APR on a PCP deal
Discussion
Depends on the car - my Audi a3 was 5.9% and wife's punto was 0% both 3yrs
Barclayloans are 6.7%, HSBC 6.2% at the mo - so as above really what is the guaranteed future value worth to you ?
Other thing is I got £1k off the list price on the Audi and lisa £2k off the punto as dealers make on selling finance....
Barclayloans are 6.7%, HSBC 6.2% at the mo - so as above really what is the guaranteed future value worth to you ?
Other thing is I got £1k off the list price on the Audi and lisa £2k off the punto as dealers make on selling finance....
Guvernator said:
It's too high, negotiate and get them to knock it down to nearer the bank rates which is about 6% and if they aren't willing to do that just walk.
Compare the flat rate on both not the APR. APR will be distorted because of the Balloon payment. 8. something sounds about right.AtticusFinch said:
Guvernator said:
It's too high, negotiate and get them to knock it down to nearer the bank rates which is about 6% and if they aren't willing to do that just walk.
Compare the flat rate on both not the APR. APR will be distorted because of the Balloon payment. 8. something sounds about right.AtticusFinch said:
Compare the flat rate on both not the APR. APR will be distorted because of the Balloon payment. 8. something sounds about right.
The flat rate is meaningless because it doesn't take into account the timing of payments - the APR is the ONLY way of comparing two quotes to see which offers the best deal!Depending on the nature of the deal - straight repayment versus PCP - the lowest APR might show a higher 'total cost for credit'. Regardless, the lowest APR represents the best finance deal and anyone that tells you any different doesn't know what they are talking about!!
Sidicks
Edited by sidicks on Wednesday 14th November 21:19
Worth looking at hp too - you can hand it back once you've paid more than 50% which gives you a bit of guaranteed future value. Have to check the small print though as I've had what I thought was hp but was a conditional loan.
Most manufacturers are onto the handback think and deposits are typically the amount to shield you paying half before the deal is nearly up....
Most manufacturers are onto the handback think and deposits are typically the amount to shield you paying half before the deal is nearly up....
sidicks said:
The flat rate is meaningless because it doesn't take into account the timing of payments - the APR is the ONLY way of comparing two quotes to see which offers the best deal!
Depending on the nature of the deal - straight repayment versus PCP - the lowest APR might show a higher 'total cost for credit'. Regardless, the lowest APR represents the best finance deal and anyone that tells you any different doesn't know what they are talking about!!
Sidicks
Your right of course. But if your comparing HP to PCP the APR figs do not translate exactly. A PCP will always have a higher cost of interest than HP based on the same flat rate but the finance package suits some people who want a low monthly payment and ownership is not required.Depending on the nature of the deal - straight repayment versus PCP - the lowest APR might show a higher 'total cost for credit'. Regardless, the lowest APR represents the best finance deal and anyone that tells you any different doesn't know what they are talking about!!
Sidicks
Edited by sidicks on Wednesday 14th November 21:19
The best PCP rates are on new cars supported by the manufacturer these "offer" rates are non-negotiable.
AtticusFinch said:
Your right of course. But if your comparing HP to PCP the APR figs do not translate exactly.
Yes they do! The APR is the true costs of the money being borrowed - allowing for the timing of payments etc.AtticusFinch said:
A PCP will always have a higher cost of interest than HP based on the same flat rate but the finance package suits some people who want a low monthly payment and ownership is not required.
Flat rates are irrelevant as they take no account of the time value of money - as such they are [b[meaningless[/b] for comparing loans.As I explained the APR represents the true costs of interest regardless of the type of finance you are taking on.
sidicks said:
AtticusFinch said:
Your right of course. But if your comparing HP to PCP the APR figs do not translate exactly.
Yes they do! The APR is the true costs of the money being borrowed - allowing for the timing of payments etc.AtticusFinch said:
A PCP will always have a higher cost of interest than HP based on the same flat rate but the finance package suits some people who want a low monthly payment and ownership is not required.
Flat rates are irrelevant as they take no account of the time value of money - as such they are [b[meaningless[/b] for comparing loans.As I explained the APR represents the true costs of interest regardless of the type of finance you are taking on.
However quick calculation flat rate of 5% borrow 10k over 3 yrs cost of loan £1500. Now do the same thing with a PCP? PCP's are more expensive no doubt buit do suit a lot of people.
Gassing Station | Finance | Top of Page | What's New | My Stuff