Best way to finance used

[cfarrell]

Hi
I bought my last few cars on pcp. The last one looked pretty good deal on a new A6 3k deposit and then 370 a mth for 4 years. I have been considering changing and maybe buying used as I want to get payments to around 300 per month. I have looked at pch deals but I don't like the idea of being locked into them and the mileage limits concern me if I had a change on circumstance with work. I have looked at maybe a BMW 530d for about 18k and getting a bank loan over 60 mths?? I phoned the dealership that I bought the vehicle from and to Px with them will leave me with about 1200 neg equity which I would need to build into any new agreement.
Is pcp on used cars even possible and if so would it be a better way to go??

[rfoster]

For car finance - you'll get a 60 month deal on hire purchase and you may be able to roll your negative equity into the deal but that won't get you to £300 per month.
You can do PCP on cars up to 5 years old at the beginning of the finance agreement (depending on the lender). I can quote for that too if interested (broker)

[ashleyman]

cfarrell said:

Hi
I bought my last few cars on pcp. The last one looked pretty good deal on a new A6 3k deposit and then 370 a mth for 4 years. I have been considering changing and maybe buying used as I want to get payments to around 300 per month. I have looked at pch deals but I don't like the idea of being locked into them and the mileage limits concern me if I had a change on circumstance with work. I have looked at maybe a BMW 530d for about 18k and getting a bank loan over 60 mths?? I phoned the dealership that I bought the vehicle from and to Px with them will leave me with about 1200 neg equity which I would need to build into any new agreement.
Is pcp on used cars even possible and if so would it be a better way to go??

Short answer, yes PCP on used cars is possible, but you'll be paying more interest than new as the APR rates are higher for used (if you go with the dealer finance).

I was looking for a Golf R, couldn't afford a new one so wanted to get used. I was recommended a broker so made an enquiry and my car was actually a little cheaper than some of the used ones, plus with the lower interest rate it was a no-brainer.

[cfarrell]

I was getting quotes bout 345 per mth for 18k over 60 mths. I am hoping to sell the car privately and that should clear the finance. R foster if you want to send me a few quotes/suggestions that would be great.

[Ozzie Osmond]

cfarrell said:

maybe a BMW 530d for about 18k and getting a bank loan over 60 mths??

I'm not good at this stuff - but let's assume for a moment that an £18k 530d will be 3 years old. Sounds like you're going to paying for it until it's 8 years old, which seems a long time. Would an earlier sale sensibly clear the outstanding finance or would it just leave you broke when you're trying to buy your next new car?

[cfarrell]

I know what you mean. What I like about the pcp route was that it is hassle free motoring as you have a brand new car with a 3 year warranty. I would need to check and see but I'd imagine even at the end of the four year agreement with the GMV I work have any deposit for my next car. The last time I ran a pcp I had about 1k towards my next car. At this point in time I don't really want to forking out for a big deposit to get into another new car pcp deal., My A6 has about 35000 on it and I could probably a bank loan to sort out the remaining finance, but probably like most people who frequent this forum I'm like my cars and got tempted by a 530d touring or even a saloon and have mth repay about 300 a mth.

[Granfondo]

cfarrell said:

Hi
I bought my last few cars on pcp. The last one looked pretty good deal on a new A6 3k deposit and then 370 a mth for 4 years. I have been considering changing and maybe buying used as I want to get payments to around 300 per month. I have looked at pch deals but I don't like the idea of being locked into them and the mileage limits concern me if I had a change on circumstance with work. I have looked at maybe a BMW 530d for about 18k and getting a bank loan over 60 mths?? I phoned the dealership that I bought the vehicle from and to Px with them will leave me with about 1200 neg equity which I would need to build into any new agreement.
Is pcp on used cars even possible and if so would it be a better way to go??

How long have you had this car?

[cfarrell]

Coming up to 3 yrs in August

[Granfondo]

When you get to 50% of the total amount borrowed you can VT the car without penalty which might be better than financing the negative equity.

[cfarrell]

Would that affect your credit rating, or ability to get another pcp deal with Audi or Vw down the line??

[sidicks]

Granfondo said:

When you get to 50% of the total amount borrowed you can VT the car without penalty which might be better than financing the negative equity.

Total amount borrowed or total amount owed I.e. Including interest?!

[Granfondo]

sidicks said:

Granfondo said:

When you get to 50% of the total amount borrowed you can VT the car without penalty which might be better than financing the negative equity.

Total amount borrowed or total amount owed I.e. Including interest?!

No idea.
P.S.

As long as you repay 50% of the Total Amount Payable (not the total amount borrowed, as you need to include interest and fees), you are entitled to terminate the agreement and return the car to the finance company. As long as there are no “damages if you have failed to take reasonable care of the goods (over and above normal wear and tear)”, you have nothing further to pay.

Edited by Granfondo on Friday 18th March 13:40

[Granfondo]

cfarrell said:

Would that affect your credit rating, or ability to get another pcp deal with Audi or Vw down the line??

It should not affect your credit rating.

[sideways sid]

OP, why not just ask the current finance company to do another PCP on the existing car?

You have a car you know, with no expensive bills anticipated, at lower monthly payments, with little/no deposit, and time to save the deposit for the next car.

[rfoster]

sidicks said:

Total amount borrowed or total amount owed I.e. Including interest?!

50% of the total amount payable under the finance agreement (i.e. deposit + all monthly payments + balloon figure + any document fees, divided by two)