PCP vs HP vs Personal Loan

My credit union's best rate at the moment is 7.9%.

Whenever my car arrives I'll pay as big a chunk as I can up front and probably go with dealership financing for the rest.

They exist alright but only a handful of credit unions offering them when I checked and none where I live or work so was not eligible.

Avant at 5.9% was the best I could find and went with them. Very quick process with them.

Many credit unions offer members who have loans, an interest rebate at the end of the year, amount varies, but it all helps.

I have not had a loan for years with them, but they were doing 25 % ish rebates of the interest paid for the financial year, maybe it has changed.

In addition, with Credit union loans, you can pay more, on an ad hoc basis, and shorten the loan, reduce the interest, without any paperwork, emails or phonecalls etc.

You can do this with a bank as well, but it appears to be easier with a CU, as you just walk in and pay extra.

I'm assuming since you're talking about HP or a personal loan you'll be keeping the car for 5+ years?

Each loan suits people better depending on their needs. If you're just keeping the car then go with whatever loan is cheapest.

I financed my Golf at 0% on PCP and refinanced the GFV at 5.9% for 2 years, this was paid off early when €4,000 was left. HP would have been 5.9% for the full 5 years and any personal loans I was looking at at the time were 6.9% so PCP + refinance was cheapest.

Speaking from experience with VW Bank, on PCP if you're refinancing the final balloon payment you can pay a lump sum towards it. Say you throw €50 a month into savings that's €1,850 off the final payment so less interest again.

The GFV is just the loan amount left. If you're keeping that car it doesn't matter, if you're trading in then hopefully you have good equity as the car will most likely be worth more.

What are the chances of seeing zero percent pcp deals again?

interest rates are too high as are the price of cars. I was nearly pulling the trigger on an Ioniq or EV6 but then i came to my senses. If you can, sit tight for 6 - 12 months, the cost and rates will come down as cars won't be shifting. Don't be a mug (easy to do with temptation!)

The arse is about to fall out of everything.

High end stuff should get a reality check in the next year.

Supply is still so poor though that prices will be stronger than they should be even if fewer are buying cars.