PCP or finance, new or secondhand?

geri72

Hi. Im confused:-)
O have a 09Focus 204000 miles so know its not worth a whole pile. Was  planning on trading up Went to look at some '16' cars yesterday, Toyota Luna 16 is 15K with my own car (garage giving me 1K) - with a CU loan this works out at 461 a month over 3 years
Also looked at a new Hyundai i30 - he must have been a good sales man cos now Im not so sure what to do. New car is 24k, they will give me 4K scrappage.
2 options
1)PCP of 399 a month (no deposit) and final payment of 9456
2) Finance for 5 years at 404 a month
Im not that knowledgable about cars , trade in values in future all that type of stuff - and I know its hard predict the future
Which sounds like the best deal here. Im very tempted to go for the new car - payments will be the same no matter which finance option I go with?
Would love some good advice, know that PCP getting bad press?

The payments between the two aren't the same.

The Toyota is 16k, and the Hyundai is 24k.

Financing that over a longer period doesnt make it the same.

geri72

I meant the monthly payments that I will be making are the same???

bazz26

Other than looking at how much you will be paying a month what % rates are being applied to both the PCP and HP loans? How much are both cars actually costing you before you even consider how they are going to be paid for? It's all too easy for dealers and buyers to focus on monthly payments but you need to do the maths and see how much the car is costing to begin with and how much it is costing you to borrow to buy it. It's all too easy to distracted by monthly costs when those monthly costs include high interest rates or your borrowing the full retail price of the car.

Generally PCP doesn't make sense on a used car especially a 2 year old car and you will still owe €9456 on when the PCP term ends in 3 years time and the car is 5 years old. HP would make more sense but even at that €400 a month seems high to me to pay for the next 5 years on a car that will be 7 years old by the time your finished paying for it.

Have you priced up both PCP and HP on a brand new car? It might make more sense to pay close to those figures for a brand new car that will have a decent amount of equity in it at the end of 3 years. I'd also look at some manufacturers that are running scrappage schemes where they will give you more than the 1k being offered on your Focus against a brand new car.

Edit: Reread the part about the Hyundai being brand new and getting a scrappage discount so some of the above is already answered.

Lantus

So the pcp your paying 23800 total not including any additional interest on the outstanding balance.

On the 5 year your paying 24500ish overall.

Unless you can save the difference or more a month on pcp and cannabilise the gmfv after 3 years not much difference.

Toyotafanboi

The Toyota is probably the best "deal" costing you €16596, even though the monthly payments are higher than any of the others.

The i30 is costing you €24000 +/- €250. Nearly 8k more than the Toyota. The thing is though if you are only focusing on monthly payments then the 5 year HP on the Hyundai mightn't be too bad, the monthly payment is more manageable albeit over a longer timeframe, the car is covered by a 5 year unlimited mileage warranty which means you'll have no big shock repair bills with that car and if current values are anything to go by it'll be worth around €10k in 5 years time, so 5 years driving you will have paid 24k but you'll own an asset worth 10k which is worth baring in mind.

Just a consideration.

geri72

Hi
total payments as follows
1) Toyota Corolla 16596 over 3 yrs- will own a 5 year old car
2) New Hyundai  PCP 23820
3) New Hyundai Finance (3 yrs) 21960 ( Best option I think but payments too high)
4) New Hyundai Finance (5 yrs) 24240 (Option 1 seems much better than this?)

bazz26

Another option to look into is see if you can PCP a new car for the first 3 years at a low interest rate and then pay off the balloon payment using a regular loan over 2 years after that. At least that way you are getting a cheaper rate for the first 3 years rather than paying a high interest rate via HP for 5 years.

geri72

Im actually going to have the cash for the balloon payment in 3 yrs -

bazz26

Ah right.

geri72

so probably makes pcp with the low interest rate a more attractive option?

bazz26

Both have their pros and cons but if I was going PCP it would only be on the brand new car.

Wheety

I see Mazda have some models at 1.82% on PCP. Looking at the offers, I could easily afford the deposit and the monthly payment. Could also save for the GMFV in 3 years.

Seems like a good option?

grogi

geri72 wrote: »

Hi. Im confused:-)
O have a 09Focus 204000 miles

Would love some good advice, know that PCP getting bad press?

If you're doing such mileage, I would never consider used car... What about a new Toyota? They have scrappage and PCP as well...

drunkmonkey

Wheety wrote: »

I see Mazda have some models at 1.82% on PCP. Looking at the offers, I could easily afford the deposit and the monthly payment. Could also save for the GMFV in 3 years.

Seems like a good option?

Mazda have a new engine launching in their models, it could have a big impact on used values by the time you go to sell but if it has it'll also effect other brands like your looking at.
The Mazda are nice cars and good to drive, the new Mazda 3 isn't being unveiled until the las Vegas motor show in November but it could be one to watch http://www.autoexpress.co.uk/mazda/3/103628/advanced-new-2019-mazda-3-to-ko-diesels

Mooooo

If you intend on keeping the car just calculate out how much it will cost you entirely over what period and see which is cheaper. Then pick the one you want. Pcp as I understand charge interest on the whole amount not just the part your paying capital off of. Talk to dealer and ask for total figures paid.