Considering a PCP deal

Jonesya

Have you considered getting a used car in the 2-4 year range - still new, reliable but with the high depreciation of a brand new car?

redrabbit29

BeenThroughItAll wrote: »

You're paying for depreciation - look at it like this with round figures for simplicity:


Buy a £10K car outright, use if for three years, sell it for £6K (40% depreciation)


Lease/PCP £10K car for £120 a month for three years (lets pretend there's no deposit), hand it back and it's cost you £4320. That's more than you've lost on an outright purchase, but you don't own anything after three years.

That's a good point, stupidly didn't consider it's all built in to the price. Thanks.

richy999 wrote: »

The PCP deal will be structured to take account of the depreciation of the car as well as the cost of the finance and profit for the dealer.

So no, you won't notice the depreciation as you would in a normal car purchase but you will still pay for it in the end.

As above - good point which I didn't consider. Thanks again

forgotmyname wrote: »

Clutch replaced, Brakes and bearings replaced. It sounds like it should be cheap to run for the next few years.

It may drink a bit of fuel, But little to go wrong on those petrol engines. And dont believe the ficticious MPG figures quoted on the brochures.
Unless your journey is on a set of rollers in a lab you wont get them.

Your lease car will also need brakes and tyres and other consumables. + Servicing costs at a dealers or garage specified in the lease.

So your looking at a lease or similar of £160 a month to save £200 a year?
Sounds like your car has not cost anywhere near the £2000 the lease will cost you.

Dont forget any damage to the car during the lease must be repaired properly. Even some dealers fail on that.

I really hope so, and I completely and 100% agree with what you're saying and that's why I'm more siding on my own car. The cost I spend on some repairs here and there and fuel is absolutely no way comparable to the cost of a new car which has a monthly cost. Plus I won't even own it.

I've been thinking "What else can go wrong with my car", as in, just wondering if there's any other big problems it could get. I'd like to get it through to it's MOT, then get it serviced properly and hopefully that will help

BeenThroughItAll

redrabbit29 wrote: »

Ah right, I didn't consider that there's obviously negotation involved. Good point.

Oh the VW Website Finance calculator is what I looked at. It shows a deposit of £1138.50 for the "HIGH UP", over 36 months = £173.50.

The Polo on the same website over 36 months shows the monthly cost as £186.77

I must be missing something in the options, but I accept entirely there are better deals including the one you've seen advertised

Start playing with deposits and model/spec, plus mileage etc and the figures will change all over the shop. You need to sit down and work out what you want, then go for the best deal, not randomly comparing vehicles of different types and spec.


Put down £2.5K deposit and you could have a Citigo for less than £70 a month... of course, you may wish to pay more just for the VW badge, that's up to you; an arbitrary comparison maybe buy just as much so as looking at the basic finance numbers on a website.

OddballJamie

forgotmyname wrote: »

Clutch replaced, Brakes and bearings replaced. It sounds like it should be cheap to run for the next few years.

It may drink a bit of fuel, But little to go wrong on those petrol engines. And dont believe the ficticious MPG figures quoted on the brochures.
Unless your journey is on a set of rollers in a lab you wont get them.

Your lease car will also need brakes and tyres and other consumables. + Servicing costs at a dealers or garage specified in the lease.

So your looking at a lease or similar of £160 a month to save £200 a year?
Sounds like your car has not cost anywhere near the £2000 the lease will cost you.

Dont forget any damage to the car during the lease must be repaired properly. Even some dealers fail on that.

Over a 2/3 year lease I doubt it will need new brakes unless OP is doing above average miles, my car is still on the originals at just over 4 years old.

Tyres should be good too if you rotate them regularly. I still have my original set, however I do run winters for about a third of the year.

As for MPG, the Ibiza I posted will see over twice what the OPs current Focus gets and that's real figures from Honest John, not fettled ones.

Servicing - check with the lease company as some don't mind indies doing it, as long as they use the OEM parts and correct oil.

You're spot on about damage, anything other than wear and tear will cost, however if the OP was to buy a new car and sell it after 2/3 years any damage would cost them on resale too.

Don't think the OP is under any impression it's going to save them money against running the old Focus, they just want to find a cost effective way of new car motoring.

OddballJamie

Jonesya wrote: »

Have you considered getting a used car in the 2-4 year range - still new, reliable but with the high depreciation of a brand new car?

I did this with my previous car bought at approx 2 years old with a big discount on new. Two weeks later the high pressure pump went under warranty, then fine until the warranty expired. Then the bills started, the last year I had it it must have cost £2000 in repairs. I traded it with the turbo on its last legs, intermittent DPF faults and cam belt with full service due.

Bought a new car after and hasn't cost me anything above servicing, wiper blades and bulbs is about it.

karlie88

There was a lease offer on a brand new VW Up a few weeks ago.

It was a 3 year personal lease with an average monthly payment of just under £90 (that included the initial deposit and admin fee).

Some good deals out there OP.

SmellyPetrol

Gotta be careful with the PCP 'MEGA DEALS' that alotta brokers put out - mainly because of the restrictive nature of the contract (such as, okay it's only £60 p/m but...only 3k miles p/yr, no maint, no RFL, and 10+ up front.)

Had good experiences with three leasing companies i've dealt with before; Alternative Route Finance (https://www.alternativeroutefinance.co.uk), HippoLeasing (https://www.hippoleasing.co.uk) and Neva Consultants (https://www.neva-consultants.com/) - none of them seem to 'hide' any details from you.

But yes as others say - some cracking deals at there atm, but you might have missed the right stonkers as dealers and funders cut off times to hit their targets has been and gone.

OddballJamie

karlie88 wrote: »

There was a lease offer on a brand new VW Up a few weeks ago.

It was a 3 year personal lease with an average monthly payment of just under £90 (that included the initial deposit and admin fee).

Some good deals out there OP.

That was a steal, although it's finished now.

I was looking at the Golf GTD the same company was running, seems good value, still tempted by the 125D 5 door. Don't even need a diesel or want a new car at the moment either.

rs65

BeenThroughItAll wrote: »

You're paying for depreciation - look at it like this with round figures for simplicity:


Buy a £10K car outright, use if for three years, sell it for £6K (40% depreciation)


Lease/PCP £10K car for £120 a month for three years (lets pretend there's no deposit), hand it back and it's cost you £4320. That's more than you've lost on an outright purchase, but you don't own anything after three years.

Whatcar has the retained value of the 1.2TSi SE at 49% after 3 years therefore, using £10k, 51% (or £5100) depreciation.

rs65

redrabbit29 wrote: »

I've been considering a PCP deal for around £160 a month. Free insurance for the first year, and trade it back in after 4 years. I can get a VW polo for this price, 1.2. High MPG and £20 a year tax.

I like PCP - think of it as renting a car for £40 a week. I have no desire to own a depreciating asset that may need repairs.

It may be cheaper to own an older car, but your experience of recent repairs shows there is a fair degree of uncertainty of cost.

PCP can give you much more certainty of cost - I trade mine in before the first MOT is due so I have no worries about this and also have warranty and breakdown cover whilst I have it. PCP might not be very MSE but it has its advantages.