Anyone lease/pcp cars here?

[Dubaidani13 10]

son in law just got a brand new VW Golf cant remember model but nice, for £500 deposit high spec, sat nav, alloys , met paint etc free 1 yr insurance(for a 19 yr old) worth about £1200, free 2 yr servicing parts and labour , 1 yr road tax, £140 pm its a no brainer on PCP ok he doesnt own it but its cheap motoring for a 19 yr old and after 2 yrs can get another. if he had financed it the payments would have been £338 which he couldnt afford.

[EODM83 10]

Can i ask where from?

[Dubaidani13 10]

Can i ask where from?

 

Gilders-JCT its a 4 year deal Meadowhead:thumbsup:

[martin6 10]

son in law just got a brand new VW Golf cant remember model but nice, for £500 deposit high spec, sat nav, alloys , met paint etc free 1 yr insurance(for a 19 yr old) worth about £1200, free 2 yr servicing parts and labour , 1 yr road tax, £140 pm its a no brainer on PCP ok he doesnt own it but its cheap motoring for a 19 yr old and after 2 yrs can get another. if he had financed it the payments would have been £338 which he couldnt afford.

 

I would seriously suggest you check this contract as £140/month over 2 years barely covers the depreciation on an £18k car.

[Morts 17]

I used to buy a car that was three years old after the first owner had taken the big hit on depreciation. I've now gone down the route of pcp. To have a brand new car with current technology, economy, the endless list of 'standard' extras is just something that I don't want to let go of. Just got a Nissan Juke Tekna for Mrs Morts at less than £200 pcm. The spec is better than the 2010 Lexus IS that I'm about to let go.

[truman 10]

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.

 

With a PCP you can use the final value of the car as a deposit on the next if it's more than the GMFV….....

[Dubaidani13 10]

I would seriously suggest you check this contract as £140/month over 2 years barely covers the depreciation on an £18k car.

 

its a 4 year deal, 2 yrs is when it viable to swap into a new deal;)

[Cyclone 10]

With a PCP you can use the final value of the car as a deposit on the next if it's more than the GMFV….....

 

Is that often the case (that the car has more value than the final balloon payment would cost)?

 

---------- Post added 18-04-2016 at 08:42 ----------

 

its a 4 year deal, 2 yrs is when it viable to swap into a new deal;)

 

What's the deal with swapping only half way through the contract then? Do you have to sign a new 4 year contract and pay a new deposit? Or does it cost even more than that?

[Dubaidani13 10]

Is that often the case (that the car has more value than the final balloon payment would cost)?

 

---------- Post added 18-04-2016 at 08:42 ----------

 

 

What's the deal with swapping only half way through the contract then? Do you have to sign a new 4 year contract and pay a new deposit? Or does it cost even more than that?

 

at 2 years its usually got a bit of equity for a new deposit or its level so just give it back and sign a new 4 year deal with a new car, dealers get a kick back from manufacturers for registered new car targets.

in any case uk finance law says once you have paid 50% of the agreement you can terminate without penalty called VT voluntary termination, it doesnt go against your credit record but will be rerecorded as a VT, so last resort really.

[Fudbeer 12]

Have to admit was not previously interested in leasing but some of the deals available seem incredibly cheap.

 

I notice the Ford deals on the eco Fiesta at around £150 a month for a £16k car look particularly good value even compared with buying outright!

[Cyclone 10]

in any case uk finance law says once you have paid 50% of the agreement you can terminate without penalty called VT voluntary termination, it doesnt go against your credit record but will be rerecorded as a VT, so last resort really.

 

I'm going to have to look this one up. Presumably it's not as easy as you suggest, for example half way through a personal loan, you can't just terminate it (at least not without repaying the rest of the capital).

[Berberis 10]

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.

 

I lease my car which to buy would be £24,500. To get a loan for this amount, it would cost me much more than I currently pay. I discount this fact against not owning the car in 3 years.

 

I also benefit from the 3 years warranty, and 3 years RAC cover to boot. No MOT's and all I have to do is service it each year. In fact, I probably won't even need to replace the tyres in the 3 years either (them being a premium brand).

 

For the amount Im leasing for, I would need to buy a 3+ year old car. I would be left with all the costs of maintenance, MOT's and tax on top of what I pay.