Car Lease/Purchase Scheme

Whichhome

Hi I bought a Skoda Yeti new on a lease high purchase. I pay £169 month. It is 0% interest and at end of 42 Months I pay a remaining balance of 5.5K or hand it in/start again. ( I used my 3 yr old car as deposit in case you think that it is a good deal).

Is it worth paying the 5.5k or starting again? Thinking of getting 0% CC at the time to cover hopefully 3/4 of the amount. I would then put Car in for another make of car.

Paul_the_Painter

You can't tell until near the end of the lease. It all depends at that time how much your car is worth to another dealer, or on the private market, vs the £5,5000 that you will owe. If the values crash of your particular model and it's worth £4,000 hand it back and wash your hand of it. If it's in demand and you can sell it for £7,000 - pay off the debt however you can, or chop it in and use the equity to buy the next car.

Whichhome

Great thanks Paul I will await the cost of the car at the end of 42 months.

andyfromotley

as above check at the time, but it almost certainly will be worth keeping as the Yeti is one of the lease worst depreciating cars.

pvt

You also need to consider the mileage and condition that the car will be in. It is usually a stipulation of the contract that you have to have the car serviced by a Skoda dealer, and keep within a certain milage (about 10,000 per year).

If the condition (scratches and dents) is poor, it hasn't been serviced by Skoda, or your mileage is over the agreed amount, you will have to pay extra penalties if you return the car to them.

Whereas, if you plan to pay the £5,500 balloon payment then you don't need to worry about those things.

Pixie5740

Just pay the £5.5k and keep the Yeti. What's the alternative? Continually trading your car in every 3 years whilst paying out hundreds of pounds financing a depreciating asset. Break the cycle.

MallyGirl

just be aware that they probably won't take a CC payment for the outstanding amount so you will probably need to get a 0% money transfer card (MBNA do one) instead of a 0% balance transfer card

andyfromotley

pvt wrote: »

You also need to consider the mileage and condition that the car will be in. It is usually a stipulation of the contract that you have to have the car serviced by a Skoda dealer, and keep within a certain milage (about 10,000 per year).

If the condition (scratches and dents) is poor, it hasn't been serviced by Skoda, or your mileage is over the agreed amount, you will have to pay extra penalties if you return the car to them.

Whereas, if you plan to pay the £5,500 balloon payment then you don't need to worry about those things.

Hi, this doesn't apply if you voluntary terminate your PCP as I described above.

pvt

Andy,

I don't see anywhere that you or anyone else has suggested a VT?

I might be wrong, but it was my understanding that whilst there is no precedent for them to pro-rata the mileage, they can still come after you if you exceed the total mileage amount for the full PCP, just as they can for condition and maintenance issues. Otherwise anyone who is 41 months into their 42 month lease and has massive excess mileage could just VT and avoid any excess mileage penalty.

andyfromotley

pvt wrote: »

Andy,

I don't see anywhere that you or anyone else has suggested a VT?

I might be wrong, but it was my understanding that whilst there is no precedent for them to pro-rata the mileage, they can still come after you if you exceed the total mileage amount for the full PCP, just as they can for condition and maintenance issues. Otherwise anyone who is 41 months into their 42 month lease and has massive excess mileage could just VT and avoid any excess mileage penalty.

sorry,, i posted on the wrong thread!! But no i believe i am still correct about the mileage, if you VT they can't charge for mileage. I haven't considered the position where you have exceeded the total amount, i would need to check the regs, but i still don't think they can. I will get around to it when i have a mo.

I had better find the correct thread now!!!