PCP to Leasing/PCP - VT?

ApricotPluto

I have had a quick look around but just getting in a tizz and more confused. 

I have a car with Seat on PCP, I got it in September 2018 but spent way too much on the deposit/monthly fees. My own fault.

I'm looking at coming away from a PCP scheme and going towards leasing instead. I enquired about a VT and they said after I've paid this month, I am at the place where I won't have to owe anything to them.

My current settlement figure is £9769. Am I right in thinking its best to get a quote from somewhere like WBAC and if they offer more then to do that? (At the moment they're offering me £10000)

With the car leasing through websites what is the best option? I've got a good quote on a car that will save me around £100 a month. Am I still best to carry on with WBAC then pay off Seat finance and then lease a car from the lease website in hope that they all crossover nicely and I won't be that out of pocket?

Or am I just being silly and I'm best to just do another PCP? 

Thanks!

AdrianC

There's not a massive conceptual difference between PCP and lease - you're still basically paying for the depreciation plus interest over the term.

The main practical difference is that you don't get the option to buy the car at the end of a lease. No, you may not want to, but it does mean that if they've overestimated the depreciation, you can take advantage of that - like you're doing with WBAC.

Just make sure you factor all the costs in, and look at the total over the term.

DrEskimo

Yes...sell the car to WBAC (or indeed any other garage or dealer that would be happy to offer you £10k+ to buy it) and they will settle the finance and provide you a cheque for the surplus. It makes zero sense to VT given the car is more valuable than the remaining finance owing.

You can do PCP or lease next, up to you. Or of course, you could simply keep your current car...it's costs in terms of depreciation and running costs will be far far lower than any new car, on either lease or with finance.

MX5huggy

Keep the car you have (get a loan if you need to to pay the balance). Get off the never ending new car train. 

Grumpy_chap

ApricotPluto said:

I've got a good quote on a car that will save me around £100 a month. 

You may think I am being pedantic, but paying to use someone else's car for a bit will not save you £100 per month.  At best, you can reduce your outgoings.  Be money-saving and get an older car.

neilmcl

AdrianC said:

There's not a massive conceptual difference between PCP and lease - you're still basically paying for the depreciation plus interest over the term.

The main practical difference is that you don't get the option to buy the car at the end of a lease. No, you may not want to, but it does mean that if they've overestimated the depreciation, you can take advantage of that - like you're doing with WBAC.

Just make sure you factor all the costs in, and look at the total over the term.

You've missed one of the major differences between leasing and PCP, and given that the OP is currently looking to get out of their current arrangement the one that may be of most relevance.

Leasing is lot less flexible than PCP and doesn't afford the same protections to the consumer. You can't, normally, walk away from a lease deal during it's term so f the OP realises they've made the same mistake then they may find it a costly one.

ApricotPluto

Thanks all - really appreciate it.

I'll take it all into consideration - I've only thought about doing it over the last few months when looking at my finances - just wanted a way to reduce some bills and the car was one of the bigger ones. 

Flight3287462

Buy a 5-6 year old car with FSH pref with cash (or as small a loan as possible) and as above get off the new car treadmill.  Once paid off put the equivalent money aside monthly for either a replacement car or whatever without any finance sometime in the future.

The_Fat_Controller

I am sure you'll all put me right if I am incorrect, but you are not the owner of the vehicle so you would need the agreement of the finance company before selling it.

AdrianC

The_Fat_Controller said:

I am sure you'll all put me right if I am incorrect, but you are not the owner of the vehicle so you would need the agreement of the finance company before selling it.

As far as the financier is concerned, the OP is simply buying the car for the settlement figure.

BOWFER

AdrianC said:

There's not a massive conceptual difference between PCP and lease - you're still basically paying for the depreciation plus interest over the term.

The main practical difference is that you don't get the option to buy the car at the end of a lease. No, you may not want to, but it does mean that if they've overestimated the depreciation, you can take advantage of that - like you're doing with WBAC.

Just make sure you factor all the costs in, and look at the total over the term.

There isn't a lease company out there that won't happily sell you the car.
Been dealing with leases for decades in company and personal guises.
I've lost count of how many lease cars I've bought on behalf of employees who were fond iof the cars themselves or wanted to give them to partners.
Some lease companies even have it as an option on their phone lines "if you want to buy your vehicle press 3" etc.
Really, in practical terms, the difference between lease and PCP boils down to roadtax (or VED)
Lease-they pay it.
PCP - you pay it.