PCP or lease?

DrEskimo

Keep_pedalling said:

DrEskimo said:

Does it have to be new?

used EV market is very good for buyers, and will save substantially over new, whether PCP or lease. 

For context leases for a Zoe back when I was looking at buying in 2019 were about £300-£350 over two years. Ended up keeping my used Zoe for well over 5yrs, and once I sold it, all in the cost to me worked out ant around £120/month. So substantially cheaper, and was fully under warranty the entire time.

I always like the flexibility. You say you like to keep your cars for ‘2-3yrs’, but remember with a lease you have to change on that exact day. You’re then forced to buy or lease whatever is available at that exact time. The option to just keep the car and know it’s paid for is worth a lot to me personally. 

Also you can get way more for your money. Picked up a used Tesla Models S performance in September, and it’s a lot of car when you consider that most new EVs cost the same or actually more. 

I know I could get near new car and save a lot, but I have not found one that meets my requirements. I won’t buy a Chinese built car ant am not prepared to touch anything that Musk has anything to do with. Plenty of EV 6s and Ioniq 5s that can be picked up at good prices but they are bigger than I need or want.

If I was proper MSE I would just keep the ID3 for a few more years ( it is still going well with little noticeable load of range), but I have to reduce my IHT liability somehow 😈 

What’s the GFV of the PCP? Is it overly pessimistic or what you think will be reflective of the price at the end of the term?

If you have the funds to clear the finance and sell it privately, it might end up making up that £3-3.5k shortfall?

Nebulous2

sheslookinhot said:

Just be aware, if a car is leased then you cannot “break” the lease and it is therefore required to run/ be paid for the full term.

Not necessarily. I ended a lease 2 months early in September, and the company were happy to allow that for half of the outstanding payments. So paid 1 months fee to send it back early. 

Keep_pedalling

DrEskimo said:

Keep_pedalling said:

DrEskimo said:

Does it have to be new?

used EV market is very good for buyers, and will save substantially over new, whether PCP or lease. 

For context leases for a Zoe back when I was looking at buying in 2019 were about £300-£350 over two years. Ended up keeping my used Zoe for well over 5yrs, and once I sold it, all in the cost to me worked out ant around £120/month. So substantially cheaper, and was fully under warranty the entire time.

I always like the flexibility. You say you like to keep your cars for ‘2-3yrs’, but remember with a lease you have to change on that exact day. You’re then forced to buy or lease whatever is available at that exact time. The option to just keep the car and know it’s paid for is worth a lot to me personally. 

Also you can get way more for your money. Picked up a used Tesla Models S performance in September, and it’s a lot of car when you consider that most new EVs cost the same or actually more. 

I know I could get near new car and save a lot, but I have not found one that meets my requirements. I won’t buy a Chinese built car ant am not prepared to touch anything that Musk has anything to do with. Plenty of EV 6s and Ioniq 5s that can be picked up at good prices but they are bigger than I need or want.

If I was proper MSE I would just keep the ID3 for a few more years ( it is still going well with little noticeable load of range), but I have to reduce my IHT liability somehow 😈 

What’s the GFV of the PCP? Is it overly pessimistic or what you think will be reflective of the price at the end of the term?

If you have the funds to clear the finance and sell it privately, it might end up making up that £3-3.5k shortfall?

I have been configuring a number of trims & battery sizes and the GFV is between 40 & 43% of the new otr price. That is based of 3 year PCP & 10,000 miles pa.

sheslookinhot

Nebulous2 said:

sheslookinhot said:

Just be aware, if a car is leased then you cannot “break” the lease and it is therefore required to run/ be paid for the full term.

Not necessarily. I ended a lease 2 months early in September, and the company were happy to allow that for half of the outstanding payments. So paid 1 months fee to send it back early. 

For clarity, 1 months fee for sending it back only 2 months early ?.

I’m sure that would not be the case for, e.g. 6 months early. 

Nebulous2

sheslookinhot said:

Nebulous2 said:

sheslookinhot said:

Just be aware, if a car is leased then you cannot “break” the lease and it is therefore required to run/ be paid for the full term.

Not necessarily. I ended a lease 2 months early in September, and the company were happy to allow that for half of the outstanding payments. So paid 1 months fee to send it back early. 

For clarity, 1 months fee for sending it back only 2 months early ?.

I’m sure that would not be the case for, e.g. 6 months early. 

Yes I paid one month and sent it back two months early.  The lease stated that was possible in the conditions, but I expected to have to pay both. 

It also saved me a service and MOT. They told me as long as everything was up to date on the day of collection I didn't need to pay anything else. 

born_again

Keep_pedalling said:

DrEskimo said:

If I was proper MSE I would just keep the ID3 for a few more years ( it is still going well with little noticeable load of range), but I have to reduce my IHT liability somehow 😈 

So in that case would not buying the car outright make more sense, even if you are paying more.🤷‍♀️

TBH, IHT liability is not a issue for you to worry about, as you will no longer be around 😜

Penelopa.Pitstop

Some companies have lower fees for ealry termination, 40% or 55%. if you already know who's the founder of the lease, you can search internet or just ask them. 

Lease will have road tax included in price. So if the car value is above 40K, you will save some cash on road tax.

Also, if you want to buy gap insurance, it will be lease/finance option. Your own insurance won't offer replacement car, because you won't be first registered keeper.

Arunmor

I would be taking the lease or even better waiting a year or so to change.  The government will have to introduce greater subsidies than EV drivers already receive to sell these cars.  Cheaper and better Chinese imports will be game changing.

Lucky_Duck_2

For sure some of the predictions of 70% retained value at three for some EVs are have been way off the mark but historically one was very fortunate if half of it left at that stage with some cars being nearer one third so I’m rather sceptical of the claim of 65%