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PCP on a new EV car ?

2

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  • Kia’s are very efficient and will easily do 4mpkw in cold weather and over 5mpkw the rest of the year. 
    I consistently get 5 mpkw out of my old leaf. 
    Some people don’t know how to drive EVs which is why they don’t get good figures. 

  • Goudy
    Goudy Posts: 2,103 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    edited 5 February 2024 at 8:14AM
    As you are eyeing to hand it back at the end of the contract it's worth considering PCP deals tend to be more expensive if cars have a high depreciation rate.
    That could be because of higher mileage contracts or the type/make/model or more likely both.
     
    Your monthly payments are worked out on the GFV but include all the interest of the total you borrowed (even the differed GFV), so if your car loses more, the monthly payments need to accommodate that and go up as a result.

    An up front discount or deposit contribution should help this as it closes the gap to the GFV but there are still some expensive PCP deals (not just on EV's) even after a discount or contribution.

    I don't want to get into a EV argument, but some EV's do now seem to be having their prices realigned at the moment. It does appear they are deprecating more, faster.
     
    Some are offering discounts, some larger deposit contributions and others interest free finance with only a moderate customer deposit to try and tempt customers but there's a bit of a trend with savy buyers buying nearly new EV's and taking advantage of what appears to be the higher rate of initial depreciation of most EV's. 

    I know someone that has just paid £18,500 for a 12 month old EV with tiny mileage that was originally £34,000 new.
    She could easily afford the monthlies on straight HP as there was very little difference to a new one on a PCP.



  • WellKnownSid
    WellKnownSid Posts: 1,900 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    With a chunky deposit I would strongly second the nearly new route - we did the same.  Being in Scotland we had access to 0% on second hand EVs - but even on a straight HP deal your fuel saving alone (£100/m?) would pay a big chunk of the repayments.  After three years you would still have manufacturer's warranty remaining and car you can sell on rather be forced to walk away with nothing to show.

    Do check out insurance.  For us it was something like £22 difference over the year to go electric but those on the wrong side of 70 seem to be hammered at the moment.
  • Herzlos
    Herzlos Posts: 15,745 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    What range do you need? Your £10k deposit will get you a 2020 Nissan Leaf with a "168" mile range outright:

    https://www.autotrader.co.uk/car-details/202401175644068

    Then you can do whatever you want with it after 3 years, because compared to the PCP it'd be free.

  • Nasqueron
    Nasqueron Posts: 10,613 Forumite
    Tenth Anniversary 10,000 Posts Photogenic Name Dropper
    An EV is not an option for me, but Ive done the maths for a toyota Corolla estate hybrid. My next car as of now.
    50 mpg a conservative estimate, 10,000 miles = 200 gallons @ £6.16 = £1232 a year. Todays price.
    10 year warranty, The car will last that long and with 100k on the clock it would still sell for a few quid.
    There is just not enough info on EV'S, ie battery life and replacement cost.

    My friends 15 plate Prius has done 198,000 miles, serviced by himself from 3 years old.
    Apart from service parts, plugs and breake pads and tyres he has had only 2 repairs.
    Water pump £220.00 with anti freeze.
    Hybrid battery at 183,000 ish £1400 fitted, genuine Toyota battery.
    No ball joins, sprins & shockes etc.
    His wife has a MG ZS EV and loves it. Only issues is range anxiety when on long trips or holidays.

    I would not buy any breed of car for the next 18 month, until euro 7 comes in.
    EV'S taxed retroactively etc, whats next.




    While EV isn't suitable for everyone, the info on battery IS well known and freely available. Real world data on Tesla purely as example (their batteries are made by Panasonic who are looking to supply Subaru and Mazda) can be found online, there are Tesla that are 10 years old, 400k+ miles still with 80%+ range - indeed, the battery degrades less than 10% after 160k miles. Most data is showing 1-2% of the range lost per year and the battery will easily outlive the car

    Sam Vimes' Boots Theory of Socioeconomic Unfairness: 

    People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.

  • Goudy
    Goudy Posts: 2,103 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    edited 6 February 2024 at 8:34AM
    Arunmor said:
    You have to think that's a reflection on the state of the EV market at the moment.

    Again, not wanting to start an argument but it does look like they are getting a battering.
    I see a new electric Corsa will lose close to £22,000 in the first three years on a relatively low annual mileage PCP, that's 67%.
    If you really did want one of those, you'd be classed as insane if you bought one new.

    Buy one a couple of years old, extend the warranty and you should be laughing but I'd guess these figures are due to the current, volatile price of electricity and the zero emission pushback late last year, it seems they've both had a major impact of sales and the market is getting very very nervous.

    On the example above, 20% in three months and it's not even turned a wheel or had a registered keeper change and still not found a buyer might suggest there's a lot more to come off this market.
    It's actually more than 20% as the list price new should be closer to £32, so it's more like 35%.

  • Herzlos
    Herzlos Posts: 15,745 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    edited 6 February 2024 at 10:55AM
    i wonder if that's partially a quirk of the citroen list price where no-one was paying close to it historically anyway, part no-one wanting to pay £20k for a small car that would have been £15k last time they bought a car. Frankly £32k for a pretty mundane hatchback is crazy.

    Though there really is a terrible perception towards electric cars at the moment so it could be the petrol/diesel C4's are flying out of the stock whilst the battery ones aren't.

    Edit: I can see a lot of new unregistered petrol C4's with about £4k price reductions but I can't see the price history you've got in the screen shot. So the battery one has a much steeper discount.
  • Dave_5150
    Dave_5150 Posts: 272 Forumite
    Fourth Anniversary 100 Posts
    You will pay £19,828 to borrow the car for 3-years if you really plan to walk away at the end of the PCP term (>£550 per month). 
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