Ballistic
My advise is
1. Forget PCP deals. Never the best for interest, unless the manufacturer is subsidising it. As mentioned above, you get penalised heavily on early settlement. ex The first 3-6 months of most PCP deals are just front loaded interest.
2. Balanced payments over 5 years are a much better bet. Dealers do not advertise them as they make nowt. Some will do, but say you need to borrow £25k.
I just use a simple spreadsheet to see what my settlement would be in three years of a five year deal. Ive found Lombard hard to beat with a rate of 5.9%. I also think the figures on my deal will work out OK, even though I have no thought of keeping the car that long. Just wanted to keep the monthly payments down. Hence adding a ballon payment after 4 years into my deal.
Jonathan