tzijlstra   11 #25 Posted April 14, 2016 (edited) One thing the pcp deal did do was to get me to buy a higher spec car than I would have done with cash. After all, an extra £20 per month for four years isn't much... is it  That is exactly one of the reasons that both car companies and lease companies like it and why there are good deals out there. I have relatives who worked for GE lease, one in purchasing (fleet manager) the other worked for the maintenance admin office. Where GE Lease make a killing was selecting the specs that had least issues and less likely to sell in large numbers, not those that were cheapest list-price/low spec which is generally what cash-buyers (including personal loan) go for, than negotiate the mass-purchase price down to a very nice number and tempt in the punters with a good discount for a higher spec car. In fact, I asked one of the lease companies about a car and they recommended I could spec up to a Fully loaded Mondeo (from a high specced Focus) for only 30£ a month more... very tempting.  PS - GE Lease used to buy 400 cars of the same make/model, a month. Most were for the business lease market, but increasingly they also cater for consumer lease. Edited April 14, 2016 by tzijlstra Share this post Link to post Share on other sites Share this content via...
Cyclone   10 #26 Posted April 15, 2016 (edited) My example was based on 4%, so not a huge difference. For a lot of people having value left in their car after a certain period hardly matters, it gets transferred to the new car anyway, either in a deposit or to pay off additional loans etc. True for me as well. But it certainly matters if you're calculating the most cost effective way of owning that car for x years.  I'd be perfectly happy to be wrong, but I'm also fairly certain that for my next car it doesn't work for me. Partly that will be because I'm looking at 3 years old though.  Like I say, happy to be wrong. The best lease cost I've seen for a Jag F-Type V6 S is about £800/month with a large deposit...   ---------- Post added 15-04-2016 at 07:30 ----------  Car leasing can be easily the cheapest option especially for a new car. My employer gives me the option of letting me sacrifice my gross salary to lease the car. So that is effectively a 40%+ reduction in leasing cost as that is what I save in income tax and national insurance.  You pay additional tax on the company car though... It's not an option HMRC allow you to save money on via salary sacrifice. Edited April 15, 2016 by Cyclone Share this post Link to post Share on other sites Share this content via...
woah   10 #27 Posted April 15, 2016 Car leasing can actually represent decent value if you can find a good deal, there are some fantastic deals out there but unfortunately a lot of them are very expensive.  I have a car on a 2 year lease, I would never have ever considered it had the price not been so reasonable. The cost over the two years works out at less than the car would depreciate over two years, based on the list price (which I accept not that many people pay). The only downside of course is that you have to keep it in good order but that's not been such an issue for me so far. Share this post Link to post Share on other sites Share this content via...
Cyclone   10 #28 Posted April 15, 2016 My friend managed to get a very good deal on a C class merc just after the last face lift model change. In his case the numbers really did stack up, it was something like £200/month with no deposit. Share this post Link to post Share on other sites Share this content via...
Goooooogle   10 #29 Posted April 15, 2016 http://www.clvr.org.uk/business-lease-cars/mercedes-benz/c-class-saloon  http://www.clvr.org.uk/business-lease-cars/nissan/qashqai-hatchback  Go for a personal lease. Share this post Link to post Share on other sites Share this content via...
truman   10 #30 Posted April 15, 2016 How do people feel about paying money each month (pcp/lease etc) and then at the end of the day not actually owning it? I can't get my head round the idea of these schemes. I bought my last car on a 5 year interest free deal. I look after the car very well and when the 5 year deal is up I will use it as a deposit for my next 5 year interest free deal.  If you've used a finance company (rather than a personal loan) then you don't own the car this way either............ Share this post Link to post Share on other sites Share this content via...
