PCP Interest Rates

[MrAshieB]

Hi all,

My partner and I have placed an order with our local MG dealer for a Trophy in Volcano Orange. We are both new to PCP and EVs as a whole.

The offer we’ve been given is with 7.9% APR interest, over 48 months. Works out at around £400 per month.

I’m just wondering if that’s a good rate for PCP?

Thanks in advance,
Ash

 

[FiferMG4]

That’s the same APR interest rate my dealer in Perth is offering. Of course, if you can afford a sizable deposit you can bring down your monthly payments to below £300. Here’s the link to my dealer’s page for the MG4:
Car offer MG4

 

[Mr R]

PCP interest rates are set by MG UK, so the dealer won’t be able to change or lower these.

I’ve also been playing around with the configurator and finance calculator here:

All-New MG4 EV | Fully Electric Hatchback

MG4 EV is an affordable electric hatchback packed with innovation, style and up to an impressive 323 miles of driving range. Learn more now.

www.mg.co.uk

My worry is that the way the economy is going, the PCP interest rate will only go up over the next few months.

 

[Deleted member 10041]

That's MG's rate it went up .9% on 1st of October and my dealer Perth) said they are expecting it to go up again in January.
He also said any orders made would be guaranteed at the rates and prices at the time of order.
You can get better rates from banks/building society's for their PCP

 

[MrAshieB]

All,

Good information and I had no idea the rate was set by MG, if I’m being honest. Thank you for that info!

Worry is that we’re with Starling Bank for our banking, and they don’t do loans as far as I’m aware. Are you still able to get one of these loans/PCP deals through other banks if you’re not with them for a current account?

As you can tell, I’m very fresh in this industry…

We’re looking to part-ex our 2015 Ford Focus Titanium too, with the dealer offering £4200 for it.

Thanks!

 

[Deleted member 10041]

All,

Good information and I had no idea the rate was set by MG, if I’m being honest. Thank you for that info!

Worry is that we’re with Starling Bank for our banking, and they don’t do loans as far as I’m aware. Are you still able to get one of these loans/PCP deals through other banks if you’re not with them for a current account?

As you can tell, I’m very fresh in this industry…

We’re looking to part-ex our 2015 Ford Focus Titanium too, with the dealer offering £4200 for it.

Thanks!

You would be better of selling your car to motorway or Arnold Clark, we buy any car you will probably get more for it

 

[MrAshieB]

T

You would be better of selling your car to motorway or Arnold Clark, we buy any car you will probably get more for it

Thanks, we did think that.

We're concerned about the timing of it all there though. We need a car at all times for work, but were concerned that the money we'd get for the Focus wouldn't be here in time to put down against the MG4.

Is this a concern I shouldn't really have? I'm a very apprehensive person lol

 

[4ND]

Shocking. A car which is already expensive (all things considered), then costs even more when shed loads of interest is added. I've always had immense fun and games with salesmen often almost obsessed with me taking finance, when I'm there having saved for a good number of years, supplemented with a part X (or already sold on webuy etc). I kind of 1% used to see their argument pre chip shortage, when a finance 'deal' often had sweeteners like big deposit contributions, more money off and interest rates around 3% (and of course you could take it and pay it all off asap). But now, with 'deals' scant, money off scant, deposit contributions novel or nothing, and interest rates stratospheric, why pay £thousands more in interest compared to just buying it (appreciating of course if one is in the position to do that, when of course not everyone is).

 

[Kithmo]

Cash is king, unless the dealer is offering finance incentives.

 

[MrAshieB]

Would love to do cash but it’s simply not an option for us at the moment, so PCP it is.

 

[PJ60]

The interest rate quoted at 7.9% is about standard at moment but as posted by Mr R they are likely to go up. If you've ordered and placed deposit it should be fixed at point of contract but check with dealer to be sure.
The total interest payable is based on how much is owed/ paid off at end of 48 months which leaves final payment value to buy car outright. If you underestimate your mileage the monthly payments will be lower as the finance company will expect the car to have higher value at 48 months which means higher final payment to own outright. On the other hand if you overestimate mileage your monthly payments will be higher but car will be deemed less money at end of term with smaller final payment at end of term.The second scenario means you will have paid off more quicker therefore lower overall interest paid. The interest rate for both is still 7.9%. Perhaps get the finance man to explain this concept to you.
On your part ex car you could provisionally accept dealers offer then stall for short time on collection of new car. Any sale to Motorway, WBAC or private sale should result in money being in your bank within a day or 2 of collection. the part ex amount is independent of PCP agreement it is merely your deposit be it car or cash to make up shortfall of cost of car minus PCP agreement.
I hope this makes sense, but clarify with your dealer for piece of mind in case I've misled.

 

[4ND]

Would love to do cash but it’s simply not an option for us at the moment, so PCP it is.

Yes, fair enough. It's maybe amongst the worst time's ever to be in the market for a car at the moment. Let's hope the cloud passes soon.

 

[Deleted member 10041]

Test drove a ex demo Cupra Born e boost today, not even 6 months old. £2000 lower than a brand new one.
Interest rate on all used Cupras 9.9% new ones 5.9%, even the dealer said he would t recommend anyone taking their finance on a used car.
The Cupra dealer said the same as my MG dealer, they expect it to go up again in January.
On a separate note the e boost car was quite the car, really good fun, especially the boost button.

