PCP Rates - Best place to go?

[SSG1000]

Looking at picking up a M135i, albeit on PCP. Currently seeing some crazy rates at the dealer at 10% & the best rate I’ve seen with Lombard (through my employer) at 4.9% however the balloon at the end is really bad.

My question: does anyone have any recommendations on where to look for the best pcp rates, please?

[jimmy_wrxsti]

Try Magnitude and also Oracle. Magnitude have a online calculator that you can put all the details in.

When I searched for my X5M I went with Magnitude and the calculator figures was what I signed up for in the end.

[interstellar]

Do you really want the option of giving it back at the end?

If not the best way is a personal loan. Very
Low rates with Tesco etc and take it over 5 years and after 3 years you will be left with a lump sum similar to the car.

If you can bump the monthly up a bit and shorten the term you will save even more.

[Deep Thought]

interstellar said:

Do you really want the option of giving it back at the end?

If not the best way is a personal loan. Very
Low rates with Tesco etc and take it over 5 years and after 3 years you will be left with a lump sum similar to the car.

If you can bump the monthly up a bit and shorten the term you will save even more.

+1

Personal loans are stupidly cheap right now. I'd be doing a cheap loan over 5 years, rather than a (currently) pricey PCP over three.

[SSG1000]

Thanks all - best place for a £30k ish loan?

Sainsbury’s is 2.9% up to £25k is the best I’ve seen so far?

[interstellar]

Yep 25k is the cut off. Work with that and any other budget you can but over £25k it will be more expensive on personal loan.

Have you got a link to the car you like ?

[Save Ferris]

Have you tried Octane?
https://www.octanefinance.co.uk/

[SSG1000]

Save Ferris said:

Have you tried Octane?
https://www.octanefinance.co.uk/

I’ve dropped them a line thank you & to Jimmy above!

[SSG1000]

interstellar said:

Yep 25k is the cut off. Work with that and any other budget you can but over £25k it will be more expensive on personal loan.

Have you got a link to the car you like ?

https://www.autotrader.co.uk/car-details/202110218740108?advertising-location=at_cars&year-from=2019&price-to=50000&postcode=B63%201EA&model=1%20Series&sort=price-asc&page=1&aggregatedTrim=M135i&make=BMW&include-delivery-option=on

Can easily put the £5-£6k down, and finance the 25k - however don’t want to come up short two years down the line….. ie: overpaying for the two year ownership

[interstellar]

You will far better off for overall cost wise by doing a personal loan.

What the chances that I live 3 miles from Marshall Bournemouth by the way

[SSG1000]

interstellar said:

You will far better off for overall cost wise by doing a personal loan.

What the chances that I live 3 miles from Marshall Bournemouth by the way

Would it make sense to put the loan over 7 years (for the cheapest possible repayment), with approx £600 more interest over the lifetime. And repay early with the interest element of 54 days added on? (as per Sainsbury’s t&c’s)

Early scouting on the vehicle for me please haha

[interstellar]

Personally 5 years tracks the vehicle right and you won’t be upside down at 3 years.

Can go and see the car for you no prob but I have covid (day 3) so can’t go ahead until at least Tuesday but if you are serious about it would happily take a look for you

[G111MDS]

Personal loan definitely the most cost efficient way if you’re borrowing to purchase. We’ve looked at PCP a few times, but when you work out the actual % interest you pay, it’s always put me off. It probably means I end up with a lower value car, as I need to fit into the personal loan limit, but hey ho. That said, I think the odd bank will lend up to, I think, as much as £50k on a personal loan which could be another option for you.

[mike9009]

For a £30k car, I would realise some of your capital assets rather than a PCP.

[SSG1000]

interstellar said:

Personally 5 years tracks the vehicle right and you won’t be upside down at 3 years.

Can go and see the car for you no prob but I have covid (day 3) so can’t go ahead until at least Tuesday but if you are serious about it would happily take a look for you

Let me run some numbers and I will certainly get back to you as I’m based in Birmingham!

Wish you a speedy recovery and appreciate your offer. Merry Xmas!

[SSG1000]

G111MDS said:

Personal loan definitely the most cost efficient way if you’re borrowing to purchase. We’ve looked at PCP a few times, but when you work out the actual % interest you pay, it’s always put me off. It probably means I end up with a lower value car, as I need to fit into the personal loan limit, but hey ho. That said, I think the odd bank will lend up to, I think, as much as £50k on a personal loan which could be another option for you.

Interesting, I think I’d get the max 25k & use the £4K equity in my current vehicle and top up the extra £1-£2k.

If you don’t mind me asking - what term did you got for the personal loan?

[Throttlebody]

Buy a cheaper car, save until you can buy it outright. Leave the finance trap, stop paying other peoples salaries through debt and APR. Best advice you will get.

[interstellar]

Not very practical though. Like saying save for a house and don’t get a mortgage. Not many can save up £30k for a car in reality.

[SSG1000]

Throttlebody said:

Buy a cheaper car, save until you can buy it outright. Leave the finance trap, stop paying other peoples salaries through debt and APR. Best advice you will get.

If I sink £30k into a car that £30k isn’t doing much for me, it’s just depreciating.

But if I get £25k on finance, I only put in £5k towards the car and I can make reasonable monthly payments.

The £25k that I have ‘saved’ is actually going towards a property renovation. Therefore, it makes more sense to me to finance the car as that £25k is generating a return for me and not depreciating.

[limpsfield]

Throttlebody said:

Buy a cheaper car, save until you can buy it outright. Leave the finance trap, stop paying other peoples salaries through debt and APR. Best advice you will get.

Life is too short, rates are low.