What are the disadvantages of PCP finance?

2. What are the disadvantages of PCPs?

  • You’re essentially hiring the car.
  • You don’t have any guarantee about future car values.
  • You’ll have a hefty final payment.
  • You’ll need to watch your mileage and damage.

Are there any benefits to PCP?

Lower medical costs – Regularly visiting your PCP for preventative care and urgent concerns helps you avoid costly visits to the emergency room and often means fewer medical visits overall. Staying healthier – From help managing chronic conditions to personalized recommendations, a PCP can help you improve your health.

What is PCP finance Ireland?

PCP is a Personal Contract Plan which is a form of hire purchase agreement. It is a car finance package that has lower monthly payments over three years compared to a Hire Purchase contract over the same period. With PCP you can have a flexible finance plan to suit your own circumstances.

When should you change car on PCP?

If you can wait until the end of your PCP agreement before changing your car, this is usually the best option. Unlike when you change your car early, you won’t need to pay early termination fees or face increased monthly payments if you were to refinance the balloon payment.

What are the pros and cons of a PCP loan?

Much like any sort of finance agreement, there are pros and cons of taking out a PCP. The monthly payments you will have to make are usually much lower than with a Hire Purchase or HP agreement and with unsecured personal loans too. Monthly payments are always fixed, so you will never have to be unsure about how much you need to pay every month.

Why choose PCP over other finance options?

Similarly Andrew Slattery, an automotive professional, considered other finance options but a PCP was far more attractive. “I like the idea that at the end of the contract I can get another new car and have the same monthly repayments”

What are the pros and cons of PCP car insurance?

This is a benefit with cars that depreciate quickly, but it can mean you spend more on a vehicle that retains its value. PCP deals come with mileage limits and drivers can incur penalties of 7p to 10p per mile for exceeding the allowance, the website says. Drivers may also have to fork out for any marks on the car’s paint, or scuffed wheels.

What are the benefits of a PCP?

“Other benefits include a quick decision with loan approval and the possibility to buy another new car at the end of the plan” For others, like Carli Smith who wanted something small and reliable, the option of not having to pay the final balloon payment was the main attraction of a PCP.