allen Posted October 30, 2005 Report Share Posted October 30, 2005 hi does anyone know a good website where i can get an online quote for pcp, want to use as much of the value of my car for a deposit, then check out the monthly payments, just to see what price car i can afford to look at Link to comment Share on other sites More sharing options...
CarMad Posted October 30, 2005 Report Share Posted October 30, 2005 I have seen LloydsTSB have some very good PCP rates. Link to comment Share on other sites More sharing options...
Dave Posted October 30, 2005 Report Share Posted October 30, 2005 I bought the wife's car from Lloyds.. a vauxhall zaferia.. excellent price and easy deal.. it's over two years old now and comming up for renewal and it's been very easy! Link to comment Share on other sites More sharing options...
Sponge Posted October 30, 2005 Report Share Posted October 30, 2005 Their rate is higher at 8.9%, but it's good for comparison's sake. Sainsburys 6.3% at Lloyds TSB Drive the Deal Link to comment Share on other sites More sharing options...
Frodo Posted October 30, 2005 Report Share Posted October 30, 2005 6.3% APR is really good I had previously been looking at 7.9% only issue is the discount isn't fantastic. But it does give me some ammunition to attack Audi with Link to comment Share on other sites More sharing options...
richy_uk Posted November 3, 2005 Report Share Posted November 3, 2005 PCP is bollox, the interest rate is loaded so that you pay the depreciation risk. If you're buying a car that is likely to hold it's value, lease purschase is far better. Link to comment Share on other sites More sharing options...
jimdiesel Posted November 3, 2005 Report Share Posted November 3, 2005 [ QUOTE ] PCP is bollox, the interest rate is loaded so that you pay the depreciation risk. If you're buying a car that is likely to hold it's value, lease purschase is far better. [/ QUOTE ] This is true most of the time, however just occasionaly a manufacture supported PCP can be more competitive than lease purchase. I always used to lease purchase, but when I bought the A6 last year the PCP was heavily subsidised on the 3.0TDi, due to this being the only diesel available at launch, and being relatively expensive. Therefore to encourage people into it, rather than have them wait for the 2.0 and 2.7 models Audi UK offered a deal which worked out about 2.9% flat rate. Also you need to ignore the APR, and just work out he flat rate. Due the the way the interest accumulates on the baloon, the APR doesnt give a representative indication. Link to comment Share on other sites More sharing options...
richy_uk Posted November 3, 2005 Report Share Posted November 3, 2005 As a one off, that's a good deal, but generally, 9 times out of 10, PCP is bollox. Link to comment Share on other sites More sharing options...
gizze Posted November 3, 2005 Report Share Posted November 3, 2005 I always just go with a variable rate loan, therefore no penalties when I want to get out early, don't need a massive deposit so not tieing money up and you can leave a balloon that you feel happy with. To get an idea of figures just use the loan search on autotrader.co.uk and put figures in for 60 and 72 months, this will give you the same sort of monthly figure as 5% deposit and a realistic balloon after 2 years. That is if you are buying with a decent discount or 6 months old, put term over 48 months if buying new. Link to comment Share on other sites More sharing options...
sidicks Posted November 3, 2005 Report Share Posted November 3, 2005 [ QUOTE ] Also you need to ignore the APR, and just work out he flat rate. Due the the way the interest accumulates on the baloon, the APR doesnt give a representative indication. [/ QUOTE ] Sorry, but that is b*ll*cks The true cost of a loan is given by the APR, flat rates take no account of the time value of money. Sidicks Link to comment Share on other sites More sharing options...
jimdiesel Posted November 3, 2005 Report Share Posted November 3, 2005 [ QUOTE ] [ QUOTE ] Also you need to ignore the APR, and just work out he flat rate. Due the the way the interest accumulates on the baloon, the APR doesnt give a representative indication. [/ QUOTE ] Sorry, but that is b*ll*cks The true cost of a loan is given by the APR, flat rates take no account of the time value of money. Sidicks [/ QUOTE ] Sorry, but that is not b*ll*cks. APRs reflect fees as well as interest, and when the formulas for APRs were designed, baloon payments were not taken into account. Link to comment Share on other sites More sharing options...
sidicks Posted November 3, 2005 Report Share Posted November 3, 2005 Sorry mate, but an APR reflects the discount rate that is needed to equate the present value of the loan = with the payments made on that loan, after accouunting for all interest and fees involved. The APR is actually the PV rate rounded down to the lower 0.1%. APRs can quite happily take into account balloon payments. If you want to quote some examples, I'm happy to show you where you are going wrong, but the key problem with a flat rate of inetrest is that it does not take into account when payments are made (See below) Consider a loan of £1000 at 10% APR over 1 year Total interest is £100, so total repayment is £1100 Regardless of whether the loan is paid back via a payment of £999 on day two followed by a payment of £101 on day 365 or whether the whole £1100 is paid on day 365 the flat rate is the same. The APR for the first loan will be vastly higher than for the second example, and I know which loan I'd rather take out !! By the way, this is my job, and I know my stuff ! Sidicks Link to comment Share on other sites More sharing options...
jimdiesel Posted November 3, 2005 Report Share Posted November 3, 2005 QED Link to comment Share on other sites More sharing options...
