Buying car outright or Buying a BTL and PCP car

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    Buying car outright or Buying a BTL and PCP car


    I am 37 years old and I have 40k i wish to spend. I planned to buy a car outright (3 years old). Given the type of car the depreciation will be very low. The car is circa £40k also

    However, i'm starting to wonder if there is a smarter way to do this. Do i actually purchase another BTL and PCP the car instead.


    Fee's aside i havent 'spent the 40k" as its still sitting in the property - assuming a non-crash market.

    The APR of the PCP is circa 5% vs return of 7/8/9% of BTL.

    Assuming a rising market of say 2% PA, i can get a small amount of capital appreciation which offsets the depreciation of the car slightly


    I'm a car-person but will never actually own the car - unsure how that will make me feel.

    I'd need to pay a PCP company a monthly amount of circa £600/700

    If i want to keep the car the optional final payment is circa 20k if want to keep it. if not, i'd resell privately (harder process) so not get onto the PCP-roundabout.

    Advice welcome....


    Hi Craig,

    I would buy a BTL through a SPV company (if you could do HMO its even better) and rent it out then use the revenue to fund the car that way its 0%cost to you.
    hope that helps


      I would buy the BTL and a cheap car - perhaps you can tell I'm not a car person! A BTL should increase in value and provide an income whereas cars depreciate. If the car is a must the advice above is good.


        Investment requires a sensible decision and buying a car is not.


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