Good value PCP deals / best GFV performers?

[mikehhhhhhh]

I thought my reasoning was pretty clear to be honest, but I can clarify;

A £30k fast family car for £350/month is probably going to be better than a £24k car for £350/month

My definition of good value is probably somewhere close to the highest retail price against the lowest monthly payment, obviously with the complexity of how well it meets the criteria, but that's something that will require further consideration

 

[glenimp617]

PCP on a used car tends to work out more expensive. Not always, but usually it does.

I'm sure you know, but retail price is utterly meaningless. I'd start with coming up with a list of cars you actually want to drive, then doing a carwow to get the offers. You can go from there to work out what's the best value. Usually, used cars PCP are at least 6.9% APR if not a lot more. New cars can be 0%, although a lot of are around 3.9%-5.9%. Take into account manufacturer and dealer discounts and it might actually be cheaper to get a new one.

To be honest, although I have done a PCP on my last two cars, it will be the last time. My next one will either be a lease, or I'll just buy it. If you aren't bothered about keeping it, look at leasing. You might be surprised. There are some cracking lease deals around.

This might come in handy https://www.carwow.co.uk/pcp-calculator

 

[mikehhhhhhh]

PCP on a used car tends to work out more expensive. Not always, but usually it does.

I'm sure you know, but retail price is utterly meaningless. I'd start with coming up with a list of cars you actually want to drive, then doing a carwow to get the offers. You can go from there to work out what's the best value. Usually, used cars PCP are at least 6.9% APR if not a lot more. New cars can be 0%, although a lot of are around 3.9%-5.9%. Take into account manufacturer and dealer discounts and it might actually be cheaper to get a new one.

To be honest, although I have done a PCP on my last two cars, it will be the last time. My next one will either be a lease, or I'll just buy it. If you aren't bothered about keeping it, look at leasing. You might be surprised. There are some cracking lease deals around.

This might come in handy https://www.carwow.co.uk/pcp-calculator

Thanks for the tip. I've not really found any deals for new cars so far.

In fact, nothing has come close on the sorts of cars I'm looking at.

Leasing seems competitive, but I like the idea of being able to exit a PCP agreement.

 

[Pentland]

Thanks for the tip. I've not really found any deals for new cars so far.

In fact, nothing has come close on the sorts of cars I'm looking at.

Leasing seems competitive, but I like the idea of being able to exit a PCP agreement.

You can exit a lease easily enough.

 

[mikehhhhhhh]

You can exit a lease easily enough.

At any time without significant penalties?

This seems totally at odds with the research I’ve done. Can you tell me more?

 

[glenimp617]

At any time without significant penalties?

This seems totally at odds with the research I’ve done. Can you tell me more?

It's very easy to exit a lease. You just send them an email, and then a TON of money.

I guess that's the biggest difference. If you PCP and really hate the car after 1yr into a 4yr term you can sell it and pay off the finance. You'd take a hit, but nothing like a lease. My works car is a lease. There's a year left, it will cost me £6,000 in payments over the next year or I can pay £9,000 to end the lease now LOL

also, just for info, you can actually buy the car at the end of a lease. What happens is when you give the car back, the lease company sends it to auction. There's nothing to stop you asking them how much to buy the car. That side of things is just like a PCP, whereas with a PCP you pay the GFV and a lease you pay what the car is worth. It just depends how well (or not) the car depreciates during the term. Most of the time with a PCP the GFV is less than what the cars worth, so it's likely if you want the car it's cheaper with a PCP, unless the car tanks in price then you'd be better with a lease.

Worth knowing, as most people think you can't buy a car at the end of the lease when in actual fact you can.

 

[mikehhhhhhh]

Yeah that’s what I thought.

I’ve no interest in keeping a car at the end of the term. I rarely keep one for longer than 2 years as it is

 

[glenimp617]

Yeah that’s what I thought.

I’ve no interest in keeping a car at the end of the term. I rarely keep one for longer than 2 years as it is

I reckon you'd be well worth looking into leasing. I'll try and find the site I was using last week to look at them. They are a bit like gocompare but for leasing.

edit: it was leasing.com

 

[Journey]

I thought my reasoning was pretty clear to be honest, but I can clarify;

A £30k fast family car for £350/month is probably going to be better than a £24k car for £350/month

My definition of good value is probably somewhere close to the highest retail price against the lowest monthly payment, obviously with the complexity of how well it meets the criteria, but that's something that will require further consideration

Tesla Model 3 SR+ -fast family car, and being an EV will actually be in demand at the end of the period. If you bought one in 2018/19 new they are selling for almost new prices now, but weirdly the payments were high, however if you PCP'd it then you could settle the end balance and sell it and it would have cost you almost nothing other than interest.

 

[glenimp617]

Tesla Model 3 SR+ -fast family car, and being an EV will actually be in demand at the end of the period. If you bought one in 2018/19 new they are selling for almost new prices now, but weirdly the payments were high, however if you PCP'd it then you could settle the end balance and sell it and it would have cost you almost nothing other than interest.

