VWFS PCP vs LP Finance

[stu99]

Hope someone can help -

I've ordered a new car to replace the current model (Both Audi S3) and I'm looking at the best way to finance some of the outlay.

I have a reasonable bit of equity in the current car - circa £10k so this could be a deposit. and I'm looking to finance £20k.

I've had a couple of VWFS PCP's before, although the current agreement is standard HP, and I've not had any problems.

From talking to a few third party providers and reading some online stuff most seem to say that PCP is to be avoided at almost any cost and to go for LP however nobody has been able to convince/prove to me the reasons why.

I like the ability to be able to change part way through the agreement if I wish so termination rights are important.

I know GFV etc is not especially relevant and i'm not bothered about mileage limits so they are ruled out as issues to contend with.

Can anyone point me in the right direction please?

Thanks

Stu.

[theaxe]

stu99 said:

Hope someone can help -

I've ordered a new car to replace the current model (Both Audi S3) and I'm looking at the best way to finance some of the outlay.

I have a reasonable bit of equity in the current car - circa £10k so this could be a deposit. and I'm looking to finance £20k.

I've had a couple of VWFS PCP's before, although the current agreement is standard HP, and I've not had any problems.

From talking to a few third party providers and reading some online stuff most seem to say that PCP is to be avoided at almost any cost and to go for LP however nobody has been able to convince/prove to me the reasons why.

I like the ability to be able to change part way through the agreement if I wish so termination rights are important.

I know GFV etc is not especially relevant and i'm not bothered about mileage limits so they are ruled out as issues to contend with.

Can anyone point me in the right direction please?

Thanks

Stu.

Not sure what's wrong with PCP, it works well for a lot of people. Basically it costs a bit more but at the end of the agreement you have the option to just hand the car back. GFV is certainly relevant as the car may depreciate below it.

HP and PCP generally allow termination at any time, just ring up and ask for an early termination quote.

Edited by theaxe on Monday 18th January 13:48

[stu99]

It seems to me at the moment that the only people who tell me not to buy on PCP are the people that sell LP. Now I'm not saying that it's not good information I'd just really like someone to prove it to me.

[theaxe]

stu99 said:

It seems to me at the moment that the only people who tell me not to buy on PCP are the people that sell LP. Now I'm not saying that it's not good information I'd just really like someone to prove it to me.

Just get a quote for each and then work out whether the flexibility & GFV is worth the extra to you.