PCP Calculator Help
Discussion
Hi Guys,
I'm trying to help my mum with a PCP deal here, she's trading a car in and I can't work out if it's a good deal or not. Could someone help me crunch the figures?
Current Car: VW Polo 1.4 TDI SE Design 2015
MIleage: 40,000
P/X Value £7500
Settlement £7826
Purchased Car -
VW Golf 1.0 TSI S 5Dr
Mileage 13,300
Total Price - £12,734
I notice the order form doesn't mention APR, payment terms, or GFV just that it's "manufacturer PCP" from Arnold Clark. I shall need to obtain these figures.
I'm trying to help my mum with a PCP deal here, she's trading a car in and I can't work out if it's a good deal or not. Could someone help me crunch the figures?
Current Car: VW Polo 1.4 TDI SE Design 2015
MIleage: 40,000
P/X Value £7500
Settlement £7826
Purchased Car -
VW Golf 1.0 TSI S 5Dr
Mileage 13,300
Total Price - £12,734
I notice the order form doesn't mention APR, payment terms, or GFV just that it's "manufacturer PCP" from Arnold Clark. I shall need to obtain these figures.
Butter Face said:
Er, what’s the payment? What’s the OFP?
You need to ask about he APR, fees, monthly payment etc, without all of this it’s impossible to comment on the deal.
Hello Mr Butter Face - You need to ask about he APR, fees, monthly payment etc, without all of this it’s impossible to comment on the deal.
I've got the figures now
£217 per month
48 months
APR 7.9%
Flat rate interest 4.1%
GFV - £5152
I'm not sure what to make of it?
Total Cost = 15,351
Borrowing = 13060 (12734 + 326)
Interest= 2,291
Seems a little expensive to me.
A personal loan would be a cheaper option but doesn't give you the option of handing the car back after the 48 months.
If she decided to go ahead with the PCP, as a minimum I would negotiate the trade in up by 326 so that it a least covers the settlement figure.
As an example a Sainsbury's loan has an APR of 2.8% and it's 275.38 per month to borrow 12,500 for 48 months with a total cost of 13,218.24, so 718.24 in interest.
Borrowing = 13060 (12734 + 326)
Interest= 2,291
Seems a little expensive to me.
A personal loan would be a cheaper option but doesn't give you the option of handing the car back after the 48 months.
If she decided to go ahead with the PCP, as a minimum I would negotiate the trade in up by 326 so that it a least covers the settlement figure.
As an example a Sainsbury's loan has an APR of 2.8% and it's 275.38 per month to borrow 12,500 for 48 months with a total cost of 13,218.24, so 718.24 in interest.
Edited by cuprabob on Saturday 7th July 15:06
Edited by cuprabob on Saturday 7th July 15:26
Edited by cuprabob on Saturday 7th July 15:30
cuprabob said:
Total Cost = 15,568
Borrowing = 12,700 (12374 + 326)
Interest= 2,868
Seems a little expensive to me.
A personal loan would be a cheaper option but doesn't give you the option of handing the car back after the 48 months.
If she decided to go ahead with the PCP, as a minimum I would negotiate the trade in up by 326 so that it a least covers the settlement figure.
As an example a Sainsbury's loan has an APR of 2.8% and it's roughly 275 per month to borrow 12,500 for 48 months with a total cost of just over 13,200
Understood, thanks for running the figures, she'll definitely end up handing it back at the halfway term though, would that make any difference?Borrowing = 12,700 (12374 + 326)
Interest= 2,868
Seems a little expensive to me.
A personal loan would be a cheaper option but doesn't give you the option of handing the car back after the 48 months.
If she decided to go ahead with the PCP, as a minimum I would negotiate the trade in up by 326 so that it a least covers the settlement figure.
