭Atlantic Dawn
    M


    The downside of the PCP seems to be that you need to keep to the agreed mileage to avoid penalties when the contract period is over.


  • #3
    sunnysoutheast
    Registered Users, Registered Users 2 Posts: 2,072 ✭✭✭sunnysoutheast


    Atlantic Dawn wrote: »
    The downside of the PCP seems to be that you need to keep to the agreed mileage to avoid penalties when the contract period is over.

    Only if you want to hand the car back at the end of the agreement and walk away (you have to service it on the button and there will be issues with scratches etc. too). If you want to pay the balloon and take the car or trade it in for a new PCP mileage is not an issue (but will affect the trade-in price). There was a painfully long thread on this a while back about a Nissan Leaf of all things.

    PCP deals will have a lower monthly repayment than straight HP as there is a deferred loan amount (the GMFV) but will work out more expensive overall as the capital is not paid back as quickly.


  • #4
    vintagevrs
    Registered Users, Registered Users 2 Posts: 3,381 ✭✭✭vintagevrs


    Most companies have different APR% on different finance products for different models so it really depends on the exact car you are looking at.

    0% PCP is going to be better than 5% HP and vice versa. Total cost is the thing that matters. If a car's monthly repayments are too expensive on HP but affordable on PCP you will be relying heavily on the resale value at the end of the agreement being significantly more than your GFV. If it isnt, you wont have a deposit for changing, or may not be able to pay the final lump sum to purchase the car.

    If you were able to save a deposit or a sum to purchase the car during the PCP then you probably could have afforded the HP in the first place, so again, its the APR% that matters between the two in my view.

    Hope that makes sense


  • #5
    naughtysmurf
    Registered Users, Registered Users 2 Posts: 3,294 ✭✭✭naughtysmurf


    Once you understand exactly how PCP works & your options at the end of 3 years with your GFV, really it's just a matter of doing the sums, factoring in the different APR's, length of agreements, monthly repayments etc & then pick what suits you best


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