Range Rover Evoque PCP v Lease v Bank loan

AdrianC

Supersonos wrote: »

Would you say the same to anyone with a mortgage? Have a go at them for living in a house they "can't afford"?

Being sensible with money is important, but that doesn't automatically exclude borrowing.

No, it doesn't.

But there's a big difference between leveraging an otherwise-unaffordable purchase like a home, and putting yourself deep into hock for a rapidly-depreciating trinket. Especially if your circumstances mean that you're already deep in hock elsewhere, and have merely rearranged your pre-existing debts to enable that trinket to be affordable at all.

motorguy

AdrianC wrote: »

No, it doesn't.

But there's a big difference between leveraging an otherwise-unaffordable purchase like a home, and putting yourself deep into hock for a rapidly-depreciating trinket. Especially if your circumstances mean that you're already deep in hock elsewhere, and have merely rearranged your pre-existing debts to enable that trinket to be affordable at all.

I think thats key here. I've no issues with people having finance on cars - i've done so in the past myself and may do again in the future - however the specifics here are of someone who up until 2 months ago was uncomfortably in a DMP and "came in to money" (quite possibly by a remortgage, so still owes the money but now paying it off over a longer timeframe and with more interest charges) yet now wants to get themselves (further?) in to debt by taking on finance of something that is very much an unnecessary trinket in his circumstances.

Seems wholly banal. :eek:

Sea_Shell

Even if the "coming into money" was via a lottery win...it seems to be burning a hole in their pocket!!

motorguy

Sea_Shell wrote: »

Even if the "coming into money" was via a lottery win...it seems to be burning a hole in their pocket!!

It seems whatever money they "came in to" is gone as they're looking at having to lease, PCP or get a bank loan.

Sea_Shell

motorguy wrote: »

It seems whatever money they "came in to" is gone as they're looking at having to lease, PCP or get a bank loan.

I was thinking more of them covering the deposit for PCP. Then worrying about the rest later!!

BananaRepublic

I’m curious why the OP would want an Evoque. Apologies if this has already been explained. I realise this is subjective, but they are so ugly and huge.

What mileage does the OP do? They may have to factor in new tyres, etc.

RichardD1970

BananaRepublic wrote: »

I’m curious why the OP would want an Evoque. Apologies if this has already been explained. I realise this is subjective, but they are so ugly and huge.

What mileage does the OP do? They may have to factor in new tyres, etc.

The new one is a nice looking car, the interior especially.

As you say, that is all subjective and everyone's tastes are different.

iwb100

Its a pretty simple conundrum PCP or PCH are essentially different ways of leasing a car for a period of time for a monthly fee. Compare the total costs of each across the term (for same miles etc) and see which would cost the least. Do not assume there will be any equity in the PCP model in your calculations.

Think of PCP as a leasing scheme rather than a buying scheme. Its a very expensive way to buy a new car. Its a less expensive way of getting a new car every 3/4 years but often PCH can work out cheaper. It just depends. Dealers sometimes will give you incentives for PCP that makes it cheaper, or just plain throw deals at you.

Remember to work out the total cost by multiplying the monthly payments by the number of months and adding on the deposit. People get carried away by a low monthly forgetting its a longer (and more expensive) deal overall.

You can also with PCP take the deal to get the dealer deposit contribution etc...then within 14 days pay the whole thing off and cancel - avoiding the interest. This works if you can get a bank loan on lower interest. Dealers will tell you, that you cannot do this and that if you do you lose the benefits they through in, but that is not true in most cases.