marzman Posted June 20, 2012 Share Posted June 20, 2012 So... every car i've ever bought has been either bought outright or i've got a personal loan to cover the cost (my zed, for example). I've never considered PCP before, but a colleague at work has a brand new VRS Octavia and it costs him less than £250 a month... and my zed's costing me more than that and is 10 years old I'm in the market for either a Mercedes C-Class or a Range Rover Sport to keep alongside my zed at the moment, and via http://www.contracthireandleasing.com you can get into a Merc for around the £250 a month mark on a 24 month contract... thats awesome! Just as another example i just looked at the Ford Focus and you can get them for under £170 a month http://www.contracthireandleasing.com/c ... s/6020462/ ...am i missing something here or is it really that easy?? Quote Link to comment Share on other sites More sharing options...
DoogyRev Posted June 20, 2012 Share Posted June 20, 2012 Yea, its that easy My Mk3 MX5 was a lease car, you just pay every month and drive it about .... well provided you don't go over your milage, don't give it back with damage and don't want to buy your self out of the lease, otherwise it can be costly. I would do it again for a daily driver Make sure you negotiate on the milage, they normally can add a few thousand on for nothing Quote Link to comment Share on other sites More sharing options...
Paddy78 Posted June 20, 2012 Share Posted June 20, 2012 It all depends on what happens at the end of the 48 month period? That's usually the catch, but I guess if you just have to give the car back, then no problem, except you have no capital. The alternative is to buy the car off them at a set fee, which will probably be more than it's worth. As long as you're happy with the T&C's then go for it! Quote Link to comment Share on other sites More sharing options...
marzman Posted June 20, 2012 Author Share Posted June 20, 2012 Yea, its that easy My Mk3 MX5 was a lease car, you just pay every month and drive it about .... well provided you don't go over your milage, don't give it back with damage and don't want to buy your self out of the lease, otherwise it can be costly. I would do it again for a daily driver Make sure you negotiate on the milage, they normally can add a few thousand on for nothing Wow... Quote Link to comment Share on other sites More sharing options...
Ekona Posted June 20, 2012 Share Posted June 20, 2012 If you fancy a change frequently then it's a good way to get into a new car. Quote Link to comment Share on other sites More sharing options...
marzman Posted June 20, 2012 Author Share Posted June 20, 2012 If you fancy a change frequently then it's a good way to get into a new car. My zed is the longest i've ever kept a car (last one was almost 3 years) but other than that, i change them frequently. In principle i think i'd always be handing the car back after a 2-3 year period and possibly knocking any outstanding value off the next car... Quote Link to comment Share on other sites More sharing options...
Zugara Posted June 20, 2012 Share Posted June 20, 2012 We just done PCP on a Nissan Juke Tenka, all bells and whistles..... Costing us £175 for 3 years motoring, either balloon payment at the end of 8K, hand it back and walk away, chop it in for a newer model, pay the outstanding amount or refinance the outstanding amount. Monthlys include 3 years service costs, managed to get rear parking sensors fitted, mats and mud guards. Only done it cos of huge repair bills on Lisas VW beetle..... Quote Link to comment Share on other sites More sharing options...
DoogyRev Posted June 20, 2012 Share Posted June 20, 2012 It all depends on what happens at the end of the 48 month period? That's usually the catch, but I guess if you just have to give the car back, then no problem, except you have no capital. The alternative is to buy the car off them at a set fee, which will probably be more than it's worth. As long as you're happy with the T&C's then go for it! A lot of people said to me about the capital, and residual value...etc. I worked out that the MX5 new was 21K, over three years I paid a total of £10600 in lease fees, at that time a second hand MX was going for about 11K, so did I loose out if I had purchased it new.... not really. What I paid in rent I would have lost in depreciation anyway. I could have purchased it for £11800 IIRC, but decided it get a Zed instead. Its a good idea to choose your lease car wisely if your looking to purchase it after, if you just want to drive it about for a year or two then get another get whatever is in your budget. Quote Link to comment Share on other sites More sharing options...
