Best way to purchase new vehicle?

pgj2015

Thinking of changing my vehicle for my business, it will cost me around 25,000 euro.

I could keep my current vehicle until 2026 but there is a lot of mileage on it, it is used every day.

So I have the 25,000 but Id rather not spend it on a car and spend it on a house to purchase.

would a bank lend you the money to buy it, if you have it yourself?

when I started my business I purchased the vehicle with my own money, no loans, my old accountant said that wasnt a good idea and I should have got a bank loan to buy it?

its a taxi by the way.

Gloomtastic!

To get the finance for the car, you might have to use some of your own money to get a reasonable % APR. I’m not an accountant but I suspect a HP agreement as opposed to a PCP deal would be better for you.

pgj2015

https://www.boards.ie/discussion/comment/121223742#Comment_121223742

For 5 years it would be €134 weekly with HP.

might be an option

krishantha

I'm checking whether PCP or HP is a good option to buy a new EV car.

As per my understanding, if you can save the final payment separately to purchase the car at the end of 37 months (because if the GMFV is less than the market selling value), then it's better to go with PCP. Nowadays, you can find very cheap APR (1.9%) for new EV cars. Any ideas, guys? Let's check the example below.

Let's say, at the end of the period, you receive a GMFV from the dealer, which is €23,000, and then your equity will be €5,885. However, if you pay the final amount and own the car, you can sell it in the market for €30,000, resulting in a profit of €12,885. You can then use this profit for your next PCP. To do this, you need separate savings for the final payment. I believe this would be a good idea if you have enough money. Otherwise, you might find yourself trapped in a car dealer's PCP scheme. Any thoughts?

pgj2015

https://www.boards.ie/discussion/comment/121260315#Comment_121260315

https://www.youtube.com/watch?v=Df0vq2jz5Ws

Just saw this video yesterday on the subject.

krishantha

Bump

raxy

Is the new car going to be used as a taxi? PCP has mileage restrictions & you have to pay a surplus per km you go over. So if it is going to be used as a taxi you may not be able to use PCP. Or at least you won't be able to hand the car back without a substantial extra payment for exceeding the allowance.

pgj2015

https://www.boards.ie/discussion/comment/121261819#Comment_121261819

Yeah used as a taxi.

I know that, pcp wouldn't be suitable for me.