PCP isn't MSE

Cornucopia

I haven't done detailed research on it, but the latest Renault Zoe offer confuses me.   They've got down to a £199pm 0% PCP, but the deposit is huge (£7740 in the TV ad), and only £750 incentive.   By comparison, the Lease (PCH) is also c. £200pm, but with a "normal" deposit of 6-9 payments (£1200-1800).   

That seems like a massive difference to me, unless I've missed something.

Jenni_D

PCH = hiring the car for the contract period; no option to purchase.

PCP = buying the car using a specific type of finance where's there's an option to purchase at the end.

motorguy

Cornucopia said:

I haven't done detailed research on it, but the latest Renault Zoe offer confuses me.   They've got down to a £199pm 0% PCP, but the deposit is huge (£7740 in the TV ad), and only £750 incentive.   By comparison, the Lease (PCH) is also c. £200pm, but with a "normal" deposit of 6-9 payments (£1200-1800).   

That seems like a massive difference to me, unless I've missed something.

As per Jenni's post above, and i would also add when manufacturers are quoting PCP deposits they never include any discounts off list price.

There seems to be around £3K discount available from the likes of www.broadspeed.com

Cornucopia

Jenni_D said:

PCH = hiring the car for the contract period; no option to purchase.

PCP = buying the car using a specific type of finance where's there's an option to purchase at the end.

Yes, I know.

The question is why does a 3-year PCP cost a total of around £15000, but a 3-year Lease costs around £9000?   It isn't usually like this:  the PCP is usually (maybe) 10% more than the lease, although sometimes they are the other way around.  

motorguy

Cornucopia said:

I haven't done detailed research on it, but the latest Renault Zoe offer confuses me.   They've got down to a £199pm 0% PCP, but the deposit is huge (£7740 in the TV ad), and only £750 incentive.   By comparison, the Lease (PCH) is also c. £200pm, but with a "normal" deposit of 6-9 payments (£1200-1800).   

That seems like a massive difference to me, unless I've missed something.

Because the headline Renault offer price doesnt include any discount.

Theres £3,000 discount to be had on the car.  Heres Bennett Renaults offer...

https://www.bennettrenault.co.uk/renault/new-car-offers/zoe-play/?utm_source=24&utm_medium=2&utm_campaign=CM008787-1&utm_term=+offers +renault +zoe&utm_content=2053412054&k_clickid=_k_Cj0KCQjw78yFBhCZARIsAOxgSx16kV6bQIq-3xbBoVM-FrPNEnh69Q7pqX91PpwHKr1zyaoTYPhx2hcaAnY8EALw_wcB_k_&gclid=Cj0KCQjw78yFBhCZARIsAOxgSx16kV6bQIq-3xbBoVM-FrPNEnh69Q7pqX91PpwHKr1zyaoTYPhx2hcaAnY8EALw_wcB

Where are seeing the Zoe Play being offered at £199 a month on PCH?

Cornucopia

Part of the explanation seems to be that the Iconic models are cheaper to lease than the Play models...

https://www.cars2buy.co.uk/personal-car-leasing/deal/71606-82b13ffa91db-f1ff374ea2c0eb852a036061329abf283d052ded
(£188 x 36 + £1698 deposit)

ETA:  ...suggesting there may be some scarcity factors.

Grumpy_chap

Cornucopia said:

Part of the explanation seems to be that the Iconic models are cheaper to lease than the Play models...

https://www.cars2buy.co.uk/personal-car-leasing/deal/71606-82b13ffa91db-f1ff374ea2c0eb852a036061329abf283d052ded
(£188 x 36 + £1698 deposit)

ETA:  ...suggesting there may be some scarcity factors.

Scarcity?

Maybe the Iconic has more desirable features and therefore less depreciation forecast than the entry Play level?
Maybe bigger discounts on the Iconic than the Play?

BOWFER

Jenni_D said:

PCH = hiring the car for the contract period; no option to purchase.

PCP = buying the car using a specific type of finance where's there's an option to purchase at the end.

I'll keep saying this while this misconception still exists....
I've been leasing cars, company and personal, for decades.
The lease companies will always sell you the car if you want, I've yet to come across any lease company that won't.
The only difference between PCP and lease is that with PCP you know what the purchase cost will be at the beginning of the agreement, whereas with a lease you won't know what they want for the car until you ask.

Jenni_D

So you're arguing only on my "no option to purchase" comment - perhaps I could have phrased it better as "no option to purchase in the contract", but it doesn't change the thrust of my previous comment one iota. 🙄

BOWFER

Jenni_D said:

So you're arguing only on my "no option to purchase" comment - perhaps I could have phrased it better as "no option to purchase in the contract", but it doesn't change the thrust of my previous comment one iota. 🙄

AFAIK you may be one of the many who genuinely think a lease car 'has' to be handed back and you've no say in the matter.
If you object to being corrected, get it correct.