Paddy78 Posted June 20, 2012 Share Posted June 20, 2012 Totally agree Doogy as far as depreciation is concerned, you probably don't lose any money. Quote Link to comment Share on other sites More sharing options...
JetSet Posted June 20, 2012 Share Posted June 20, 2012 Totally agree Doogy as far as depreciation is concerned, you probably don't lose any money. Do you not need to make an initial payment these days then?? Pete Quote Link to comment Share on other sites More sharing options...
Zugara Posted June 20, 2012 Share Posted June 20, 2012 Yes. that will have an impact on your monthlys... Quote Link to comment Share on other sites More sharing options...
leonk Posted June 20, 2012 Share Posted June 20, 2012 Totally agree Doogy as far as depreciation is concerned, you probably don't lose any money. Do you not need to make an initial payment these days then?? Pete That's the part to watch out for. The tempting low monthly payments come hand in hand with a large initial deposit or payment. So bear this in mind as part of the true cost. Most of the time you will have little or no equity left in your car. Remember the true monthly cost would be for instance 36 payments of £250 plus your initial deposit of say £2,500 so real cost is £319 per month. So so long as you look at it that you are just "renting" it for 3 years and give it back you're fine. Quote Link to comment Share on other sites More sharing options...
Vik54 Posted June 20, 2012 Share Posted June 20, 2012 As far as I can see you only get a good deal for contracts with less than 10k mileage a year - and the penalties for going over are huge Quote Link to comment Share on other sites More sharing options...
Zugara Posted June 20, 2012 Share Posted June 20, 2012 As far as I can see you only get a good deal for contracts with less than 10k mileage a year - and the penalties for going over are huge I was quoted £0.06 pence per mile over the agreed allowance. Quote Link to comment Share on other sites More sharing options...
marzman Posted June 20, 2012 Author Share Posted June 20, 2012 As far as I can see you only get a good deal for contracts with less than 10k mileage a year - and the penalties for going over are huge I was quoted £0.06 pence per mile over the agreed allowance. Yep this is what i've heard too... 6p a mile is nothing really so if you go 5k miles over your allowance they'll charge you £300. Bothered... Good point about the deposites though... some deals you can get with 1 or 2 months payment as a deposit, but the Mercs im looking at require a £2k deposit and i hadnt factored that into the monthly equivalent.. Quote Link to comment Share on other sites More sharing options...
stuarty Posted June 20, 2012 Share Posted June 20, 2012 I bought a brand new bmw 320i m sport plus a few months ago for £339 deposit and £339 pm. After the agreed term i can hand it back, or trade it in for something else. Probably be around £2k equity. Quote Link to comment Share on other sites More sharing options...
leonk Posted June 20, 2012 Share Posted June 20, 2012 Presumably that's on a 4 year agreement? Quote Link to comment Share on other sites More sharing options...
marzman Posted June 20, 2012 Author Share Posted June 20, 2012 Presumably that's on a 4 year agreement? Plenty on 24 months at that sort of price. Get on www.contracthireandleasing.co.uk and have a look Quote Link to comment Share on other sites More sharing options...
vern Posted June 21, 2012 Share Posted June 21, 2012 We are actually 6 months into our 4th lease in a row. We've had a Clio 182, Maxda RX8, Astra VXR and now a Megane 250 cup. There are no catches and the tax is also included. I did the depreciation sums on the RX8 and VXR and is was way cheaper over the 3 years to lease, although if you bought one of these cars when it was say 12 months old and then kept it for 3 years, it would obviously be a lot closer and possibly cheaper to buy instead of lease. The figures quoted are usually based on 3 + 35. That's three months up front and then 35 payments. There is often an admin fee of say £125.00 The mileage is normally 10k and obviously this will go up if you increase the allowable mileage figure, although it's cheaper to do this on the contract rather than have this added on at the end at the excess mileage rate. My advice would be to be flexible on the car you want as some manufacturers offer massive discounts to the lease companies and others don't and so the price fluctuations don't always reflect the list price of the vehicles. Also don't go overboard on the options list. These will just be added to the contract value by almost the exact value of the items selected. Look at the deals out there and then try at least three or four different companies. The actual quoted price per month on our Megane varied by around £75.00 per month!! One final (obvious) comment is that the car needs to be handed back in good condition. I've looked after our cars the same as I do my Zed and yet all the inspectors went over them in a lot of detail. We didn't have any issues, but on the last car (VXR) the inspector mentioned that he had noted on his report about all the stone chips on the front of the car (3 years old with 60k miles!!) We have used the same company for the last three leases, so I can recommend Nick Walwyn N.Walwyn@vehiclecontracts.co.uk Quote Link to comment Share on other sites More sharing options...
