Cars - Personal Contract Purchase vs Leasing?

smileysmile

Looking at another thread on here no one seemed to mention PCP as an option. I'm looking to buy a new or used car myself at the moment and the payments on PCP seem to be similar if not less than normal lease payments (especially when you add the craftily hidded VAT on the latter) PLUS you get the option to pay the residual (if its worthwhile) at the end of the contract and either keep the car or sell it.

Does anyone have any tips, thoughts, or experiences they could share?

:beer:

albionrovers

Hi

I use personal lease and it's the best thing I ever did.
I've always got a new car.
Never need an MOT.
Never need to renew tax disc.
With high service intervals these days, chances are you'll only pay for 1 service for an entire 24 month lease.
Hand it back at the end and choose your next one.
I can't think for the life of me why anyone would consider buying the car after the lease is up.

Try ww.skyfleet.co.uk - I use them currently. My car has shot up in price though since I got mine last September. Prices go up and down depending on each model's sales/availability.
And what about https://www.Lingscars.com - Lings personal prices look great - check out Audi A3.

I totally recommend it.

plane_boy2000

Just picked myself up and Audi A3 on a PCP. Price was similar to a lease and worked well for me. Small deposit - drive for two years 1 service - hand back and get a new one. I guess the advantage of PCP is that if the car is worth more than the GFV you can sell it and pocket the difference, and if its worth less then just hand it back.

First PCP for me, but looking at how much I have lost / spent through depreciation over the last few years this looks like a good way for me to manage my spend. Also allows me to drive a premium brand for the same cost as a mainstream for example I am getting an Audi A3, but a similar Focus would still cost about the same over two years because of the better residuals.

iwilldoitthistime

Hi

I have also been considering PCP as opposed to buying new (again) and losing a fortune in the first two years (again).

When I applied for a quote, they asked for the amount I was willing to deposit. If I deposit the amount my existing car is worth, the payment for a new megane was only £88 a month! They also quoted me a price for the car at the end of the two year period.

I assume that if I dont pay the price at the end of the two years, I could just hand the car back and either get another one, or get my deposit back?

Can anyone confirm exactly how this works?

thanks

smileykylie_2

probably a silly question but does the lease/pcp payment include insurance payments??

smileykylie_2

sorry just found the answer!!

plane_boy2000

iwilldoitthistime - you need to check the terms of what you have been offered, but usually you have the option to pay the agreed value at the end, or to hand the car back and walk away subject to certain terms, like the car being serviced, and within the contracted mileage. You will also have the option to pay the final agreed value to keep the car. You will not get your deposit back in either situation - it not really likely that you would be able to get a new car and drive it around for 2 or 3 years for only £88 a month now is it!

So to sumarise you pay a deposit, then equal monthly payments for an agreed term. At this point you can either walk away and hand the car back, or pay the guaranteed future value and keep the car.

iwilldoitthistime

thanks for the advice.

It is slightly odd that I wouldnt get the deposit back (or at least part of it)- I was planning to put down approx 5.5k against a car which is only about 9k new, pay £88 a month for 2 years and then a final payment of 4.5k. This seems a really expensive way of doing it?

When I compare this to Lings PCP price of approx £160pm with no deposit, it doenst even compare!

albionrovers

Careful about the no deposit assumption.

3+35 means that you pay 3 payments up front and 35 monthly payments after that, a 3-year deal. 36 payments in total. I prefer to use 3+23, a 2-year deal. Still well under a grand deposit either way though.

Good luck.