Ernie66 Posted February 1, 2015 Report Share Posted February 1, 2015 Has anyone taken out a PCP finance deal from their dealer recently? I am looking to buy a new Boxster and have been offered a PCP at 7.7%. Is this a good rate or not? I'd be interested to hear what anyone else has been offered so I know if I'm getting a good deal. Link to comment Share on other sites More sharing options...
NickFrog Posted February 1, 2015 Report Share Posted February 1, 2015 That seems a bit extreme when you can borrow at 3.6% unsecured from Nationwide. Isn't PCP the most expensive way of financing a car ? I am no expert though.Unless of course it triggers discounts that are not available otherwise. Link to comment Share on other sites More sharing options...
Kevan Posted February 1, 2015 Report Share Posted February 1, 2015 http://www.moneysavingexpert.com/loans/cheap-personal-loanshas to be cheaper.... Link to comment Share on other sites More sharing options...
Ringer250 Posted February 1, 2015 Report Share Posted February 1, 2015 I remember someone posted on the forum that they arranged a PCP to get any dealer/manufacturer discounts that were tied to taking Porsche (VAG) finance, then pay back within a month or so with another cheaper form of borrowing. Link to comment Share on other sites More sharing options...
Simon Posted February 7, 2015 Report Share Posted February 7, 2015 The appeal of PCP is to get the monthly payments down to as low as possible, personal loans cannot compete.Try one of those broker firms, worst case kick the Porsche dealer with their rates if they are cheaper.S Link to comment Share on other sites More sharing options...
Stuart21UK Posted February 7, 2015 Report Share Posted February 7, 2015 You cant get a personal loan for 40k anyway can you?PCP with Porsche aka VW Finance is around 7.5 to 10% at Porsche and a bit less any other VAG dealer..Had a chat with my OPC about a Cayenne and got some finance quotes...he said some favour lease purchase instead of PCP (can't remember the pros and cons now TBH) Link to comment Share on other sites More sharing options...
NickFrog Posted February 7, 2015 Report Share Posted February 7, 2015 Just get several loans. Or simpler just use mortgage finance at 2.49%. Link to comment Share on other sites More sharing options...
Stuart21UK Posted February 8, 2015 Report Share Posted February 8, 2015 ..unless you pay it back earlier by overpaying, the mortgage will not work out much less, went through the figures a couple of days ago :}Longer term loan at lower rate = less per month but as much overall due to longer term (and you cant predict the future mortgage rate either)..and taking several loans over 5 years doesn't make for the same as a PCP either as you are financing much more up front rather than deferring some of it and refinancing in 3 years or so..you would end up with more per month and clearing it quicker versus less per month and taking it longer,,,may as well have done the PCP saved the extra per month and used to it to pay the cash and cleared the balloon/GFV in 3 years (but without having the monthly commitment to do so)Whichever way you look at it, its an expensive car and its going to cost you one way or another...the sensible money is on buying used for less, like I didn't Link to comment Share on other sites More sharing options...
Ernie66 Posted February 8, 2015 Author Report Share Posted February 8, 2015 I went for the bank loan in the end, much lower apr than the dealer. I gave them the opportunity to compete but they wont or cant go lower than 7.6%. I suppose thats where they make their margin. Anyways its on order now so just gotta wait until April. Link to comment Share on other sites More sharing options...
NickFrog Posted February 8, 2015 Report Share Posted February 8, 2015 ..unless you pay it back earlier by overpaying, the mortgage will not work out much less, went through the figures a couple of days ago :}2.5% vs PCP rate ? Simply overpay the mortgage by the amount of interest "saving" generated. Link to comment Share on other sites More sharing options...
Stuart21UK Posted February 8, 2015 Report Share Posted February 8, 2015 ..unless you pay it back earlier by overpaying, the mortgage will not work out much less, went through the figures a couple of days ago :}2.5% vs PCP rate ? Simply overpay the mortgage by the amount of interest "saving" generated. kind of what I said...trouble is what percentage of people do you think who tell me they will overpay their new mortgage actually do? ...and dont forget the 'your home is at risk statement' also if you are lumping it on your property too...lol Link to comment Share on other sites More sharing options...
