Did I get a bad PCP deal?

DaveyDave

Hi all,

Not too confident in my PCP deal after reading people's posts about how much they got off various cars...

VW Golf Highline 1.0 DSG starts at €29,195 and with extras is €30,410. My deal is for €29,194 so €1,216 off. Service pack included but not sure if that's saying much, I think there was a deal for it at the time.

This doesn't seem like a whole lot, especially some of the numbers I've seen some people saying. This was a cash deal though, no trade-in. I understand for trade-in you can push for a higher 'discount' with them just adding to the trade value.

Is this a good deal? The last time I was on the phone the guy said it was done wrong by the other salesperson because my price includes the delivery charge. It doesn't say anything on the paperwork but is the car price the on the road price? I've budgeted having the delivery charge with the rest of the deposit for when I collect it but I just can't see myself having so much left over in the day.

I was expecting it to come down a little more and the person who was with me is a good negotiator so we did push them. I'm just not quite sure if it's good or not?

ShadowHearth

Its too late to ask it now, if you signed off on it. You will only upset yourself. You needed to make this post when you had a quote on paper before committing to it.

Finding out now, that you could have saved 500eu and you didint, will only upset you for no reason.

Just my 2 cent.

DaveyDave

ShadowHearth wrote: »

Its too late to ask it now, if you signed off on it. You will only upset yourself. You needed to make this post when you had a quote on paper before committing to it.

Finding out now, that you could have saved 500eu and you didint, will only upset you for no reason.

Just my 2 cent.

I know I can't do anything now, it was actually signed off on back in May! Just wondering so I know for future reference

mickdw

Id have thought 1500 to 2k off for a straight sale would be pretty much automatic so looks like you should have got more out of them. That said, the vw deals are pretty good with zero percent interest and reasonable equity at end of term. You could do alot worse so enjoy.

Atlantic Dawn

How much a month, what APR, the other figures don't mean a lot without knowing these.

dil999

Looking at the prices you quoted you appear to also have been discounted the delivery charge, which is €775, That would be a total discount of almost €1,991. what extras did you get?

What was the apr%? and was there a dealer contribution to the deposit?

DaveyDave

dil999 wrote: »

Looking at the prices you quoted you appear to also have been discounted the delivery charge, which is €775, That would be a total discount of almost €1,991. what extras did you get?

What was the apr%? and was there a dealer contribution to the deposit?

Sorry, should have gave more info 0% APR. Tech Pack, Park Assist and keyless entry. No dealer contribution.

I probably should have let the price sit and as previously mentioned posted about it at the time, I the price is €325 a month, down from about €375 so I was happy with that.

christy02

DaveyDave wrote:

I probably should have let the price sit and as previously mentioned posted about it at the time, I the price is €325 a month, down from about €375 so I was happy with that.

A brand new 30 grand car for 325 a month. No wonder there is so many new cars on the road. What will happen when all the pcp deals expire?

What could possibly go wrong?

Toyotafanboi

christy02 wrote: »

A brand new 30 grand car for 325 a month. No wonder there is so many new cars on the road. What will happen when all the pcp deals expire?

€325 a month and he probably put down a deposit of around ten grand, he didn't just walk in and get the keys for €325.

When the PCP deals expire which they have been doing already for the last number of years, the owner can pay/ refinance the balloon payment and keep the or either hand back the car and walk away or trade it in off another PCP deal and balance the equity. With the latter two options the car ends up back on the market.

The apocalypse doesn't and won't happen when "all these PCP deals expire".

DaveyDave

christy02 wrote: »

A brand new 30 grand car for 325 a month. No wonder there is so many new cars on the road. What will happen when all the pcp deals expire?

What could possibly go wrong?

I'm not sure I follow? What's the issue? If PCP expired I'm sure a new line of finance would come around. If not, I'd save, get a partial loan and pay it monthly as everyone else does.

There's so many new cars on the road because we're out of the recession

christy02

DaveyDave wrote:

I'm not sure I follow? What's the issue? If PCP expired I'm sure a new line of finance would come around. If not, I'd save, get a partial loan and pay it monthly as everyone else does.

People driving new cars that actually can't afford it. The refinancing of the balloon payment will be a lot more than the pcp I expect. Therefore people may struggle to pay that.

Toyotafanboi

christy02 wrote: »

People driving new cars that actually can't afford it. The refinancing of the balloon payment will be a lot more than the pcp I expect. Therefore people may struggle to pay that.

