PCP (or similar) for used cars?

[stuno1]

Hi all, car finance is new to me. I am looking to buy a 35k (ish) car early next year and am weighing up the art of the possible. The car in question will be 4 years old and I plan on keeping it for the duration of any finance taken out. Normally I just get a loan from my bank as their APR is very good. However with buying a house this year I am looking to take the same value in money but keep repayments down where possible. A balloon payment such as that offered for PCP is preferable but I cant see a product that offers this for the sort of age car I am after. Is there such a product?

Stu

[rfoster]

Hi Stu

Yes, PCP is generally available for cars up to 5 years old at the beginning of the term and then over 3-4 years.

Cheers, Richard

[stuno1]

Ah ok, so you can get pcp for a 4 year term on a 4 year old car. Thanks.

[sidicks]

rfoster said:

Hi Stu

Yes, PCP is generally available for cars up to 5 years old at the beginning of the term and then over 3-4 years.

Cheers, Richard

APRs tend to be much higher for finance on used cars.

[mike74]

Have you ever considered just buying a car you can afford, then use a loan to pay for counselling to try and cure the inferiority complex that you obviously suffer from?

[stuno1]

mike74 said:

Have you ever considered just buying a car you can afford, then use a loan to pay for counselling to try and cure the inferiority complex that you obviously suffer from?

Monumentally retarded response that I won’t dignify with a proper reply. Get a life chap.

[mike74]

stuno1 said:

Monumentally retarded response that I won’t dignify with a proper reply. Get a life chap.

Boohoo.

You know I'm right though, dontcha.

[Behemoth]

stuno1 said:

Monumentally retarded response that I won’t dignify with a proper reply. Get a life chap.

He has a point, though. PCP is complicated, expensive and pushed hard by shiny-suited salesmen. Many believe it's sub-prime debt that will lead at worst to another full blown financial crash & at best to another financial product mis-selling scandal.

[stuno1]

mike74 said:

Boohoo.

You know I'm right though, dontcha.

Not at all. I have financed all my cars to a degree in the past with personal loans due to low apr over other alternatives. It has nothing to do with willy waving. If I can comfortably afford to buy a nice car then why not? Why tie up cash in a 35k car when it can be used for other investments? What is your issue with it? I don’t think I am the one with the issue here.

[ChrisNic]

Another option is to create your own PCP.

Take out a personal loan for what you need but extend the term, it effectively still gives you a balloon payment after 3 years but if you can secure a loan at 3% there can be a saving over a traditional PCP.

[sidicks]

mike74 said:

Have you ever considered just buying a car you can afford, then use a loan to pay for counselling to try and cure the inferiority complex that you obviously suffer from?

If you're just going to be a tt rather than help the OP, why not ignore the thread altogether?

[skinnyman]

Gotta love these "buy a car you can afford outright" people, who usually go quiet when you ask them how they purchased their house.

I'm on my 3rd PCP car now, every one has worked out brilliantly for me, comfortable payments, plenty of equity left at the end, and hassle free motoring, with my money safely sat in investments rather than tied up in a car.

[fakenews]

skinnyman said:

Gotta love these "buy a car you can afford outright" people, who usually go quiet when you ask them how they purchased their house.

A typical house is more than most supercars...that's why genius!

skinnyman said:

I'm on my 3rd PCP car now, every one has worked out brilliantly for me, comfortable payments, plenty of equity left at the end, and hassle free motoring, with my money safely sat in investments rather than tied up in a car.

What? You could buy a 2nd hand Vauxhall for a couple of months finance charges - you'd not only own the Vauxhall but you'd have no debt each month so you can actually build your so-called 'investments'. Then you could be smug.

PCP is for idiots who want something they truly can't afford (and WILL NEVER OWN). I'd rather save or even get a loan (treat it as a piggy bank given such cars depreciation) for a classic car I ACTUALLY OWN rather than continually bleed through my wallet for some facelifted, facelift to try and keep up with the Joneses - well done your car is newer and supports a lightning connector FFS - if you care about that your life isn't worth living. Use your brain and you'll not only blow the Joneses out of the water but you'll have enough cash to move somewhere where your neighbours won't live on the same postage stamp...

