PCP, Lease or Loan

JackP123

All,

Firstly thanks in advance for your advice!

I am changing jobs, which will require me to do around 15k miles per year.

I am given 6k car allowance per year, however I don’t mind putting in abit more myself.

I’m pretty intent on a 1 series shadow edition.

The big question is, PCP, lease or loan.

I know the pro’s and cons for all however I’m struggling to determine a route to go down.

They roughly all come out at the same price, expect the car loan option.

Which is better for high mileage?
Is taking out PCP and putting a lower mileage okay? - I don’t mind switching cars every few years.

Any suggestions, personal experiences etc that anyone can’t think will work cheaper per month for me?

motorguy

JackP123 wrote: »

All,

Firstly thanks in advance for your advice!

I am changing jobs, which will require me to do around 15k miles per year.

I am given 6k car allowance per year, however I don’t mind putting in abit more myself.

I’m pretty intent on a 1 series shadow edition.

The big question is, PCP, lease or loan.

I know the pro’s and cons for all however I’m struggling to determine a route to go down.

They roughly all come out at the same price, expect the car loan option.

Which is better for high mileage?
Is taking out PCP and putting a lower mileage okay? - I don’t mind switching cars every few years.

Any suggestions, personal experiences etc that anyone can’t think will work cheaper per month for me?

No. Its a tremendously bad idea. Put the mileage you anticipate down as your mileage, otherwise you're just creating a headache later.

Whats your budget? What model of one series? I'm assuming 118d or 120d?

facade

JackP123 wrote: »

Is taking out PCP and putting a lower mileage okay? - I don’t mind switching cars every few years.

At the moment, people seem to be "getting away" with putting down 4000 miles a year, doing 80,000 and VTing the car, but we don't expect this to last, and it is fundamentally dishonest.


The payments are based on the difference between what the car will be worth at the end of the term, and the cost price. Putting down that the car will only be doing 12,000 miles means that the GFV is very high compared to what the GFV of a 120,000 miler would be, so it gives much lower monthlies.


Handing back properly at the end of term and going over the mileage generally gives an extra charge for the mileage, basically to cover how much less the car is worth because of the extra mileage.

System

facade wrote: »

At the moment, people seem to be "getting away" with putting down 4000 miles a year, doing 80,000 and VTing the car, but we don't expect this to last, and it is fundamentally dishonest.

Actually they're not getting away with it. There's a few cases on this board where it has gone to the FSO and the Ombudsman has ruled in favour of the finance company.

foxy-stoat

Just take out a loan for the maximum you can afford and buy one outright.

You know your £6K car allowance is taxed and paid monthly?