PCP...A good deal?

Cornucopia

motorguy wrote: »

Its not a particularly attractive deal as theres no manufacturers deposit contribution to make it more palatable - presumably because at this stage the new A is selling quite well.

It seems like the days are gone when the premium marques made good lease cars as a consequence of lower depreciation, then.

claire_n037

Thank you for your replies.

I will take a look at the online brokers. Do they do finance deals too?

Cornucopia

Yes, most of them do finance.

Can I just say that the only real downside of leasing is the need to get rid of your old car before you start your first lease. If you haven't got a car to dispose of, you're in an ideal position to go straight in on a lease.

This is almost always going to be the cheapest way to run a new car.

claire_n037

My old car has been written off by the insurance so that's not a problem.

Is leasing different to PCP?

Cornucopia

http://www.thecarexpert.co.uk/car-finance-pcp-explained/
http://www.which.co.uk/cars/choosing-a-car/buying-a-car/buying-vs-leasing/how-leasing-a-car-works/

The principle is the same: you pay just to cover the cost of the car over the period you own it. However, for various reasons, the costs of leases can be significantly lower. Leasing is also simpler at the end of the term - you always give the car back. That means you are paying towards having £0 equity in the car, and there is no mucking around with Guaranteed Minimum Future Values/Balloon payments that are potentially well below the value of the vehicle, which you've paid for in your finance payments.

Leasing is a large, independent and highly competitive market, whereas PCPs are largely marketed by the original manufacturer.

PCPs have been well marketed by the industry, but the numbers don't really add-up most of the time. Unfortunately, most people just see whether they can afford the payments, and never look at the overall costs, which can be significant. In the case of your A-class, it would be around £4000 saved taking a lease, compared to walking away at the end of the PCP term. I doubt you would get anything close to that in remaining equity on the PCP, and the risk is on you.

They've also effectively found a way to offer to sell people the same car twice, which is a pretty neat trick.

BTW, Broadspeed are offering discounts of around £2000 on A-classes (varies by model), so you should be pushing for that on your purchase.

In other threads in Motoring, we've been looking at leasing of nearly new vehicles - this can make significant further savings on some marques and models.

e.g. there was Vauxhall Insignia £143 per month on a 3+35 basis, IIRC. (So, similar to the A-Class in shape, size and driveability, but at about 40% of the cost).

albionrovers

I'm waiting on delivery of a BMW 125D M-Sport on personal lease for 229/month inc VAT. 3+23. Comes in under 6K for the full 24 months for a 30K car. And I bet someone out there can beat this too.

Cornucopia

Nice. :money:

root

It's probably worth pointing out that most leases require fully comp insurance and you should check whether your insurer even insures lease cars (most do).

You should also read the hand back terms carefully around wear and tear.

IIRC Merc are actually one of the more lenient with regard to this - when I was looking, I found a bunch of videos on their site detailing whats acceptable.

claire_n037

albionrovers wrote: »

I'm waiting on delivery of a BMW 125D M-Sport on personal lease for 229/month inc VAT. 3+23. Comes in under 6K for the full 24 months for a 30K car. And I bet someone out there can beat this too.

Wow that's great! I have had an offer through carwow for £2750 off asking price so have contacted my local dealer to see if they can match it.

Mercedes haven't given me a leasing option only a PCP option. Is this something you usually have to request?

Cornucopia

If you want a Personal lease (not a company one) then you'll have to go to an independent leasing company rather than a main dealer.

I've not used them, but Ling's Cars have a good reputation for personal leases. (Ignore the cheesy website, it's deliberate).

The actual delivery of your car is usually through the main dealer network, though.