PCP on older cars?

[Martin_M]

Just wondering if this is possible? I've recently enquired about two cars and have been advised that they are too old for a pcp (M5 - 2005 and E63 - 2007).

I can't take a personal loan due to our circumstances at the moment so I can't see another way of financing an older used car without a pcp.

Am I also right in saying that traditional finance from a dealer is the same as a personal loan or are they two totally different things in the world of finance?

Thanks,

Martin

[rfoster]

Yes sadly both cars are too old for PCP agreements with most of the lenders - the main companies such as Alphera / Close / Motonovo will only offer PCP's on cars up to 5 years old at the beginning of the term. You could consider a 60 month hire purchase agreement instead which should help to keep the monthly payments to a more affordable level.

A hire purchase agreement does differ from a personal loan as well and you may find that you still qualify for this if you're not suitable for a personal loan. Naturally this depends on your particular circumstances - but the finance is secured against the vehicle rather than an unsecured personal loan - so in the even of default the finance company would only repossess the car and not any personal belongings. The agreements are all regulated by the consumer credit act too - so if you decide to change cars during the course of the agreement you can request a regulated settlement - all car finance companies have to adhere to the same formula when calculating your settlement figure.

Edited by rfoster on Friday 5th December 13:48

[Crusoe]

A lot won't do HP on cars older than 10 years either through the regular approved dealer schemes.

[Martin_M]

Thanks guys and rfoster in particular for the detailed response - much appreciated.

Martin

[TVRBRZ]

Apologies for resurrecting an old thread, but it gives context:

Does the 5 year old rule still apply for used car PCP? Some car buying websites seem to indicate that PCP on a car up to 9yrs old/100,000 miles is still possible but without submitting my details (and then getting bombarded with spam) I can't see actual examples and APR rates.

Ideally I'm after a 6-7 year old car, approx 30,000 miles and about £50k. I'd be putting in a £10k deposit. Should I just bite the bullet and apply to the websites or could some kind PHer in the know advise typical balloon payment % and interest rates?

Many thanks!

[Sir_Dave]

For the two car funders i use the most, 5 years old is the max for anything if you need a balloon.

Companies like JBR Capital will often give a residual on older cars as they individually assess each vehicle instead of just going off CAP, but they typically charge about 9%.

Edited by Sir_Dave on Wednesday 5th January 09:50