Make sure to check out interest rates before doing new-car deal or you face paying over the odds

Published on 1 February, 2023

Overview

So much focus is put on getting the car we want at the price we want that we can overlook the cost of financing it.

There are deals out there still but I was surprised by how much some interest rates for PCPs have increased.

You don’t need me to tell you that interest rates are rising inexorably.

But there are still savings to be made by looking around at what is on offer.

Not everything has to be on PCP but even where you are going that route be aware there are rate differences within model ranges depending on what and when you sign up.

Maybe a term loan from your bank, or more likely, from your local credit union might yield better value in some cases.

I’m thinking this applies especially if you wish the car to be yours at the end of the term. As you know, most people taking out a PCP don’t intend to buy the car outright at the end and roll over into a new model and deal.

Regardless I think you will do well to shop around on this. I think there are savings to be made.

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