New car purchase PCP or HP? Our only family car is 15 years old and needs to be replaced. We have gotten a €8000 car loan from our credit union which is repayable over five years (APR 8%). In recent weeks we have been looking at the second hand car market but to our surprise the possibility of buying a new 161 Nissan Note (1.5 Diesel) caught our attention as we recently strolled into a Nissan dealership. Buying a new car makes sense due to the lower car tax, a more economical diesel engine, everything is new in it, there is a three-year free annual servicing and a five year guarantee (not sure if that includes parts and labour). The Nissan Note model we are looking is priced at €18000 but this is offset by a €4000 trade-in against our car (which is worth €300 at most) . Hence the new Note car would cost us €14000. We could use the €8000 credit union loan towards the purchase of the new car but are leaning towards a PCP (over 36 months with a final payment) OR HP payments over 60 months with no final payment. Therefore, is PCP or HP better when buying a new car or have we become caught up in the 'recovery' and should stick to our credit union loan and buy a second hand car for €8000? Oh, just to say that we have no connection what so ever to Nissan. Regards, Paul and family