Best PCP deals?

Honest John Back Room » Motoring discussion
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Thu 24 Jan 2008 12:35
Best PCP deals? - A2B
Anyone know of some of the best Personal Contract Plans for a car over either 1 or two years?

Also noticed that the business deals seem better, has anyone just set up a business to take advantage of them or as I suspect I am missing something here?

Best I found was £150 for a Nissan note over two years. Anyone know of any better deals?
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Thu 24 Jan 2008 21:36
Best PCP deals? - cjehuk
Define a "good" deal... putting 40% deposit down on a car that barely depreciates will get you a good deal, but do you really want to pay the deposit?

Mini Cooper 1.6, Motorlogix.com
£13025 to buy
£5000 (38%) Deposit
over 24 months/10k a year.

Final payment £8653.25
Monthly payment £68.32

That's an APR of 16.9%!!!! That's hugely expensive for the amount you'd be borrowing, as you've worked out, the only thing you'd be paying over the term would be interest on the final payment.

Work out your TCO based not just on the monthly payment, but also how much you'll get back after the agreement is over. Business deals will look less because most quote without VAT.
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Thu 24 Jan 2008 22:05
Best PCP deals? - Bill Payer
APRs always look high on PCPs simply because of the fact that a big final payment is deferred.
What would the real final value of that Mini be? The issue with that deal is that if it'sonly worth about the same as the GFV then it's really cost about £300/mth to hire a the car for 2yrs.

Regarding "just setting up a company to take advantage of a business lease" - that wouldn't work as it would have to be VAT registered to recover any of the VAT, otherwise you might as well take a standard Personal Lease, which is normally the same rate as a business lease but includes VAT.

Edited by Bill Payer on 24/01/2008 at 22:10

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