Electric Vehicle PCP T&Cs

almillar

So for instance, what if the battery capacity massively deteriorates over the 4 year PCP, despite being used according to manufacturer's instructions etc? Is the consumer on the hook for a new battery at hand-back?

Well, the battery has a separate warranty. But it would be for MG (or the financers) to prove that you've misused the battery, and I can't imagine how you could do that. Massive battery deterioration, especially within a PCP period, is very rare, and is due to faults, rather than consumer misuse. Hand back penalties are more about cosmetic damage, servicing, and going over the mileage.

(PS I'm sure there are other places to discuss the merits or otherwise of this and other EV models)

Yes, you can read more than you could ever hope to at the SpeakEV forums.

Is there a "standard" rate of deterioration?
How can there be given this is an all-new model?

No. They tend to deteriorate quickly then slow down. My Zoe started at 105% (yes!) capacity, and was at 98% 2 years, 15,000 miles later later. But that does NOT mean it'll lose 7% every year.

They'll all have warranties - on mine it was replacement if the battery fell to 75% (for battery leased cars, 70% for battery owned cars) of capacity. But again, that's the manufacturer paying, not the consumer. Have you ever misused a petrol tank?!

jimbo6977

Fortunately I have never misused a fuel tank, but plenty of people do misfuel for instance.

Buy then I've never accidentally used a fuel pump with a 3gal/sec flow rate, or left the nozzle in the filler neck for 16 hours.... etc.

Goudy

jimbo6977 wrote: »

I was just looking at some rather favourable reviews for the new MG ZS EV, which suggest the consumer would best advised to PCP the model rather than buying outright.

I looked into this myself and it appears there are charges if you don't return the supplied cables, but I have not heard of any other relating specifically to EV's.
It's the usual wear and tear BVLRA stuff.

What is being suggested in regards to buying a MG ZS EV on PCP is to try and negate the possibility it'll be worthless in no time at all.
There is something to be said for that, they are already discounting them before launch and that has to hurt residuals.

If you do look into a PCP on one, perhaps report back what the deal is over, year and mileage and what the GFV is.

[Deleted User]

I've had EVs on PCP and battery wear was not even checked. It would come under wear and tear anyway since they charge based on mileage. Obviously if you do 100k miles a year the engine/battery will be worn out more.

PCP is popular for EVs because people think that the prices are going to come down fast at some point. I wouldn't be so sure. Chances are the MG will be worth more than what their PCP offer suggests after 3-4 years. EVs are in high demand as taxis and as 2nd cars for people who know how good they are. At 4 years old it won't need any major/expensive parts and will still have 3 years warranty left.

stevebtn

I would be more worried about to rusting away than the 7 year battery warranty especially after looking at the website BOB_A_Bulder added. (Sorry new user so can't put address on yet)

This is not the 1st person I have heard that has these issues.

DrEskimo

Goudy wrote: »

What is being suggested in regards to buying a MG ZS EV on PCP is to try and negate the possibility it'll be worthless in no time at all.
There is something to be said for that, they are already discounting them before launch and that has to hurt residuals.

If you do look into a PCP on one, perhaps report back what the deal is over, year and mileage and what the GFV is.

I've done this in detail in post #9. PCP don't automatically provide a good means of asset protection insurance. Often the price (in the form of interest) is too high, the amount 'insured' is too low (GFV), and the restrictions too severe (only applies on one single day, assuming car is under the agreed mileage and kept according to fair war and tear).

DELETED USER wrote:

PCP is popular for EVs because people think that the prices are going to come down fast at some point. I wouldn't be so sure. Chances are the MG will be worth more than what their PCP offer suggests after 3-4 years. EVs are in high demand as taxis and as 2nd cars for people who know how good they are. At 4 years old it won't need any major/expensive parts and will still have 3 years warranty left.

Indeed. So leasing is losing out on the incredibly low depreciation, and PCP is just an incredibly expensive way to borrow money, as the GFV is not needed....

Goudy

Well MG themselves appear to be expecting the EV model will depreciate faster than the petrol.

After 4 years the EV at £25,000 purchase price has a GFV of £8700, that's 65.2% depreciation.

Over the same 4 years their base model petrol at £14,000, has a GFV of £5575, that's 60% depreciation.

https://mg.co.uk/offers-finance/mg-zs-ev/mg-zs-ev-pcp-offers/
https://mg.co.uk/offers-finance/mg-zs/pcp/

After deposit contributions, the difference in purchase price is £9000.
£9000 buys a lot of petrol, at £1.25 a litre, that's 7200 litres or 1585 gallons.
Say it averages 35 mpg over those four years, that's 55,500 miles.

Both contracts are 8,000 a year, x 4 years is 32,000.

So if you bought the petrol, you could run it with 4 years fuel and still be £750 better off even before you've charged the EV once.
You'd also save £1250 on depreciation.