I'd personally have one of those over something like a fast Audi or BMW. Just if the OP wants an EV, and can either live with the range or can afford to go up to the long range (which I would).

They are also half the cost of something like an M340i touring.

:edit: Actually a long range isn't much more money over the standard range when leasing.

 

[Pentland]

It's very easy to exit a lease. You just send them an email, and then a TON of money.

.

Nope.
Same as a PCP, pay half including the interest and walk away. Pretty much same as a pcp
Basically, if you can’t meet payments, they can’t put you in more debt.

https://www.whatcar.com/car-leasing/leasing-guide/how-can-i-get-out-of-a-car-leasing-agreement/

 

[jpaul]

Other running costs will be generally comparable for this class of car.

not sure maintenance costs can be cancelled out, too, as a potentially disproportionate part of ownership cost for cars with a higher residual %,
if that residual is sustained by that expense.

 

[mikehhhhhhh]

not sure maintenance costs can be cancelled out, too, as a potentially disproportionate part of ownership cost for cars with a higher residual %,
if that residual is sustained by that expense.

As I say, they'll all be about the same so it's irrelevant.

Nope.
Same as a PCP, pay half including the interest and walk away. Pretty much same as a pcp
Basically, if you can’t meet payments, they can’t put you in more debt.

https://www.whatcar.com/car-leasing/leasing-guide/how-can-i-get-out-of-a-car-leasing-agreement/

I don't think this website is talking about the same kind of leasing. The article you linked talks about HP and conditional sale.

 

[mikehhhhhhh]

Tesla Model 3 SR+ -fast family car, and being an EV will actually be in demand at the end of the period. If you bought one in 2018/19 new they are selling for almost new prices now, but weirdly the payments were high, however if you PCP'd it then you could settle the end balance and sell it and it would have cost you almost nothing other than interest.

I'd be well up for a Model 3 LR or Performance to be fair. I'll check them out.

 

[jpaul]

As I say, they'll all be about the same so it's irrelevant.

as I said disagree - read V a few days ago
New Study Ranks Auto Quality Based On Service Costs–Not Owner Gripes
various excerpts on different web sites, too
https://insideevs.com/news/524687/ev-service-costs-higher-ice/ , so diagnostic work beyond the 3years proper warranty an an ev, maybe less palettable, too;


eg. whats the yearly warranty on an m340i touring versus a 320i, say, all part of the ownwership cost, maintaining that gfv

 

[mikehhhhhhh]

as I said disagree - read V a few days ago
New Study Ranks Auto Quality Based On Service Costs–Not Owner Gripes
various excerpts on different web sites, too
https://insideevs.com/news/524687/ev-service-costs-higher-ice/ , so diagnostic work beyond the 3years proper warranty an an ev, maybe less palettable, too;


eg. whats the yearly warranty on an m340i touring versus a 320i, say, all part of the ownwership cost, maintaining that gfv

I've run these sorts of cars for many years, so I'll stick to my experience.

However, comparing a 340i to a 320i is pointless, because I wouldn't consider a 320i. Compare a 340i to an S4 and you'll find their running costs are similar.

EVs are a different kettle of fish completely I suppose and I'd need to check out servicing costs etc. I doubt I'd bother with a warranty on a modern ICE car but I certainly wouldn't own a Tesla out of warranty.

 

[chanjy]

Worth knowing, as most people think you can't buy a car at the end of the lease when in actual fact you can.

On a lease you may be offered the option to buy (but you may not). It can vary by funder quite a lot.

On a PCP you always have the guaranteed option to make it yours, for a known price

But back to the OP - you'd probably get a better monthly payment on a new car tbh

 

[bimbleuk]

I'd be well up for a Model 3 LR or Performance to be fair. I'll check them out.

Tesla Model Y would be my choice for the lowest depreciating car outside of some collectable exotic in the next 2 years. Unfortunately my SR+ PCP runs out in September so I'm buying the car and will sell/trade it when the Berlin Model Y becomes available. GFV was £22K back in 2018 (£303/m) and the lowest straight to auction (Tesla suck for trading in) offer I've had recently was £31K.

No servicing required as of yet though I will change the cabin filter via the mobile servicing at 2-3 years as recommended so there's something on record! I have changed the rear tyres as I was a bit over enthusiastic with the torque for the first few months but now drive in chill and follow normal traffic

I would not expect a standard range Model Y to be offered for while though as Tesla will maximise their profits in Europe making it a likely £50K+ car.

 

[mikehhhhhhh]

But back to the OP - you'd probably get a better monthly payment on a new car tbh

BMW quoted £600/m for a new 340i Touring.
A 2 year old one is a little over £420/m with the same terms.

Admittedly this is across models, but I don't think it is the case that new ones can be done cheaper than used ones, at least not in the current market.

 

[chanjy]

BMW quoted £600/m for a new 340i Touring.
A 2 year old one is a little over £420/m with the same terms.

Admittedly this is across models, but I don't think it is the case that new ones can be done cheaper than used ones, at least not in the current market.

So you're comparing a F31 used with a G21 new?