Hi everyone,

I've been crunching the numbers on car financing options and I'm a bit puzzled. It seems like many people are driving cars that, on the surface, look quite pricey. I'm trying to figure out if people just have a lot more disposable income than I do, or if there's a trick to getting better PCP deals that I'm missing.

Here’s my situation:

I can get a £10k car on HP for £200 per month over 5 years, and then it’s mine. Alternatively, I can get a £20k car on HP for just over £400 per month over 5 years, and then it’s mine.

However, when I look at PCP deals, I found something like a Hyundai i20 N (which is around £20-25k) for about £400 per month. The kicker is, at the end of the term, I’d have to give the car back unless I pay a significant balloon payment.

Given these numbers, I’m left wondering:

How are people affording these high monthly payments on PCP deals?

Is there a way to find cheaper PCP deals, or is this just the reality of financing more expensive cars?

Any tips on negotiating better terms or finding the best deals?

Would love to hear your thoughts and experiences!

Thanks!