@rodp:

The interest rate on a PCP is 6.9%*, which is a lot.

However, by taking out a PCP at 6.9%, LR give you £2,500.00 straight away (and the dealer such match that with a further £2,500.00). You can then choose to cancel the PCP almost immediately, with next to no penalty, pay the outstanding balance and keep the £5,000.00

I bought my last new D4 by putting down the largest deposit that they would accept, taking out the PCP (accepting their £3,000.00 "bung") and then paying the PCP off and gaining title to the car as quickly as I could. Their finance company were brilliant and didn't fight me when they realised that this was what I wanted to do; in fact, once they knew what I wanted, they were very helpful and suggested was of paying it off even faster!

The cash value of the interest that you pay is entirely down to the model that you choose, the accessories you pick, the length of the agreement, the annual mileage (which affects the residual) and the deposit that you wish to pay. Unfortunately, the only way to calculate the relevant figure is to put your head in the lion's mouth a visit a dealer Good luck and may the temptation not be too much!!


PS: I know people will say that 6.9% is much more expensive than the 2.7% that can be found elsewhere, but it's unusual for people to qualify for this rate and even more unusual to be able to borrow substantial , unsecured, amounts at this rate. In addition, would anyone want to use up their entire credit facility with an unsecured loan for a car and leave nothing for unforeseen emergencies?


(A large part of my work revolves setting up finance for moderate value hardware so, as you can see, I enjoy "playing the game"! )

It's not entirely unsecured though, is it - the car is still worth a bit (although if the deposit is low and there are problems in the first 12 months, perhaps not quite as much as the loan outstanding).

Land Rover can move on the APR too.

rodp wrote:

Just as a matter of interest, as I shall never buy another brand new car, is the finance interest free from LR? If not, what's the total price a FFRR would set you back nowadays and how much would the interest be of that price?

Suppose I could go in the dealers and ask, but then I may be tempted by something in there so best stay clear.

We may have a misunderstanding - the lower rate bank loan is unsecured, the Land Rover PCP is secured.

LR Will budge on the loan rate (and even start higher, like 7.9%, if you're not careful) but, drop below 6.9% and the cash finance contribution disappears

Oh yes, I forgot about the facility to calculate PCP's on the website Good call

You will certainly do better than an effective £5k discount on an outright sale, with no finance messing.

The most that I was offered, via CarWow or any dealer, for a standard deal, was around £4,785.00, with an additional £2,500.00 on top from LR if I took finance - and that was on a RR priced north of £100,000!

It really is free money and well worth the little time and effort it takes "finance messing".

Last edited by Red Merle on 29th Jul 2017 12:13pm. Edited 1 time in total

Red Merle wrote:

We may have a misunderstanding - the lower rate bank loan is unsecured, the Land Rover PCP is secured.

Give me an example please...

UPDATE: Okay, I've been to look at that.

Click image to enlarge

Red Merle wrote:

The most that I was offered, via CarWow or any dealer, for a standard deal, was around £4,785.00, with an additional £2,500.00 on top from LR if I took finance - and that was on a RR priced north of £100,000!

It really is free money and well worth the little time and effort it takes "finance messing".

Did any of them give you a written offer of either 8 or 10%?

No, never had a written offer for a deal.

Red Merle wrote:

Give me an example please...

UPDATE: Okay, I've been to look at that.

They are quoting 3.56% fixed as a headline rate, but then that becomes 6.9% APR in the small print. So treat 3.6% with some scepticism.

They only sell used cars as well.

Yes, 10.9% is shocking, although I was being offered 6.9 and 7.9% on near new.

The Halifax offering is interesting though. I will do some sums on that later and see if the lower interest rate offsets the loss of £2,500.00 from the LR.