| Motoring Discussion > Buying a car on a PCP deal | Buying / Selling |
| Thread Author: Westpig | Replies: 14 |
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New Mon 9 May 16 17:46
Buying a car on a PCP deal - Westpig
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I'm sort of thinking of going down the personal lease route for a car... because, if my maths is correct, I think I've shelled out about £231 a month for the 11 years we've owned our main car.. and now it's worth not a lot... why don't I use that money and tiddly bit more for something that's never older than 3 years... and accept I'll never own it. Anyone got any obvious pitfalls that I might have missed? My thoughts/ concerns are: - how closely do they go over the car when you hand it back? I'm talking minor scratches and very small dentmaster type dents i.e. normal wear and tear.... not a big dent or deep scratch, which i'd get repaired. - can you put a private plate on? - once you've paid an initial deposit, if you stick with that marque have they ever asked for another deposit for the next one (I understand the idea is you pay the first time, then after that you don't)? I like the idea in principle, but it's a leap in the dark. What Car magazine (online) have quotes that seem reasonable from various different main dealers.. but the cynic in me thinks these'll be headline grabber only prices and once you start really inquiring the price goes right up... anyone been on that route? The other way of doing it is via say Drive the Deal, get the discounted price, be referred to the dealer, then see what the monthly price is. I look forward to hearing from someone who's done it. P.S.... Audi A6 Avant SE 2.0 TDi, manual, with a couple of extras... is looking good at the moment*... but no decision will me made before Oct/Nov and I'd order it for March next year. * DtD will discount it down from £36k to £27K, which includes a manufacturers contribution to your deposit Last edited by: smokie on Mon 9 May 16 at 23:10
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New Mon 9 May 16 18:12
'Buying a car on a PCP deal - WillDeBeest
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11 years is too long a time to ignore inflation. I'll assume you paid £25,000 for the car in 2005 and had a £2,500 repair bill in 2011 and another in 2013 to make up your £30,000 approximate total. Adjusted for RPI inflation to 2016 pounds, your old car has cost you more like £40,000, or £300 a month. Of course, that may mean you appear to get even more for your money in the lease market. Just remember that you can't weather a lean spell by making the old car last another year; the lease company will always want it back. People here have done it and gone back to do it again, most recently perhaps Fenlander and his Cactus. Leasing of all kinds of assets - notably computers - has been common in the business world for decades, so it's no surprise that it's gaining ground in the private market too, even for people with no accountant to please. Last edited by: smokie on Mon 9 May 16 at 23:11
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New Mon 9 May 16 18:28
'Buying a car on a PCP deal - Falkirk Bairn
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>>* DtD will discount it down from £36k to £27K, which includes a manufacturers contribution to your deposit That is TODAY - there is no guarantee that the price in Oct/Nov will be the same. 25% off a new car is due to the manufacturer cutting the dealer price considerably to SHIFT cars - to meet targets, get rid of unpopular models/colours/clear the decks for an upgraded model etc etc. In October the "Audi car world" might be in a different mindset and discounts could disappear just as you are ready to make a decision! Last edited by: smokie on Mon 9 May 16 at 23:11
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New Mon 9 May 16 21:33
Buying a car on a PCP deal - Bill Payer
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>> Anyone got any obvious pitfalls that I might have missed? Probably the main issue is you have to assume it's not flexible. If your circumstances change ie you need a different car or your mileage change sdramatically it's pretty well hard luck and you have to see the lease out. >> - how closely do they go over the car when you hand it back? I'm >> talking minor scratches and very small dentmaster type dents i.e. normal wear and tear.... not >> a big dent or deep scratch, which i'd get repaired. >> Varies but some marques are legendary for picking up everything. Be careful with getting reapirs done as if it's not to standard you'll get charged anyway. >> - can you put a private plate on? >> Generally yes. >> - once you've paid an initial deposit, if you stick with that marque have they >> ever asked for another deposit for the next one (I understand the idea is you >> pay the first time, then after that you don't)? >> That sounds more like PCP. With lease, you typically pay on a profile that will be something like 6+35 payments, with the 6 being paid either in advance, on delivery or sometimes after a month - it varies by supplier. The next deal might be the same, it might not, but there will always be some initial payment, although it could only be 1 month. Last edited by: smokie on Mon 9 May 16 at 23:11
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New Mon 9 May 16 21:58
Buying a car on a PCP deal - mikeyb
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What I think you are referring to is a PCP type finance deal rather than a true lease. With a lease the deposit is a miss leading term - its your first months payment and you will never see it again. I've leased 3 times, and looking at some of the current deals wish I was able to jump back in again. In terms of return charges my Audi A3 went back in very good condition- no charges. My Citroen C5 went back with a couple of scuffed alloys and a couple of supermarket dings. Guy who collected the car spent 20 mins going over it and pointing out anything he noted. He was a bit OTT, but explained he was an agent for the finance house and they would come back to him if anything was found after return. After he finished he gave me a print out showing the damage and identifying the smart repair costs to rectify which were about £160, but suggested they may waive the charge, but that it wasn't his call. About 10 days later I had a letter saying that as the damage was minor and the cost small it was waived. They also offered to sell me the car for what was basically its trade in value (which I wish I had done) Last one was my V60 - Scuffed a couple of the alloys (Mrs B again....) and a small dent in the bonnet from some motorway debris. Expected to get charged for it, but never heard a thing after they collected it Last edited by: smokie on Mon 9 May 16 at 23:12
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New Mon 9 May 16 22:55
Buying a car on a PCP deal - Westpig
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>> What I think you are referring to is a PCP type finance deal rather than >> a true lease. Yes, I am.... just shows my ignorance in this field, I didn't know the difference... hence me making enquiries about it first. Last edited by: smokie on Mon 9 May 16 at 23:12
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New Mon 9 May 16 22:06
Buying a car on a PCP deal - MD
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I bought my van new in 2002. I thought about changing it some 6 years ish later. A Gentleman I know who successfully sources very decent motors and sells them for very decent (for him) prices said to me to stick it out. Further advice said it'll never be cheaper than owning it and being in charge. Forget lease and all of that old blks he suggested. Good of him I thought. Hasn't been too far wrong.
