PCP Calculator

C

cjp2k

Active member
 County Durham
Hi guys, does anyone have a PCP payment calculator for monthly payments, Mrs cjp2k is looking at a new car, we know the final payment we know the APR but we want the best monthly payments so we can work out deposits etc

***I hope this is in the correct forum***
Cheers

Chris
 
Try this one,

http://www.finance4cars.co.uk/PCP_Car_Finance_Calculator/PCPcarsearch.jsp?selectedManufacturer=Select+Manufacturer&selectedModel=Select+Model&selectedVariant=Select+Derivative
 
Cheers mate, i need a formula where I can put in interest rate, deposit, car value and final payment to work out the monthly costs....
 
Are you still looking. I've got one on my work laptop, I can't email it but if you pm me , I'll try to calc it out for you. I work for a car manufacturers finance company. :D
 
I use a model I built in Excel to compare PCP to 50/50 cash/loan and a straight purchase. The PCP calc is derived using the following. I can't take credit for it - I found it a few years ago buried in the Parker's Guide forums:

Let car cost = c (eg £19000)
let deposit = d (eg £1900)
let APR rate = a (eg 0.08)
let final value = v (eg £9000)
let term = y (eg 3 years)

then approximate monthly payments are given by [(ay+2)(c-d-v) + 2vay] / 24y

I say approximate as they are always a few pence adrift of actual quotes I've got from dealers over the years.

Whenever I do this though, I always come back to the fact that this type of finance is not for me, and so never end up buying a new car.

@bigshurv - as somebody who does this day to day can you explain why, when the BoE rate is so low, businesses like BMW insist on charging north of 9.5% APR? Particularly given an unsecured loan can be had at 6.4% (e.g. Sainsbury's)


Cheers

James
 
James_G said:
@bigshurv - as somebody who does this day to day can you explain why, when the BoE rate is so low, businesses like BMW insist on charging north of 9.5% APR? Particularly given an unsecured loan can be had at 6.4% (e.g. Sainsbury's)


Cheers

James
Click to expand...

It's the premium for the lazy people who want everything done for them, and, by all accounts by continuing to charge higher rates shows plenty of people still take their finance.

Like everything, if you shop around you'll always find it cheaper somewhere else if you put it altogether yrself
 
James, it's because the dealers make a profit from selling finance.Even with a fixed APR deal, there is often a back end bonus from the finance company which can run into hundreds of pounds.Always ask a dealer what his base rate is, ie the rate in which ( if a BMW dealer) BMW finance provides them with money.Any dealer should be able to match the banks best buy rates ( 6.5% APR) without too much trouble.You are likely to pay a bit of a premium for a PCP deal, as the finance company has to take a risk on guaranteeing the end value, but 9.5% is too high.Ask them how much commission they are making on your deal,that'll always make them back down and sharpen their pencil.
 
I was quoted 11% on PCP for the DS3 recently... 10.4% straight loan...

went with Sainsbury's and got 6.3% on a straight loan.

Mazda - without any pushing or us even requesting a quote, yesterday offered us 6.9% on a new PCP....
 
I am looking and BMW are doing 4.9% APR on the new 1 Series (I know its ugly from the front :lol: )
 
bigshurv said:
James, it's because the dealers make a profit from selling finance.Even with a fixed APR deal, there is often a back end bonus from the finance company which can run into hundreds of pounds.Always ask a dealer what his base rate is, ie the rate in which ( if a BMW dealer) BMW finance provides them with money.Any dealer should be able to match the banks best buy rates ( 6.5% APR) without too much trouble.You are likely to pay a bit of a premium for a PCP deal, as the finance company has to take a risk on guaranteeing the end value, but 9.5% is too high.Ask them how much commission they are making on your deal,that'll always make them back down and sharpen their pencil.
Click to expand...


Just like the man says....indeed its how allegedly "interest-free" loans work, its either the retailers cash pot and they can afford to take the hit, or its finance house money and the retailer is funding the interest element from their profit (which explains why you rarely, if ever, get a discount on an interest-only deal).

Plus a couple of other things; firstly, where big corporations are concerned, its often their money, not the banks - the finance company is often just running the operations side of things for them...and if its BMWs cash they want a decent return on their money....I mean why lend it for peanuts when they could simply invest it elsewhere for a better return, say, making more cars or something? And you try getting a 6% loan from your local bank!

And secondly, having worked in the same space as bigshurv when I was younger, what I can tell you with absolute certainty is that whenever lenders survey their clients, interest rates are interestingly usually way down the priority list. Top of the pile are the ease and speed with which they can get their hands on the loan/hardware in the first place, everything else is secondary to most folks.
 
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