Discussion
I know there probably loads of topics on here about this PCP or PCH, but which is usually the better option?
Looking into getting a new car as I am bored of my car now, this is why I think i should do one of these as I never have my car for very long and I like the idea of a new car every couple of years as that's what I do now.
It doesn't bother me that I will never "own the car" or mileage limits, what does bother me is other idiots on the road who don't care.
I'm thinking either go with PCH or PCP but never intend to pay the final payment just hand the car back.
I'm currently finding better deals on PCP compared to PCH.
Do any of you have PCP or PCH? What's the pros and cons? Are there any good deals going at the moment?
Thanks in advance.
Looking into getting a new car as I am bored of my car now, this is why I think i should do one of these as I never have my car for very long and I like the idea of a new car every couple of years as that's what I do now.
It doesn't bother me that I will never "own the car" or mileage limits, what does bother me is other idiots on the road who don't care.
I'm thinking either go with PCH or PCP but never intend to pay the final payment just hand the car back.
I'm currently finding better deals on PCP compared to PCH.
Do any of you have PCP or PCH? What's the pros and cons? Are there any good deals going at the moment?
Thanks in advance.
Really depends on which suits you best.
PCH generally includes road tax so factor this in
PCH not so flexible (generally if you want/need to exit the contract early the penalty is half the remaining payments - as an example you need to move abroad for work unexpectedly, have a baby and need a bigger car etc)
PCP can be cheaper sometimes
PCP more Flexible (you can get a settlement and work out value so can choose to terminate early if circumstances change)
PCP you CAN have equity at the end - no guarantee of this but it DOES happen - some brands more so than others (personally about 90% of my customers on a PCP have some equity at the end - lots of other brands we take in do not), but its always nice if you get a little bit back you weren't expecting
At the end of the day i'd compare on identical deposit amount, mileage, term etc and see which is cheapest for the car you want - it does vary between brands and individual models. Other trap lots of people fall into is a big deposit to give a low monthly payment. If you get a quote with zero then you know the actual cost monthly, by all means then put some money down to get the payment where you want it but do budget to have to replenish this at the end to keep in an equivalent type of car at the same payment
Again it can work out less than paying outright if the car does not hold its value and you change frequently and you know the total cost up front, rather than having to gamble what it will be worth down the line (+ tie up a chunk of cash)
Ignore what everyone else says and do what is best for YOU as its your money and you have to live with it
PCH generally includes road tax so factor this in
PCH not so flexible (generally if you want/need to exit the contract early the penalty is half the remaining payments - as an example you need to move abroad for work unexpectedly, have a baby and need a bigger car etc)
PCP can be cheaper sometimes
PCP more Flexible (you can get a settlement and work out value so can choose to terminate early if circumstances change)
PCP you CAN have equity at the end - no guarantee of this but it DOES happen - some brands more so than others (personally about 90% of my customers on a PCP have some equity at the end - lots of other brands we take in do not), but its always nice if you get a little bit back you weren't expecting
At the end of the day i'd compare on identical deposit amount, mileage, term etc and see which is cheapest for the car you want - it does vary between brands and individual models. Other trap lots of people fall into is a big deposit to give a low monthly payment. If you get a quote with zero then you know the actual cost monthly, by all means then put some money down to get the payment where you want it but do budget to have to replenish this at the end to keep in an equivalent type of car at the same payment
Again it can work out less than paying outright if the car does not hold its value and you change frequently and you know the total cost up front, rather than having to gamble what it will be worth down the line (+ tie up a chunk of cash)
Ignore what everyone else says and do what is best for YOU as its your money and you have to live with it
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