PCP v Lease - Help!

ontheroad1970

iwb100 said:

motorguy said:

Jvnolan said:

Looking at a new Kia Pro Ceed GT line. 

I have the following on lease:

3 years, 8k miles a year.

£736 deposit. 

£245.60 x 35 months. 

£100 admin fee. 

The following on PCP:

Interest rate 5.9%
8k miles a year.

£1000
£319.42 x 36 months
Ballon payment - £11.898.25 (not likely to keep the car)
Total car price - £26.647.37. 

Please can someone help me crunch the figures and tell me best option. 

If you're going to drive it three years then move to another car, the lease is the cheapest.

I'd seriously consider buying it and keeping it if i were you - and if you do go down that route, you'd be better off with a cheap loan (as low as 2.9%APR available) and put it over a longer period

How do you know lease is cheapest? It will depend on the value of the car. 

Also the PCP deal includes a £2250 contribution from Kia so absolutely should take the PcP for that and then pay it off. But OP has already said they don’t want to keep it…

Short of a crystal ball as to what the values of cars will be in 3 years, I'd agree with Motorguy.  It's not just the price of used cars that will go up, I suspect there will be an uptick in the price of new cars within that time which will make the used car market less favourable by then.

born_again

While nothing to do with figures. Pro-Ceeds are made in Kia's Slovakia manufacturing facility. This is close to the Ukraine border. Other car being made there are seeing delivery dates slip by months.
So check before putting any money down just when you might get your car, or ring some dealers & find out what stock they have 👍

chib

I was in a similar situation in 2019 and went with the lease option, zero regrets. Done the same again when it ended last year.

Flight3287462

Lease is all known no surprises. 

PCP is unknown with potential downside (and upside) and therefore has risk attached.

In the current market I think I would be tempted to buy if I had some savings to lessen the payment term.  Things could get very silly in the car market if things kick off in other places round the world.  Imagine if China attacked Taiwan there goes a huge chunk of the chip manufacturers (probably unlikely but so was Russia going in to Ukraine).