Post
by Mr V10 » Tue Dec 03, 2013 5:23 pm
The less deposit you put in on a PCP is better in the long run for one reason. Say you put in £10k, it's now three years down the line, you want another car, the same model, to get similar payments to what you’re now used to making you’re going to need another £10k, and there isn’t going to be £10k equity in the car…
I’m going through a database of PCP customers currently, and the ones that put down the larger deposits are the ones that are harder to renew, which is what the dealer wants you to do in three years, and why they push the PCP over HP etc...
If you’re planning on buying the car at the end of the agreement, put down the maximum deposit allowed, as this will mean you pay less interest. Putting less money in means you will pay more interest, as you're borrowing more, but will be better come renewal time as you won't have to find the fat deposit again.
I can explain it better, but I'm tired.
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