Anyone lease/pcp cars here?

[Berberis 10]

I do. Try these guys: https://www.nationwidevehiclecontracts.co.uk/ if not to use, to quote to a dealer to try and get a better price. They all know about Nationwide Vehicle Contracts and how cheap they are. I used their figures to push down the lease cost of my new car.

 

---------- Post added 14-04-2016 at 16:16 ----------

 

As a slight aside, I've looked at the numbers several times regarding leased/purchased.

Unless you absolutely won't accept buying a 1 year old 2nd hand car (ie it MUST be brand new) then I've always found that purchasing is cheaper.

 

Odd, I purchased a 3 year old car a while back and recently traded it in to get a leased car (same make and model and brand new) it costs me £10 a month more to lease a brand new car, but comes with a 3 year warranty (my lease is also 3 year) plus no MOT's and 3 years worth of RAC cover too.

 

On paper i'm paying less now than I did when I bought a used car and I also have none of the worry of maintenance costs, other than servicing once a year.

[tzijlstra 11]

Even without committing your own capital, when I've compared the lifetime cost (3 years) of a lease to using a low cost personal low and reselling the vehicle in 3 years, owning it wins.

 

I've done the sums on a Ford Focus, specced to my needs the list price 21K, second hand young example is around 15K. If I put down 3K I need to borrow 12K. I want it for three years and with a personal loan I pay £350 pcm to service that debt.

 

Instead I can PCH (so hire, not purchase) the same model, new, with service package and 15K miles per year for £220 pcm and a down payment of £1320. So I save over half on the down payment, and £130 pcm and the service package should cover me from unexpected bills. If the car is faulty I complain to the lease-company and get a different one because they have a much better negotiating position with the car company that provided it.

 

Again, it isn't cheaper than buying it with cash, driving it well and selling it on well, but if you HAVE to borrow the money it can really pay to explore your options these days.

[geared 319]

Yep and it eliminates the three things people most dislike about owning a car:

 

Looking after it

Paying to fix it

Dealing with morons when you try and sell it

[Cyclone 10]

Id never ever buy my own new car again. Always lease.

 

I got an E class AMG Line for less than £300 a month 24 month contract. Mercedes Sheffiedl couldnt get near that price.

 

http://www.draytongroup.co.uk

 

Looking forward to getting next years Porsche

 

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 ----------

 

I do. Try these guys: https://www.nationwidevehiclecontracts.co.uk/ if not to use, to quote to a dealer to try and get a better price. They all know about Nationwide Vehicle Contracts and how cheap they are. I used their figures to push down the lease cost of my new car.

 

---------- Post added 14-04-2016 at 16:16 ----------

 

 

Odd, I purchased a 3 year old car a while back and recently traded it in to get a leased car (same make and model and brand new) it costs me £10 a month more to lease a brand new car, but comes with a 3 year warranty (my lease is also 3 year) plus no MOT's and 3 years worth of RAC cover too.

 

On paper i'm paying less now than I did when I bought a used car and I also have none of the worry of maintenance costs, other than servicing once a year.

 

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.

[foxy lady 10]

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.

 

Owning a new car........Priceless.

[Cyclone 10]

I've done the sums on a Ford Focus, specced to my needs the list price 21K, second hand young example is around 15K. If I put down 3K I need to borrow 12K. I want it for three years and with a personal loan I pay £350 pcm to service that debt.

 

Instead I can PCH (so hire, not purchase) the same model, new, with service package and 15K miles per year for £220 pcm and a down payment of £1320. So I save over half on the down payment, and £130 pcm and the service package should cover me from unexpected bills. If the car is faulty I complain to the lease-company and get a different one because they have a much better negotiating position with the car company that provided it.

 

Again, it isn't cheaper than buying it with cash, driving it well and selling it on well, but if you HAVE to borrow the money it can really pay to explore your options these days.

 

At the end of the 3 years if you've bought it you now have an asset that is worth, what, 8k still?

If you lease you have nothing.

 

Sainsburys are offering personal loans at 3.2% right now.

 

---------- Post added 14-04-2016 at 17:25 ----------

 

Owning a new car........Priceless.

 

If you say so. I'd rather have a 1 year old car and an extra couple of holidays.

 

---------- Post added 14-04-2016 at 17:27 ----------

 

Yep and it eliminates the three things people most dislike about owning a car:

 

Looking after it

Paying to fix it

Dealing with morons when you try and sell it

 

Leased or 1 year old, either way it's covered by a warranty. You still have to fix it if YOU break it and the "looking after" you mean, getting it serviced. It's equally inconvenient on a leased car, they don't magically service themselves, the only difference is that the cost is included.

 

Valid point about selling or px'ing, not worth 5k every 3 years IMO though.

[martin6 10]

A longer term personal loan can work out better than pcp or lease options especially if you have a good credit rating. If you want a car for 3 years get a 5 year loan, after 3 years there will be a remaining balance but this will work out better than the pcp and the monthly repayments will be cheaper.

[foxy lady 10]

At the end of the 3 years if you've bought it you now have an asset that is worth, what, 8k still?

If you lease you have nothing.

 

Sainsburys are offering personal loans at 3.2% right now.

 

---------- Post added 14-04-2016 at 17:25 ----------

 

 

If you say so. I'd rather have a 1 year old car and an extra couple of holidays.

 

---------- Post added 14-04-2016 at 17:27 ----------

 

 

Leased or 1 year old, either way it's covered by a warranty. You still have to fix it if YOU break it and the "looking after" you mean, getting it serviced. It's equally inconvenient on a leased car, they don't magically service themselves, the only difference is that the cost is included.

 

Valid point about selling or px'ing, not worth 5k every 3 years IMO though.

 

Well of course you can save money by buying a used vehicle. Some folk buy used furniture and seconhand clothes from a charity shop. That saves money as well. If you are happy with that then OK. But the reason a used car is more expensive than a used one is that you know everything that has happened to the vehicle. You know everyone who has driven it, how they drove it, and what they did in it. There is a certain peace of mind from buying underwear that is still in the Cellophane.

[Paddy 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.

[tzijlstra 11]

At the end of the 3 years if you've bought it you now have an asset that is worth, what, 8k still?

If you lease you have nothing.

 

Sainsburys are offering personal loans at 3.2% right now.

 

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.

 

I have been (and am) considering it if I get the job I am after at the moment, it means a 120 mile round-trip (mainly motorways) 5 days a week. That adds up quickly (around 30K a year), so two services a year with a big one at the 40-50K mark, plenty of wear and tear so I won't want to keep the car after I am done and after three years I pay the smaller down-payment again and then a similar amount a month to get another stress-free driving experience.

 

If I can do all that for a smaller pcm cost (I simply don't want to dip into the savings anymore after buying a 25K car cash last month) than borrowing the money in a personal loan, it makes a lot of sense to do so.

[Guest sibon]

I've had my last three cars on PCP deals. My calculations suggested that the monthly payment and depreciation were pretty close together. I decided that keeping the cash in my account was a good thing to do.

 

Mind you, I paid the whole thing off about three months ago and not having a £350 payment each month is nice too.

 

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

[ez8004 10]

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.