As an example a Sainsbury's loan has an APR of 2.8% and it's roughly 275 per month to borrow 12,500 for 48 months with a total cost of just over 13,200
Struggling to format this in the reply box but I'm guessing it looks like this
[Cash Price £12734] - [PX £7500] + [Settlement £7826] = [Balance to Finance £13060]
Repayable by [47 x £217] + [1x £5152]
Total Amount Payable = £15351
If the cash price is competitive then it's not a terrible deal. Buy it if you really want the car.
Yes, you could shave costs by getting Carwow to supply the new one, and Tootle or WBAC to take the old one away but does your mum want the hassle.
If you want some fun then tell them you want that car but don't want to spend any more than £200pm and see what they come up with. Might be nothing or might be something ( won't be £200pm! )
Good luck
[Cash Price £12734] - [PX £7500] + [Settlement £7826] = [Balance to Finance £13060]
Repayable by [47 x £217] + [1x £5152]
Total Amount Payable = £15351
If the cash price is competitive then it's not a terrible deal. Buy it if you really want the car.
Yes, you could shave costs by getting Carwow to supply the new one, and Tootle or WBAC to take the old one away but does your mum want the hassle.
If you want some fun then tell them you want that car but don't want to spend any more than £200pm and see what they come up with. Might be nothing or might be something ( won't be £200pm! )
Good luck
Sc0tchland said:
Understood, thanks for running the figures, she'll definitely end up handing it back at the halfway term though, would that make any difference?
Wait - halfway term, do you mean doing a termination when 50% has been paid off?If so, remember that on a PCP that’s likely to only be a few payments off the full term because the final balloon payment is taken into account in the calculation.
Sc0tchland said:
cuprabob said:
Total Cost = 15,568
Borrowing = 12,700 (12374 + 326)
Interest= 2,868
Seems a little expensive to me.
A personal loan would be a cheaper option but doesn't give you the option of handing the car back after the 48 months.
If she decided to go ahead with the PCP, as a minimum I would negotiate the trade in up by 326 so that it a least covers the settlement figure.
As an example a Sainsbury's loan has an APR of 2.8% and it's roughly 275 per month to borrow 12,500 for 48 months with a total cost of just over 13,200
Understood, thanks for running the figures, she'll definitely end up handing it back at the halfway term though, would that make any difference?Borrowing = 12,700 (12374 + 326)
Interest= 2,868
Seems a little expensive to me.
A personal loan would be a cheaper option but doesn't give you the option of handing the car back after the 48 months.
If she decided to go ahead with the PCP, as a minimum I would negotiate the trade in up by 326 so that it a least covers the settlement figure.
As an example a Sainsbury's loan has an APR of 2.8% and it's roughly 275 per month to borrow 12,500 for 48 months with a total cost of just over 13,200
In my opinion, PCP is an expensive way to buy a second hand car especially if you change car before the term is complete. In fact, I wouldn't be surprised if she could buy a new one for not much more as the PCP deals tend to be much more attractive on new cars.
Edited by cuprabob on Saturday 7th July 15:23
Sc0tchland said:
cuprabob said:
Total Cost = 15,568
Borrowing = 12,700 (12374 + 326)
Interest= 2,868
Seems a little expensive to me.
A personal loan would be a cheaper option but doesn't give you the option of handing the car back after the 48 months.
If she decided to go ahead with the PCP, as a minimum I would negotiate the trade in up by 326 so that it a least covers the settlement figure.
As an example a Sainsbury's loan has an APR of 2.8% and it's roughly 275 per month to borrow 12,500 for 48 months with a total cost of just over 13,200
Understood, thanks for running the figures, she'll definitely end up handing it back at the halfway term though, would that make any difference?Borrowing = 12,700 (12374 + 326)
Interest= 2,868
Seems a little expensive to me.
A personal loan would be a cheaper option but doesn't give you the option of handing the car back after the 48 months.
If she decided to go ahead with the PCP, as a minimum I would negotiate the trade in up by 326 so that it a least covers the settlement figure.