At the risk of going around in circles, buying via finance does not mean you can't afford.

The ball in payment is always 33% of the price of the car so if someone used less than 33% initial deposit then surely the finance on the balloon payment over 3 years would be less than the first 3 years PCP, depending on APR to an extent.

christy02

Toyotafanboi wrote:

The ball in payment is always 33% of the price of the car so if someone used less than 33% initial deposit then surely the finance on the balloon payment over 3 years would be less than the first 3 years PCP, depending on APR to an extent.

Yeah but if you financed the balloon over 3 years that would mean the car would be 6 years old by the time it's paid for. That seems a long time to me to be paying for a car. That's just me.

I prefer the old fashioned way of saving up a bit and buying a car I actually own, or maybe a small cu loan over 12 months. Prefer looking for value in older cars than newer cars but that's just me.

Each to their own.

tedpan

christy02 wrote:

I prefer the old fashioned way of saving up a bit and buying a car I actually own, or maybe a small cu loan over 12 months. Prefer looking for value in older cars than newer cars but that's just me.

Would you save up and buy a brand new car? If so, that's madness. After 5 years you will have lost the majority of your investment and have an old car which needs regular maintenance. With PCP you get a new car that's affordable with minor servicing and repairs.

MIKEKC

christy02 wrote: »

A brand new 30 grand car for 325 a month. No wonder there is so many new cars on the road. What will happen when all the pcp deals expire?

What could possibly go wrong?

Everything

CeilingFly

DaveyDave wrote: »

Is this a good deal? The last time I was on the phone the guy said it was done wrong by the other salesperson because my price includes the delivery charge. It doesn't say anything on the paperwork but is the car price the on the road price?

Usually you can haggle 5%-8% off a new car price of popular models and you are in that ballpark.
Delivery fee is separate in Ireland as if it was included in the retail price VRT would be added to it - the charge includes the unwrapping, polishing, checking and delivery.

christy02 wrote: »

People driving new cars that actually can't afford it. The refinancing of the balloon payment will be a lot more than the pcp I expect. Therefore people may struggle to pay that.

A lot of naysayers out there on PCP who simply don't understand it. Cars have a value - the value may fluctuate a little on market conditions with brexit etc.

Most pcp's involves a deposit of 25%-30%, a further 30%-40% is paid off during the term and it leaves a 30%-35% guaranteed residual value by the dealer in conjunction with the finance house and marque.

I can't think of any 3 year old car that has a value less than 35% of its current new price - and currently the market is swamped by UK imports.

So you can take it that there is a huge cushion for any possible issue out there - just the buyer needs to be aware that to keep the car the residual value must be paid at the end of the period. In OP's instance its probably about 10k.

J.pilkington

OP, don’t mind the doomsdayers. It’s clear from your posts you are excited about this car and have given it loads of thought, don’t let the thoughts of missing out on a few hundred quid of a discount take the shine of what will be a very special day, one which only happens every few years. Well wear with it.

Btw, I find internet talk of discounts / hero negotiating deals a bit like when people in the pub talk about gambling, all great sounding stories but take them with a pinch of salt.

christy02

tedpan wrote:

Would you save up and buy a brand new car? If so, that's madness. After 5 years you will have lost the majority of your investment and have an old car which needs regular maintenance. With PCP you get a new car that's affordable with minor servicing and repairs.

If you read my post I said I like looking for value in older cars. I have no desire to own a new car, nor am I a numberplate snob.

DaveyDave

J.pilkington wrote: »

OP, don’t mind the doomsdayers. It’s clear from your posts you are excited about this car and have given it loads of thought, don’t let the thoughts of missing out on a few hundred quid of a discount take the shine of what will be a very special day, one which only happens every few years. Well wear with it.

Btw, I find internet talk of discounts / hero negotiating deals a bit like when people in the pub talk about gambling, all great sounding stories but take them with a pinch of salt.

Yeah, anyone who has seen me posting on here is probably sick of me talking about the Golf haha, I suppose everyone's situation is different. Some will get more than others, but at the end of the day the monthly payments went down a chunk and I'm still happy with that. Maybe I'll get more off on the next one

Toyotafanboi

Sounds like you got a nice car. Have you picked it up yet? Any pics?

dil999

christy02 wrote: »

Toyotafanboi wrote:

The ball in payment is always 33% of the price of the car so if someone used less than 33% initial deposit then surely the finance on the balloon payment over 3 years would be less than the first 3 years PCP, depending on APR to an extent.