sidicks Posted November 3, 2005 Report Share Posted November 3, 2005 [ QUOTE ] QED [/ QUOTE ] Does this mean I win the argument ? I last won an argument in 2000 (just before I got married.............) Sidicks Link to comment Share on other sites More sharing options...
sidicks Posted November 3, 2005 Report Share Posted November 3, 2005 [ QUOTE ] Sorry mate, but an APR reflects the discount rate that is needed to equate the present value of the loan = with the payments made on that loan, after accouunting for all interest and fees involved. The APR is actually the PV rate rounded down to the lower 0.1%. APRs can quite happily take into account balloon payments. If you want to quote some examples, I'm happy to show you where you are going wrong, but the key problem with a flat rate of inetrest is that it does not take into account when payments are made (See below) Consider a loan of £1000 at 10% <font color="red"> FLAT RATE </font> over 1 year Total interest is £100, so total repayment is £1100 Regardless of whether the loan is paid back via a payment of £999 on day two followed by a payment of £101 on day 365 or whether the whole £1100 is paid on day 365 the flat rate is the same. The APR for the first loan will be vastly higher than for the second example, and I know which loan I'd rather take out !! By the way, this is my job, and I know my stuff ! Sidicks [/ QUOTE ] Ooops ! I've now edited my post as I'd mistakenly put APR not flat rate !! The APR in the second case is 10%, in the first it is 10,000% Sidicks Link to comment Share on other sites More sharing options...
jimdiesel Posted November 3, 2005 Report Share Posted November 3, 2005 Glad you spotted it. Im no expert but I cannot work in APR. When it comes to car finance with a regular payment schedules I find flat rates much easier to work with. Link to comment Share on other sites More sharing options...
Booster Posted November 3, 2005 Report Share Posted November 3, 2005 [ QUOTE ] [ QUOTE ] Sorry mate, but an APR reflects the discount rate that is needed to equate the present value of the loan = with the payments made on that loan, after accouunting for all interest and fees involved. The APR is actually the PV rate rounded down to the lower 0.1%. APRs can quite happily take into account balloon payments. If you want to quote some examples, I'm happy to show you where you are going wrong, but the key problem with a flat rate of inetrest is that it does not take into account when payments are made (See below) Consider a loan of £1000 at 10% <font color="red"> FLAT RATE </font> over 1 year Total interest is £100, so total repayment is £1100 Regardless of whether the loan is paid back via a payment of £999 on day two followed by a payment of £101 on day 365 or whether the whole £1100 is paid on day 365 the flat rate is the same. The APR for the first loan will be vastly higher than for the second example, and I know which loan I'd rather take out !! By the way, this is my job, and I know my stuff ! Sidicks [/ QUOTE ] Ooops ! I've now edited my post as I'd mistakenly put APR not flat rate !! The APR in the second case is 10%, in the first it is 10,000% Sidicks [/ QUOTE ] Just read the first post and was about to say that it isn't 10% APR. Its my job too! Who do you work for Sidicks? Link to comment Share on other sites More sharing options...
sidicks Posted November 3, 2005 Report Share Posted November 3, 2005 [ QUOTE ] Glad you spotted it. Im no expert but I cannot work in APR. When it comes to car finance with a regular payment schedules I find flat rates much easier to work with. [/ QUOTE ] But you take the point that APR is the 'true' cost of the loan? [ QUOTE ] Just read the first post and was about to say that it isn't 10% APR. Its my job too! Who do you work for Sidicks? [/ QUOTE ] I'm an Actuary at a large US investment bank..... Sidicks Link to comment Share on other sites More sharing options...
P_G Posted November 4, 2005 Report Share Posted November 4, 2005 Getting back to the debate on PCP's I know on my last 2 cars it has worked out better the lease hire. However I have haggled Audi finance on the percentages, they have the 'standard rate' and then can look at other finance houses and use those to obtain better rate but only if you ask. Certainly if you are thinking of trading up your car before the end of the PCP period it appears to be a good way of backloading a fair amount of the outstanding sum and not paying interest on it. Link to comment Share on other sites More sharing options...
Frodo Posted November 4, 2005 Report Share Posted November 4, 2005 This is my concern if I sign up to a 36 month PCP and find my situation changes how can I get out of it say after 2 years? Link to comment Share on other sites More sharing options...
CarMad Posted November 4, 2005 Report Share Posted November 4, 2005 Most allow you to just walk away after 50% ish of paying the payments. My other half before I met her did a PCP deal on her car over 42 months and a high APR.. it wasn't a good deal. But she can leave after only 26 payments, walks away and doesn't have to pay another penny. We are going to do this as the payments for the rest of the car and the final balloon payment is a very bad deal. Its a new car and a deposit + loan and its works out at a far better deal for her. Link to comment Share on other sites More sharing options...
sidicks Posted November 8, 2005 Report Share Posted November 8, 2005 [ QUOTE ] Certainly if you are thinking of trading up your car before the end of the PCP period it appears to be a good way of backloading a fair amount of the outstanding sum and not paying interest on it. [/ QUOTE ] I do not believe that you will not be paying interest on the outstanding sum - send me the numbers and I'll prove it !!! sidicks Link to comment Share on other sites More sharing options...
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