PCP Car Deals/Car leasing

[BFCmaj]

Has anybody had any experience with any of these? We're looking to get a new car and would like people's opinions (good or bad). Thanks.

[Funkydrummer]

I was in the same boat 2 years ago, and after some research decided to take the plunge a bought
a Lexus is300h over a two year agreement. Have just traded it in for a Honda HR-V and the basic details are as follows :-

Cost of car £26,150
Deposit (max) £9,000
Monthly payments £202 x 36 = £7272
Final payment £12,000

Total cost if purchase outright in 3 years is therefore £28,272 (all figures rounded up or down for ease)
Therefore cost in excess of cash price is £2,122 over 3 years (£710pa)

To borrow £20,000 from the bank over 3 years is £586.76 per month.

I leave you to make your own mind up - happy research and good luck.

[Darthlaw]

Just be aware leasing and PCP are two different things.

PCP gives three options at the end of the agreement-
1. Hand the car back and walk away (excess mileage charge may apply). You are billed for any damage not deemed fair wear and tear.
2. Part exchange & use any equity over and above the balloon payment as deposit on your next vehicle.
3. Pay the Balloon payment and keep the car.

With leasing or Contract Hire the vehicle is returned to the leasing company and any excess mileage fee is payable. Also you are billed for any damage not deemed fair wear and tear. The leasing firm has no obligation to sell the vehicle to you and with some leasing companies they are often unwilling to sell to a private buyer.

[starting_11]

Had both leases and PCP.

It all depends on the deal, if its for private use I'd say go with PCP. Only go for a lease as a private owner if the deal suits you i.e more affordable, shorter term etc.

At the moment, dealer contributions on new cars seem to be very nice (think 5-10%) and some APR's out there are as low as 3.5%. You should be given a guaranteed residual value as well as being told what your balloon payment will be.

A good site for checking out the deals is carwow.co.uk . I doubt you'll ever quite get the savings that they say you can but it's a good site for getting a rough idea of what you're likely to be paying. It's a bit like a price comparison website where you get dealers putting in their lowest offer and competing against each other.

[Rick_Muller]

I've leased my Honda Civic for the past 3 years and 2 months and it's been great. I have paid approx £310/month including maintenance (servicing; tyres; brakes; well everything really except fuel and screenwash) and that was for 25k miles per year. The up front payment was £930 (3 months worth) Due to hand it back Jan next year, and I would lease again, but I am now considering a purchase option for a new Focus or Fiesta ST (some good deals out there at the moment).

[BFCmaj]

Thanks for the replies. The deal we are looking at is for a Seat Alhambra which is an upgrade on our existing one. We love the car and need all 7 seats! The deal from Seat that we've been offered is:

Deposit - £3448.80
Balance financed - £15047.20
48 monthly payments @ £203.99
Final pamyment - £8460

We have also looked into lease quotes and the best one that has come up so far is 36 months at £307.58 (first payment £922.75).

Both deals seem pretty reasonable.

[Man of Kent]

I've leased my Honda Civic for the past 3 years and 2 months and it's been great. I have paid approx £310/month including maintenance (servicing; tyres; brakes; well everything really except fuel and screenwash) and that was for 25k miles per year. The up front payment was £930 (3 months worth) Due to hand it back Jan next year, and I would lease again, but I am now considering a purchase option for a new Focus or Fiesta ST (some good deals out there at the moment).

This isn't a bad deal at all, especially considering the mileage and servicing thrown in. You would do well to recreate this deal on your next car RM.

[thatdberight]

Has anybody had any experience with any of these?

Yes. The car lease turned into a giant banana that then became a vampire. Time stood still then raced and I thought all my friends and the lease/banana/vampire were out to get me.