Yeah but if you financed the balloon over 3 years that would mean the car would be 6 years old by the time it's paid for. That seems a long time to me to be paying for a car. That's just me.

I prefer the old fashioned way of saving up a bit and buying a car I actually own, or maybe a small cu loan over 12 months. Prefer looking for value in older cars than newer cars but that's just me.

Each to their own.

Unless you are talking about very small amounts of money, then purchasing a car with your own money does not make financial sense. Purchasing a new or used car with a Credit Union loan is utter madness. It's the most expensive finance you can possibly get short of using your credit card.

DaveyDave

Toyotafanboi wrote: »

Sounds like you got a nice car. Have you picked it up yet? Any pics?

Not yet unfortunately, due to land on the docks this Friday. Hopefully it won't be too long now, I'm not patient enough for these delays!

Cee-Jay-Cee

tedpan wrote: »

Would you save up and buy a brand new car? If so, that's madness. After 5 years you will have lost the majority of your investment and have an old car which needs regular maintenance. With PCP you get a new car that's affordable with minor servicing and repairs.

New cars need regular maintenance too and a 5 year old car is not an old car! Your talking like it'll be falling apart at that age. I have been driving 28 years. The newest car I have owned was 5 years old. I have never had a catestophic mechanical failure, in fact I have never had any mechanical failure which would render a car undriveable (should add I have only over owned petrol cars but that's beside the point)

Toyotafanboi

DaveyDave wrote: »

Not yet unfortunately, due to land on the docks this Friday. Hopefully it won't be too long now, I'm not patient enough for these delays!

Probably be 7 working days ish from then by the time it's lifted by NVD, PDI'd, delivered to the dealer, valeted, plates etc, maybe a little bit quicker this time of year.

Wildcard7

tedpan wrote: »

Would you save up and buy a brand new car? If so, that's madness. After 5 years you will have lost the majority of your investment and have an old car which needs regular maintenance. With PCP you get a new car that's affordable with minor servicing and repairs.

You are comparing apples with oranges. Or do you honestly think buying a new car every 3 years with borrowed money (PCP) works out cheaper for the buyer than buying a new car every 3 years with your own money? If that's so, someone should warn the people lending the buyers money know that they're losing money by doing so.

And if you plan to actually use your car for 8-10 years instead of 3, buying with your own money makes even more sense. That is if you actually research what you're buying, instead of buying a Dacia Ruster or a Citroen because it comes with lots of shiny features.

Buying a new car every 3 years is luxury. That's fine, there's nothing wrong with luxury. But the number of people who keep trying to sell this as a sensible thing to do, astonishes me.

Buying a new car every 3 years with two thirds of borrowed money is even more luxury. Again, it's not my money, be my guest. But I can't fathom what must go on in someones head when they claim that buying something with borrowed money saves them money in the long run.

But then again the fascination of driving a 1-3 year old 1l shoebox with 57 HP escapes me completely, and I hate owing money.

grogi

DaveyDave wrote: »

Hi all,

Not too confident in my PCP deal after reading people's posts about how much they got off various cars...

VW Golf Highline 1.0 DSG starts at €29,195 and with extras is €30,410. My deal is for €29,194 so €1,216 off. Service pack included but not sure if that's saying much, I think there was a deal for it at the time.

You didn't do bad in fairness. You could get something more out of it, but you weren't squeezed yourself either:

The cheapest HL 1.0TSI DSG is €29.970 (you forgot to add delivery), so yours would be €31.200. Service pack for three years is worth around €500 as well.

Toyotafanboi

Wildcard7 wrote: »

Buying a new car every 3 years with two thirds of borrowed money is even more luxury. Again, it's not my money, be my guest. But I can't fathom what must go on in someones head when they claim that buying something with borrowed money saves them money in the long run.

This I think is where the logic falls down. Nobody is suggesting it's cheaper, but it could be considered better financial management.

If you want a new Mondeo, say €30k for round figures and you have €30k in savings, I'd much rather buy the Mondeo on some form of finance and be happy to take a hit and pay 3 or 3% APR or whatever with a monthly payment I can afford to keep my €30k accessible if I were to need it, rather than zero my savings.

