Skip to content

Car Finance Expert Q&A

Hi, I'm Edwin and I'm here to help you!
image description

Edwin Miles. Underwriting Manager

Car Finance Calculator

Calculate your loan immediately


How can I help you?

Do you have a question about Carfinance247 or its services? If so, please complete the form below for a response within 1 working hours. I have over 7 years experience working for Carfinance247 and have the responsibility to answer all questions asked.

PCP or Car Loan?

Hi, As someone with quite a lot of experience, I was wondering if you would be able to help me. I am looking at getting a new car worth £25,000 on a 4 year long PCP contract doing around 9,000 miles a year. What would you expect monthly payments to be? I am trying to consider PCP vs loan and weigh up the pros and cons of both.Thanks for your help, Michael

Posted by Michael on


Hi Michael, the first thing to consider is whether you wish to own the car after the 48 months or not. If you do then a car loan / hire purchase is the better option however your monthly payments will be higher.
With a PCP you're renting the car for a period of time and at the end of the agreement you can either sell the car and settle the baloon payment or potentially re-finance the baloon payment due. In terms of payments it all depends upon what deposit you place into the PCP deal at the start and what the guaranteed future value of the car will be in 48 months time (as determined by the finance company).
Lets say you place 10% down (£2500) and finance £22,500 with a "GFV" of £10000 you should be paying circa £360 p/month at a rate of 8% APR. I hope this helps you out a little. Kind Regards, Edwin

Posted by on

Rate Edwin’s advice.

image description


This comment is awaiting moderation.

Posted by michael davies on

Do you have a question on this topic?

Ask a question or leave a comment on this topic below

Back to Car Finance Expert Q&A

Back to top