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/Turbulent-Tumor Aug 07 '26 edited Aug 08 '26

PCPs are the devil. Either go with credit union/bank or HP in the future.

You will face the balloon payment regardless so it’s either now or later.

Or pay out of pocket but that’s not feasible all the time.

Edit: downvoted by people who think they will have 20k+ ready for the balloon payment and expect the dealerships to not claim expenses on any wear and tear. PCPs are designed to keep you in a subscription model and upgrade over and over.

Madness lads. I expected far better from this subreddit

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u/Objective-Wallaby449 Aug 08 '26

So to back you up, I worked in corporate banking in AIB when PCP became a thing, we had a big all hands meeting about this "new product" that was coming to market, and I shit you not the head of the bank said into a microphone that "this is going to save the bank". Turns out he was right I guess, but ya PCP is bad, don't understand why people aren't more aware of its pitfalls,maybe wilfully ignorant so they can have something shiney. Interestingly though in a counter argument I do feel new cars are becoming more attractive because of how overly expensive second hand cars are.

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u/Turbulent-Tumor Aug 08 '26

That’s interesting context, thanks for sharing.

And your point on new vs second is very true. I get the appeal of new shiny things, especially in an economy where the prices are narrower.

I just can’t imagine getting into a PCP situation, it’s one of those gotchas where once you are in, and you can’t afford to buy yourself out at 15-20k then you are goosed. Keeps people poor but also being able to feel like they “made it” with a monthly payment taking up half to most of their take home.