PCP finance worth it?

E46Dream

Hi guys, been looking at upgrading my car as of late and a couple of specific models have caught my eye. The car in particular would be an Audi A6 2.0 TDI around 2013 to 2015 model. Now bearing in mind I'm turning 24 this month and have never had car finance I'm wondering is it a good idea as I'm just not willing to pay the crazy full prices in cash. As far as I'm aware I have 3 options at the end of the 3 to 5 year term and that's to either upgrade to newer model, pay balloon payment or walk away. If anyone has PCP finance and can let me know how it is or has experience in this area it would be greatly appreciated. Is it too much to get hooked into at 24?

Toyotafanboi

I dont think you'll get an Audi main dealer selling, never mind PCP'ing cars that old.

hooch-85

You won't get PCP on a 4 year old car, so it'll be HP or traditional bank loan or credit union.

Masala

Ya... Pcp not setup for used cars. I could be wrong

Always thought it was to help manufacturers move NEW cars

ezra_

Masala wrote: »

Ya... Pcp not setup for used cars. I could be wrong

Always thought it was to help manufacturers move NEW cars

You can get it on a car that was just traded back to the dealer - I've seen PCP offered for two year old cars that were handed back after a PCP contract.

Seems basically a way of getting someone to fund the depreciation and then its flogged off as a five year old car.

E46Dream

Oh right seems I got completely mixed up! So technically what would be a better option bank loan or HP?

ezra_

E46Dream wrote: »

Oh right seems I got completely mixed up! So technically what would be a better option bank loan or HP?

Your only option for a car that age, unless you have the cash handy.

E46Dream

ezra_ wrote: »

Your only option for a car that age, unless you have the cash handy.

Definitely not 15k lying around to throw at a car

Shefwedfan

Check the Audi website, they have PCP available on some used cars but it has to have Audi Approved or something on the advertisement

It is mostly the high end stuff. They will do past 3 years, especially on the XC90, well according to website they will. I have never contacted them in regards to it

You can do Audi finance if buying from them. The interest rate will be a lot lower than a bank etc. You do pay more as buying off Audi but it could be an option

E46Dream

If I was to use a bank loan then the car will be mine from the start and I'd always have the option to sell and pay off the loan, but if I went HP then I don't need to have all the cash upfront but a deposit and instalments which means keeping my cash for a rainy day.

Do you get an option to upgrade vehicle on a HP plan or is that not possible? And also can you walk away at any point by giving the car back?

bazz26

OP, I would suggest doing some research on what PCP is and how it works. There is a huge thread on this forum about it. The main premise behind it and incentive is to get you into a brand new car every 3 years rather than buying a second hand one. You might get PCP on a 1 or 2 year old car but expect to pay high interest on such a deal. However your not going to get PCP on a 4 to 5 year old car because the car will be too old for the bank/dealer to make PCP financially viable for them. There are types of lending in place for this.

Shefwedfan

E46Dream wrote: »

If I was to use a bank loan then the car will be mine from the start and I'd always have the option to sell and pay off the loan, but if I went HP then I don't need to have all the cash upfront but a deposit and instalments which means keeping my cash for a rainy day.

Do you get an option to upgrade vehicle on a HP plan or is that not possible? And also can you walk away at any point by giving the car back?

As Bazz says I think you need to do some research into the different finance options.



Then pick the ones which suits your needs best.