Quick PCP question?!

[BUG4LIFE]

Do dealers do PCP deals on used cars... say a car over 3 years old?

[MarJay]

Yes, my 130i is on a PCP deal right now... I bought it in 2010 and it is a 56 plate.

[BUG4LIFE]

Is that a BMW PCP deal buddy? Any chance you could IM me an idea of your facts and figures, if that's ok with you?

[BUG4LIFE]

If anyone else has got some facts and figures on PCP deals for used cars say under £20k [interesting cars] - not necessarily current deals, I'm just wondering/day dreaming that's all?!

[AtticusFinch]

Very rough "rule of thumb" cost £100 pcm per £5000 financed (depends on car, balloon payment, RV, interest rate, mileage, deposit etc)

Too many variables to be any more accurate without more info from you/

So £20k car £5k deposit approx £300 pcm

PCP's tend to work best when supported by the manufacturer on new cars (the support is not usually available on used) where you can get a deposit contribution and low interest rate. You may be better taking out a loan or 60 month HP.

[TimmD]

Someone once pointed out to me:

Is a 3 year PCP any different to a 5 year personal loan?

I have used PCPs in the past when money was easy and car manufactures used to keep residuals high to shift finance deals, but now I have a tesco / sainsburys loan for 5 years. You end up paying off more money quicker and cheaper this way.

At the end of 3 years you still have a "balloon" but you also have a loan in place to cover it... And the "balloon" by this point is usually lower than the dealer offered one.

Obviously no GFV...

But I chop and change cars so often this suits me far more.

[BUG4LIFE]

AtticusFinch said:

Very rough "rule of thumb" cost £100 pcm per £5000 financed (depends on car, balloon payment, RV, interest rate, mileage, deposit etc)

Too many variables to be any more accurate without more info from you/

So £20k car £5k deposit approx £300 pcm

PCP's tend to work best when supported by the manufacturer on new cars (the support is not usually available on used) where you can get a deposit contribution and low interest rate. You may be better taking out a loan or 60 month HP.

I guess though if you put down a 5k deposit, you won't want to be giving the car back at the end of the term as you lose that money right?

[AtticusFinch]

BUG4LIFE said:

I guess though if you put down a 5k deposit, you won't want to be giving the car back at the end of the term as you lose that money right?

If you want to hand a car back put down min deposit and 5yr HP hand back once 50% rentals paid.

What's the point of handing back? PCPs now will have a low RV (unless new and supported by the manufacturer) because finance houses really don't want to own "assets" they want their money back.