new car - Lease or PCP ?

[kevpuk]

I went PCP.....kind of figured the 'option to buy' was worthwhile, costs were remarkably similar to lease.
With a lease, if you want out early, then you may well have to stump up the vast majority of the outstanding agreed payments; with a PCP, you can get a settlement value and bail far more cheaply, in theory.

[mikejhughes]

Got a pretty decent PCP deal using Carwow recently with VW in York - worth a look anyway

[d000hg]

PCP is bad tulip. Definitely if you're planning on driving.

[kaiser78]

Leasing defo for me (I have just taken one out) as opposed to PCP, unless you intend to buy the car outright at the end of the term.

[squarepeg]

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...

[CoolCat]

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.

[eek]

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..

[chopper]

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.

[ChimpMaster]

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

[eek]

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,...

[northernladuk]

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.

[northernladuk]

Depends.

HTH

[LondonManc]

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.

[ChimpMaster]

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?