% of yearly income you'd spend on a car?

Palmnuts · 07-04-2012, 06:40 AM

Yes, it's the total repayable under the loan (excluding any deposit).

So, buy a car for £20k and pay a £4k deposit - £16k borrowed. Add £2k interest and the total repayable under the loan would be £18k. Half way is £9k, at which point you can hand the car back.

As has been said already, 3 year PCP vs. 5 year HP deals are very similar these days and I can't see how you can get bitten by one and not the other given the monthly payments are similar and the half-way points (in these days of finance companies setting very prudent, i.e. low, MGFV/final payments) would also be very similar.

Kerr · 07-04-2012, 08:05 AM

Yeah, that was my understanding.

I did read for agreements over 25k the hand back after halfway is not allowed.

Palmnuts · 07-04-2012, 08:38 AM

Quote:

Originally Posted by Kerr

I did read for agreements over 25k the hand back after halfway is not allowed.

That used to be the case years ago but isn't now

mowflow · 07-08-2012, 01:56 PM

A friend of mine is in the process of adding to his mortgage to help finance a Scuderia.

07-04-2012, 06:40 AM	#89
Palmnuts Lieutenant Colonel 170 Rep 1,957 Posts Drives: Huracan Evo & M8 GC Join Date: Nov 2008 Location: Leicestershire, UK iTrader: (0)	Yes, it's the total repayable under the loan (excluding any deposit). So, buy a car for £20k and pay a £4k deposit - £16k borrowed. Add £2k interest and the total repayable under the loan would be £18k. Half way is £9k, at which point you can hand the car back. As has been said already, 3 year PCP vs. 5 year HP deals are very similar these days and I can't see how you can get bitten by one and not the other given the monthly payments are similar and the half-way points (in these days of finance companies setting very prudent, i.e. low, MGFV/final payments) would also be very similar.
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07-04-2012, 08:05 AM	#90
Kerr Brigadier General 112 Rep 4,021 Posts Drives: BMW M235I Join Date: Dec 2010 Location: Aberdeen iTrader: (0)	Yeah, that was my understanding. I did read for agreements over 25k the hand back after halfway is not allowed.
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07-08-2012, 01:56 PM	#92
mowflow Colonel 62 Rep 2,472 Posts Drives: Golf 7R Join Date: Feb 2010 Location: Glasgow iTrader: (2)	A friend of mine is in the process of adding to his mortgage to help finance a Scuderia.
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