Looking to upgrade 4 year leon with 9 month. Been offered HP for the difference which works out at around 13% apr when comparing with a personal loan @ 8% - 12% over the term 3-4 years it seems a little steep. I hear PCP is another alternative, could someone explain. Would also be interested in peoples experiences and what option they went for.
Thanks
personal loans are nearly always cheaper than buying finance from a car dealer and with the interest rates dropping for loans at the moment its probably going to be even better
PCP I think of as in a way...renting. You pay for it for 4 years and you can just hand it back at the end, or you can pay the final payment (usually quite a large payment) and keep the car, or trade it in and get another new car and keep paying monthly