DrEskimo

Goudy wrote: »

Well MG themselves appear to be expecting the EV model will depreciate faster than the petrol.

After 4 years the EV at £25,000 purchase price has a GFV of £8700, that's 65.2% depreciation.

Over the same 4 years their base model petrol at £14,000, has a GFV of £5575, that's 60% depreciation.

https://mg.co.uk/offers-finance/mg-zs-ev/mg-zs-ev-pcp-offers/
https://mg.co.uk/offers-finance/mg-zs/pcp/

After deposit contributions, the difference in purchase price is £9000.
£9000 buys a lot of petrol, at £1.25 a litre, that's 7200 litres or 1585 gallons.
Say it averages 35 mpg over those four years, that's 55,500 miles.

Both contracts are 8,000 a year, x 4 years is 32,000.

So if you bought the petrol, you could run it 4 years and be £750 better off even after you've fueled it for 32,000 miles.
You'd also save £1250 on depreciation.

Assuming of course the expected depreciation reflects reality....

I am pretty confident looking at the current market, and knowing what will be available in the next few years, that the MG will be worth more than £8k in 4yrs time.

The GFV on the Zoe 41kWh after 4yrs were/are around £8k for the battery owned version. Mine is approaching 3yrs old and I have been offered >£15k trade value. Unless of course I am in for a shock with massive depreciation over the next year :eek:

I wonder how much of it is to do with uncertainty from manufacturers and mitigating risk, how much is to reduce demand as supply is low, and how much is to ensure they remain uncompetitive against their ICE counterparts that they are desperate to keep selling...?

Also you're numbers are all over the place...? Why do you compare depreciation costs, but ignore the deposit contributions? It's £21,995 , so £8.700 represents 60% depreciation, and the petrol is £13,045, so 58% depreciation.

Also, you then move away from depreciation and start talking about purchase price. The important thing is difference in depreciation when calculating total cost of ownership, not purchase price. Since the sale price will be different. When you do that you have around £5,782 difference in depreciation. Then you have between £500-£1,500 in electricity depending on your tariff vs. around £5,278 for fuel. So let's say £1,000 for the EV in electricity, that is a £4,278 saving. Now the EV is only £1,504 more expensive over the 4yrs. Now add VED at £150 int he second year, rising £5 each year would be another £465 saving, so suddenly the EV is only £1,039 more expensive.

What do you get in exchange for that additional £1,039?

A very smooth 'automatic' transmission over a manual, an extra 43PS and 202nm Torque, better sound system, Apple CarPlay/Android Auto, DAB radio, Rear camera, induction phone charging, leather steering wheel, air conditioning....well I could go on...!

And of course the point I've already mentioned, that the EV is highly likely to be worth more than £8k. Will the petrol be worth a lot more than £5,575.....not so sure!

Goudy

The invoice prices are £25,000 and £14,000 with GFV's of £8700 and £5500.

The deposit contributions are only usually available with PCP deals and could be altered or taken away all together.

They are still £25,000 and £14,000 list prices and their depreciation in time to come will be worked out on these prices, not the price paid with any deposit contributions or grants.

The GFV is only a guide to their value after 4 years, there are many factors that could alter these future values but the finance houses don't often get these GFV's wrong, though I am aware Peugeot did over value some models a few years ago, when they came back on the market they didn't get anywhere near their GFV's at resale.


BTW 58% of £13,000 or £14,000 is still a lot less than 60% of £25,000 or even £21,000.

DrEskimo

Goudy wrote: »

The invoice prices are £25,000 and £14,000 with GFV's of £8700 and £5500.

The deposit contributions are only usually available with PCP deals and could be altered or taken away all together.

They are still £25,000 and £14,000 list prices and their depreciation in time to come will be worked out on these prices, not the price paid with any deposit contributions or grants.

The GFV is only a guide to their value after 4 years, there are many factors that could alter these future values but the finance houses don't often get these GFV's wrong, though I am aware Peugeot did over value some models a few years ago, when they came back on the market they didn't get anywhere near their GFV's at resale.


BTW 58% of £13,000 or £14,000 is still a lot less than 60% of £25,000 or even £21,000.

Bit of nonsense IMO to base it on a list RRP that hardly anyone pays. Even a cash buyer can get the contributions and settle the next day.

Guess we will have to wait and see how residuals hold. As I say, my Zoe was estimated to have a similar value in 4-yrs, and is currently out by a factor of more than 2...

Even if they are accurate estimates, I've highlighted how when you take into account fuel costs and VED (didn't even go into savings on servicing, which is much cheaper, and brakes which will not need replacing, and even tyres which wear out slower), the additional cost for driving the EV version is ~£1,000.

Not bad considering all the additional equipment, power and great automatic transmission driving experience you get.....