Car financing question

[Dyson]

Hi all, looking to buy a new to 2 year year old car (make/model yet to be decided). We have £10k to put down as a deposit.

Now, as I understand it, if we take a car on PCP we pay a deposit, then X monthly payments. At the end of the term you either hand the car back, or use the equity in the car as a deposit for the next. Is this correct?

If we were to go down the HP route, you pay a larger deposit, then pay of the balance over X months. At the end, the car is yours. Correct?

I'm swinging towards HP, as I'm old fashioned and like to own my car. With HP you do, with PCP you never own your car. Am I right, or am I reading this wrong? Amy advice appreciated.

 

[Dyson]

Depending on the price of car, put your 10k on top of a 15k bank loan (good rates to be had at that value) and it should all work out cheaper.

Unhelpful if you're after something more expensive, however.

£25k is the price point we're looking at actually, so that is another (obvious in hindsight) option.

Thank you all

 

[Dyson]

It's likely to be especially favourable if you're looking at nearly new rather than new, as used car finance tends to have garbage interest rates when compared to new car purchases.

I saw that Peugeot were offering a highly competitive 11 odd percent

 

[Dyson]

Owning the car outright, either straight away or after X months, is important to us. We keep our main car for 10 years on average.

Bank loan is definitely the way forward for us, ses the logical choice (in our situation).