Best way to arrange finance on a car?

[gtiteen]

I've been looking around at some nearly new cars over the passed few days. Was wondering what the best way to finance one is? Most dealerships seem to be offering a PCP agreement, one or 2 seemed quite good but just got back from ford and the finance on the focus rs is disgusting!!! Would I be able to get a better deal from my bank? Also what about leasing or something like that?

Went out in the focus rs too, really cool but not overly impressed. I want to avoid spending that much anyway!!!

Cheers
D

[Scott.T]

PCP keeps the payments down, but all you are really doing is leasing the car as the final payment in 3 or 5 years can be quite large as you don't pay off much of the capital. You are also tied in to getting it serviced at the dealer IIRC.

It's a good way for the dealer to tie you in to changing every few years. A plus point is you can stop paying and hand the car back at any point.

Loan will probably work out more month by month but IMHO the car feels more like yours then the dealers IYKWIM

I stuck our family wheels on an interest free credit card and just swap it to another when the deal runs out.

[gtiteen]

Yeah I know what you mean about car felling like your own car. I do want to keep the monthly payments down though and tbh im quite happy to be tied in to changing in 3 years as it's most likely i get a bmw (ducks for cover!!!) so dont mind getting another in a while. Also the benefit of being able to hand the car back if needs be is probably quite nice.

Need to look in to the cost of loans, also credit cards. How much can you stick on one? Bit wary of them! Will be getting any car i get serviced at main stealer anyway as itll be oldest 2007, hopefully 08/09 though.

Cheers for the info.

[Skullfudge]

Your cheapest option would be to borrow the money from a family member, then pay them back monthly, if possible.

You will save a lot, then offer them + £500

[gtiteen]

I would be keen on that, but its quite a lot of money im looking at financing so dont want to put that burden on someone!!! Plus my dad will tell me to f**k off as its for a car lol.

My other option is to put some money aside for a while longer so my deposit is a lot bigger and minimise the amount being borrowed

[Mr Wagon]

It all depends...

How long do you want to keep the car, how much can you avoid to spend etc etc.

Getting finance, PCP, Lease from a dealer could appear to give you a good deal, but then it locks you into their network and makes it a pig to shift if you have a balloon at end or a GVF or have done silly miles.

HP/loan from a bank is the other approach, but you really need to write down the figures on paper or even better a spreadsheet to really understand what works out financially for you personally
.

[gtiteen]

I think I'm gonna wait a bit and put money aside so that I have as large a deposit as possible to minimise the amount borrowed. Also will be changing my banking round and hopefully be able to get favourable rates therefore not needing to do a PCP agreement and getting a loan instead.

Went back to look at the new Focus RS again today, as far as I'm concerned not worth the money they're up for at the moment. Performance really didn't get me smiling, also when changing from 3rd to 4th with clutch down made a weird whining noise/wind type noise a couple of times. And its always gonna be fwd.