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Prestige Car Finance

Member Since: 04 Jan 2012
Location: London
Posts: 11

PCP or HP Finance ?

Hi everybody this is Charles McLeod from Prestige Car Finance. I thought I would share a recent question that is asked again and again from the site with you in respect of the above subject. We are getting a lot more enquiries for used RR'S and you are asking what is the cheapest way to finance them. The cheapest way is straight HP as the interest charged by the lenders is always less than a PCP ( balloon ) product. However because there is no balloon the monthly payments are more on HP than a PCP product . We feel that the best for each customer depends on his / her monthly budget. .Finally the APR etc maybe important to some but the overall cost of the finance is the figure to look at and in all cases HP over the same term will be cheaper.

Hope this makes sense please ask any questions you may have.

Regards

Charles The UK's leading alternative to showroom finance

22nd Aug 2013 10:29am

stan
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Member Since: 13 Jul 2010
Location: a moderate moderated moderator moderating moderately in moderation
Posts: 34933

thankyou for the information Charles... ... - .- -.

click link for ,

FORUM WIKI

HOW TO ÆŽê“•âˆ€ê“•Oê“¤ PICS

workshop manual downloads are in our wiki

.

22nd Aug 2013 12:21pm

A1GSS

Member Since: 24 Dec 2010
Location: Saffron Walden, Essex
Posts: 1973

Prestige Car Finance wrote:
...in all cases HP over the same term will be cheaper...

How can this be when you're always repaying more capital with HP? Graham

____
Gone: 10MY L320 RR Sport HSE, Ipanema Sand
Gone: 20MY Jaguar iPace HSE, Silicon Silver
Gone: 17MY RR Evoque SE Tech, Loire Blue
Gone: 08MY Discovery 3 XS, Stornoway Grey
Gone: 07MY FFRR TDV8 Vogue, Stornoway Grey

22nd Aug 2013 10:46pm

CMJ

Member Since: 10 Oct 2010
Location: Lancashire
Posts: 208

2015 Range Rover Autobiography TDV6 Santorini Black

Monthly payments higher = paying off more capital = lower balance to accrue interest = lower interest charge = lower overall cost of borrowing.

However If you cannot afford £550 per month where £50 is the interest versus £400 per month where £60 is the interest all a bit academic. 2013 L405 AB 4.4SDV8 Luxor/Ivory, 2007 Vogue TDV8 Epson Green/Sand, 2008 Vogue TDV8 Buckingham Blue/Sand, 2003 Vogue 4.4 LPG Epsom Green/Sage, 1998 Vogue SE 4.6 LPG Epsom Green/Cream

25th Aug 2013 11:37am

Prestige Car Finance

Member Since: 04 Jan 2012
Location: London
Posts: 11

Hi Guys

CMJ you are correct in your reply in essence its more expensive per month as you are paying back capital and interest but the interest is lower as a total than a PCP...however at the end of the term you own the car outright.

This query arises mainly as dealers have a greater incentive to sell PCP products which generate more comms and normally tie the customer in when he comes to change / upgrade the vehicle.

Regards Charles The UK's leading alternative to showroom finance

28th Aug 2013 5:50pm

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