That said if I had over €100k in savings etc then buying a €30k Mondeo cash up front may be less risky and more feasable but then if I had such an amount in savings then the APR would probably be even less of a concern to me again.

Spending your savings on an instantly heavily depreciating asset seems a bit bonkers too if we are talking financial sense. Spend €30k, drive away, vehicle instantly worth €25k. Now in fairness cars bought through finance aren't depreciation free but at least you havn't lost the money, you just havn't spent it yet.

grogi

Toyotafanboi wrote: »

That said if I had over €100k in savings etc then buying a €30k Mondeo cash up front may be less risky and more feasable but then if I had such an amount in savings then the APR would probably be even less of a concern to me again.

That is a common misconception. Being prudent about your finances is a good thing, regardless how much you have saved already.

One needs to balance things and compare various options - the cost of financing vs a cost of inflexibility and potential benefit lost.

Toyotafanboi

I completely agree.

christy02

dil999 wrote:

Unless you are talking about very small amounts of money, then purchasing a car with your own money does not make financial sense. Purchasing a new or used car with a Credit Union loan is utter madness. It's the most expensive finance you can possibly get short of using your credit card.

What are you talking about? I can't link at moment but aib car loan rates are 8.45% Apr. Credit union near me give car loans for 7.45% Apr (each are different)

Some of the finance companies used by garages are 11 or 12% Apr.

Besides as I said I buy older cars and have most of money saved (a concept a lot find strange)
As cee Jay also said I have never had a major mechanical failure. Lots of people with 4 and 5 year old cars are having a lot more trouble than I have had with my 8-10 year old cars.

Possibly because people are paying large sums of money each month to maintain loan repayments, they neglect to maintain their car.

Anyway each to their own. Good luck op with the car. Sounds lovely.

Wildcard7

Toyotafanboi wrote: »

This I think is where the logic falls down. Nobody is suggesting it's cheaper, but it could be considered better financial management.

Fair enough, even though I see it 180° the other way around. I wouldn't want to commit myself to another monthly payment. I'd rather know what I have in my pocket and have as few financial liabilities as possible.

Probably it doesn't make a difference. If the proverbial hit the fan, I have less money in the pocket, but fewer things costing me money each month, and you're the other way around.

I wouldn't want to clear my savings account (on that we clearly agree).

Toyotafanboi wrote: »

Spending your savings on an instantly heavily depreciating asset seems a bit bonkers too if we are talking financial sense. Spend €30k, drive away, vehicle instantly worth €25k. Now in fairness cars bought through finance aren't depreciation free but at least you havn't lost the money, you just havn't spent it yet.

See that's where the thinking becomes a bit dangerous in my opinion. The car depreciates as much, whether you buy it with your own money or on PCP. It does. The fact that it feels like it doesn't just confirms that you're seeing things with rose goggles when going through PCP (no offence intended). Which among other problems tempts you to spend more money than you can actually afford on a bigger car than you actually need.

Cars depreciate. Drive it off the forecourt, 10-15% value is gone immediately. Buying a new car every 3 years means you lose out the most on depreciation (but you get a new car, and are constantly under warranty). None of that changes when you buy the car on PCP.

deathtocaptcha

tedpan wrote: »

Would you save up and buy a brand new car? If so, that's madness.

Buying things in cash ensures you never spend beyond your means and own the thing outright from day 1. You don't owe anyone anything nor are you relying on markets or companies to remain profitable / honest / fiddle terms of deals or exploit gray areas etc... you constantly have to worry about that if using PCP.

It's also cheaper in the long run paying in cash as the total € paid if paying in cash will be cheaper than total € value if taking on any kind of finance deal.

Nobody should be criticised for being financially prudent. Borrowing money / getting in to debt to buy **** you don't need ends badly for most people.

Toyotafanboi

deathtocaptcha wrote: »

Nobody should be criticised for being financially prudent. Borrowing money / getting in to debt to buy **** you don't need ends badly for most people.

Most people do need a car though.

maidhc

Toyotafanboi wrote: »

Most people do need a car though.

Not a new one every 3 years. Realistically the lifespan of a modern car is about 15 years or 250k miles before it all gets out of hand with respect to maintenance.

I often take my fathers Avensis as an example.

Bought new in 2002: €25,000
Value now: €Nil
Depreciation: €25,000
Depreciation per year: €1667
Cost per month: €138

That folks is the cost of having a car. If you are paying more it is because you want to (newer car etc). Unscheduled maintenance on it has been negligible btw.

dil999

maidhc wrote: »

That folks is the cost of having a car. If you are paying more it is because you want to (newer car etc). Unscheduled maintenance on it has been negligible btw.

