Car Finance... PCP / HP / Car loan ??
Discussion
Hello,
Never have I ever had car finance. I've always been in a situation where I can buy cars outright. Admittedly they've never been new.
However, our aging 1 series is now 21 years old and very much past its best.
My other half want something more reliable, and to be fair so do I. We already have a a 2010 BMW 5 series that is our main car.
Anyway, we are looking at spending about £15000, with say £3000 to put down leaving the finance requirement of £12000.
Not being up on this sort of thing... what do we do ??
Looking at something that is a few years old she wants a Mercedes GLA....not my choice but heyho.
So what do we do ?
I think PCP is out, so it's HP or bank style car loan. Money Supermarket gives much better rates than HP.
Thank you...
BS (and Mrs BS)
Never have I ever had car finance. I've always been in a situation where I can buy cars outright. Admittedly they've never been new.
However, our aging 1 series is now 21 years old and very much past its best.
My other half want something more reliable, and to be fair so do I. We already have a a 2010 BMW 5 series that is our main car.
Anyway, we are looking at spending about £15000, with say £3000 to put down leaving the finance requirement of £12000.
Not being up on this sort of thing... what do we do ??
Looking at something that is a few years old she wants a Mercedes GLA....not my choice but heyho.
So what do we do ?
I think PCP is out, so it's HP or bank style car loan. Money Supermarket gives much better rates than HP.
Thank you...
BS (and Mrs BS)
blackscooby said:
Hello,
Never have I ever had car finance. I've always been in a situation where I can buy cars outright. Admittedly they've never been new.
However, our aging 1 series is now 21 years old and very much past its best.
My other half want something more reliable, and to be fair so do I. We already have a a 2010 BMW 5 series that is our main car.
Anyway, we are looking at spending about £15000, with say £3000 to put down leaving the finance requirement of £12000.
Not being up on this sort of thing... what do we do ??
Looking at something that is a few years old she wants a Mercedes GLA....not my choice but heyho.
So what do we do ?
I think PCP is out, so it's HP or bank style car loan. Money Supermarket gives much better rates than HP.
Thank you...
BS (and Mrs BS)
I'd be going for a cheap bank loan. Try Money Saving Expert - they've a loan rate finder Never have I ever had car finance. I've always been in a situation where I can buy cars outright. Admittedly they've never been new.
However, our aging 1 series is now 21 years old and very much past its best.
My other half want something more reliable, and to be fair so do I. We already have a a 2010 BMW 5 series that is our main car.
Anyway, we are looking at spending about £15000, with say £3000 to put down leaving the finance requirement of £12000.
Not being up on this sort of thing... what do we do ??
Looking at something that is a few years old she wants a Mercedes GLA....not my choice but heyho.
So what do we do ?
I think PCP is out, so it's HP or bank style car loan. Money Supermarket gives much better rates than HP.
Thank you...
BS (and Mrs BS)
James_33 said:
Whatever you do don't PCP, biggest mistake i ever made and now stuck with it for the next 3 years after a year in already.
Why are you stuck with it? You can sell it or px it ? All pcps will be upside down financially in the first year so if that’s the reason that’s a fairly normal position?
interstellar said:
James_33 said:
Whatever you do don't PCP, biggest mistake i ever made and now stuck with it for the next 3 years after a year in already.
Why are you stuck with it? You can sell it or px it ? All pcps will be upside down financially in the first year so if that’s the reason that’s a fairly normal position?
Stupid and naive, this was my first PCP deal i ever took and wish i had actually got something for much less money that i had more interest in rather than an appliance, but thought more about the needs of the family rather than including myself in what i may want too seen as I'm the only one who can drive in the household.
James_33 said:
interstellar said:
James_33 said:
Whatever you do don't PCP, biggest mistake i ever made and now stuck with it for the next 3 years after a year in already.
Why are you stuck with it? You can sell it or px it ? All pcps will be upside down financially in the first year so if that’s the reason that’s a fairly normal position?
Stupid and naive, this was my first PCP deal i ever took and wish i had actually got something for much less money that i had more interest in rather than an appliance, but thought more about the needs of the family rather than including myself in what i may want too seen as I'm the only one who can drive in the household.
If you are 5k under market value a year in that is quite normal, it will settle month by month.
It’s the most common method of purchasing but if you didn’t want to keep it for 3 years then that’s where it’s an issue.
interstellar said:
James_33 said:
interstellar said:
James_33 said:
Whatever you do don't PCP, biggest mistake i ever made and now stuck with it for the next 3 years after a year in already.
Why are you stuck with it? You can sell it or px it ? All pcps will be upside down financially in the first year so if that’s the reason that’s a fairly normal position?
Stupid and naive, this was my first PCP deal i ever took and wish i had actually got something for much less money that i had more interest in rather than an appliance, but thought more about the needs of the family rather than including myself in what i may want too seen as I'm the only one who can drive in the household.
If you are 5k under market value a year in that is quite normal, it will settle month by month.
It’s the most common method of purchasing but if you didn’t want to keep it for 3 years then that’s where it’s an issue.
Everything you've said is true in that i know come time it'll level out a bit more, just didn't particularly think I'd get bored as quick as i have but it is what it is.
James_33 said:
We wanted a car that would be big enough for the family, was relatively new and had spec that we needed in some cases and in others wanted and that car came up, newest car I've ever owned after all my others in the past being at least 6 to 10 years old from time of purchase, I did get a little drawn in by the nice showroom having never had that "experience" before but the main thing for me is that whilst there's nothing wrong with the car itself, the biggest regret is that i have a car that i have very little interest in albeit everyone else liking the car in the family and not really in a position to afford a second car to keep my interests alive until it's financially viable to get rid of this one.
Everything you've said is true in that i know come time it'll level out a bit more, just didn't particularly think I'd get bored as quick as i have but it is what it is.
It sounds like a combination of different factors conspired against you in that situation.Everything you've said is true in that i know come time it'll level out a bit more, just didn't particularly think I'd get bored as quick as i have but it is what it is.
On the point of car finance, you would have been generally in the same position with PCP, HP, bank loan, or even paying cash from savings.
If you intend on replacing every three years then PCP may be for you but watch the interest rates, they can be high.
Otherwise straight HP or personal loan but again watch the rates but you may get a few sweeteners for taking dealer finance but looking around it will in all probability still be cheaper to get a personal loan which are circling around 6% for someone with decent credit history.
Otherwise straight HP or personal loan but again watch the rates but you may get a few sweeteners for taking dealer finance but looking around it will in all probability still be cheaper to get a personal loan which are circling around 6% for someone with decent credit history.
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