PCP vs bank loan for new car - advice please

Hi, parents car has given up the ghost, won't pass NCT without a lot of €€ more than car is worth.
They are both pensioners, own their house, so are comfortable but not cash rich. They have a deposit of 8k and will have lump sum in 3 years from another source without giving too many details. As they are getting on in years, Dad's health is not great - they want as little hassle as possible and the car to last 10 years. So they are thinking of a new car with a 0% or low % pcp deal with free servicing etc.
Will it be difficult for them to get PCP finance? I think it would be cheaper for them in the long run than paying 12% for a personal loan. They will buy the car outright after the 3 years. They have clean credit record etc. No other loans.
Thanks!

pinkie123 said:

Will it be difficult for them to get PCP finance?

Click to expand...

Nope. Shouldn't be difficult.

Sounds like they understand PCP, and if they will have the funds to clear lump sum, that's best way to go. The danger is if they don't have funds, and can't get a personal loan in 3 years they'll have to hand back the car.

pinkie123 said:

12% for a personal loan.

Click to expand...

12%??? Shop around if you see rates like that.

12% was a guess on my part - I haven't been looking at personal loan rates but I imagine they are a lot more than pcp rates

They could buy a 7k runabout, keeping 1k for maintenance, with a view to replacing it in three years. Or if they can magic up the difference, a new Dacia Sandero can be had for 11k or so. https://www.dacia.ie/vehicles/dacia-range/sandero.html

Can they use their old car for a scrappage deal?

Yes they can use scrappage - Kia Rio offer 1500 and Hyundai offer up to 3000 but to be honest I don’t know if they wouldn’t do as good on a cash only basis.

POC said:

Can they use their old car for a scrappage deal?

Click to expand...

Yes that is the plan they won't sell privately [don't want to have people coming to the house etc]. I know they would probably get the same discount without the trade-in but it is not worth the hassle to them and a lot of scary stories about forged bank drafts etc. not worth it.