Last edited by: smokie on Mon 9 May 16 at 23:13
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New Mon 9 May 16 22:46
Buying a car on a PCP deal - legacylad
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Me too. When ' in trade' I bought all my vans as ex demos and ran two at a time. My last Transporter I kept almost ten years. Only let me down once. Used & abused daily, and sold within hours when the time came to let go. Same with my cars. Bought the 330 for £9750 at 6yo in 2010. Just sold to my nephew for £5k. Cost me a full set of tyres in that time, annual service & MOT around £100pa plus one major service with new rear discs & pads in 2014 @ £470, then a new alternator and service last Nov cost £230. Not cheap to tax @ £295, Only averaged a true 31mpg but annual miles are sub 8k and £147 fully comp insurance this year. In my circumstances leasing doesn't make any sense. Last edited by: smokie on Mon 9 May 16 at 23:13
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New Mon 9 May 16 22:56
Buying a car on a PCP deal - spamcan61
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I don't think leasing / PCP will ever make financial sense versus well planned semi/ full on bangernomics, but for the types that buy new and chop them in very year or two it can make a lot of sense versus buying. Heck even I'm tempted at times, and I'm a hardcore bangernomics guy.
Last edited by: smokie on Mon 9 May 16 at 23:13
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New Mon 9 May 16 22:59
Buying a car on a PCP deal - legacylad
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Some back of an envelope calculations:- including depreciation, all servicing and maintenance ( consumables inc tyres, mot, annual service) but excluding insurance, tax & fuel, the 330 has cost me around £85 pcm to date. And currently that figure is dropping as annual depreciation reduces Not quite bangernomics but would be in a few years! Last edited by: smokie on Mon 9 May 16 at 23:13
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New Mon 9 May 16 23:13
Buying a car on a PCP deal - Bill Payer
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>> the 330 has cost me around £85 pcm to date. That's pretty remarkable. I stupidly just missed an ideal lease deal (it was a pricing error and incredibly the supplier honoured it) and I reckon if my 12yrs old Merc survives another 2yrs it'll still lost a grand a year just in depreciation. And it would be nothing short of staggering if I didn't get a hefty bill (or several) in that time too. Last edited by: smokie on Mon 9 May 16 at 23:13
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New Mon 9 May 16 23:30
Buying a car on a PCP deal - legacylad
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My depreciation over 6y3 month has been around £64 pcm (£760 pa). Virtually fault free in that time apart from the alternator failing last Nov. my worry now is buying a 3yo car with half the character and double the depreciation...although my mechanic friend recently offered me as a stop gap a customers car which he has serviced for the past 7 years. 10 months MoT. 1.6 petrol. FSH. 52 plate. £400. Citroen Picasso! I just couldn't.... |
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New Mon 9 May 16 23:42
Buying a car on a PCP deal - Bromptonaut
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>> Citroen Picasso! I just couldn't.... Nice high driving position and commanding view of road through acres of glass. Only driven diesel variants but the X plate my garagiste had as courtesy vehicle confounded the usual tropes about French cars. All the electric toys still worked and apart from a knock on lock suggesting CV joint wear it performed just fine. Even if the 1.6 petrol is as gutless as my carburreteted 1.6 BX (and I'll bet it' not) for £400 as stop gap what's not to like. |
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New Tue 10 May 16 06:41
Buying a car on a PCP deal - WillDeBeest
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If we're talking about cost of ownership here, not cost of running, we should exclude routine items - fuel, insurance, servicing, tyres - because they're much the same for an old car as for a new one. We should be looking at depreciation, non-routine repairs, and interest - because cost of money will be part of the lease or PCP calculation. Since we're playing, I reckon the S60 cost me about £13,000 over 125 months (not counting its 26 months as my company car) or about £104 a month - more like £140 a month at 2016 prices. Cars that retain some intrinsic value or usefulness - because they're convertibles like LL's, sports cars, estates or whatever - help by settling above the near-zero value of an old saloon or hatch. (My Volvo went for £800 in the end.) That suggests that a convertible might be a counter-intuitively good bangernomics choice. |
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New Wed 11 May 16 12:18
Buying a car on a PCP deal - spamcan61
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Quick scores on the doors for my low rent, boy racer Astra then (as per WdB's cost of ownership definition); 1200 quid over 44 months = 30 quid a month. If I include the stuff that broke but I didn't get fixed (aircon and thermostat) then maybe 1600 quid = 36 quid a month. Probably my best ever bangernomics buy. |
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