How many miles should I get on PCP?
PCP deals require you to select a limit for the number of miles you drive each year. This is usually between 6,000-30,000 miles. If you go over your total mileage, the finance provider will charge you extra at a rate per mile. Depending on the provider and vehicle, this can be anywhere from 4p-72p per mile.
Is PCP a good idea on used cars?
Some lenders won’t offer PCP on certain used cars because their final value will be either too low or too volatile for them to predict. You’ll need to look at this on a case-by-case basis, but in general, low monthly payments are possible to get on used cars up to a few years old.
What are the disadvantages of PCP?
Disadvantages of PCP
- Balloon payment can be expensive.
- Damage charges apply for excessive wear and tear.
- Interest rates are high if you have bad credit.
- Extra charges if you go over mileage cap.
- Cancelling your agreement early can be expensive.
What cars are best for PCP?
Best cars deals on PCP
- Kia Picanto.
- Ford Fiesta.
- Renault Megane.
- Vauxhall Insignia Grand Sport.
- Peugeot 3008.
- Citroen C3 Aircross.
- Mini Convertible.
- BMW 6 Series.
How many miles can you get on PCP finance?
You choose the length of your PCP finance agreement, usually between 2 years (24 months) and four years (48 months). The maximum mileage is agreed up front, typically around 10,000 miles per year. There is usually a penalty charge for going over the agreed mileage.
Is PCP car finance worth the time to understand?
If you’re looking to buy a new or used car, it’s worth spending the time to fully understand PCP car finance before you sign up to an agreement for the next three or five years. Below we look at all the things to consider…
How much do you need to pay for a PCP deal?
With the additional option of the final balloon payment if you decide you want to keep and own your car. The Deposit: You’ll need to pay a certain amount upfront to start the PCP deal. This is usually around 10% of the total new value of the car.
What is PCP finance?
PCP Explained. Personal Contract Purchase or ‘PCP’ is the most popular form of finance for new car buyers, but it can be tricky to understand.