PCP Deals

[Chris100]

Hey all,

I have used PCP for my cars for more than 10 years and was wondering what sort of deals other folks who use this method are getting currently.

Previously I have only put around £2k down as a deposit in order to get a monthly payment I am happy with, well I can change my current car (S3 saloon) from March and frankly the deals I see being advertised are way more expensive than I have ever seen (420i for example of £6-7k down).

I don’t want to go to dealerships and waste mine and their time if for whatever reason the deposits I am used to just aren’t out there at the moment, interested in other people’s experience.

Cheers,
Chris.

 

[rollinstone]

I went to bmw and was like paying magic beans to get a car and was told by the salesman when I said this "it's so people like you can afford a car you wouldn't be able to normally" needless to say walked out.

Merc couldn't do anything for me with what I wanted

Went to Audi and was sorted out by the guy who I have gone to now for the last 3 cars, under budget with a better car. Would highly reccomend him, salesman was Stephen Sullivan an absolute gent no nonsense!

That's my personal experience although like anything I'm sure on the right day or with the right salesman the other local dealerships would have been a fantastic experience!

 

[Deezer-D]

Would you not think of leasing? PCP is designed to keep the buyer locked in to the loop. I know there’s the argument that you have nothing to show for your money at the end of a lease but if you do the maths the PCP probably works out dearer. Does anyone ever have anything at the end of a PCP? Most people chop in for a new car rather than pay the high final payment - keeping them in the dealer loop. Intrest rates on PCP are usually higher but people go for them as it’s all about the monthly payments and not the overall cost.

 

[Chris100]

Would you not think of leasing? PCP is designed to keep the buyer locked in to the loop. I know there’s the argument that you have nothing to show for your money at the end of a lease but if you do the maths the PCP probably works out dearer. Does anyone ever have anything at the end of a PCP? Most people chop in for a new car rather than pay the high final payment - keeping them in the dealer loop. Intrest rates on PCP are usually higher but people go for them as it’s all about the monthly payments and not the overall cost.

Leasing seems good if you want a basic spec car, once you add options its usually no cheaper on the monthly payments when compared to a pcp

 

[NickR]

Leasing seems good if you want a basic spec car, once you add options its usually no cheaper on the monthly payments when compared to a pcp

What make of car are you looking at?

 

[KeithRobinson]

For the wife's RS3, we ended up pushing the deposit as high as possible and getting a personal loan. For £4k extra deposit, we're paying the same per month as PCP but no £16k balloon payment at the end.

Nationwide do £25k at 3% if your a member, super cheap money!

 

[Lappintyre]

In a similar boat too. Looking at new & year old cars (BM, AUDI,Merc)

APR on new, from what I have seen, is around 6% + in most of the dealerships. Used cars whilst “cheaper” on the ticket are mostly 12% +

Has led me to look at leasing, it’s all down to how many months down to determine the ongoing monthly, in my case the mileage @ 30k PA is really bumping them up. Head is turned..!

 

[Lappintyre]

Nationwide do £25k at 3% if your a member, super cheap money!

Wonder how long you need to be baking with them for that rate?

 

[KeithRobinson]

Wonder how long you need to be baking with them for that rate?

I was with them 6 months. Applied 7pm, money in the bank 9am the next day.

 

[Lappintyre]

I was with them 6 months. Applied 7pm, money in the bank 9am the next day.

Nice one. Keep meaning to switch banks, moved house recently so kicked it down the road. Should’ve done it straight after!

 

[KeithRobinson]

Nice one. Keep meaning to switch banks, moved house recently so kicked it down the road. Should’ve done it straight after!

It's a huge saving when you're looking at car values in that region. Much better than PCP or finance.

If you have a friend with Nationwide, they can refer you and you get £100 and they get £100. If you've no mates with them, drop me a PM.

 

[Chris100]

What make of car are you looking at?

Audi and BMW

 

[Chris100]

In a similar boat too. Looking at new & year old cars (BM, AUDI,Merc)

APR on new, from what I have seen, is around 6% + in most of the dealerships. Used cars whilst “cheaper” on the ticket are mostly 12% +

Has led me to look at leasing, it’s all down to how many months down to determine the ongoing monthly, in my case the mileage @ 30k PA is really bumping them up. Head is turned..!

On PCP new is definitely the way to go, aside from the drastic difference in the apr rates most will offer a deposit contribution on new car pcp's.

 

[Simon83]

For the Tiguan a personal loan from Tesco which was much cheaper than VW finance. A 5 minute online application form and the money was in my account 12 hours later. The only problem was a lot of dealers lost interest when I told them I wasn’t taking finance.

 

[Robin_Hood]

If your going down PCP route, definitely cut out the dealer and arrange the finance yourself.

Alphera Financial are BMW Finance body, and will deal directly with customers provided the dealer isn’t already a partner (unusual for large retailers).
Magnitude Finance are another independent broker who can deal with anyone.

Both Alphera & Magnitude will offer PCP flat rate around 3.4% with APR around 6.8%

PCP/Lease argument comes up often, way I look at it is that if your in a PCP, although finance company technically “owns” the vehicle you have an opt out if mid way through you want a change, sell privately, trade into dealer and claw back some of your initial deposit

Lease your tied into the agreement for the full term of contract.. no option to sell mid way and no chance to get your initial deposit back again?

Personal loan is ideal scenario but doesn’t always work for everyone.

 

[NickR]

Audi and BMW

If you’re buying new, definately use the likes of coast2coast or drive the deal. I done that for both my new F31 and new Golf R. Both resulted in considerable savings over list (between 12-17%). This will make a massive difference to your PCP prices.

 

[Boksic]

I was with them 6 months. Applied 7pm, money in the bank 9am the next day.

Holy **** that's dangerous!

Sitting down one evening with a few beers looking at gumtree/auto trader/pistonheads, wake up the next morning with a sore head, plane tickets printed off, a boat booking reference, somebody's first name and a mobile number, spare 25k in the bank.. Sure what could go wrong!

Excellent rate right enough!

 

[KeithRobinson]

For the Tiguan a personal loan from Tesco which was much cheaper than VW finance. A 5 minute online application form and the money was in my account 12 hours later. The only problem was a lot of dealers lost interest when I told them I wasn’t taking finance.

Thats where dealers make their money now. Commission from PCP. Gone are the days of knocking money off list price with cash.

 

[Chris100]

Thats where dealers make their money now. Commission from PCP. Gone are the days of knocking money off list price with cash.

Quite a few also pay a deposit contribution with a PCP which does make them an attractive option, for example on my current deal Audi paid the £5k deposit which meant I had nothing to pay up front. I could have paid something and lowered the monthly payment but I was happy with the amount with just the £5k down.

 

[zafturbo]

For the Tiguan a personal loan from Tesco which was much cheaper than VW finance. A 5 minute online application form and the money was in my account 12 hours later. The only problem was a lot of dealers lost interest when I told them I wasn’t taking finance.

Don’t tell them till the deal is almost done .