PCP help & experience needed!!

Miller91

I'm looking for a new car, aiming to pay £? per month to cover depreciation and in 2/3 years repeat the process.
Originally I was thinking of selling my car (which I paid cash for years ago) and leasing but keeping back the cash to maybe buy again in the future.
Any suggestions for the best way to do this???

Anyway.. I've just spent the afternoon in my local Audi dealer and the salesman has tried to convince me that with a £5k deposit (my car) I can take a new A4 for £289pm & in 20ish months he will call me and offer me a new one for the same cost without paying another £5k in again....?
Is this true? Does anyone have any experience of this?

forgotmyname

With your Audi figures you can walk away after 2 years and would have spent amost £12,000 for 2 years worth of use of that Audi.

Not very MSE...

Babbawah

Miller91 wrote: »

I'm looking for a new car, aiming to pay £? per month to cover depreciation and in 2/3 years repeat the process.
Originally I was thinking of selling my car (which I paid cash for years ago) and leasing but keeping back the cash to maybe buy again in the future.
Any suggestions for the best way to do this???

Anyway.. I've just spent the afternoon in my local Audi dealer and the salesman has tried to convince me that with a £5k deposit (my car) I can take a new A4 for £289pm & in 20ish months he will call me and offer me a new one for the same cost without paying another £5k in again....?
Is this true? Does anyone have any experience of this?

No. It's true.

It's called an idiot tax.

Miller91

forgotmyname wrote: »

With your Audi figures you can walk away after 2 years and would have spent amost £12,000 for 2 years worth of use of that Audi.

Not very MSE...

But it isn't 12k because you're effectively putting the same 5k back in with the equity in Audi so it's £7k for two years motoring in a brand new car.. I'd say that was pretty good MSE if it works!

forgotmyname

So you have to keep paying £3500 a year to rent an Audi. Thats more than ive spent in the past 5 years. OK its not a new Audi but its been reliable and never let me down.

£7000 for 2 years motoring is good value? I think your idea os MSE differs to lots of people.

Car_54

Miller91 wrote: »

But it isn't 12k because you're effectively putting the same 5k back in with the equity in Audi so it's £7k for two years motoring in a brand new car.. I'd say that was pretty good MSE if it works!

?? What equity? He won't own the Audi - his £5k has gone.

Miller91

so what is the MSE best way to renew a car every 3yrs?

Cornucopia

The best option is nearly new not brand new (if you want warranties and a shiny car). Or bangernomics otherwise.

I don't know the exact explanation, but it's fairly clear from the figures that leases are almost always better than PCPs, even though they ought to be roughly the same. I assume it's a combination of discounts being built in to the lease figures, leases being run independently of car manufacturers, and competition being quite strong in the leasing market, and non-existent in PCPs.

Personally, I wouldn't believe anything a salesperson says about excess value at end of term above the MGFV (and I would stake my reputation on it not being £5k on a £20k car). The whole point of the MGFV is to underwrite the car's value, so if the car ends up being worth significantly more then the guarantee becomes less useful.

Audi A4 leases seem to start from around £300/mth with £900 deposit. That's quite expensive compared to some other brands & models.

By comparison, I've found a Nearly New Lease on a Vauxhall Insignia 2.0 CDTI for 1+47 x £143, 10k miles pa. ie. deposit of £143 then 47 months of £143.

On another thread we got down to £2400 over 2 years, all in, for a Nissan Micra.

Assuming your dealer's deal is 24 months, you're talking £12k to run the A4 over 2 years, compared to £7k to run the Insignia over 4 years in the above example.

pd52

What site do u use for nearly new leasing?

Cornucopia

There's loads of sites for nearly new, but I used this one to get the figures for the Insignia...

http://www.time4leasing.co.uk/

I've got no connection to them, and don't know how good their service is.