Nope. That's the cost of your father's Avensis.

It's not remotely typical. There are plenty of people who will have stories of 7, 8, 9 year old cars With 1000s needed to be spent on them.

dil999

christy02 wrote: »

What are you talking about? I can't link at moment but aib car loan rates are 8.45% Apr. Credit union near me give car loans for 7.45% Apr (each are different)

Some of the finance companies used by garages are 11 or 12% Apr.

Besides as I said I buy older cars and have most of money saved (a concept a lot find strange)
As cee Jay also said I have never had a major mechanical failure. Lots of people with 4 and 5 year old cars are having a lot more trouble than I have had with my 8-10 year old cars.

Possibly because people are paying large sums of money each month to maintain loan repayments, they neglect to maintain their car.

Anyway each to their own. Good luck op with the car. Sounds lovely.

Many of the Credit Union's have loans are more expensive than 7.5%. And of course taking finance at 11 to 12% is mad, from a Credit Union or a car dealer. Buying inexpensive used cars is a completely different from the process of buying a new car which cost should short of the average industrial wage. There is no question that buying an 8 year old car is going to cost you less than buying a new car over the first 3 years of its ownership. But not everyone wants to drive an 8 year old car.

dil999

Wildcard7 wrote: »

You are comparing apples with oranges. Or do you honestly think buying a new car every 3 years with borrowed money (PCP) works out cheaper for the buyer than buying a new car every 3 years with your own money? If that's so, someone should warn the people lending the buyers money know that they're losing money by doing so.

And if you plan to actually use your car for 8-10 years instead of 3, buying with your own money makes even more sense. That is if you actually research what you're buying, instead of buying a Dacia Ruster or a Citroen because it comes with lots of shiny features.

Buying a new car every 3 years is luxury. That's fine, there's nothing wrong with luxury. But the number of people who keep trying to sell this as a sensible thing to do, astonishes me.

Buying a new car every 3 years with two thirds of borrowed money is even more luxury. Again, it's not my money, be my guest. But I can't fathom what must go on in someones head when they claim that buying something with borrowed money saves them money in the long run.

But then again the fascination of driving a 1-3 year old 1l shoebox with 57 HP escapes me completely, and I hate owing money.

It probably does cost more, particularly based on on the 0 to very low interest rates.. Don't forget you spent years accumulating those savings, and you will now have to replenish them. If you saved 30K over 5 years that's 6K per year. after 5 years you buy your car. The car costs more than it did 5 years ago. I am looking at an old VW golf brochure from Nov 2013. the 1.6 TDI automatic comfortline is now €30,125. In 2013 it was €28,615. That's in increase of 5.3% over 4 years which is 1.3% per annum. and off course the newer model is more efficient and has better safety features

The finance companies providing PCP finance are generally subsidiaries of, or backed by, the manufacturers. Some of the car manufacturers have billions in cash reserves. What better way to spend it than increasing revenue.

draiochtanois

This post has been deleted.

mickdw

maidhc wrote: »

Toyotafanboi wrote: »

Most people do need a car though.

Not a new one every 3 years. Realistically the lifespan of a modern car is about 15 years or 250k miles before it all gets out of hand with respect to maintenance.

I often take my fathers Avensis as an example.

Bought new in 2002: €25,000
Value now: €Nil
Depreciation: €25,000
Depreciation per year: €1667
Cost per month: €138

That folks is the cost of having a car. If you are paying more it is because you want to (newer car etc). Unscheduled maintenance on it has been negligible btw.

That's madness. That cost is excessive. He bought new. Look what he would have saved if he bought a low mile 2 year old avensis!
2 year old avensis at the time €16k or €88 per month. That is the cost of owning a car. Anymore is just luxury.

Oh wait I'm wrong. A 3 year old avensis could be had for 12k at the time. €66 per month. That is the cost of owning a car. Anymore is just passing away your money.
Oh wait, a 2 year old fiesta could be had for......

maidhc

draiochtanois wrote: »

This post has been deleted.

No, the 2002 Avensis has similar consumption to a new car.

I'm just outlining the economic cost of running a car from new into the ground. If it can be done cheaper, well and good, but it will rarely cost too much more with a basic car.

