Low rate pcp deals

Last year was rather disappointing when it came to car sales figures , so dealers the length and breadth of the country will be keen to get your custom with some tempting new car deals. As a result, offers abound on both new and nearly new cars. Many of the latter will be 'pre-registered' cars — essentially brand new cars registered to show as 'sold' in an effort to increase sales figures. Although they're technically used cars, many will only have covered a handful of miles, but will be offered at a considerable discount. Don't forget that it always pays to haggle.

If you're a nervous negotiator, we can help you drive a bargain with our guide to securing the right deal. You might also find that your existing car is worth more than you think in part exchange. Following controversy surrounding diesel emissions , several manufacturer scrappage schemes are still in action, which might tempt you to trade in your older, less efficient diesel for a new, less polluting model. Read on for our in-depth guide to the best new and nearly new car deals, including those from manufacturer websites and online brokers. For the 2. You can of course adjust the deal for a smaller deposit and higher monthly payments.


PCP car deals: the hidden insurance trap revealed

That gets you the 99bhp 1. For example, you can choose a 2.

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Keep reading for the best deals straight from the manufacturers, or visit our best cars section to check out the top models on the market today. Under the deal, you can buy the turbocharged bhp 2.

For the bhp 1. It scored 4. If you want a sporty, responsive coupe, the i M Sport is available with big finance incentives. Although this article is updated on a regular basis, Driving. Follow Us.

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Published 15 October By Sunday Times Driving. Related Articles. You don't have to save up to afford a car, or spend what savings you may already have, leavi. Buying guide: leading dashboard cameras dashcams The technology that has been safe-guarding the reputations — and insurance policies — of good drivers in Russia for many years is now beginning Sign up to the Carbuyer newsletter.

As an effective way of bringing down monthly payments, PCP has turned new-car ownership into a reality for many who previously thought it out of reach. With PCPs so alluring, deciding whether to buy new or used is a bit more complicated, especially when you find that Hire Purchase HP is still a popular choice and well worth comparing against a PCP , while your bank might tempt you with a personal loan.

Car finance explained

Every method of car finance has its own pros and cons and it's vital that you understand each before making a decision. In this guide, we aim to make Personal Contract Purchase clear in simple terms, to help you decide whether it could be the key to buying the new car you've always dreamt of. It immediately proved popular and other mainstream manufacturers were quick to follow suit with PCP products of their own.

PCP's key features are a 'front-end' customer deposit and a final 'balloon' payment. These familiar terms describe lump payments made by the customer at the beginning and end of the term, the result being monthly payments typically far lower than those of a Hire Purchase HP arrangement on a car of the same value. Today, the majority of franchised main dealers offer PCP deals on new cars, either underwritten by the manufacturer's own financial division or a third-party finance company. Such is their popularity that PCP deals are also common for nearly-new and used cars , but oddly these can sometimes cost more each month than PCP for a new car.

This is because manufacturers are keen to promote new car sales, so often agree tempting deposit contributions and low-rate finance deals to secure buyers. A PCP scheme is simple and rather appealing.

Personal Contract Purchase

You visit the dealer or online retailer, choose a car, pay the deposit, agree on a monthly payment and interest rate, sign the papers and drive away. The process outlined above pretty much mirrors what happens under a Hire Purchase agreement. You take the cost of the car, subtract a deposit, add some interest and then divide the whole by the number of payments. A PCP is a little more technical, though, and takes some understanding. All cars naturally lose value over time which is referred to as deprecation. What you pay under a PCP agreement essentially covers the depreciation experienced during the agreement.

You can shop around to get the best interest rate, but the GMFV is likely to be the same wherever you go. This could be between 5p and 10p a mile, which soon adds up.

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Depreciation is most severe in years one and two, but starts to level out by the third year.