Using PCP deals to own a car outright
Discussion
It’s been 15 years since I last bought a new car, so I’m a bit rusty and things have moved on quite a bit. I’ll need finance of some sort and in the past I always used a personal loan or HP, but all the best offers in terms of 0% interest and deposit contributions seem to be designed to steer you towards PCP. I keep cars a long time, so I want to own it rather than hand it back after a few years.
Does the following approach make sense? This assumes the car I want is available with an attractive 0% PCP deal, or at least with lower interest than I could get with a personal loan.
Obtain car of choice on 0% PCP and take advantage of the healthy dealer contribution. Put in the maximum cash deposit I can and choose the highest mileage allowance (even though I won’t do anything like that mileage) so as to maximise 0% APR and minimise optional final payment. At the end get the best bank loan I can for to cover the final payment?
Does that seem like the way to make the most benefit of the deal? Have I missed anything that makes this a stupid idea?
Does the following approach make sense? This assumes the car I want is available with an attractive 0% PCP deal, or at least with lower interest than I could get with a personal loan.
Obtain car of choice on 0% PCP and take advantage of the healthy dealer contribution. Put in the maximum cash deposit I can and choose the highest mileage allowance (even though I won’t do anything like that mileage) so as to maximise 0% APR and minimise optional final payment. At the end get the best bank loan I can for to cover the final payment?
Does that seem like the way to make the most benefit of the deal? Have I missed anything that makes this a stupid idea?
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