Škoda Enyaq financing

Mark_84

I posted this on an Enyaq forum but since is a money saving site what are people’s thoughts on the below

I have decided to get an enyaq sportline but torn between purchase options.

There is a lease deal for a brand new 85x sportline that is £3782 upfront then £315 per month for 2 years.

Total over 2 years £11342

Alternatively I could get a used 80 sportline 2022 on PCP for around £241 per month with a £9500 deposit.

Total over 3 years £17435. At the end I may gain if the vat was worth more than the final balloon payment.

My third option is to purchase a 2021

Used sportline for 24k with £9500 cash and 15k loan over 5 years with the plan to either keep it longer or be better off financially after 3 years with more of the finance being paid off.

What are people’s thoughts? Fighting being sensible financially vs getting a brand new lease deal 🙈

Most on the Enyaq group seem to think lease and then pcp are better to protect yourself from the depreciation.

MX5huggy

What’s the final payment on the PCP?

But option 3 is cheapest (probably) you’re not going to lose £11k on a £24k used car in 24 months. 

Option 1 if you change car every 2 years option 3 if you keep them for 5 years plus. 

Love my Enyaq. 

daveyjp

Having once taken a car loan over 5 years my advice is don't do it.

Borrow as little as possible and pay it off as quickly as possible.

Mark_84

MX5huggy said:

What’s the final payment on the PCP?

But option 3 is cheapest (probably) you’re not going to lose £11k on a £24k used car in 24 months. 

Option 1 if you change car every 2 years option 3 if you keep them for 5 years plus. 

Love my Enyaq. 

Final payment on option two would be £16,500 after 3 years.

I would only owe around £8400 on option three after two years. 

Hopefully if the car is worth around 18-20k after two years it will have cost me around £6500. It would have to dropped to 13k to make the lease option more financially attractive.

I know we are comparing a brand new car and one that’s 3 years old but just for the sake of financial sense.

Typhoon2000

Have you checked the value of that 2021 Enyaq on WBAC or similar? I think that getting 18-20k for a 5yr old Enyak is optimistic.

Mark_84

Typhoon2000 said:

Have you checked the value of that 2021 Enyaq on WBAC or similar? I think that getting 18-20k for a 5yr old Enyak is optimistic.

I was quoting the value after two years to compare the depreciation loss to the 2 year lease. Motorway currently show its value as 21k

After two years it should be worth hopefully at least 16k. But that would be upto an 8k loss compared to the lease of £11342

The loan would give me the option to keep it longer or get rid at that point.

Obviously one is used and the other is brand new so it’s not a true comparison.

born_again

Mark_84 said:.

I know we are comparing a brand new car and one that’s 3 years old but just for the sake of financial sense.

Have a root around posts.

Plenty have bought a 2nd hand cars on PCP, that are out of warranty. Something big then goes wrong & leaves you with a big bill or worse having to scrap car & you still have to finish paying the car off.

Could you afford a new one on PCP?

Nobbie1967

As above, for the 2021 used purchase and 2022 PCP you really need to include the cost of a manufacturer warranty to avoid the chance of a large bill upsetting your finances. Not sure what they cost for EVs, but could easily add £500 a year to the cost.

Mark_84

Nobbie1967 said:

As above, for the 2021 used purchase and 2022 PCP you really need to include the cost of a manufacturer warranty to avoid the chance of a large bill upsetting your finances. Not sure what they cost for EVs, but could easily add £500 a year to the cost.

They are Škoda approved so come with a two year warranty and then each year is about £200 upto a maximum of 7 years old.

i would own the car after 4 years so it is tempting for the 2021 car.

Most people seem to be fans of the lease deals

DrEskimo

Used car with cash any day. 

Don’t forgot that the lease deal forfeits flexibility. You have to return the car on the exact day stated on the contract and for no more mileage and according to specific conditions or face additional costs. 

Used car can be traded/sold in whenever you want at your convenience. Fancy a change earlier, or enjoy it and want it for another day, month year or decade. 

So you’re paying more for less flexibility just to get a brand new car, which outside of additional warranty (which as you say you can extend for not much), I don’t really understand what the value is?

Mark_84

DrEskimo said:

Used car with cash any day. 

Don’t forgot that the lease deal forfeits flexibility. You have to return the car on the exact day stated on the contract and for no more mileage and according to specific conditions or face additional costs. 

Used car can be traded/sold in whenever you want at your convenience. Fancy a change earlier, or enjoy it and want it for another day, month year or decade. 

So you’re paying more for less flexibility just to get a brand new car, which outside of additional warranty (which as you say you can extend for not much), I don’t really understand what the value is?

That’s my current plan to keep it for at least 4 years with an extended warranty and I will own it after 4 years whereas with the lease I wouldn’t have owned anything and paid out more money over 4 years if you take into account the value of the car after the car is paid for.