PCP options

Cornucopia

James2k wrote: »

well that is 30% more pm, on a different term length

Ah, but such a tiny deposit.

I'm more interested in the huge difference against the OP's PCP figures, really. £500pm over 36 months is £18k, and £650pm is £23k. Those are big numbers when there's a balloon payment still to come.

you are right though, and if i was looking to replace my car every few years for some reason, id lease.

I think it's definitely worth considering as an alternative to PCP.

chifans

What would you say are the advantages of leasing over pcp? In terms of monthly fees on a low deposit, is there much difference?

neilmcl

chifans wrote: »

What would you say are the advantages of leasing over pcp? In terms of monthly fees on a low deposit, is there much difference?

https://www.carwow.co.uk/guides/financing/car-leasing-explained

Cornucopia

chifans wrote: »

What would you say are the advantages of leasing over pcp? In terms of monthly fees on a low deposit, is there much difference?

The structure of Leasing is comparable to the PCP option where you hand the car back at the end of the term with nothing more to pay. One disadvantage of Leasing is that you do not get the other PCP options.

However, and it varies between cars, Leasing tends to be cheaper than an equivalent PCP - the monthly payments tend to be less, and the deposit is often smaller. You also usually get your Road Tax paid (worth, maybe £140 pa) and you get breakdown insurance (worth, maybe £75 pa). The maintenance option can also add value - in my case it was £7pm, which is less than the cost of servicing alone, and it includes brakes and all other consumables except tyres.

It won't be for everyone and like a lot of MSE discussion, a good price comes with limitations that some people can live with and some people can't.

The most important thing for me is that people look carefully at the figures, and since Lease figures are readily available and will typically be the lowest price way to access a given new car, they are a good starting point for comparison.

I didn't seriously consider a PCP for my new car, but I have researched the cost, and it would have been in the region of £290pm (against my £183 including Maintenance). The deposit would also have been slightly higher, after the effect of Manufacturer's incentives.

As something of a disclaimer, I would add that some Skoda Lease rates are particularly good VFM. I assume this is due to good list prices and good residuals (probably something to do with having a ready resale market as Taxis). There may well be other cars and other manufacturers where the difference between Lease and PCP is less marked - but there is only one way to find out.