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This is a false benefit though, no bills is a new car benefit not a PCP benefit. Whereas a PCP on a used car could well give you big bills.
Lease vs buy?
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This is a false benefit though, no bills is a new car benefit not a PCP benefit. Whereas a PCP on a used car could well give you big bills.
Associate
I was talking about a lease/pcp on a new car sorry.
Which is the same benefit as paying cash, too. It's a benefit of a new car not a benefit of a particular way of funding.
Associate
We are talking about why 80% of people now lease/pcp.
Ok here's my example, I bought a B Class 3 yrs old for £12.5k. Brand new it was £25k I believe. So if id have leased it I think it would have been around £250-300pm and £2.5k initial fee.
So that's say £3-3.6k per year plus £2.5k. So that's £13.3k overall. When if you wait 3 years you can spend that on an asset that is worth something.
Perhaps its just me but I like to wait a few years and then pay what I would have for a brand new one. Mind it may have been facelifted by then. Which it actually has in my instance
So that's say £3-3.6k per year plus £2.5k. So that's £13.3k overall. When if you wait 3 years you can spend that on an asset that is worth something.
Perhaps its just me but I like to wait a few years and then pay what I would have for a brand new one. Mind it may have been facelifted by then. Which it actually has in my instance
Caporegime
I think the reason is because monthly payments are easier for people to get their head round. Same thing happens with mobile phones "it's only £50pm for the latest phone", but if you asked them to pay £800 in one go.. no thanks Jeff.
The old way of finance used to be HP though, which was also monthly payments.
PCP is so popular because you are never buying it, you're just renting it - hence the monthlies are lower even if the interest can be extortionate because you are only ever paying for depreciation.
Like how an interest only mortgage is cheaper than a repayment one.
Caporegime
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Yeah I got a good trade in deal for my 2008 330d touring (11.8K) and a great price when I bought a 2013 530D Touring (23K)
In two years of ownership though I've put 25K miles on it, I've had to spend money on the air suspension, bought 3 new tyres due to punctures and the car has probably dropped another 6-7K in value?
Whereas with the 330D I ended up losing less than £1000 after doing 50,000 miles.
There are always some exceptions though. I'm no car or money expert, but of course some cars will hold or even increase their value over the years. For the average car though, depreciation is inevitable. For me, selling my ageing mk2 VRS for £3800 and committing to a new mk3 VRS for £250 pm all in (insurance, tax, MOT, servicing, repairs all included) is a no brainer really.
I bought a used PS4. That was cheaper than new too! Amazing! Who would have thought used goods would be cheaper than new?!??!??
I never really understand why people who can't understand simple finance have to insinuate that those who do must be stupid? In principle, PCP is a method of finance where you pay off the depreciation of the car. The overall cost compared to buying outright depends on the balance of interest vs finance deposit contributions. Aside from that, the main advantage is that at the end of the agreement you have the money in the bank instead of tied up in a depreciating "asset".
What you're basically arguing here is that you don't understand why people buy new when they could buy used. That's a whole different discussion.
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I don't think he's arguing that he doesn't understand such people, more that he's explaining his own 'strategy'.
To the OP you mention the convenience of leasing but then the opening line is that your next lease has been delayed, so that isn't completely hassle free in my eyes (I accept that any new car may get delayed if built to order). Overall though it sounds to me like you should continue leasing if the hassle of selling is a big factor for you and you want new kit frequently. As is usually mentioned however to get best value from leasing it helps if you are not fussy about what car you get and just jump on the best deals that arise.
It's a bit of circular argument to be honest because in many cases choosing what car you want is influenced by an indicative/approximate price. I suspect some people have a shortlist of cars 'roughly in budget' based on their initial research and then pick the one they like the best from those (your 'narrowed down' choices). On the other hand, I'm quite heavily persuaded by what I perceive to be value (not just for cars but all large purchases like TVs, computers, houses, holidays etc) so the last two cars I have purchased haven't necessarily been the best cars available of that type but they were priced sufficiently below the better options to make me choose them. I suppose my approach is something like:
-Determine what we are looking for in a car
-Create shortlist meeting that criteria
-Identify best value options
To the OP you mention the convenience of leasing but then the opening line is that your next lease has been delayed, so that isn't completely hassle free in my eyes (I accept that any new car may get delayed if built to order). Overall though it sounds to me like you should continue leasing if the hassle of selling is a big factor for you and you want new kit frequently. As is usually mentioned however to get best value from leasing it helps if you are not fussy about what car you get and just jump on the best deals that arise.
It's a bit of circular argument to be honest because in many cases choosing what car you want is influenced by an indicative/approximate price. I suspect some people have a shortlist of cars 'roughly in budget' based on their initial research and then pick the one they like the best from those (your 'narrowed down' choices). On the other hand, I'm quite heavily persuaded by what I perceive to be value (not just for cars but all large purchases like TVs, computers, houses, holidays etc) so the last two cars I have purchased haven't necessarily been the best cars available of that type but they were priced sufficiently below the better options to make me choose them. I suppose my approach is something like:
-Determine what we are looking for in a car
-Create shortlist meeting that criteria
-Identify best value options
You are comparing apples with pears which is why the decision is difficult.
Do you want a new Mercedes E Class or do you want a used 3 Series?
Why are you considering either an E Class Coupe or a 3 Series Estate? Why no 4 Series? Why no E Class Estate?
Do you want a new Mercedes E Class or do you want a used 3 Series?
Why are you considering either an E Class Coupe or a 3 Series Estate? Why no 4 Series? Why no E Class Estate?
Thoughts on this 335D Touring - a great spec but 85k miles. What are these like at high miles?
https://www.imperialcarsupermarkets...-xdrive-m-sport-5dr-step-auto-business-media/
Or this 430D Coupe ? [yes i know... one lady owner
]
http://www.autotrader.co.uk/classified/advert/201709189422589
https://www.imperialcarsupermarkets...-xdrive-m-sport-5dr-step-auto-business-media/
Or this 430D Coupe ? [yes i know... one lady owner
]http://www.autotrader.co.uk/classified/advert/201709189422589
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Caporegime
I’d want an AUC for £20k. However I don’t think your budget would be enough. A 330d would be doable.
Another option would be under 60k miles and buying the BMW warranty.
Another option would be under 60k miles and buying the BMW warranty.
Soldato
I did the math for the car i drive (I'm in the USA) Leasing for the first three yrs and then buying the car which is basically the same cost to you as buying the car in the first place and also nulls out any extra mileage you'd normally have to pay for, anyway 32k for a new VW Golf Gti. (12,8k to do a one time payment 3yr lease) If i buy it at the end of its lease for 20k which is what it will cost, then it'll depreciate a further 8k over the next 3 yrs... So its only $1600 per yr savings over having a brand new lease. But then i'm no longer in the bumper to bumper warranty, and it'll almost certainly need new tires. So any repairs / tires etc, will have to come out that $4800 savings that i would have saved over 3yrs. My guess is cost i can't predict what will go wrong, but new tires are a certainty. Best guess you save around 2.5k driving a 3-6 yr old car vs a 1-3 yr old car.
Why would that be far nicer though - you might have found that when the lease expired and you replaced the lease car you had less money left in the bank than had you just bought it outright. In a world where the rate of inflation is more than 10x the rate of interest, there is even less reason to have cash sitting in the bank.
Soldato
Having leased previously, I'd now just buy in future.