PCP Queries

bazzyb

chammer97 wrote: »

I always keep my cars for 3 years before handing back, so that’s a certain.

Leasing will almost certainly be less expensive. Only consider a PCP if you may want to keep the vehicle at the end of the agreement.

chammer97 wrote: »

The dealer said it’s best to get a 4 year deal, even if I intend to hand the car back in year 3 due to lower monthly payments. Is this the best way to go, or is it best getting the term for the length I intend to get the car.

It's best for the dealer because they can roll your negative equity in to a new deal next time round. They will also possibly get more commission from the finance company for a 4 year deal than 3 year. If you want 3 years, go for 3 years.

neilmcl

chammer97 wrote: »

I’m open to leasing, but from all of the quotes I’ve seen, PCP is working out at a lower rate.

SEL Polo, Manual in flash red.
Cruise control + active display.

Examples please?

ukbfg

BoGoF wrote: »

Have you considered a personal lease?

Have to ask, why the need for a new car every 3 years? You are literally throwing money away.

No they're not. This is literally throwing money away:-

chammer97

From what I've been looking at - Polo SEL, Flash Red with active display & basic cruise control:

Both leasing and PCP are 8k miles per annum.

Lease (SelectLeasing):
£1514.11 + £252.35 (1+36)
Total = £ 10,598.71


PCP (What VW has offered me):
£1500 + £229 (1+49)
3 year total, if I'm walking away after 3 years (I know people have said it's best to get the term for what you want, but this is just an example).
Total for 3 years = £9,744

The lease includes road tax, while the PCP includes servicing. These both seem to be around the £14pm mark.

bazzyb

chammer97 wrote: »

From what I've been looking at - Polo SEL, Flash Red with active display & basic cruise control:

Both leasing and PCP are 8k miles per annum.

Lease (SelectLeasing):
£1514.11 + £252.35 (1+36)
Total = £ 10,598.71


PCP (What VW has offered me):
£1500 + £229 (1+49)
3 year total, if I'm walking away after 3 years (I know people have said it's best to get the term for what you want, but this is just an example).
Total for 3 years = £9,744

The lease includes road tax, while the PCP includes servicing. These both seem to be around the £14pm mark.

You're confusing a 3 year lease with a 4 year PCP, and you have also calculated your liability for the PCP incorrectly. At the end of the 3 years you would have paid £9744 up to that point in time, but you can't just 'walk away' you would need to cover what's left on the agreement. You could trade the car in to offset some of this but there is still likely to be a shortfall. Although I haven't seen a detailed breakdown I would also say that it is unlikely that you would be able to VT by that point as you probably won't have reached the 50% mark.

You also state your lease quote is 1+36 but it looks more like a 6+35 quote, so have you even got the correct monthly payment?

Compare a 3 year lease to 3 year PCP, and a 4 year lease to 4 year PCP.

neilmcl

chammer97 wrote: »

From what I've been looking at - Polo SEL, Flash Red with active display & basic cruise control:

Both leasing and PCP are 8k miles per annum.

Lease (SelectLeasing):
£1514.11 + £252.35 (1+36)
Total = £ 10,598.71


PCP (What VW has offered me):
£1500 + £229 (1+49)
3 year total, if I'm walking away after 3 years (I know people have said it's best to get the term for what you want, but this is just an example).
Total for 3 years = £9,744

The lease includes road tax, while the PCP includes servicing. These both seem to be around the £14pm mark.

But you wont be "walking away" from your 4 year PCP after 3 years, for the reasons already explained.