Used car PCP deals, via a broker?

[PLuKE]

I am looking for some advice on used car PCP.

I have seen a few cars I am interested in, and I would be selling my car privately. Capital Car Finance came up on Google, so I had a browse, £6000 deposit on a car of £17000 was £180-190 PCM, over 48months and 10k per annum. Ballon was £5000ish, and 12% APR.

What are those companies like? I just did there calculator, just to see what it would be, are they accurate? I don’t want to make an enquiry, as I then don’t want to be bombarded with calls/emails.

Can anyone shed light, or recommend other companies?

Thanks

[daemon]

PLuKE said:

I am looking for some advice on used car PCP.

I have seen a few cars I am interested in, and I would be selling my car privately. Capital Car Finance came up on Google, so I had a browse, £6000 deposit on a car of £17000 was £180-190 PCM, over 48months and 10k per annum. Ballon was £5000ish, and 12% APR.

What are those companies like? I just did there calculator, just to see what it would be, are they accurate? I don’t want to make an enquiry, as I then don’t want to be bombarded with calls/emails.

Can anyone shed light, or recommend other companies?

Thanks

12% APR is horrendously bad. Your total amount payable there is around £14,000

You really should take out a personal loan instead.

https://www.money.co.uk/loans/unsecured-loans.htm

£11,000 over 4 years at 2.8% APR will be £242.34 and you will own the car at that point with no balloon payment, total amount payable £11,632.32.

£11,000 over 5 years at 2.8% APR will be £196.51. You could treat it like a PCP with a balloon and at the end of year four you'll have a balance / "balloon" of £2350 ish. Total amount payable £11,790.60.

[heners54]

daemon said:

PLuKE said:

I am looking for some advice on used car PCP.

I have seen a few cars I am interested in, and I would be selling my car privately. Capital Car Finance came up on Google, so I had a browse, £6000 deposit on a car of £17000 was £180-190 PCM, over 48months and 10k per annum. Ballon was £5000ish, and 12% APR.

What are those companies like? I just did there calculator, just to see what it would be, are they accurate? I don’t want to make an enquiry, as I then don’t want to be bombarded with calls/emails.

Can anyone shed light, or recommend other companies?

Thanks

12% APR is horrendously bad. Your total amount payable there is around £14,000

You really should take out a personal loan instead.

https://www.money.co.uk/loans/unsecured-loans.htm

£11,000 over 4 years at 2.8% APR will be £242.34 and you will own the car at that point with no balloon payment, total amount payable £11,632.32.

£11,000 over 5 years at 2.8% APR will be £196.51. You could treat it like a PCP with a balloon and at the end of year four you'll have a balance / "balloon" of £2350 ish. Total amount payable £11,790.60.

Subject to status, actual rate is revealed on application based on a credit search. If the OP has a excellent credit score then agreed its a no brainer, but if not secured loans IE car finance will secure a better rate. Lots of banks eg Lloyd's have a car finance loan on their website that offers low rates, worth checking out as well.

[PLuKE]

Thanks. I am unsure if I would get a loan of £11000, hence the PCP route. The APR was 6% if your credit rating was excellent, unsure if mine is, so opted for good to air on the side of caution when using there calculator.

Thanks
Luke

[daemon]

heners54 said:

Subject to status, actual rate is revealed on application based on a credit search. If the OP has a excellent credit score then agreed its a no brainer, but if not secured loans IE car finance will secure a better rate. Lots of banks eg Lloyd's have a car finance loan on their website that offers low rates, worth checking out as well.

Agreed.

[liner33]

Nationwide offer 3.4% if you hold an account there , might be worth considering

http://www.nationwide.co.uk/products/loans/car-loa...

[Jim AK]

Check your credit score yourself, plenty of options online & don't forget that all applications for credit will go on your file too

[steve-5snwi]

There are plenty of brokers who will offer PCP on used cars.

[PLuKE]

Thanks chaps, I haven’t had a loan for a car before. Always bought them outright, but the cars I am looking at I am not able to purchase outright.

Are you likely to be declined for a PCP deal? vs a loan?

I am not to familiar with how these things work. My rating is good, just got a mortgage and a credit card with a far old limit.

Many thanks

[liner33]

PLuKE said:

Thanks chaps, I haven’t had a loan for a car before. Always bought them outright, but the cars I am looking at I am not able to purchase outright.

Are you likely to be declined for a PCP deal? vs a loan?

I am not to familiar with how these things work. My rating is good, just got a mortgage and a credit card with a far old limit.

Many thanks

Makes no difference ime provided you have decent credit score. As long as you understand how interest rates work and know how much you will be paying in the end

PCP's are really good for those who like to change cars often , if you plan on keeping it for longer than 3 years there might be cheaper alternatives to pcp for you

[PositronicRay]

PCPs generally don't work well on used cars, compare new PCP deals 1st, often they're subsided and much better value.

To fund a used car find the lowest APR possible, over 5 yrs if it makes everything work. You can always sell and settle the car early.

[PLuKE]

I do change cars fairly regularly. But the cars I am looking at buying are to be kept for 4-5yrs, as we plan on having a child.

New cars, for what I am looking at 2015 C Class/E Class estates in AMG Line spec are way out of my price point on a PCM basis.

I have researched PCP vs Loans and the loan seems a better option for saving money, I guess my concern is taking out a £10000 loan, where as people seem to be giving away PCP to friends I know, who would never be accepted for a loan amount the car costs.

Thanks
Luke

[liner33]

£10k loan and pcp of £300 a month is pretty much the same thing

[PLuKE]

I did a soft search today, Hitatchi Finance gave me 70% chance of acceptance on £10,000 low APR 3.5% and £190 PCM over 5yrs.

Thanks
Luke

[Integroo]

Just a warning: representative rates are a bit of a con. I have a decent credit rating (or so I thought) but advertised 3.2% were turning into 14.5% and the best I secured was 6.9% (though I just refinanced that down to 4.9% with RateSetter).

[PLuKE]

I did try RateSetter, they quoted me 18.5%!

Luke

[Jim AK]

What do you want the car for?

If you`re doing 100`s of miles a week a PCP wont be the way to go & finince will be favourite, at least you can sell the car if its an unsecured loan if you have to..

You say you have just got a mortgage & want children. At the risk of sounding very non PH wouldnt a cheap PCP on some hideous Buzz Box make more sense for a couple of years, you could even pay up early after getting the dealer contribution by getting a loan.

£150 PCM on a something & the balance saved up to what you want to spend each month for the length of it.

[PLuKE]

Mainly for weekend use, maximum 10k per year. I can comfortably afford the repayments, looking for the best deal really. Currently have a 2010 E61 520d M Sport, hence going up for a E Class/C Class.

Thanks