[SEW247]

I was wondering if anyone had bought used with a third party PCP such as Admiral finance?

Can anyone suggest any other low APR third party companies you have used?

In terms of practicalities, does it operate the same way as buying a new BMW on PCP, ie when you reach the end of your term you pay the balloon or hand the car back. In terms of handing the car back - presumably this would go back to the finance company?

Also presumably you can also voluntary terminate it once you’ve paid back 50%?

I know I can get a loan at 3% but I’m just wondering if I go down the PCP route (appreciate it will be more APR) I’ll have more flexibility in terms of lower monthlies and being able to VT or hand the car back after the term ends.

I’m thinking about buying something around £20k to £24k and not putting down a deposit.

Any thoughts from anyone who was thinking about PCP versus loan for a used car?

[robbiep]

Find a dealer with a reasonably priced car, but expensive APR on the PCP, who does a 'deposit contribution'.
Get bank loan lined up.
Take out PCP on the purchase.
Terminate and pay off the PCP within 14 days
Your payments - even allowing for the fact that you are paying off the whole amount - will be lower.


Basically : Do the maths, work out the payments, then decide which route you want to go down.

[thescouselander]

I'm not sure it's worth it. PCPs on used cars generally come with high APRs. Given it's possible get a personal loan at 3% you could get that and run it down at the same rate as a PCP to keep the payments around the same.

I actually did this with my new car as I got a great discount on the purchase price but the PCP finance was extortionate.

[kitster]

Originally Posted by robbiep

Find a dealer with a reasonably priced car, but expensive APR on the PCP, who does a 'deposit contribution'.
Get bank loan lined up.
Take out PCP on the purchase.
Terminate and pay off the PCP within 14 days
Your payments - even allowing for the fact that you are paying off the whole amount - will be lower.


Basically : Do the maths, work out the payments, then decide which route you want to go down.

Brought a 6 month old AUC. Dealer PCP was at 10.9% but because I was a good customer he dropped the rate to 10.4%

Did the PCP, paid it off the next day. For me I can't get my head around the mental interest over the term.

[isleaiw1]

Originally Posted by kitster

Brought a 6 month old AUC. Dealer PCP was at 10.9% but because I was a good customer he dropped the rate to 10.4%

Did the PCP, paid it off the next day. For me I can't get my head around the mental interest over the term.

I would never sign up at nearly 10.5% apr. I struggle with 3.9..

In my head I have a value that is acceptable interest over 4 years in total. It’s probably influenced by having kids and credit card debt for a while.. so I borrow the funds, plan to pay the debt down or swap and short term the deal. Feels better either way!

[DB118D]

I thought 5.9% was readily achievable with a bit of haggling

[Russbmw]

Originally Posted by robbiep

Find a dealer with a reasonably priced car, but expensive APR on the PCP, who does a 'deposit contribution'.
Get bank loan lined up.
Take out PCP on the purchase.
Terminate and pay off the PCP within 14 days
Your payments - even allowing for the fact that you are paying off the whole amount - will be lower.

This.

[335d Rocco]

Originally Posted by DB118D

I thought 5.9% was readily achievable with a bit of haggling

It is.

[Russbmw]

I don't think they have hard and fast rules - it's your luck at the time at the dealership you are at.

I punted the PCP deal around on mine for nearly 2 weeks and they wouldn't budge below 9.4%, so I think it's a bit misleading to present figures obtained as fact, when they are not guaranteed to anyone.

If you (not directed at anyone in particular) got a really good deal on it at the dealership you used, then well done - but that is not the same across the board.

[SEW247]

Just moving away from the APR question, does anyone have any thoughts on PCP versus loan of total amount being a better strategy with respect of being able to hand back the car after say 3 years (by taking out a pcp) versus paying the car off in full with the loan and then finding it’s worth a lot less than what the final payment on the pcp is?

[mikeoz]

Originally Posted by kitster

Brought a 6 month old AUC. Dealer PCP was at 10.9% but because I was a good customer he dropped the rate to 10.4%

Did the PCP, paid it off the next day. For me I can't get my head around the mental interest over the term.

You should be able to get them down to the 7% ish then do as others have said. I hate to think what that dealer of yours does to the customers who are not "Good" if that all he does for you?

[kitster]

Originally Posted by mikeoz

You should be able to get them down to the 7% ish then do as others have said. I hate to think what that dealer of yours does to the customers who are not "Good" if that all he does for you?

TBH. I didn't care what the rate was, as I withdrawing from the finances the next day. I used the higher rate to ask for goodies like service pack, mats, boot tray etc etc.