Hi everybody this is Charles McLeod from Prestige Car Finance. I thought I would share a recent question that is asked again and again from the site with you in respect of the above subject. We are getting a lot more enquiries for used RR'S and you are asking what is the cheapest way to finance them. The cheapest way is straight HP as the interest charged by the lenders is always less than a PCP ( balloon ) product. However because there is no balloon the monthly payments are more on HP than a PCP product . We feel that the best for each customer depends on his / her monthly budget. .Finally the APR etc maybe important to some but the overall cost of the finance is the figure to look at and in all cases HP over the same term will be cheaper.

Hope this makes sense please ask any questions you may have.

Regards

Charles The UK's leading alternative to showroom finance

thankyou for the information Charles... ... - .- -.




Y. O. L. O.
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Prestige Car Finance wrote:

...in all cases HP over the same term will be cheaper...

Monthly payments higher = paying off more capital = lower balance to accrue interest = lower interest charge = lower overall cost of borrowing.

However If you cannot afford £550 per month where £50 is the interest versus £400 per month where £60 is the interest all a bit academic. 2013 L405 AB 4.4SDV8 Luxor/Ivory, 2007 Vogue TDV8 Epson Green/Sand, 2008 Vogue TDV8 Buckingham Blue/Sand, 2003 Vogue 4.4 LPG Epsom Green/Sage, 1998 Vogue SE 4.6 LPG Epsom Green/Cream

Hi Guys

CMJ you are correct in your reply in essence its more expensive per month as you are paying back capital and interest but the interest is lower as a total than a PCP...however at the end of the term you own the car outright.

This query arises mainly as dealers have a greater incentive to sell PCP products which generate more comms and normally tie the customer in when he comes to change / upgrade the vehicle.

Regards Charles The UK's leading alternative to showroom finance