marzman Posted June 21, 2012 Author Share Posted June 21, 2012 We are actually 6 months into our 4th lease in a row. We've had a Clio 182, Maxda RX8, Astra VXR and now a Megane 250 cup. There are no catches and the tax is also included. I did the depreciation sums on the RX8 and VXR and is was way cheaper over the 3 years to lease, although if you bought one of these cars when it was say 12 months old and then kept it for 3 years, it would obviously be a lot closer and possibly cheaper to buy instead of lease. The figures quoted are usually based on 3 + 35. That's three months up front and then 35 payments. There is often an admin fee of say £125.00 The mileage is normally 10k and obviously this will go up if you increase the allowable mileage figure, although it's cheaper to do this on the contract rather than have this added on at the end at the excess mileage rate. My advice would be to be flexible on the car you want as some manufacturers offer massive discounts to the lease companies and others don't and so the price fluctuations don't always reflect the list price of the vehicles. Also don't go overboard on the options list. These will just be added to the contract value by almost the exact value of the items selected. Look at the deals out there and then try at least three or four different companies. The actual quoted price per month on our Megane varied by around £75.00 per month!! One final (obvious) comment is that the car needs to be handed back in good condition. I've looked after our cars the same as I do my Zed and yet all the inspectors went over them in a lot of detail. We didn't have any issues, but on the last car (VXR) the inspector mentioned that he had noted on his report about all the stone chips on the front of the car (3 years old with 60k miles!!) We have used the same company for the last three leases, so I can recommend Nick Walwyn N.Walwyn@vehiclecontracts.co.uk Good post, thanks Vern. Quote Link to comment Share on other sites More sharing options...
leonk Posted June 21, 2012 Share Posted June 21, 2012 Interesting stuff for round the £300 per month. Problem was after 15 mins I was looking at cars that the zed would just cover the deposit ( 8k ) and £2,500 per month payments. Quote Link to comment Share on other sites More sharing options...
stuarty Posted June 21, 2012 Share Posted June 21, 2012 Presumably that's on a 4 year agreement? Yeah mate 48 months, but i would be able to change with no negative equity after about 36 months as i got a massive discount on list price! Quote Link to comment Share on other sites More sharing options...
stuarty Posted June 21, 2012 Share Posted June 21, 2012 Presumably that's on a 4 year agreement? Plenty on 24 months at that sort of price. Get on http://www.contracthireandleasing.co.uk and have a look Cant see any for anywhere near that price mate. Quote Link to comment Share on other sites More sharing options...
marzman Posted June 21, 2012 Author Share Posted June 21, 2012 Presumably that's on a 4 year agreement? Plenty on 24 months at that sort of price. Get on http://www.contracthireandleasing.co.uk and have a look Cant see any for anywhere near that price mate. Sorry - i was talking about the C-Class Mercedes at that price. BMW's seem to be a lot more expensive, as i guess they're more popular as company cars? You can even get the new C-Class Coupe for £300 Quote Link to comment Share on other sites More sharing options...
Sarnie Posted June 21, 2012 Share Posted June 21, 2012 I posted a thread about these sorts of schemes a few years ago when I was looking at getting some sort of Audi/BMW estate for the family. But, if I'm honest, I just don't 'get' it. I work in Finance so I understand how the contracts work, I'm just yet to see one that I can actually see a benefit to?? From what I can see, they all consist of you driving around in a car you couldn't normally afford to purchase, so you rent it for three years and then give it back........meaning that when you give it back you have nothing to show for it apart from spending over £10k in rent Quote Link to comment Share on other sites More sharing options...
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