[TW]Fox;28284252 said:I understand how you can not be a fan of PCP but how can you dislike pcp but like leasing? They are very similar only a lease tends to cost more and offer less flexibility with options choices.
Why would you want to give a finance company an extra £2000 of your money and therefore pay more interest to get extra equity in a few years when you could just save the same money and not pay interest?
What?
All the leases I have been interested in have actually been far cheaper.
For example to get a 208Gti on PCP:
£2000 Deposit - £304Pm 25 months. + £9600 over 25 months
Same 208Gti on a lease:
1-17 term £201Pm = £3618 over 18 months. If you wanted to then lease a new one again at the same costs its £5025 for 25 months.
Both based on a 10K PA limit.
I know which i would pick
What?
All the leases I have been interested in have actually been far cheaper.
For example to get a 208Gti on PCP:
£2000 Deposit - £304Pm 25 months. + £9600 over 25 months
Same 208Gti on a lease:
1-17 term £201Pm = £3618 over 18 months. If you wanted to then lease a new one again at the same costs its £5025 for 25 months.
Both based on a 10K PA limit.
I know which i would pick
[TW]Fox;28284252 said:I understand how you can not be a fan of PCP but how can you dislike pcp but like leasing? They are very similar only a lease tends to cost more and offer less flexibility with options choices.
You are not factoring in that on pcp the car will be worth more than the final balloon payment (ie that your will most likely have some equity in the car if you choose to sell it/trade it in)
Also, where did you get that quote from for a 208GTI on pcp? If it is from the Peugeot website then that is a hugely unfair comparison. You need to get quotes from the cheapest broker to compare.
So what if its worth more than the balloon payment? If you send it back and get a new car your still in the same situation.
That was from The main dealer yea.
But from what i have seen the PCP is still more expensive no matter what
You'd have to be insane to hand it back and start a new PCP - the whole point is that the equity pays the next deposit, which doesnt happen with a lease.
It's not more expensive no matter what - if you take a good lease special offer and compare it to a poor PCP deal of course it will be cheaper. There are times when PCP will be cheaper and times when leasing is cheaper.
Exactly. you never just hand the car back at the end of a pcp unless you are mad or have gone bankrupt.
and comparing a 3rd party lease deal to a manufacturers set pcp deals/prices is silly.
Ok then.
Go find me a PCP deal that has NO deposit and is cheaper per month than the lease price.
On a 208Gti. 10kPA £201.74Pm
You wont.
Link to the lease deal?
You wont find a cheaper monthly payment, but you might well find cheaper total cost of ownership.
However, finding a PCP deal involves going through brokers and applying via finance companies, nobody is going to do that to prove a point on the internet.
https://www.vehiclesavers.com/car-leasing/peugeot/208-hatchback/1.6-thp-gti-prestige-3dr.html
Im going to apply for it come september![]()
FYI there's no option for "no deposit" on there - there's at least a £200 deposit but that only applies if you do an 18 month deal.
You wont find anyone doing a PCP over 18 months, 3 years is normal so to do a fair comparison you need to look at a 3 year lease too. So the figures actually look like
£235.94 per month x 36 months = £8493.84
3 advance rentals = £707.82
Total = £9201.66
You're also likely to get a bill once it's returned for any damage - alloy scuffs etc.
PCP is a bit harder, but doing some sensible guessing
Purchase price of 17k (broadspeed lists 15.7k but going for dealer finance will push this up)
What car says year 3 value is about £8.6k so we'll put GFV at 7. At 5% APR with an £800 deposit, this works out at £304.90 per month.
304.90 x 36 = £10,976.40 + 800 = £11,776
So the total cost of PCP over that period is ~£2500 higher but you've got about that much in equity. You can also move it on at month 36, month 6, month 35..... Or you can actually keep it if you want to.
Doing a decent rate PCP on a 6 month old one would be a good balance of low monthly payments, flexibility and lower TCO
I only want it for 18 months and its 1+17 so £3618. Dunno where you got ur numbers from
Doing a decent rate PCP on a 6 month old one would be a good balance of low monthly payments, flexibility and lower TCO
Not in my experience. 6 month old vehicles don't come with the big new car discounts, so are rarely much cheaper, plus you don't get the special low rates on the PCP deals, so they actually often work out more expensive.
Exceptions are usually on cars that don't have big new car discounts. Such as Jags and Range Rovers and such. But for a 208 GTI with upto £4k discount on a new car, you will struggle to find a 6 month old example that works out cheaper on PCP. If you want a 6 month old one, the best way to finance it would be either via a 0% credit card (if you can get the limit, and the dealer will take the payment that way), or with a bank loan.
FYI there's no option for "no deposit" on there - there's at least a £200 deposit but that only applies if you do an 18 month deal.
You wont find anyone doing a PCP over 18 months, 3 years is normal so to do a fair comparison you need to look at a 3 year lease too. So the figures actually look like
£235.94 per month x 36 months = £8493.84
3 advance rentals = £707.82
Total = £9201.66
You're also likely to get a bill once it's returned for any damage - alloy scuffs etc.
PCP is a bit harder, but doing some sensible guessing
Purchase price of 17k (broadspeed lists 15.7k but going for dealer finance will push this up)
What car says year 3 value is about £8.6k so we'll put GFV at 7. At 5% APR with an £800 deposit, this works out at £304.90 per month.
304.90 x 36 = £10,976.40 + 800 = £11,776
So the total cost of PCP over that period is ~£2500 higher but you've got about that much in equity. You can also move it on at month 36, month 6, month 35..... Or you can actually keep it if you want to.
Doing a decent rate PCP on a 6 month old one would be a good balance of low monthly payments, flexibility and lower TCO
I only want it for 18 months and its 1+17 so £3618. Dunno where you got ur numbers from
Broker 4 Cars shows this:
£15,946.40
Deposit £2,000.00
Balance to Finance £13,946.40
Monthly Payment £197.77
Final Payment (GFV) £7,403.00
Total Amount Payable £ £18,895.96
Representitive APR % 6.9%
Excess Mileage Charge No Charges
So actually looks cheaper for it to be bought on PCP. Plus i can have it longer
(if i sell my car and pay a deposit)