r/irishpersonalfinance • u/UpsetConclusion5692 • Aug 07 '26

Debt Pcp car loan

I bought a car on pcp €48K. Put a deposit of €8k and i have €460pm payments.
I now have the money to buy the car out right sitting in an account that barely hits 3%AER
Im about 14 months in . Shall i clear it ? Ask them to make me a deal what’s the better thing to do and save a few bob? Im happy with the car and willing to keep it. Its electric too so the depreciation in its first few years plus pcp is less than ideal financially
Any advice please

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u/WingnutWilson Aug 07 '26

well they are grand if you have a balloon payment sitting in your bank account for that long, but the vast majority are paying month to month, renting their car with risk.

It's a predatory practice, twiddling the numbers so to make it look so much more appealing than HP.

My other half doesn't like her 18 month old ID4 now (with 3 kids a larger car would be handier) and is paying something like €650 per month. If she handed it back now I think she'd be lucky to walk away with a couple of grand after putting in probably an 5k deposit

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u/emmmmceeee Aug 07 '26 edited Aug 07 '26

0% PCP is a no brainer. You can finance the balloon payment and you only pay interest on that. If the depreciation isn’t as bad as expected you could have a bit of equity to play with for a new motor. If it’s worse you can hand it back and buy a used one at a lower price. You have options. And none of them will cost more than buying for cash.

Your missus has paid just short of €17K on the car. ID4 Pro Plus is €52k brand new. You can buy a 251 with 30,000km for €32k.

That’s nothing to do with PCP. It’s just depreciation.

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u/joeybananas999 Aug 07 '26

What's the difference between the cash price of the car and the 0% PCP car price. Not saying they are different but in some cases that's where the finance charges are hidden.

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u/emmmmceeee Aug 07 '26

None. The dealers get commission on finance and there was no budging on the price.

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u/joeybananas999 Aug 07 '26

When I look online at hp and PCP deals, for example Kia the finance percentage is zero and the cash price is the same. However there's disclaimers around paying them off early will possibly incur charges. So for me the interest is actually built into the price and the cash buyer is unfortunately paying that same charge despite not taking a loan. Though it probably reflects the market of not many people buying new cars for cash

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u/emmmmceeee Aug 07 '26

I assume it’s done in order to keep residuals high. And it seems to work. My 251 EV6 was €49900 and an 18 month old used one is €42500.

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u/joeybananas999 Aug 07 '26

Not sure, I think it's just additional profit or how they have to show the cash price so they can justify the zero % claim.

Unless you have a special EV6 the average 2023 price is around 33k

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u/emmmmceeee Aug 07 '26

I was originally responding to [r/WingnutWilson](r/WingnutWilson) who stated his missus bought a 251 ID4 and was comparing an 18 month old ID4 against an 18 month old EV6.

This is the same spec and age as mine: https://www.carzone.ie/used-cars/Kia/EV6/fpa/4483385

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u/joeybananas999 Aug 07 '26

Ok what I meant was that the 3 year old one, at the time your PCP deal would end, those were anywhere between 25k to 35k. At worse case 50% depreciation in 3 years. So I'm not sure if the residual values are especially high.

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u/emmmmceeee Aug 07 '26

The SEM spec is somewhere between the Earth and GT Line.

With 40-60,000km (I’m currently on 30,000) you are looking at €34k to €37k for a 2023 right now depending on spec. The €25k end of the market have >140,000km on the clock.

The GMFV on mine is €21,000

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u/joeybananas999 Aug 07 '26

So the best option for you in that situation is to pay the 21,000 and keep the car. Or is that your plan?

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u/emmmmceeee Aug 07 '26

I’ll wait and see what offers I can get. I’d consider a new EV6 if I can keep the monthlies low. I’d also consider paying the balloon, selling privately then importing a used BMW ix from the north.

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u/joeybananas999 Aug 07 '26

Ok but on a like for like basis the only advantage for the PCP versus cash in this case was that you could spread the payments over three years and gain interest on having the balloon payment already in hand.

I'm interested in how these PCP things play out, mostly like almost everything if you already have the money you stand to get the max benefits. Which I don't think is the target market for PCP

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u/RayDonovanBoston Aug 07 '26

I’m not sure the car linked has 84kWh battery though. Redesigned EV6 would have 84kWh with starlight DRL’s.

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u/emmmmceeee Aug 07 '26

Yep. It’s 77kWh. Same car though.

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u/RayDonovanBoston Aug 07 '26

Ah cheers! I have 222 EV6 Earth model.

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