Car lease way better than PCP deal ?

GINGERNINJA_3

Hi,

We are looking to get a new car and my wife has found the one she wants. It's a new Megane Coupe.

My local Arnold Clark will take a big chunk off the 17k list price and give me it for 14k. They will also take my BMW X3 as a trade in and give me £10,300 for it (I owe 9k on it).

So 14k - 1,300k for trade in = £12,700.

They can offer me a 3 year PCP at £269.63 with a GFV of £4579.41

I can lease the same car from Renault for £225 inc VAT, the inital payment is £675 so the real PCM cost over 36 monts is around £237.

With the lease I can sell my car myself and pocket any money I get over the 9k owed, I've allready been offered 11k today.
With the2k from the car sale I can pay off some debt which will free up £100 or so per month !

Am I missing something or is the lease option a no brainer ?

Thanks

Hintza

Excess mileage might cost you so be careful there.

You need to get the car back in pretty much pristine condition so factor in a valet and bit for scrtches etc.

But on the plus side VED is normally paid for duration of the lease.

Having said all that I don't think it looks particulrly attractive. The interest rate APR must be very high on pcp deal to get the figures you have quoted. Smaller cars tend to be relatively more expensive than larger cars so for example you could drive a Volvo XC90 for £100 more a month.

My advice search for the deal and not the car, keep looking but aim to do the deal in December when the best deals should be available.

Don't rush.

GINGERNINJA_3

Hintza wrote: »

Having said all that I don't think it looks particulrly attractive. The interest rate APR must be very high on pcp deal to get the figures you have quoted.
.

Thanks, the APR is 5.6%. I thought this was pretty low ?

AdrianHi

The GFV seems a bit low and so the PCP payments high enough to cover this. You could find at the end of the PCP the value of the car is higher than what they have quoted and the real cost over 3 years not as high as the monthly payment suggests.

I still think leasing is the way to go on this one so long as the terms and conditions work for you. You cannot really get out of the 36 month lease, you could sell the car and settle the PCP early.

The lease company will be getting as good if not better discounts than what your are being offered on the PCP and the lease customer gets the benefit of that.

Hintza

GINGERNINJA wrote: »

Thanks, the APR is 5.6%. I thought this was pretty low ?

With interest rates at 0.5% I think it is expensive. But in the way of things it's not too bad. Less than I was expecting.

I haven't done the sums properly for a year or so and I'm probably out of touch.

I would be hoping a lease on £14,000 car would come in at under £200.

You might for example get a Quashquai for +/-£200 per month.

Better deals to come though I think. Start keeping a database of various cars and their prices and see how the move both on lease and to buy.

plane_boy2000

Just had a quick look at megane coupe leasing prices and what you have been offered is prety competitive - are you sure it includes VAT (as most lease figures are quoted ex VAT

Anyway, if I were you I would go the lease route - chances are that by year 3 you will want to change car anyway

bclark

The lease prices sound right to me. I have ordered a Megane Coupe but looked at leasing first. I got quoted £223 per month including VAT but that was with 6 months up front. This was for a 1.6 Dynamique with a couple if extras. I didn't fancy the lack of flexibility with a lease. One thing to also be aware of is that the VAT will be going up in January so factor that in and also there is talk that a Tory government may put it up to 20% so make sure you could afford the payments if that happened.

As an aside I ordered mine from a company that won my business through autoebid. Over a 4 year PCP I am paying £197 a month but that was with an £1800 deposit.

emmell

Leasing may be a good idea for a megane coupe, because my cousin had one a few years ago, one owner low mileage and had loads of trouble trying to sell it. Nothing wrong with the car just nobody wanted it.
ML.

bclark

emmell wrote: »

Leasing may be a good idea for a megane coupe, because my cousin had one a few years ago, one owner low mileage and had loads of trouble trying to sell it. Nothing wrong with the car just nobody wanted it.
ML.

The old Megane coupe was quite a different Car to the new one. It was a very old model that did not get an equivalent in the Megane II era so there are now literally hundreds for sale at any one time. The new Megane has been out for less than a year and I have seen just one coupe being driven around my City so I don't think it will be that difficult to move on, even in three years. Having said that Renaults do depreciate a fair bit so you need to get a good deal at the outset.

GINGERNINJA_3

Thanks for all the advice.

Someone asked if the price included VAT, yes it does, the price is £195 plus VAT for a 3 year lease.

I think I may go for a 2 year lease at £211 plus VAT.

3 years may be too long for me to keep a car ?

Streeet

I've been going through the same torment all be it on a Fiesta instead.
Against whatcars depreciation index I'll spend the first 2 years paying depreciation.

My conclusion however is to go down the PCP route. With both plans costing the same monthly.. I feel I'm in effect hedging my bets that the car will be worth more than the MGFV.

That said.. based on your figures:
PCP option per month: £269.63 + £100 existing debt = £369.63
lease per month: £237 / month + no debt = £237

Difference per month £132. Over 3 years: £4752 in your 'sky rocket' (pocket)
Leasing seems the way forward without a doubt for you.

The comment above regarding how easy/costly it is to get out of lease vs PCP is a good one and worth some investigation.