PCP Finance

sm9ai · Post by **sm9ai** » Wed Nov 30, 2005 11:05 am

Hi all,

One more question, did anyone buy their 206cc using PCP to finance it.

I was looking at this and found what seemed like a good deal on a website. Â£13,500 with 8.9% APR. Then when I phoned up for more details the APR went up to 11% which pushes the monthly repayments up so that the car price is irrelevant.

Does anyone know of any good deals using PCP to finance it?

impis · Post by **impis** » Wed Nov 30, 2005 8:21 pm

What is PCP?

Don't know it its helpful, but loans from Northern Rock are 5.9% apr, with no penalty for overpayment, or early payment.

Their loan repayment calculator can be found here: http://www.northernrock.co.uk/loans/quote/index1.asp

DPH · Post by **DPH** » Wed Nov 30, 2005 10:58 pm

PCP is Personal Contract Purchase, the downside of these agreements is you are normally restricted to the amount of mileage you can accumulate - and a penalty payment is required if you exceed it.....not to mention the rip off APR.

impis · Post by **impis** » Wed Nov 30, 2005 11:40 pm

I've never heard of Personal Contract Purchase before. why would anyone use this over a normal personal loan?

Derek · Post by **Derek** » Thu Dec 01, 2005 12:11 am

PCP is only good if you can't afford the full price of the car in the first place and want to be able to get the car and give it back at the end with nothing further to pay or take out another loan to buy the car outright.

As mentioned mileage restrictions are there as the limits are never high. You normally pay a much higher APR than a personal loan and at the end of the day the car costs a lot more.

I wouldn't touch it with a bargepole

Dan · Post by **Dan** » Thu Dec 01, 2005 1:45 am

Ive used pcp finance on my first pug and using it for the next one... the mileage penalty only ever comes into effect if you give the car back and leave peugeot... I did well over the mileage and they said it didnt matter.

My pcp apr is 4.9% ...better than any loan, so i think they are taking you for a ride lol

ask for much better, they will give you it im sure.

sm9ai · Post by **sm9ai** » Thu Dec 01, 2005 1:22 pm

Where did you get that from? got any contact details/website etc?

The main thing with PCP is that you hand the car back after 3 years or so and get another one without having to worry about selling the car etc.

Yes you never own the car, but you will always have a new(ish) car that is always under warranty.

Dan · Post by **Dan** » Thu Dec 01, 2005 3:51 pm

rootes peugeot in maidstone, but they should all do it.

andrew · Post by **andrew** » Fri Dec 09, 2005 3:39 pm

I got my 307cc on PCP, mainly cos its 0 percent APR

, its a good way to protect yourself, if the car is worth less than it owes at the end of the PCP then youve got a get out. Of course at the end you can buy it and trade it in .. or get the dealer to buy it and trade it in. Works for me anyway. Or should, ive never done it this way before

Dan · Post by **Dan** » Fri Dec 09, 2005 5:05 pm

Yeah they 0% on quite a few models now

lastvts · Post by **lastvts** » Sun Dec 11, 2005 7:34 am

If it were me I would look at every alternative.

Make the comparisons simple. Calculate how much your car will have cost you when you would probably want to change it. Say in 4 years time and then add the APR for each year from the various finance schemes on top of that . For those that do not want your car at the end of the term then deduct the estamted value of the car in 4 years. I would say about 8K for a 4 year old CCSE. Then divide that cost by 48months.

Take the cheapest option and if the monthly repayments are too high. Then I would start saving up for a 207CC. Don't chuck money away to pen pushing finance companies.