Would you ever swap from owning a car to personal lease/PCP?

hieveryone

We currently have a car which we have a personal loan for. We pay £390 a month and have £16k outstanding - car is worth around £30k. It's a big diesel car, so obviously expenses are high too. 

My husband has the opportunity to acquire a car through his work benefit scheme. We would be able to pick a brand new car and pay it through his salary. It includes servicing, insurance and tyre costs. The only caveat being that the cars eligible are electric. Monthly cost from salary approx £560. 

I admit to being swayed by it as it seems a good deal - am I missing anything? 

Thanks

Krakkkers

Gross or net? basic tax payer or high? Unless you have a good overnight tariff for electricity an electric car can be expensive to charge at charging points, as in more expensive than running a diesel or petrol car.
Are you able to charge at home?
Electric car prices are plummeting at the moment so makes more sense to buy second hand.
would rather own than use PCP as well.

born_again

What happens if he leaves the employment?
As some mean the return of the car.

stuhse

We did this through NHS.  Was nice driving round in a new car, with no worries, but at the end of 3 years it went back, we had paid out shed loads of money and had nothing to show for it. Also the payment is may effect you husbands pensionable pay..depending how it's done.

hieveryone

born_again said:

What happens if he leaves the employment?
As some mean the return of the car.

Yes car would go back if leaves the employment. No plans to do so at the moment, things are pretty stable in his industry and he's happy where he is.

hieveryone

stuhse said:

We did this through NHS.  Was nice driving round in a new car, with no worries, but at the end of 3 years it went back, we had paid out shed loads of money and had nothing to show for it. Also the payment is may effect you husbands pensionable pay..depending how it's done.

Thank you, that's interesting. There was a webinar but I couldn't make the time it was on, so that's something to consider. 

I guess I'm at the stage where I'm thinking I'm paying out shed loads of money anyway and yes I have the car but it will continue to depreciate, whist still needing money spent on it. (Says I as I need a new tyre - at £300!!) 

Martin_the_Unjust

At the numbers the OP is quoting I cannot see any benefit so that would be a firm no from me.

Brie

I looked at doing this at my previous employer.  First problem was that there was going to be a minimum of 6 months before the car would be delivered.  Next was the fact that while they could tell me the monthly amount that would be deducted from my pay they couldn't say what the final payment might be in 3 years when the deal ended.  So basically I had no idea what the car would cost me.  Unlike if I buy a car with cash (well never done that I've always used credit cards) or even with a loan where all the costs, down payment, monthly, final, are known at the beginning.  Final problem would have been the fact that they made me redundant before the car would have been delivered so you never know what's going to happen.  

hieveryone

Brie said:

I looked at doing this at my previous employer.  First problem was that there was going to be a minimum of 6 months before the car would be delivered.  Next was the fact that while they could tell me the monthly amount that would be deducted from my pay they couldn't say what the final payment might be in 3 years when the deal ended.  So basically I had no idea what the car would cost me.  Unlike if I buy a car with cash (well never done that I've always used credit cards) or even with a loan where all the costs, down payment, monthly, final, are known at the beginning.  Final problem would have been the fact that they made me redundant before the car would have been delivered so you never know what's going to happen.  

Thank you - cars are available for immediate delivery which is handy. I would need to look into the payment - I doubt we'd purchase at the end right enough. 

daveyjp

The only time I would consider this is if the vehicle was an essential tool of the job and needed to do thousands of business miles a year.

chrisw

I'm of the opposite view to others on here. I would rather pay out a fixed amount each month and not have to worry about insurance, servicing, tyres, breakdowns, depreciation, etc.
I could probably buy a car cheaper but the extra cost is worth it to me.