Dynamic Turtle Posted September 6, 2012 Share Posted September 6, 2012 Can anyone explain why large deposits on PCP and lease hire plans are viewed so negatively? It seems like common sense to me (like financing a fast-depreciating asset with a high APR, lol) but the consensus seems to be that a 10% deposit + much higher monthly payments is the way to go. Why shouldn’t I put down 30 or 40 per cent and have lower monthlies (and pay less in the way of financing costs too)? Quote Link to comment Share on other sites More sharing options...
4RE Leather Posted September 6, 2012 Share Posted September 6, 2012 No reason at all mate. Put as much down as you can as you never know whats round the corner. It's you car your money and your choice:) Quote Link to comment Share on other sites More sharing options...
Chris`I Posted September 6, 2012 Share Posted September 6, 2012 The reason finance companies want you to do it is so they can make more money. More balance on finance means more interest for them. If you've got £20k-ish, you could have mine soon (maybe) Quote Link to comment Share on other sites More sharing options...
Jay Posted September 6, 2012 Share Posted September 6, 2012 The reason finance companies want you to do it is so they can make more money. More balance on finance means more interest for them. If you've got £20k-ish, you could have mine soon (maybe) Dont even think about it chris Quote Link to comment Share on other sites More sharing options...
Dblock Posted September 6, 2012 Share Posted September 6, 2012 The reason finance companies want you to do it is so they can make more money. More balance on finance means more interest for them. If you've got £20k-ish, you could have mine soon (maybe) How come? Quote Link to comment Share on other sites More sharing options...
Sarnie Posted September 6, 2012 Share Posted September 6, 2012 Can anyone explain why large deposits on PCP and lease hire plans are viewed so negatively? It seems like common sense to me (like financing a fast-depreciating asset with a high APR, lol) but the consensus seems to be that a 10% deposit + much higher monthly payments is the way to go. Why shouldn’t I put down 30 or 40 per cent and have lower monthlies (and pay less in the way of financing costs too)? One word; Interest. Quote Link to comment Share on other sites More sharing options...
Dynamic Turtle Posted September 8, 2012 Author Share Posted September 8, 2012 Thanks for the replies chaps - makes sense. Chris, if I'm going to get a 370 I'd want a BE with some exhaust mods. Still a 3-4 months away from pulling the trigger on something new, but I could be interested in late dec/early jan. Cheers DT Quote Link to comment Share on other sites More sharing options...
Willieo Posted September 10, 2012 Share Posted September 10, 2012 Just read an Evo with long term test on a convertible and was taken aback by the stated depreciation over 12 months from new at £16k! Way past a grand a month before you even fill it up. Quote Link to comment Share on other sites More sharing options...
Will370z Posted September 10, 2012 Share Posted September 10, 2012 Just read an Evo with long term test on a convertible and was taken aback by the stated depreciation over 12 months from new at £16k! Way past a grand a month before you even fill it up. Yup thats why i bought a 10 plate with a smile on my face, let someone else pay for that depreciation Quote Link to comment Share on other sites More sharing options...
Jay Posted September 10, 2012 Share Posted September 10, 2012 Just read an Evo with long term test on a convertible and was taken aback by the stated depreciation over 12 months from new at £16k! Way past a grand a month before you even fill it up. Yup thats why i bought a 10 plate with a smile on my face, let someone else pay for that depreciation BINGO.... that's exactly what I did bud Quote Link to comment Share on other sites More sharing options...
ioneabee Posted September 10, 2012 Share Posted September 10, 2012 Quote Link to comment Share on other sites More sharing options...
Chris`I Posted September 11, 2012 Share Posted September 11, 2012 Just read an Evo with long term test on a convertible and was taken aback by the stated depreciation over 12 months from new at £16k! Way past a grand a month before you even fill it up. Bit OTT IMO. Mine is a 2010 plate and looking at the guide price for trade in atm it looks like mine will have lost about £6k-£7k a year in the two and a half years I've had her which is about right for a large capacity sports car. One thing to be wary about is dealers that use the Glass guide. These guys are jokers, completely lowball prices in the guide, they are no where near market values. Parkers is far closer to prices seen on PH/Autotrader/eBay. Quote Link to comment Share on other sites More sharing options...
glrnet Posted September 11, 2012 Share Posted September 11, 2012 Just read an Evo with long term test on a convertible and was taken aback by the stated depreciation over 12 months from new at £16k! Way past a grand a month before you even fill it up. Bit OTT IMO. Mine is a 2010 plate and looking at the guide price for trade in atm it looks like mine will have lost about £6k-£7k a year in the two and a half years I've had her which is about right for a large capacity sports car. One thing to be wary about is dealers that use the Glass guide. These guys are jokers, completely lowball prices in the guide, they are no where near market values. Parkers is far closer to prices seen on PH/Autotrader/eBay. +1 on Parkers Quote Link to comment Share on other sites More sharing options...
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