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new car - Lease or PCP ?

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    new car - Lease or PCP ?

    I've always bought my cars with full payment down.

    I'm now thinking about buying a car on PCP or getting one on lease. Anyone here personally leased or bought on PCP? What's better?

    PCP has a higher deposit and then monthly payments around the same as a lease, which to me implies that a lease would be better. I would only want to keep the car for 3 or 4 years anyway before changing it.

    So for example, a PCP might need £8k deposit on a car valued at £40k and then £400/month payments over 3 years. A £20k final payment if you want to keep the car, else hand it back in.

    For the same car, a lease will need a £2k initial payment and then £420/month over 3 years. Then you hand the car back in.

    Assuming that the car will be returned after 3 years and assuming all other factors constant (mileage, depreciation, car options etc), then is it correct that leasing is the cheaper/better option?

    #2
    See what deals you can get - you can get better deals on leases if you're less fussy about what you want.

    I'll say nothing else beyond eek is to car leasing what Dave Whelan is to football injuries.
    The greatest trick the devil ever pulled was convincing the world that he didn't exist

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      #3
      Depends.

      HTH
      'CUK forum personality of 2011 - Winner - Yes really!!!!

      Comment


        #4
        Originally posted by LondonManc View Post
        I'll say nothing else beyond eek is to car leasing what Dave Whelan is to football injuries.
        Has Eek leased a new car? Didn't know that. What is it Eek? Tell us.
        'CUK forum personality of 2011 - Winner - Yes really!!!!

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          #5
          Originally posted by LondonManc View Post
          See what deals you can get - you can get better deals on leases if you're less fussy about what you want.

          I'll say nothing else beyond eek is to car leasing what Dave Whelan is to football injuries.
          The key is the top bit.. Look at the best lease deal thread on Car Buying - Page 1 - PistonHeads and be prepared to both wait (until a decent deal arrives) and leap immediately when one does...

          If going for a PCP deal whoever IPSE link to had some decent deals when I looked a couple of months back. Even more so if you can pay the cash price or close to it,...
          merely at clientco for the entertainment

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            #6
            Originally posted by eek View Post
            The key is the top bit.. Look at the best lease deal thread on Car Buying - Page 1 - PistonHeads and be prepared to both wait (until a decent deal arrives) and leap immediately when one does...

            If going for a PCP deal whoever IPSE link to had some decent deals when I looked a couple of months back. Even more so if you can pay the cash price or close to it,...
            IPSE do PCP finance? So why pay cash?

            I'll take a look

            Comment


              #7
              Originally posted by ChimpMaster View Post
              I've always bought my cars with full payment down.

              I'm now thinking about buying a car on PCP or getting one on lease. Anyone here personally leased or bought on PCP? What's better?

              PCP has a higher deposit and then monthly payments around the same as a lease, which to me implies that a lease would be better. I would only want to keep the car for 3 or 4 years anyway before changing it.

              So for example, a PCP might need £8k deposit on a car valued at £40k and then £400/month payments over 3 years. A £20k final payment if you want to keep the car, else hand it back in.

              For the same car, a lease will need a £2k initial payment and then £420/month over 3 years. Then you hand the car back in.

              Assuming that the car will be returned after 3 years and assuming all other factors constant (mileage, depreciation, car options etc), then is it correct that leasing is the cheaper/better option?
              For me...

              With a PCP, the car is 'yours' under a HP agreement with a balloon payment. With a lease, the car is never yours, and so has to be returned at the end. With a lease, you are bound to the contracted mileage and pay a penalty if you go over it. Whilst there is a contracted mileage with a PCP, it is only a 'thing' if you hand the car back rather than trading it in or keeping it.

              With a PCP, you are just paying the depreciation for the period you have it, so why bother putting a downpayment on it if you don't have to, unless you have the cash burning a hole in your bank account and the interest rate is ghastly.

              Check the £420 lease cost isn't £420 + VAT.
              Taking a break from contracting

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                #8
                Originally posted by ChimpMaster View Post
                IPSE do PCP finance? So why pay cash?

                I'll take a look
                The PCP is at something like 6.6%. Given my cash current earns me far less than that and given the discounts they are basing their prices off paying cash would be the better deal..
                merely at clientco for the entertainment

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                  #9
                  Depends on the deals available at the time, as car makers tend to discount cars to lease companies they are trying to push, or underwrite the value when its time to sell. If you find a good deal on a car you want then great. Shop around on the broker sites.

                  Also new price discounts tend to vary, same sorts of reasons. Makers trying to gain market share or push cars can put hidden discounts out in the markets. Sometimes very high discounts are offered to club members or employees (and relations) of some company or other etc.

                  Also if you have a car to get rid of the sheer convenience of part ex can swing the deal, although often this can be used to chip in to deposit whichever method of buying the next car is chosen.

                  And risks of getting stung for minor damages, or finding a role needing much higher mileage, or needing to swap to a different size car (wife gets pregnant etc) can all be important but often overlooked.

                  I like Lingscars dot com and if I wasn't buying cars with cash I would use them.
                  Last edited by CoolCat; 5 December 2016, 15:31.

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                    #10
                    My latest car is leased, because I really do not need to "own" it. It looks good, makes the right noise, and gets me there and back. I made sure I can easily afford it.

                    If I could, I'd lease a tank, which would make it easier to get to the client's site on time (today was a new record 3h15m when it should be 50m), alas they don't allow them on M25...
                    You're awesome! Get yourself a t-shirt.

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