PCP on a new car V's leasing

treasureirealnds

Hi, does anyone that has leased a car have any advice for me please?
Id like to get a new DS3. I usually go for the PCP option, but the salesman suggested leasing as it is cheaper a month.
Same deposit on both and leasing also gives me free servicing and tax. It works out about £100 cheaper a month.
Anyone who can help me with their experiences or my options I'd be really grateful.
I know a bank loan would work out cheaper but i like to swap cars every 2/3 years.
Thank you. 

neilmcl

If you have no interest in ever owning the car and if the lease is indeed cheaper and includes servicing then it's a no brainer, take the lease deal. One thing you need to be aware of is you get much less consumer protection with a lease then you do with a PCP/HP agreement, particularly if you suddenly find yourself in position where you can no longer afford the payments.

treasureirealnds

neilmcl said:

If you have no interest in ever owning the car and if the lease is indeed cheaper and includes servicing then it's a no brainer, take the lease deal. One thing you need to be aware of is you get much less consumer protection with a lease then you do with a PCP/HP agreement, particularly if you suddenly find yourself in position where you can no longer afford the payments.

Thanks for your reply. I just wondered if there were any cons as the salesman was keen to push leasing over PCP.

macman

treasureirealnds said:

neilmcl said:

If you have no interest in ever owning the car and if the lease is indeed cheaper and includes servicing then it's a no brainer, take the lease deal. One thing you need to be aware of is you get much less consumer protection with a lease then you do with a PCP/HP agreement, particularly if you suddenly find yourself in position where you can no longer afford the payments.

Thanks for your reply. I just wondered if there were any cons as the salesman was keen to push leasing over PCP.

Then that means that the dealer is making more commission on the leasing deal than on the PCP. Does the price quoted for the lease include the VAT? They're often quoted as ex-VAT, because most people leasing are VAT registered businesses and will be claiming it back.

treasureirealnds

macman said:

treasureirealnds said:

neilmcl said:

If you have no interest in ever owning the car and if the lease is indeed cheaper and includes servicing then it's a no brainer, take the lease deal. One thing you need to be aware of is you get much less consumer protection with a lease then you do with a PCP/HP agreement, particularly if you suddenly find yourself in position where you can no longer afford the payments.

Thanks for your reply. I just wondered if there were any cons as the salesman was keen to push leasing over PCP.

Then that means that the dealer is making more commission on the leasing deal than on the PCP. Does the price quoted for the lease include the VAT? They're often quoted as ex-VAT, because most people leasing are VAT registered businesses and will be claiming it back.

macman said:

treasureirealnds said:

neilmcl said:

If you have no interest in ever owning the car and if the lease is indeed cheaper and includes servicing then it's a no brainer, take the lease deal. One thing you need to be aware of is you get much less consumer protection with a lease then you do with a PCP/HP agreement, particularly if you suddenly find yourself in position where you can no longer afford the payments.

Thanks for your reply. I just wondered if there were any cons as the salesman was keen to push leasing over PCP.

Then that means that the dealer is making more commission on the leasing deal than on the PCP. Does the price quoted for the lease include the VAT? They're often quoted as ex-VAT, because most people leasing are VAT registered businesses and will be claiming it back.

Yes the saving Includes VAT.

DrEskimo

Have you considered buying a used version (say 1-2yrs old) with as little finance as possible and changing these every 2/3yrs?

In terms of total cost of ownership, it will be vastly cheaper and you will likely also still be in the warranty. Trading a used car in after 2/3yrs is exactly the same process as a new car on PCP.

You also have complete flexibility to trade the car in earlier (this is going to be much cheaper than a lease) or keep it a month, 6-months, 1-year or 10-years longer. Also changes in circumstances altering your mileage will have no impact on you either.

Basically, exactly the same car (albeit a different number on the plate) with zero contractual obligations at a much cheaper cost.

You may also get a better version of the car, with optional extras that you wouldn't spec on a brand new build...particularly when it comes to a lease.

Ectophile

treasureirealnds said:

neilmcl said:

If you have no interest in ever owning the car and if the lease is indeed cheaper and includes servicing then it's a no brainer, take the lease deal. One thing you need to be aware of is you get much less consumer protection with a lease then you do with a PCP/HP agreement, particularly if you suddenly find yourself in position where you can no longer afford the payments.

Thanks for your reply. I just wondered if there were any cons as the salesman was keen to push leasing over PCP.

To me, the main cons would be:

• It's totally inflexible.  There is no Voluntary Termination if your life circumstances change.
• At the end, your only option is to hand the car back.  There is no option to pay the balloon payment and keep the car, or to use it as a trade-in for something else.
  

Penelopa.Pitstop

More leasing companies allow to buy car at the end. It's not in the contract but they offer it. Purchase price depends on the funder. Sometimes it's decent, sometime it's not worth buying it.

Flight3287462

Op have you checked lease (and PCP) prices online?

treasureirealnds

DrEskimo said:

Have you considered buying a used version (say 1-2yrs old) with as little finance as possible and changing these every 2/3yrs?

In terms of total cost of ownership, it will be vastly cheaper and you will likely also still be in the warranty. Trading a used car in after 2/3yrs is exactly the same process as a new car on PCP.

You also have complete flexibility to trade the car in earlier (this is going to be much cheaper than a lease) or keep it a month, 6-months, 1-year or 10-years longer. Also changes in circumstances altering your mileage will have no impact on you either.

Basically, exactly the same car (albeit a different number on the plate) with zero contractual obligations at a much cheaper cost.

You may also get a better version of the car, with optional extras that you wouldn't spec on a brand new build...particularly when it comes to a lease.

Thank you! Yes that’s a good option.