PCP or Lease Range Rover Evoque

almillar

chamukov said:

The staff from the dealership are saying that after the 4 years period I can give back the vehicle and if the vehicle is valued more than the final
payment I can get the difference in my pocket or towards a new vehicle, but would the vehicle be valued more than £23,000 after 4 years...

A detail in amongst what looks like quite average PCP deals. When you hand the car back, it's worth, say £23,000, and you owe £23,000. That value was predicted 4 years ago. If they're off, you're either in negative or positive equity. What you're saying is you'll be given CASH in your pocket if they car is in positive equity. You will not. This equity might go towards a new deal, with this garage, but if you walk away, the equity is gone. Same for negative equity, they can't take any more money off you.

Mercdriver

almillar said:

chamukov said:

The staff from the dealership are saying that after the 4 years period I can give back the vehicle and if the vehicle is valued more than the final
payment I can get the difference in my pocket or towards a new vehicle, but would the vehicle be valued more than £23,000 after 4 years...

A detail in amongst what looks like quite average PCP deals. When you hand the car back, it's worth, say £23,000, and you owe £23,000. That value was predicted 4 years ago. If they're off, you're either in negative or positive equity. What you're saying is you'll be given CASH in your pocket if they car is in positive equity. You will not. This equity might go towards a new deal, with this garage, but if you walk away, the equity is gone. Same for negative equity, they can't take any more money off you.

Strictly they could get it in cash if they sold it for a higher price than the GFV.  It's not the usual way though

almillar

Yes @Mercdriver but OP's post suggests the garage would be giving him the cash. He definitely won't hand back the car, and walk away with cash.

spiro

Something to consider. There was a little noticed item in the budget that they are considering changing the VED so the 1st year rate applies on an ongoing basis meaning some cars will be paying £2k+ pa. This will be retrospective so check the rates for this car.

DoaM

almillar said:

Yes @Mercdriver but OP's post suggests the garage would be giving him the cash. He definitely won't hand back the car, and walk away with cash.

I don't think @Mercdriver was suggesting that ... I believe they were saying that the OP could sell the car elsewhere (for the inflated price), give the garage the GFV value and pocket the difference.

Mercdriver

DoaM said:

almillar said:

Yes @Mercdriver but OP's post suggests the garage would be giving him the cash. He definitely won't hand back the car, and walk away with cash.

I don't think @Mercdriver was suggesting that ... I believe they were saying that the OP could sell the car elsewhere (for the inflated price), give the garage the GFV value and pocket the difference.

Quite so.  I thought that this would be so obvious that it didn't need to be talked about explicitly.  

Jonathan_Powell

Navigator123 said:

It is a Range Rover!  Reliability is a major problem with all Range Rovers at the moment, just Google it and see.  For that money I would be looking at either a BMW X5 or a Volvo XC90.  My choice would be the BMW.  Both have excellent reliability and good resale values and are bulletproof when it comes to reliability.

BMW has excellent reliability? 

Mercdriver

Jonathan_Powell said:

Navigator123 said:

It is a Range Rover!  Reliability is a major problem with all Range Rovers at the moment, just Google it and see.  For that money I would be looking at either a BMW X5 or a Volvo XC90.  My choice would be the BMW.  Both have excellent reliability and good resale values and are bulletproof when it comes to reliability.

BMW has excellent reliability? 

Yes, that made me chuckle too

scaredofdebt

Impossible to say what that specific model will be worth in 4 years, but there are plenty of SEs on Autotrader and they tend to be in the £18-21k price range, some as cheap as £14k.

Can you get a cheaper lease?  That seems high for a car of that value, shop around and I bet you can get it under £400, I've seen one for £298 including VAT (not your exact spec).

If you want to own the car outright eventually, obviously don't do that but personally I like the idea of getting a brand new car and giving it back when it is getting close to being out of warranty.  I certainly wouldn't want a Range Rover out of warranty!

https://www.reliabilityindex.com/reliability/search/135

almillar

Mercdriver said:

DoaM said:

almillar said:

 He definitely won't hand back the car, and walk away with cash.

I don't think @Mercdriver was suggesting that ... I believe they were saying that the OP could sell the car elsewhere (for the inflated price), give the garage the GFV value and pocket the difference.

Quite so.  I thought that this would be so obvious that it didn't need to be talked about explicitly.  

I don't think it is, what is obvious is that OP was taking advice from a car salesman, so caution, and being explicit, is required!

I don't see anything here, from the original post, that suggests any kind of private sale. Plenty of people have been tricked with 'equity', both positive and negative.

"The staff from the dealership are saying that after the 4 years period I can give back the vehicle and if the vehicle is valued more than the final
payment I can get the difference in my pocket or towards a new vehicle,"