 

[4ND]

Test drove a ex demo Cupra Born e boost today, not even 6 months old. £2000 lower than a brand new one.
Interest rate on all used Cupras 9.9% new ones 5.9%, even the dealer said he would t recommend anyone taking their finance on a used car.
The Cupra dealer said the same as my MG dealer, they expect it to go up again in January.
On a separate note the e boost car was quite the car, really good fun, especially the boost button.

Interest rates on used cars have often being around the 10% mark though.

Did you like the Born/ How did it compared to your 4?

Regarding the £2000 lower price. To each their own, but I'd never pay what. north of 30 thousand big ones for something probably driven around by shed loads of people, and/or used on the lunch time pastie run, plus probably subjected to a number of forecourt 'valet' washes. And that SEAT, sorry, 'Cupra' warranty is only 3 years new, so the 'demo' has lost pushing 6 months of that, too.

 

[Dan C]

Personally I think most PCP interest rates are a rip off atm, I went for a bank loan for the virtually the full amount over 5 years @ 3.4%.

 

[Deleted member 10041]

Interest rates on used cars have often being around the 10% mark though.

Did you like the Born/ How did it compared to your 4?

Regarding the £2000 lower price. To each their own, but I'd never pay what. north of 30 thousand big ones for something probably driven around by shed loads of people, and/or used on the lunch time pastie run, plus probably subjected to a number of forecourt 'valet' washes. And that SEAT, sorry, 'Cupra' warranty is only 3 years new, so the 'demo' has lost pushing 6 months of that, too.

100% agree with regards it being a demo, would rather pay the £2k extra and get a new one, god knows how it had been driven, looked after, even looked like someone's dog had been in the back, I kid you not, definitely dog hair in there. (Was a big no no in relation to that dealer for me, that they had a car for sale sitting in that state)
I don't have my 4 yet, trophy on order! With regards the Born I really liked it, just felt that little bit more sporty, well put together and the cabin was a bit more up market, the touch sensitive buttons were a pain in the back side though ( I do think you'd probably get used to them) but you can very easily inadvertently change things with the car/infotainment system with the slightest touch.
The e boost button was great fun, extra 30bhp with the push of a button on the steering wheel, great for over takes, not that it needed it. Again more money though.
The big thing is the jump in price between the MG 4 and the Born personal choice if people think it's worth it, as you said only a 3 year warranty. The MG has a 7 but would imagine if you go into the small print what it covers will decrease as the years go by.

 

[4ND]

Interest rates on used cars have often being around the 10% mark though.

100% agree with regards it being a demo, would rather pay the £2k extra and get a new one, god knows how it had been driven, looked after, even looked like someone's dog had been in the back, I kid you not, definitely dog hair in there. (Was a big no no in relation to that dealer for me, that they had a car for sale sitting in that state)
I don't have my 4 yet, trophy on order! With regards the Born I really liked it, just felt that little bit more sporty, well put together and the cabin was a bit more up market, the touch sensitive buttons were a pain in the back side though ( I do think you'd probably get used to them) but you can very easily inadvertently change things with the car/infotainment system with the slightest touch.
The e boost button was great fun, extra 30bhp with the push of a button on the steering wheel, great for over takes, not that it needed it. Again more money though.
The big thing is the jump in price between the MG 4 and the Born personal choice if people think it's worth it, as you said only a 3 year warranty. The MG has a 7 but would imagine if you go into the small print what it covers will decrease as the years go by.

Odd that one about the dog hair. It's probably been used by a salesman/manager as his runabout. I mentioned in another thread about a KIA salesguy I see. His KIA place also got a Peugeot in it, and the sales guy has had a 'demo' 208e by his house as his car for ages. I was talking to him the last but one time i saw him about how he (and his Mrs) used to have a new car every six months when he worked for MINI. He said he don't now (in KIA), but he has that demo. I said will that pop up as an 'our demonstrator' eventually and he said yes.
I'd go for your Trophy over it. Given I've no spacial awareness, that 360 camera - if its the same one I saw on videos of the top spec petrol MG ZS, looks great. Got one on the NISMO RS and it's great. I'd pay a grand for it on any car if it was an option.

 

[MrAshieB]

Thanks all for the very useful information.

@PJ60, I really appreciate your assistance on those points. Looks like I have a few questions for the dealer / finance chaps .

Motorway seems to offer the most for our Focus, so might have to look into them a bit more and see if they try to devalue it upon physical inspection.

Thanks again all - looking forward to taking delivery. The test drive confirmed it was the car to take us into the EV world

 

[Oberoy]

The process for motorway is based on photos through the app, they then give a more accurate estimate before your car going to a form of auction (though you are not committed to sell). This will provide you a firm price you can take or leave. If you accept they collect the car and pay you the agreed amount.
My experience is this works out fair and smooth.

 

[MrAshieB]

The process for motorway is based on photos through the app, they then give a more accurate estimate before your car going to a form of auction (though you are not committed to sell). This will provide you a firm price you can take or leave. If you accept they collect the car and pay you the agreed amount.
My experience is this works out fair and smooth.

That all sounds pretty nifty. Thank you @Oberoi - think we’ll give this a go then! What’s the worse that could happen, eh?