Cyclone   10 #31 Posted April 15, 2016 (edited) If you've used a finance company (rather than a personal loan) then you don't own the car this way either............  You do once the finance is paid off.  ---------- Post added 15-04-2016 at 12:41 ----------  http://www.clvr.org.uk/business-lease-cars/mercedes-benz/c-class-saloon http://www.clvr.org.uk/business-lease-cars/nissan/qashqai-hatchback  Go for a personal lease.  You said personal lease and included a link to a business lease website for c class mercs and ugly nissans?  If you follow the cheapest C class there to the personal lease offer it's this;  Contract term:24 monthsRental profile:6 + 23Annual mileage:1000023 monthly rentals of:£279.38Initial rental:£1676.28Admin. fee:£234.00  So that's £8630 to have a 2 litre diesel C class for 2 years. Edited April 15, 2016 by Cyclone Share this post Link to post Share on other sites Share this content via...
RIXY Â Â 10 #32 Posted April 15, 2016 what about this?? Â http://www.ukcarline.co.uk/car-leasing/kia/sportage-diesel-estate/2.0-crdi-kx-1-5dr?type=1&term=24&mileage=8000&service=1&upfront=6 Share this post Link to post Share on other sites Share this content via...
truman   10 #33 Posted April 15, 2016 You do once the finance is paid off. .  If you read the post I was replying to he said that it was a 5 year deal and when that was over he'd use the proceeds as deposit for another car..doesn't sound a lot different to PCP etc.. Share this post Link to post Share on other sites Share this content via...
Cyclone   10 #34 Posted April 15, 2016 If you read the post I was replying to he said that it was a 5 year deal and when that was over he'd use the proceeds as deposit for another car..doesn't sound a lot different to PCP etc..  Admittedly 5 years is longer than your normal lease duration, but at the end of the 5 years you DO own the car and it provides the deposit for the next car. If you lease then after 3 years you don't own the car, you get no money back and you have to find the money for the deposit towards the next lease deal. Share this post Link to post Share on other sites Share this content via...
Remedy234   10 #35 Posted April 15, 2016 http://www.draytongroup.co.uk/new-car-offers/e-class-saloon/pcp/ E 220 d AMG Line E class AMG PCP £400/month Deposit £6500 That's over 3 years. Doesn't state mileage, but I assume 10k/annum.  Purchase 1 year old 250 AMG or 300 AMG, autotrader price £25k 3 years later - sale price (based on 4 year old today) £12k (could argue about this I expect). Cost of borrowing the 25k on a 3 year personal loan is a total of £27,585 So, cost to own it outright for 3 years, £15.5k  Cost to lease it for 3 years £14400 and £6500, >£20k...  Leasing probably includes a few things like servicing that private ownership doesn't. But there's a 4.5k difference in favour of owning that I can see... So unless the service cost is very high I can't see how it wins...  ---------- Post added 14-04-2016 at 17:22 ----------   So the monthly cost is £10 more. But you're not working out the total cost are you. With the purchased car, at some point you own it outright and it has residual value. With a leased car that is never the vase. No MOT would apply for 2 years to a 1 year old car... As would manufacturers warranty. RAC is a legitimate cost to include in the comparison, and servicing and insurance anything else...  Maybe you got a great deal, I've just never been able to make it add up when I've looked.   I got a very good deal. £900 deposit then 24 x £309.00 Share this post Link to post Share on other sites Share this content via...
Cyclone   10 #36 Posted April 15, 2016 If you follow the cheapest C class there to the personal lease offer it's this;  Contract term:24 monthsRental profile:6 + 23Annual mileage:1000023 monthly rentals of:£279.38Initial rental:£1676.28Admin. fee:£234.00  So that's £8630 to have a 2 litre diesel C class for 2 years.  I wonder how that compares to the cost of finance and the depreciation on a 1 year old equivalent of the same car? Autotrader says 20k to buy a 2015 C Class 220D 3 year old same model, £11000  So in this case it probably is cheaper to lease. Particularly if it includes servicing and breakdown cover on top. Share this post Link to post Share on other sites Share this content via...