No deposit pcp plan

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Sun 30 Dec 2018 11:52
No deposit pcp plan - NAthan smith
Morning
Been offered a deal on a pcp where there is no deposit. The monthly figures and the mileage all adds up to where I want to be. I’ve used pcp before and bought Audi and BMW’s so always done ok even putting a deposit in. Any advice on this offer of no deposit?
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Sun 30 Dec 2018 11:59
No deposit pcp plan - SLO76
What’s the APR? What’s the annual mileage allowance? What’s the final payment? etc etc. No deposit isn’t the important figure here. A bank loan would have no deposit and can be had from around 3% APR with no other superfluous fees. Unless it’s a new car with a manufacturer subsidised deal it’ll almost certainly be much dearer than a traditional bank loan.
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Sun 30 Dec 2018 16:07
No deposit pcp plan - NAthan smith
Got them down to 6.6% which I think is prettt good. £17500 car over 48m with mileage set at 7k
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Sun 30 Dec 2018 16:11
No deposit pcp plan - SLO76
Got them down to 6.6% which I think is prettt good. £17500 car over 48m with mileage set at 7k

Is that the flat rate or the APR? Even if the latter it’s more than double the rate you could get elsewhere which will add a lot of unnecessary cost. The 7k mileage allowance is very low, are you sure it’s enough for you and what is the excess mileage rate set at? How does the price of the car compare to other similar models, is it overpriced? What make and model is it, what’s the mileage and age? Can you link the advert so I can have a wee look to see if there’s a downside to this deal before you buy it?

Edited by SLO76 on 30/12/2018 at 16:12

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Sun 30 Dec 2018 16:17
No deposit pcp plan - SLO76
Quick calculation shows that a £17,500 loan over 4yrs @ 6.6% APR will cost £2385.09 in interest assuming there’s no other fees while a bank loan @ 3% APR will cost £1077.81. Thus your PCP is costing you quite a lot more, even if you took the bank loan over a longer term to keep the monthly payment similar you’d still be saving a substantial three figure sum.

For example a 6yr £17,500 loan @ 3% APR will cost £265.57 a month and will cost £1621.22 in interest. You’d also have the flexibility of being able to sell the car at any time or opting to keep it by continuing to pay the loan. With a PCP you’ll have nothing to show for 4yrs of monthly payments but with a loan you’ll have equity in the car to put to the next one.

Edited by SLO76 on 30/12/2018 at 16:30

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Sun 30 Dec 2018 20:46
No deposit pcp plan - retgwte

Get a like for like quote from lingscars.com

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