Discussion
I've always done PCP before but the hassle when it comes to the end of the contract is something i could do without.
I know the idea is that you should build up enough equity for the next deposit but it always seems to be just about enough equity to break even.
so i wondered if a personal contract hire was a better/cheaper option? I could do 3 years instead of 4 and then just hand it back. I guess you lose your initial deposit but are there any other drawbacks? And can anyone recommend a good company to have a look at? leasing.com seem to be one of the main ones.
I know the idea is that you should build up enough equity for the next deposit but it always seems to be just about enough equity to break even.
so i wondered if a personal contract hire was a better/cheaper option? I could do 3 years instead of 4 and then just hand it back. I guess you lose your initial deposit but are there any other drawbacks? And can anyone recommend a good company to have a look at? leasing.com seem to be one of the main ones.
The process for handing the car back at the end of a PCH is much the same as that for naming a car back at the end of a PCP so if that's your main criteria then it won't be much advantage.
Choose PCP if you want more flexibility in settling early, or if you feel you might like to keep the car at the end of the agreement, or if you might want the chance of some equity in at the end.
If none of those are important then choose the one with the lowest overall cost.
Choose PCP if you want more flexibility in settling early, or if you feel you might like to keep the car at the end of the agreement, or if you might want the chance of some equity in at the end.
If none of those are important then choose the one with the lowest overall cost.
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