PCP or HP or LEASE

[MadCan]

A friend told me .. a cheap way of doing it might be a PCP with a Coronavirus Bounce Back Business Loan for £50k at 2.5% for the highest deposit possible would make for a cheap and easy finance option too. In theory, obviously. That would make a modestly-specced Turbo around £400pcm over 36 months (plus the BBBL payments of course). Apparently.

There’s plenty of that (BBBL’s funding discretionary acquisitions) going on, though of course isn’t in the spirit of the various loan schemes. ?
If you have access to cash, via a business or personally, I’d still go down that route. The £15-£20k interest paid over the PCP/HP term will be a greater cost than the risk of bigger costs caused by heavier than expected depreciation.

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[DP30]

There’s plenty of that (BBBL’s funding discretionary acquisitions) going on, though of course isn’t in the spirit of the various loan schemes. ?
If you have access to cash, via a business or personally, I’d still go down that route. The £15-£20k interest paid over the PCP/HP term will be a greater cost than the risk of bigger costs caused by heavier than expected depreciation.

Thanks, I have even got a quote from Lloyds for a straight HP at 3.76% over 5 years which equates to around £10K interest (through business asset finance) however I could just pay the whole thing through company cash like you guys mentioned. Or do you think HP at the above rate would tempt you down that route?

 

[Taycanturbolondon]

Thanks, I have even got a quote from Lloyds for a straight HP at 3.76% over 5 years which equates to around £10K interest (through business asset finance) however I could just pay the whole thing through company cash like you guys mentioned. Or do you think HP at the above rate would tempt you down that route?

That’s a great rate. I would personally take the HP.
Depends on your business, if you have loads of spare cash and don’t need it or don’t want to invest it use company money

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