NickFrog Posted February 8, 2015 Report Share Posted February 8, 2015 Oh I agree with you Sutart. I know that I would overpay as much as I can...which is exactly what I have done all my life, and I don't care too much what the rest of the population would do. You never know, the OP may be sensible too..., which would make a 3rd one of us !As for releasing equity from your house, yes bad move but still a bit better than paying 7.7% IMO. Link to comment Share on other sites More sharing options...
Stuart21UK Posted February 8, 2015 Report Share Posted February 8, 2015 Indeed and I'm just playing devils advocate here..not necessarily disagreeing with anything you said..Last point I'm gonna make for interest and nowt more...people shopping around for a mortgage or finance of another type often think the difference in rate will mean a lot more in terms of the resulting payments than it does..example£36000 at 7.5% over 3 yrs equates to £1119 per month (TAP £40314) £36000 at 2.5% over the same 3 years is £1039 per month (TAP £37404)(in very simple terms using a basic app I have on my phone)a saving I'll grant you, but you would have thought a rate 3 times smaller would have made for much less than £80 pcm saving per month...BTW hope you weren't including me in the 'sensible 3'! Link to comment Share on other sites More sharing options...
NickFrog Posted February 8, 2015 Report Share Posted February 8, 2015 Of course I am. I am not sure I'm including myself though. You're right about rates. Perception and reality... Link to comment Share on other sites More sharing options...
Tin Pot Posted February 9, 2015 Report Share Posted February 9, 2015 A difference of £2,880 on 3yr loans for £36,000 is pretty significant in my mind.I tend to save and buy in cash, but I am starting to look at my 986 and think...hmm. Just how much would a GT4 set me back (over the term)? Link to comment Share on other sites More sharing options...
Tin Pot Posted February 10, 2015 Report Share Posted February 10, 2015 Example personal finance shows 700/m so ~£10K/annumHas anyone seen the corporate finance costs? Link to comment Share on other sites More sharing options...
Rjm25r Posted February 15, 2015 Report Share Posted February 15, 2015 Pcp is the cheapest monthly outlay but the most expensive t-a-p. most people trade in before the end and continue paying.I would never pay cash for a new car. You've instantly halved your cash on a depreciating asset! Put your cash into your mortgage (appreciating asset) Link to comment Share on other sites More sharing options...
NickFrog Posted February 15, 2015 Report Share Posted February 15, 2015 Car depreciate at the same rate irrespective of the finance method and you pay for the depreciation one way or the other, either every month or in one chunk. But if you can yield better out of an appreciating asset than the interest rate on your car finance then great but at the same level of risk, you'll struggle. Even at 5% interest rate, you need to find an investment that yields 5% after inflation AND tax. So property might get that with growth minus CGT but with an element of risk. ATM, the last thing I want is cash yielding 1.5% NISA and then less after tax. You get the same discount whether cash or finance, one way or the other. The decision should be based on cash flow and fiscal position. But generally I find cash cheaper overall and far more flexible, no mileage issues, sell when you want, you can track it etc etc Link to comment Share on other sites More sharing options...
Rev Ken Posted February 16, 2015 Report Share Posted February 16, 2015 When buying our VW Golf Cabriolet three years ago I used VW finance over three years, got a reasonable discount as a reward, invested sufficient funds in a three year fixed term ISA to pay off the balance. Overall a positive financial outcome earlier this month, although I doubt it would work to-day. Link to comment Share on other sites More sharing options...
Al Woodall Posted February 17, 2015 Report Share Posted February 17, 2015 Looking at new cars at the moment in a few places and although the dealer numbers sound good, esp if they have an extra £1k "deposit contribution" on them the extra interest vs 3.6% loan outweighs the benefit for me. Cash buyers can also get better deals at the end of the month / dealers fin year. Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.