« Reply #73 on: April 26, 2011, 09:57:19 pm »
LP as far as I can see is just like PCP except that at the end you don't have the option to hand the keys back at the end and walk away. You have to pay the final baloon one way or another. So its missing that 'safety net'.
I've also noticed that online brokers tend to pitch the final baloon quite high, making the monthly payments lower but I guess leaves less 'equity' at the end. Dealer PCP's seem to make the final baloon a bit lower so the monthly's are a bit higher but there is more chance of having more cash into the next car come trade in time this way. Have i sussed this out right?
That's the impression I get. I spoke to several brokers about LP's but didn't get a warm feeling about them. They were all trying to tell me that manufacturer PCP's are bad but when challenged couldn't give a real world example.
My deal on the new car will give me a £3k deposit contribution plus a favourable interest rate which has the net effect of paying the interest aspect of the deal for me.
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