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Quote: Originally Posted by goodingm (original)

PCP can be a bit high on APR against loans but they do have advantages , like you can get a higher spec car for a lower monthly payment and once you have paid 50% of overall price you can just hand the keys back and walk away , so gives some flexibilities that you do not have with other personal loans.

This will hopefully work out well for me. My annual mileage is usually pretty high (circa 25k) but it can also be very low some years. Have just taken out PCP on 10k a year agreement which keeps my monthly payments low for a brand new car, and will pay the excess mileage at the end. MINI excess charges are very low, mine is less then 2p per mile, the advantage being that if I do end up with a high mileage car when I choose to trade in I can just hand it back. Have got fed up with trying to sell quite young cars with high mileage. To buy my car on a straight loan/finance would be costing me almost £100 a month more. The other thing I found was using this package the monthly payment is less if I buy new than if I buy 12 month old, higher GFV. So fingers crossed it doesn't all backfire on me. This said the APR did worry me a bit, but if you sign up I think the key is to play the system as is suggested above, get out early and not pay the final balloon payment etc.

If you go to a third party and there is a possibilty you will exceed the mileage allowance check the charges, it is the norm for them to be over 10p/mile.