If you want to know which is best value, just add all of the figures up:

Option 1; £33,333 total

Option 2; £30,237 total.

So option 2 is clearly better.

Obviously, no-one ever pays the balloon payment so it's all a bit immaterial.

If you plan to keep the car for four years, the lower monthly payment on the four year term is better, if you don't or you're not sure the 2 year is better.

If you want to know which is best value, just add all of the figures up:

Option 1; £33,333 total

Option 2; £30,237 total.

So option 2 is clearly better.

Obviously, no-one ever pays the balloon payment so it's all a bit immaterial.

If you plan to keep the car for four years, the lower monthly payment on the four year term is better, if you don't or you're not sure the 2 year is better.

Not necessarily. You get smaller discounts, no deposit contribution, no service plans etc paying with cash. If your PCP term is the same or equal to the warranty you never have to pay for repairs either.

Call me old fashioned but surely the cheapest way of getting a car is to pay cash? If that’s not possible, then something half decent from the used car market financed by a manageable bank loan.

There was no discount for an outright cash purchase when I bought my last car as demand was out stripping supply.

Deposit contribution & 0% finance over 3 years where available at time which suited me.

My CBP is tucked away safely currently working for me earning interest.