This pcp deal any good?

Its not the worst rate tbh, depends on circumstances etc but not everyone can get the nice looking low interest rates that they tempt you in with on sainsburies etc, i imagine once i go through the process i wouldnt get the 3-4% it showed on the front page.

I may be wrong though, looking at a loan myself
 
[TW]Fox;28195047 said:
No, it's crap, the interest rate is double that of a decent personal loan.

What about the figures 'seems good' to you?
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To buy the same car outright (£12,995) with a personal loan even at 3.6% APR works out at £236.74 a month, £14,204 over 5 years.
Where as the above deal is only £12,267 once you have bought the car at the end.

Am i missing something other than limited mileage?
 
The dealer contribution is the big factor, the equivalent of a £5k discount doesn't seem bad but to be fair I don't know what discounts are readily available.

[Edit] A 60 month term is rare, that might have something to do with it.
 
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Hyper said:
To buy the same car outright (£12,995) with a personal loan even at 3.6% APR works out at £236.74 a month, £14,204 over 5 years.
Where as the above deal is only £12,267 once you have bought the car at the end.

Am i missing something other than limited mileage?
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Yes, you are missing the fact nobody pays list price.

That same car is £11822 from Broadspeed for example. I suspect better discounts are negotiable (Or they wouldnt be able to offer that £5k contribution).
 
[TW]Fox;28195555 said:
Yes, you are missing the fact nobody pays list price.

That same car is £11822 from Broadspeed for example. I suspect better discounts are negotiable (Or they wouldnt be able to offer that £5k contribution).
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He didnt actually quote list price did he? List price is another £2k....

I doubt you'd do that much better than Broadspeed, as £3k off a £15k car is not bad.

I think the PCP deal is reasonably good.
 
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[TW]Fox;28195555 said:
Yes, you are missing the fact nobody pays list price.

That same car is £11822 from Broadspeed for example. I suspect better discounts are negotiable (Or they wouldnt be able to offer that £5k contribution).
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Even at 11,500 it's 12,500 total cost at 3.6%. Plus getting 3.6% is far from guaranteed. If you can get it for 11k then it's cheaper, just. At 5%, which is a more realistic rate if he has an average credit rating, he'd have to pay 10k for it to be the same price as that PCP

The big factor is buying it at the end to compare TCO, if the final payment is financed with a loan then it skews the figures somewhat.

The big thing to me is that 5 year term. If your aspiration is owning it and you'd have to finance the final payment, you're not going to own it until it's 7 years old and worth next to nothing anyway. If your aspiration is the flexibility then it's no good - with a 5 year deal on a new car you'll be in negative equity for years. If you just want low monthly repayments then just lease one instead
 
Joe T said:
He didnt actually quote list price did he? List price is another £2k....

I doubt you'd do that much better than Broadspeed, as £3k off a £15k car is not bad.
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It should be possible to get £5k off that car otherwise that firm wouldn't be able to do so in order to then offer you a PCP on it. There isnt enough proift in the finance deal alone to justify the large discount.

iaind said:
Even at 11,500 it's 12,500 total cost at 3.6%. Plus getting 3.6% is far from guaranteed.
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It's not guaranteed but it isn't 'far from' guaranteed - by law the advertised rate must be offered to the majority of business expected to be received. So, all things being equal there is more chance of getting it than not getting it.
 
[TW]Fox;28196399 said:
It should be possible to get £5k off that car otherwise that firm wouldn't be able to do so in order to then offer you a PCP on it. There isnt enough proift in the finance deal alone to justify the large discount.
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So you're saying that because this looks like a good deal there must be a better one out there? :confused:
 
It's a good deal, but please do us all a favour

Go into your nearest dealer and see what's the maximum discount you can get. Then report back here :-)

I'm not convinced dealers actually knock thousands off the rrp price
 
Is the plan to own the car or to hand it back? If the latter I'd say the term is far too long regardless of the apr (which I'd agree could be improved on by at least a couple of %).

Are you realistically going to want to keep the same car for 5 years? If not then give consideration to the cost of exiting this as you'll be effectively in negative equity (vs what you'll realistically get back for it) for at a guess 2/3's of the term.

If you want to own it then I'd honestly just find the best brokered price for this or similar and look at a loan for that amount, or look at examples with the term significantly reduced and try to negotiate a better rate.

If you're only going to want it for a couple of years and have no real intention of owning it then perhaps look at one of the lease deals around for these / fiestas. It'll likely cost you more than purchasing one outright, but pick smartly and you'll be talking a difference of hundreds, not thousands
 
Joe T said:
So you're saying that because this looks like a good deal there must be a better one out there? :confused:
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Yes because this has a fairly high cost of finance, so if you can obtain a similar discount elsewhere and obtain finance at half the rate, it would be cheaper.
 
ElliottJames said:
Why commit to something especially increasing your liabilities, if you will potentially get dissatisfied after weeks? I would never take finance out personally however if I did with a long commitment, I'd make sure it's future proof.
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Not everyone can have mummy buy them a car though. Loads of people need to finance their motors.
 
xs2man said:
Not everyone can have mummy buy them a car though. Loads of people need to finance their motors.
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At the end of the day, don't buy something you can't afford. Financing a car means you're not only making profit for the manufacturer but the creditor also. That's why the rich stay rich and the poor stay poor.
 
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