PCP on used cars
Author
Discussion

Steve vRS

Original Poster:

5,402 posts

271 months

Monday 8th December 2014
quotequote all
I know it's not ver PH and I should either buy the car outright or not all.

However, I am thinking of giving up my co. car as the new choices are pathetic. Unfortunately, the cash for car option is not that generous and that car bought must be a 4 seater and e less than 5 years old.

So, I could get a 2-3 year old car that could be interesting and meet the criteria but can you finance them on a similar PCP deal that you can with brand new cars? If so, do you get shafted on the final values?

Steve

shost

881 posts

173 months

Monday 8th December 2014
quotequote all
Not so much the GFV but the rates are a lot worse. Around 12% to start with compared to 6-8% on new.

jamieduff1981

8,092 posts

170 months

Monday 8th December 2014
quotequote all
Depends who you go for.

Jaguar main dealers were offering 4.9% on new PCPs and 5.5% on used PCPs in spring/summer this year. Audi are offering more like the rates mentioned above...

55palfers

6,384 posts

194 months

Monday 8th December 2014
quotequote all
Challenge your company as to why the cars must be less than 5 years old?


Steve vRS

Original Poster:

5,402 posts

271 months

Monday 8th December 2014
quotequote all
55palfers said:
Challenge your company as to why the cars must be less than 5 years old?
Officially as new cars are safer and better for the environment.

I work for a huge multinational company and it is a corporate edict so there is no chance of challenging it.

Steve

JQ

6,832 posts

209 months

Monday 8th December 2014
quotequote all
Why not just do your own PCP? I'd have thought it would be cheaper than taking dealer finance.

Buy a 2 year old car, work out what you think it will be worth in 3 years time based on your annual mileage. Then work out what balance you want left at the end of the 3 year term, possibly to give you the deposit on the next purchase. Then just take out a personal loan over a longer term than 3 years that gives you the unpaid balance you want at the end of 3 years - roughly speaking a 5 year loan should do this, but you'd need to work it out yourself.

In simple terms - buy a car with a 5 year personal loan, sell the car after 3 years and pay off the balance with the sale value of the car and walk away. or keep the car and pay down the loan.