PCPs - Do's & Don'ts

Setanta12

Registered User
Messages
1,193
Looking at new car (new to me, someone else's cast-off) and I see that PCPs are also offered for second-hand cars .. .. .. ..

Where's the down-side here?
 
Looking at new car (new to me, someone else's cast-off) and I see that PCPs are also offered for second-hand cars .. .. .. ..

Where's the down-side here?

If you know the car you want and are happy to pay for it, under most PCP schemes there is no downside. (I say most because I don't know which one you are looking at, but generally they do not over charge for credit, some even give free credit).

So is it too good to be true ?

Well, yes and no.

The reason car companies offer these schemes is not to make money directly from the schemes, it is to make it easier to buy a more expensive car.

If you have €10k to spend, a pep scheme might induce you to sign up for a €15k car. Thats why they do it.

If you have the discipline to only spend the €10k then you are really getting a free lunch, the car company makes its extra from the average buyer who is tempted into the bigger car by the ease of PCP finance.
 
Back
Top