As an example a Sainsbury's loan has an APR of 2.8% and it's roughly 275 per month to borrow 12,500 for 48 months with a total cost of just over 13,200
Minor point but Cuprabob has misread the Cash Price in your original post and is therefore £300 out in his calcs
More importantly, in your original example your mum would be able to terminate the PCP agreement with nothing more to pay after 35 months, having paid 35x£217 = £7675 for the car
If you borrow Cuprabob's money then at the same point she will have repaid 35x£275 = £9625 for the same period. and have around £3000 remaining ( 12x£275 less a rebate for early settlement ) . You won't be able to simply return it.
So in order for Sainsbury's deal to work out cheaper in this instance the the Golf will have to be worth at least £5000 as a trade in in 3 years time.
Will it or won't it be worth that? Honest answer - nobody knows. My instinct is that it will be worth around that but no more.
So you can gamble and pay the extra £60 per month on the Sainsburys deal in the hope that my forecast value is right, or you can enjoy a lower monthly payment and know exactly where you stand in 3 years time.
There's no right or wrong answer, which would you ( or your mum ) prefer to do?
Wooda80 said:
Sc0tchland said:
cuprabob said:
Total Cost = 15,568
Borrowing = 12,700 (12374 + 326)
Interest= 2,868
Seems a little expensive to me.
A personal loan would be a cheaper option but doesn't give you the option of handing the car back after the 48 months.
If she decided to go ahead with the PCP, as a minimum I would negotiate the trade in up by 326 so that it a least covers the settlement figure.
As an example a Sainsbury's loan has an APR of 2.8% and it's roughly 275 per month to borrow 12,500 for 48 months with a total cost of just over 13,200
Understood, thanks for running the figures, she'll definitely end up handing it back at the halfway term though, would that make any difference?Borrowing = 12,700 (12374 + 326)
Interest= 2,868
Seems a little expensive to me.
A personal loan would be a cheaper option but doesn't give you the option of handing the car back after the 48 months.
If she decided to go ahead with the PCP, as a minimum I would negotiate the trade in up by 326 so that it a least covers the settlement figure.
As an example a Sainsbury's loan has an APR of 2.8% and it's roughly 275 per month to borrow 12,500 for 48 months with a total cost of just over 13,200
Minor point but Cuprabob has misread the Cash Price in your original post and is therefore £300 out in his calcs
More importantly, in your original example your mum would be able to terminate the PCP agreement with nothing more to pay after 35 months, having paid 35x£217 = £7675 for the car
If you borrow Cuprabob's money then at the same point she will have repaid 35x£275 = £9625 for the same period. and have around £3000 remaining ( 12x£275 less a rebate for early settlement ) . You won't be able to simply return it.
So in order for Sainsbury's deal to work out cheaper in this instance the the Golf will have to be worth at least £5000 as a trade in in 3 years time.
Will it or won't it be worth that? Honest answer - nobody knows. My instinct is that it will be worth around that but no more.
So you can gamble and pay the extra £60 per month on the Sainsburys deal in the hope that my forecast value is right, or you can enjoy a lower monthly payment and know exactly where you stand in 3 years time.
There's no right or wrong answer, which would you ( or your mum ) prefer to do?
Just to add there is PCP available through other lenders too:
https://www.lloydsbank.com/car-finance.asp
https://www.admiral.com/loans/car-finance/pcp-pers...
https://findandfundmycar.com/your-finance-options
https://www.admiral.com/loans/car-finance
https://www.lloydsbank.com/car-finance.asp
https://www.admiral.com/loans/car-finance/pcp-pers...
https://findandfundmycar.com/your-finance-options
https://www.admiral.com/loans/car-finance
Without getting into the PCP vs lease debate, wouldn't it be cheaper for a her to lease and get a new new car every 2 years?
Here's an example of a better spec car for less money.
https://leasing.com/independent-brokers/new-car-co...
Here's an example of a better spec car for less money.
https://leasing.com/independent-brokers/new-car-co...
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