Is it better to buy a car with cash or get PCP finance?

This depends on your circumstances – if you want to buy a car with cash-only, but then change the car after three years, this will be more expensive. In this case, it’s better to take out a PCP deal rather than buying it outright. However, paying cash could be better if you’re buying a used car, as depreciation is reduced compared to a new car.

Does PCP include insurance?

Peugeot Just Add Fuel deal includes both PCP finance and insurance. It’s an excellent offer where you can get a new Peugeot car, as well as insurance and even road tax, covered. Another scheme SimplyDrive by Citroen also combines a new car on PCP with insurance.

Is PCP worth it?

Personal Contract Purchase financing can be a suitable option if you like to switch cars every few years and don’t mind the restrictions that come with it, such as limits on mileage and paying for damage above simple wear and tear.

However, if you’d like to keep a car at the end of an agreement, Hire Purchase may be a cheaper choice for you as you don’t need to cover a large balloon payment at the end. Whether PCP is worth it really depends on your preferences and circumstances.

What are PCP interest rates?

PCP interest rates typically start from 4%, but interest-free finance options are viable if you have a good credit score.

Can you part exchange a car on PCP?

One option is part-exchanging your car once the PCP agreement reaches its end. However, the car’s value does need to be higher than the final payment for this choice to be available, so taking care not to go over the mileage and keeping a car in good condition can help.

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