PCP on used cars

[Steve vRS]

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]

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

[jamieduff1981]

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]

Challenge your company as to why the cars must be less than 5 years old?

[Steve vRS]

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]

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.