Used Car Finance Comparison | PCP vs HP vs LOAN

Used Car Finance Comparison | PCP vs HP vs LOAN

Let's take a look at the most popular traditional ways of financing a used car and look at the costs, pros and cons of each.

Important: This channel tries to deliver honest content for real people to help provoke thought and help then make good decisions that suit their circumstances. Remember that I am not a financial advisor or car finance professional and am therefore not qualified to give any kind of financial advice, views shown here are purely my own but you must make your own financial decisions. Always seek professional advice before entering a finance arrangement of any kind and seriously consider your financial position and the long-term affordability of any deal that you may enter into.

#carfinance #usedcars

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All music used in this video is written, recorded, and produced by me.

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[laurencemoore]

Useful info. As you say personal circumstances will pay a big part in the rates on offer. Believe you are correct re FCA and inducements.

I think that with PCP and possibly HP there is also added protection like being able to hand back with no penalty after 50% of the debt is cleared.

TBH I think they should teach this stuff in school. I sat my boys down when they started looking at cars and we knocked up an excel sheet to show how the total cost varied. Was an eye opener!

[ThethToChooseThisName]

Great video, no one seems to talk about how good bank loans are. Everyone seems to just take the dealers finance.

[charliemorris]

Very helpful to see finance options for a used car set out clearly. It certainly clarifies which is cheapest if you want to keep the car, but also highlights what you'd pay if you weren't planning on keeping the car. This is where the PCP looks better than HP.

[nikkit]

Thank you, this was so helpful and it's true what you say about dealership trying to strong arm you into finance with them

[daviddominiak]

Great video and keeping us all upto date with prices also getting very close to 20k now!!

[Brinslade]

Thanks, Jim. Very clear comparison. 👍

[mauriceslaney]

Thanks for you efforts Jim, very informative as usual!

[chazoclock]

Good video! PCP appears so good because the dealer doesn't have to give the full VAT amount to the VATman until the opt final payment/actual sale.

[gbtivbay]

Good video content. The FCA would look very poorly on a company inducing a customer to take a specific finance product, as you suspect. FCA will give you a wooly response. The customer must always be offered the best rate available in the dealership to that customer.

[adrianwalsh]

Simple explanation and well presented.

[davidfelton]

Great and informative Jim. In the case of new cars, I've seen huge PCP "Manufacturer Contribution" of figures up to £4000! as an incentive (some may say inducement) to go with the deal. The last time I bought a new car (six years ago) I went with PCP to benefit from a kick back of nearly £3000 but paid it back after a month - I had lots more dosh in those days! Not sure if you can still do this?

[Aylaun]

I find the hps are like 9% vs pcp are like 2%. A video with the changed interest dynamics would be great.

[Hell-Hound]

Just had a look at loans from my bank, First Direct and they are offering 4.9%. Which is £2k cheaper than PCP at £9680.58.

[steamhammerk]

VW do a Deposit contribution . That is an incentive to take credit as well

[cadavrusordo]

Thank you for the video. The APR is that the same as Rate of interest ? Or is that an additional percent we’re required to pay?

[rivermoon]

Have you tried to pay off your personal loan early? Any Pros on doing that? Thanks for the vid!

[rivermoon]

Hi jim. Im planning to part exchange my car. And as always can't decide if I'll go with Pcp or Personal loan. I have good credit score though.

[agiugabenson]

I had a Zoe on a PCP deal and was stressed every time there was a mark etc on it. When I handed it back the inspector came in torrential rain and reported "dirt in the paint work" . No idea
what he was talking about but they wanted £700 to pay for it. I challenged it for obvious reasons and didn't pay anything. However put me completely off PCP.

[alexandrovich]

Thanks Jim, another really useful video for us car guys. 👍

[jibbyjabby]

Im paying about 85% intrest on my car finance. Absolutely shocking. Noticed how unwilling they we're to discuss rates when i was taking out the finance. Zuto by the way. Absolute clowns.