[Deesee]

stuno1 said:

Hi all, car finance is new to me. I am looking to buy a 35k (ish) car early next year and am weighing up the art of the possible. The car in question will be 4 years old and I plan on keeping it for the duration of any finance taken out. Normally I just get a loan from my bank as their APR is very good. However with buying a house this year I am looking to take the same value in money but keep repayments down where possible. A balloon payment such as that offered for PCP is preferable but I cant see a product that offers this for the sort of age car I am after. Is there such a product?

Stu

Make sure you get the mortgage agreed first, house transactions always a little more tricky than car transactions!

Remember most car transactions are quoted as flat rate, APR on some deals is inflated due to fees (etc) the only “real” way to calculate the actual cost of loan vs hp vs pcp is to add all the monthly’s + fees together and see what the total overal cost (and remember the balloon at the end if there is one).

[sidicks]

Deesee said:

Make sure you get the mortgage agreed first, house transactions always a little more tricky than car transactions!

Remember most car transactions are quoted as flat rate, APR on some deals is inflated due to fees (etc) the only “real” way to calculate the actual cost of loan vs hp vs pcp is to add all the monthly’s + fees together and see what the total overal cost (and remember the balloon at the end if there is one).

The APR represents the true cost of the loan, and takes into account all the relevant fees.

[sidicks]

fakenews said:

What? You could buy a 2nd hand Vauxhall for a couple of months finance charges - you'd not only own the Vauxhall but you'd have no debt each month so you can actually build your so-called 'investments'. Then you could be smug.

PCP is for idiots who want something they truly can't afford (and WILL NEVER OWN). I'd rather save or even get a loan (treat it as a piggy bank given such cars depreciation) for a classic car I ACTUALLY OWN rather than continually bleed through my wallet for some facelifted, facelift to try and keep up with the Joneses - well done your car is newer and supports a lightning connector FFS - if you care about that your life isn't worth living. Use your brain and you'll not only blow the Joneses out of the water but you'll have enough cash to move somewhere where your neighbours won't live on the same postage stamp...

Stupid comments - different approaches will suit different people.

[Chestrockwell]

Made a big mistake starting a thread on finance/pcp, it never ends well!

Ask Derek with the 911

[stuno1]

Chestrockwell said:

Made a big mistake starting a thread on finance/pcp, it never ends well!

Ask Derek with the 911

Seems that way! Fu@k me some people are douche bags. All for opinions when they are intended to help or advise but most just seem to want a brawl. I’ll leave them too it. Thank you to those who had genuinely useful input.

[Deesee]

sidicks said:

The APR represents the true cost of the loan, and takes into account all the relevant fees.

Depends how you pay the fees... upfront or rolled up...

[Chestrockwell]

stuno1 said:

Hi all, car finance is new to me. I am looking to buy a 35k (ish) car early next year and am weighing up the art of the possible. The car in question will be 4 years old and I plan on keeping it for the duration of any finance taken out. Normally I just get a loan from my bank as their APR is very good. However with buying a house this year I am looking to take the same value in money but keep repayments down where possible. A balloon payment such as that offered for PCP is preferable but I cant see a product that offers this for the sort of age car I am after. Is there such a product?

Stu

You can get it but the interest will be really high, sometimes when I’m having a look on autotraders at cars I can never afford and see an example of a PCP that a dealer offers, say on a 2011 M5 for 35k, usually with the final payment car ends up costing at least 5 grand more with interest. You also get mileage limitations etc.

I suggest speaking to your bank, I bought my car using a loan from a bank at around 3% apr when BMW finance was 10%!

4 year old car though for 35k, it’s definiely an interesting car, I’m trying to figure it out!

M3?