My constant beef is that with pcp you are paying €300+ a month, but then being asked periodically for a few €k. No one would claim to be paying €1000 a month in rent if they had to pay €5k every so often to their landlord!

I bought two cars this year, one new Opel Astra on 0% hp finance over 3x years at about 600pm with around a 30% down payment (excellent finance deal, that is truly cheaper than paying cash) and another 18 month Avensis for €21k cash. If I could have a car for the figures being constantly mentioned I'd have bought one of the cars on pcp.

I think pcp makes great sense if you can't really afford a new car now, but will have a lump sum in 3x years, either by saving or work or otherwise. It isn't a sustainable ownership model, although some will do well in individual cases I'm sure.

Toyotafanboi

mickdw wrote: »

Oh wait I'm wrong. A 3 year old avensis could be had for 12k at the time. €66 per month. That is the cost of owning a car. Anymore is just passing away your money.
Oh wait, a 2 year old fiesta could be had for......

Wait... you're telling me that if I never bought anything I'd still have all my money? Is your real name Eddie Hobbs?

dil999

maidhc wrote: »

I think pcp makes great sense if you can't really afford a new car now, but will have a lump sum in 3x years, either by saving or work or otherwise. It isn't a sustainable ownership model, although some will do well in individual cases I'm sure.

Of course it is a sustainable ownership model. I want a new car every 3 years. I can easily afford to pay say 500 per month for that car. I keep paying that and I keep my car, and upgrade it every 3 years. When I decide I don't want a new car any longer, I hand it back.

You have a fixation with affordability, but you don't understand it. Did you buy your house with savings? If not, does that mean you can't afford your house?

Years ago, I went to play 9 holes of golf in Celbridge. The course was a 9 hole and had recently opened. The owner asked us to pay for 18 holes and said he would give us back the money when we came back in after nine. That was the last time I ever played there.
It was a ludicrous request, and is just as ludicrous as paying for the full amount of a car up front for 3 years use, then having to negotiate getting the rest of the money back afterwards.

acronym Chilli

I've sympathy for both sides of this argument. PCP can work out fine and be a good fit. However it's sort of fair to say that it's not a sustainable solution since it relies on balloon payments and equity injections. You can make that sustainable too but it requires some external to PCP discipline

ofcork

PCP can suit some but not all I bought my car on hp in 2014 and my apr is 11.6% one strange thing with thre hp is if you don't pay 75 at the end you wont own the car.

dil999

ofcork wrote: »

PCP can suit some but not all I bought my car on hp in 2014 and my apr is 11.6% one strange thing with thre hp is if you don't pay 75 at the end you wont own the car.

Wow that's a serious interest rate for a car loan.

dil999

acronym Chilli wrote: »

I've sympathy for both sides of this argument. PCP can work out fine and be a good fit. However it's sort of fair to say that it's not a sustainable solution since it relies on balloon payments and equity injections. You can make that sustainable too but it requires some external to PCP discipline

Plenty of people have cash in the bank, and don't require any additional discipline to have access to 3K to 4K every 3 years. For those that don't have access to that amount of cash, then perhaps they need to purchase a smaller car.

Don't mix up affordability with the method of financing.

ofcork

I know bought it only thinking about the monthly repayments working out at 4800 or so on credit amount of 18k or so.

dil999

Going back to the OP's original question.
Yes you got a fantastic PCP deal. 0% interest. You could not have gotten a better deal.

I suspect the real question is: Did I get a good deal on the car? It looks like you got an reasonable deal on the car. 2K off a 30K VW golf. About 6.5% discount. Not too bad.

dil999

ofcork wrote: »

I know bought it only thinking about the monthly repayments working out at 4800 or so on credit amount of 18k or so.

Refinance that if you can. Some one on this, or another, PCP thread said their Credit Union was giving loans of 7.5%. If that's the case with yours get a loan there and pay off the outstanding. 18K at 7.5% over 4 years will save you 2K in interest.

ofcork

Thanks for the advice but I'm 3 years into it now so only 1 year left that's what I get for going through bmw financial!!

elbyrneo

A little off topic but for PCP, is the interest charged against the value of the car less the deposit, or, the value of the car less deposit less the GMFV?

If the latter, say you want a new car and can pay back in 3 years, it's a no brainer to take PCP once you save separately to cover the GFMV. You pay less interest than a Loan or HP and have flexibility to take up a new PCP deal.