New car finance

BugsyBrowne

KittenKaboodle wrote: »

I'm with Bugsy, I looked at a leasing co. online that seems to give you the option to customise but I can't work out if it's pcp or not. Anyway, price is a whopping £757 a month incl vat which if you don't even own it at the end seems a total waste of money?! At least in say 3 years, I would own my (albeit depreciated) vehicle. Will see what finance deals LR are offering as I would think it cheaper to go direct?

Paying £757 a month for a car that isint your is madness IMO.

RDG

Having a very quick look online shows that PCP isnt going to be much cheaper. Remember that PCP deals often have a milage restriction on them as well.

Going for a high range model the SD4 Coupe Dynamic the PCP would be 696.54 per month at ~9% (from here http://www.newcar4me.com/New_Car_PCP-LANDROVER-RANGEROVEREVOQUE_51567.html)

Leaving you with a balloon payment of £14844. Its a 4 year deal so may skew the numbers a bit.

Whereas a straight lease will cost £627.54 per month over a 4 year period (from here http://www.nationwidevehiclecontracts.co.uk/Landrover_Range_Rover_Evoque_Coupe-22_SD4_Dynamic-44336.htm)

This was from about a 1min search so with some more digging im sure you can find better for both types.

Also a lot of lease companies can get you a car to your exact spec but you probably need to call them. Some dealers will also be able to help you with dealing with the lease companies as some will supply the cars for them anyway.

You need to think about what you will do with it in the future will you keep it or trade it in after 3 years? If the later then seriously consider leasing as with PCP you dont own the car until the balloon payment is made either.

EDIT: Just thought id point out that i am not suggesting either option represents good value for money IMO as I would get something a couple of years old for a fraction of the price.

Thomas_The_Tank_Top

KittenKaboodle wrote: »

Thomas the Tank - I'm looking at land rover vogue on personal contract purchase but need to do some research as I've never had car finance before, always a loan from my bank, so not sure what the deals are like.

Nice car.

Picking up a Kia Sportage KX-2, 2.0 Diesel AWD (Arctic White) on the 8th Aug. (Our 1.6 C-Max was struggling to pull the caravan). I used my 08 Smart as a deposit (actually got 5K for it as trade in).

Finance details are not to hand, but I got a fairly decent deal. Kia's 7 year warranty helped seal the deal. I got the tow bar and 2 years free servicing thrown in too.

Good luck with your quest .....

jumperjohn

KittenKaboodle wrote: »

I'm with Bugsy, I looked at a leasing co. online that seems to give you the option to customise but I can't work out if it's pcp or not. Anyway, price is a whopping £757 a month incl vat which if you don't even own it at the end seems a total waste of money?! At least in say 3 years, I would own my (albeit depreciated) vehicle. Will see what finance deals LR are offering as I would think it cheaper to go direct?

Buying the car will cost the same if you factor in repayments and depreciation. You lose 20k if you buy or lease.

m0ns00n

KittenKaboodle wrote: »

I'm with Bugsy, I looked at a leasing co. online that seems to give you the option to customise but I can't work out if it's pcp or not. Anyway, price is a whopping £757 a month incl vat which if you don't even own it at the end seems a total waste of money?! At least in say 3 years, I would own my (albeit depreciated) vehicle. Will see what finance deals LR are offering as I would think it cheaper to go direct?

3 years of payments at £757pm is £27252 - that's not going to have paid for a £45k car.

How much do you reckon the car will be valued at after 3 years had you bought it new?

Leasing may very well be throwing away cash, but then so is buying a brand new car which will depreciate very quickly (along with paying interest on a PCP plan).

If you want a new car, be prepared to throw away money whatever you do!

eschaton

It might seem a strange thing to do.... but what about saving up your pennies and when you have saved up enough.... buy a nice new car?

That way if anything happens to your job etc.. you don't return here asking how you can get out of your PCP/lease agreement etc..

I don't see the attraction of driving around in a really nice car if it puts you into a lot of debt.

KittenKaboodle

I should think it would be worth c.£25k after 3 years - obviously dependent on a lot of factors e.g mileage, which model etc.

My plan would be to make the balloon payment at the end though rather than hand the car back and then not have any more payments so I don't think mileage restrictions etc would apply? I do have some money saved that was not really for a car but could be used as deposit. Does anyone know typically how much you are expected to have as a down payment? Lease seems to be 3-6 months but not sure about pcp.

I just want to be clear on the advantage of pcp over ordinary hp? Is it just being able to pay more of the cost later?

ETA: found an illustrative example on their site, deposit £14k, £599 pm, £20k final payment.

KittenKaboodle

eschaton wrote: »

It might seem a strange thing to do.... but what about saving up your pennies and when you have saved up enough.... buy a nice new car?

That way if anything happens to your job etc.. you don't return here asking how you can get out of your PCP/lease agreement etc..

I don't see the attraction of driving around in a really nice car if it puts you into a lot of debt.

Nah, my next post will be "turned down for landrover finance..."

BugsyBrowne

KittenKaboodle wrote: »

Nah, my next post will be "turned down for landrover finance..."

Range rovers cost about £3678 to fill up and that only gets you around 50 miles to a tank

pheonixrising21

RDG wrote: »

. Remember that PCP deals often have a milage restriction on them as well.

Just thought I would point out that this is not true unless you walk away from the deal at the end of the term.

PCP's have a guaranteed future value (the balloon payment). This is calculated based on the annual mileage you say you will do. At the end of the deal you can:

1) Pay the balloon (cash or re-finance) and then the car is yours. Mileage done is irrelevant
2) Trade in for a new car (at any dealership). Mileage comes into play here a little, but only in terms of what you will be offered as the trade in value. If you do more miles than you state, your trade in value will be less than if you stayed within the limits. Usually the GFVs are very conservative estimates, so you are likely to have equity in the car. This is your deposit for the new car. There is no excess mileage charge and unless you do 50k miles over what you said you would do, its unlikely to cause negative equity.
3) Hand in the keys and walk away. Here is where there is a mileage charge. If you go over the mileage you state at the start they will charge you so many pence per mile. I've seen it range from 4p to 19p

PS: Land rover were recently voted the brand of car which broke down the most. If you are set on a high end 4x4, maybe look at the Audi Q range?