PCP/HP Finance

[matrignano]

Any friendly finance bods on PH that could give me a quote on a car please?

[Edible Roadkill]

Used car ?

Prob be 11-13% apr

This website will give you a good idea of the numbers http://www.pcpcal.co.uk/

Also autotrader normally has finance options on dealer cars you can play about changing deposit/term etc

[matrignano]

Yes, second hand.

APR is not so much the issue, it's that this dealer offers HP only and the final value is low ish.

Would prefer a PCP or HP with a higher final value to bring overall finance amount down.

[Edible Roadkill]

Dependant on price don’t discount a bank loan. You’ll get a better rate from a bank than a finance company.

[matrignano]

I'd need a huge loan
Not really feasible I don't think

[The Cardinal]

By the sound of things, it *will* be a large loan. APR is an issue; watch out!

It sounds like you looking for a PCP-type product, where you defer part of the loan until the end? If so, then you might achieve a lower monthly payment - but you will pay more overall than with a straight payment schedule. This is because you are paying interest on the whole loan, but only partly repaying the capital.

There are various finance houses that can arrange this. I haven’t used one, but they very much exist and I’m sure someone will recommend one.

I’m only really replying to say: go into this with your eyes open and take time to understand the full costs, not just the monthly payments.

[Edible Roadkill]

matrignano said:

I'd need a huge loan
Not really feasible I don't think

What you buying

Bank loans are usually a decent rate between £7-8k up to 25 k

HP doesn’t have a final payment, it’s higher monthly payments but you pay to own the car outright.

Normally if the cars over a certain age then you only get HP finance as a dealer option.

There’s private finance groups which will look to finance nearly anything such as oracle finance & Lombard asset finance to name a few

PCP is much more expensive overall. Financial meat grinder. Lure you in with lower monthlies in the hope you stay on the merry go round and keep coming back for another car. I’ve done pcp once in 2010 & it never worked for me, never done it again.

[Longy00000]

If its a very large loan then I am assuming it's a prestige car in which case I would speak directly with some of the specialist lenders who can tailor a package to suit.

Maybe someone like Magnitude Finance or similar?

[Dimebars]

matrignano said:

this dealer offers HP only and the final value is low ish.

There is no final value with traditional HP.

There are a multitude of other finance schemes available that will include a balloon payment at the end that can either be guaranteed or not. You need to do your homework.

Google PCP finance providers - there are plenty out there

[Deep Thought]

matrignano said:

I'd need a huge loan
Not really feasible I don't think

If its a large loan and its PCP you're after, then you will be paying a serious amount of interest. I've seen it be £10,000+ on a car costing £35K...

Oracle Finance maybe...? They might be a bit cheaper, but with the rate increases it will still be painful.

New cars - theres sometimes subsidised manufacturers deals but not on used cars.

[matrignano]

I ended up getting a great deal from Oracle, who have been very very helpful.

Same deposit but much lower monthlies than the Bentley dealer was offering

[Abdul Abulbul Amir]

Dimebars said:

There is no final value with traditional HP.

True but now the old Lease Purchase product name has died a death (HP with final value) you tend to get final values on HPs.