| Comment | From personal experience I'd avoid PCP. I've had 2 cars on that plan. When I changed from the 1st car to the 2nd I ended up having to pay more as the original car had negative equity.
So I'm essentially paying for my current car and a small part of the old car at the same time.
PCP might work for you if you plan on keeping the car for the whole agreement however at the end of the agreement you will either pay a 'balloon payment' to pay the remaining balance of the car and own it outright, or give the car back to the dealership. The 2nd option can also result in negative equity if there is damage or you have gone above the agreed mileage etc.
HP may be more expensive monthly but you will own the car outright after the agreement with no balloon payment, and you're free to sell/keep the car as you see fit.
I myself will be going for HP when I can eventually got out of my PCP agreement.
Some of the stuff I've mentioned may not be entirely accurate as I've only been driving for a few years and may be misunderstanding certain things but that's my 2 cents.
I hope it helps. |
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