How to compare car PCP between dealers?

A question about : How to compare car PCP between dealers?

Hi

One of the options I'm considering for purchasing a car (today! ) is PCP, and I can't find a way of comparing between dealers.

It's an approved used car, two almost identical cars, similar prices from two main dealers and the PCP figures differ considerably between the two.

They both say I can't just go by APR. Which is a shame as that would be ideal. I've googled for a comparison tool, but they're all about comparing products offered by the comparison site. What I'm hoping for is a way of comparing two dealer offers against each other.

Over 3 years, One dealer is offering 8.9% APR with a final value of 11563 at Ј318 per month, the other is offering 9.4% APR with a final value of 12663 at Ј299 per month.

It seems to me the latter is the better deal, even though it has a higher APR figure.

Best answers:

• Ј416 is the total difference. The first one is the cheaper deal overall.
• That's very helpful to have an end result. Thanks. Does this mean that in fact, APR is actually a sound comparison?
  I was hoping to find a tool / excel formula. I have many quotes to compare, the ones above were just an example, plus they seem open to haggling and I need to be able to check their offerings with something at my fingertips
• If its a newish car, eg 6 months/year old and the manufacturer runs 0% PCP on new cars, have a look on drive the deal, will probably be cheaper or at least very little in it to get a new car - you're instantly saving 10% each year!
• APR and total repayable can be compared, but essentially, it's up to your individual circumstances as to which option is best for you.
  Do you intend to keep the car at the end of the PCP? (the final payment is important) or are you looking for the cheapest monthly payments.
  Also remember the balloon attracts interest throughout the agreement.
• Balloon payment is fixed, but interest is calculated on outstanding balance, on a reducing capital amount, so for the duration of the agreement that fixed amount has attracted interest.
  Essentially if you borrowed Ј20,000 and had the same APR on two agreements, but agreement A had a Ј10,000 balloon and agreement B had a Ј5,000 balloon, you will pay significantly more in interest with agreement A compared to agreement B.
• Thanks SeanG as I was reading this thread and thought do they realise that the balloon payment attracts interest.
  It is a common misconception that on PCP deals you are only repaying the difference between the cost and the balloon payment. As stated above the higher the balloon payment the more interest you pay over the term.
  If you look at my previous posts I posted up a spreadsheet which allows you to see exactly where your money is going for PCP agreements. Using this you should be able to compare deals based upon how much you actually pay.