What would you PCP/Lease for £350 a month?
Discussion
Gents
I'm toying with the idea of PCP'ing or leasing my next car. I've been looking around casually for the last few weeks, and the one deal that stands out to me is on the Nissan 370z.
£7900 deposit
£300/month for 2 years
£15,100 total over 2 years including the deposit
The GFV in two years is £16,500 on a list-price of ~£32k, so I suppose there's potential to sell the car privately after two years and make a little profit before paying the £16,500 back. I'm not 100% happy with paying £7500 a year to 'rent' a car but I understand the attraction of driving a brand new 'nice' car etc.
I don't really want to turn this into a discussion on the merits and negatives of PCP/leasing, I think that's been done to death already on PH. I'm more interested on any good deals out there that you may know about. Keeping a car for 2/3 years is a massive thing for me, as the longest I've owned one car previously is 12 months! So, it would have to be something interesting (powerful, RWD if possible, maybe practical too as we might start a family soon (but then we could always replace Mrs Arese's car)).
I've also toyed with the idea of a £10k bank loan @ 7.8% (£300/month repayments), and using £5k cash to get a £15k car (E46 M3, VXR8). The downsides of this are that you are then buying a car with no warranty and run the risk of surprise big bills, but at least at the end of the 2/3 year term you have an asset. An asset that has depreciated pretty heavily, though...
Thoughts?
Not interested in saving up £300 a month and buying outright. I want a nice car soon!
I'm toying with the idea of PCP'ing or leasing my next car. I've been looking around casually for the last few weeks, and the one deal that stands out to me is on the Nissan 370z.
£7900 deposit
£300/month for 2 years
£15,100 total over 2 years including the deposit
The GFV in two years is £16,500 on a list-price of ~£32k, so I suppose there's potential to sell the car privately after two years and make a little profit before paying the £16,500 back. I'm not 100% happy with paying £7500 a year to 'rent' a car but I understand the attraction of driving a brand new 'nice' car etc.
I don't really want to turn this into a discussion on the merits and negatives of PCP/leasing, I think that's been done to death already on PH. I'm more interested on any good deals out there that you may know about. Keeping a car for 2/3 years is a massive thing for me, as the longest I've owned one car previously is 12 months! So, it would have to be something interesting (powerful, RWD if possible, maybe practical too as we might start a family soon (but then we could always replace Mrs Arese's car)).
I've also toyed with the idea of a £10k bank loan @ 7.8% (£300/month repayments), and using £5k cash to get a £15k car (E46 M3, VXR8). The downsides of this are that you are then buying a car with no warranty and run the risk of surprise big bills, but at least at the end of the 2/3 year term you have an asset. An asset that has depreciated pretty heavily, though...
Thoughts?
Not interested in saving up £300 a month and buying outright. I want a nice car soon!
625 a month for a 370z?
id be look at a c63 instead.
http://www.dsgauto.com/car_leasing-business-contra...
id be look at a c63 instead.
http://www.dsgauto.com/car_leasing-business-contra...
Edited by homerjay on Friday 3rd September 11:26
Arese said:
I'm not 100% happy with paying £7500 a year to 'rent' a car but I understand the attraction of driving a brand new 'nice' car etc.
Don't then. It's only a "new" car for the first three months then it's just another used car on the road. You'll stop getting the new car feeling after a few months but you're still paying for it.If you've got £8k that's enough to get a reasonable used car and then you're instantly £14k better off !
I don't understand why you'd only have 5k cash in example number 2 when in the first one you're putting down £7.9k?
Also, your assertions about warranties isn't true. You could buy an M3 from a main dealer, for instance, and buy an extended warranty to cover any big bills. Plus, it's further through its depreciation curve and represents better value. You could buy a really good E39 M5 for £10k.
Depends on the kind of car you want. If you're tied into a deal and you manage to get the missus pregnant then you'll be having a lot of hassle settling the finance (as I discovered when my circumstances changed). Although the issue has been done to death on PH it seems to me to be more flexible to 1. save money for other important things and 2. have the flexibility that only actually owning the car provides (which obv. you don't with a PCP as you point out yourself).
Plus, there are some amazing s/h bargains around at the moment. Friend of mine is struggling to sell a fully-loaded 330ci, despite it being in VGC, purely because nobody wants a gas-guzzling coupe. Tis a buyers' market, take advantage!
Also, your assertions about warranties isn't true. You could buy an M3 from a main dealer, for instance, and buy an extended warranty to cover any big bills. Plus, it's further through its depreciation curve and represents better value. You could buy a really good E39 M5 for £10k.
Depends on the kind of car you want. If you're tied into a deal and you manage to get the missus pregnant then you'll be having a lot of hassle settling the finance (as I discovered when my circumstances changed). Although the issue has been done to death on PH it seems to me to be more flexible to 1. save money for other important things and 2. have the flexibility that only actually owning the car provides (which obv. you don't with a PCP as you point out yourself).
Plus, there are some amazing s/h bargains around at the moment. Friend of mine is struggling to sell a fully-loaded 330ci, despite it being in VGC, purely because nobody wants a gas-guzzling coupe. Tis a buyers' market, take advantage!
homerjay said:
625 a month for a 370z?
id be look at a c63 instead.
http://www.dsgauto.com/car_leasing-business-contra...
Stop it, we've already spoken about this! The C63 works out at £17482 total cost, £728 a month.id be look at a c63 instead.
http://www.dsgauto.com/car_leasing-business-contra...
LongLiveTazio said:
I don't understand why you'd only have 5k cash in example number 2 when in the first one you're putting down £7.9k?
Also, your assertions about warranties isn't true. You could buy an M3 from a main dealer, for instance, and buy an extended warranty to cover any big bills. Plus, it's further through its depreciation curve and represents better value. You could buy a really good E39 M5 for £10k.
Depends on the kind of car you want. If you're tied into a deal and you manage to get the missus pregnant then you'll be having a lot of hassle settling the finance (as I discovered when my circumstances changed). Although the issue has been done to death on PH it seems to me to be more flexible to 1. save money for other important things and 2. have the flexibility that only actually owning the car provides (which obv. you don't with a PCP as you point out yourself).
Plus, there are some amazing s/h bargains around at the moment. Friend of mine is struggling to sell a fully-loaded 330ci, despite it being in VGC, purely because nobody wants a gas-guzzling coupe. Tis a buyers' market, take advantage!
Ok, good points. If I could put £8k into a PCP then I could also put £8k with the loan money to get to £15k and reduce my monthly loan payments/term. I agree it would be a nice position to have £15k cash to enter the second-hand market. Lots of good cars at that price point.Also, your assertions about warranties isn't true. You could buy an M3 from a main dealer, for instance, and buy an extended warranty to cover any big bills. Plus, it's further through its depreciation curve and represents better value. You could buy a really good E39 M5 for £10k.
Depends on the kind of car you want. If you're tied into a deal and you manage to get the missus pregnant then you'll be having a lot of hassle settling the finance (as I discovered when my circumstances changed). Although the issue has been done to death on PH it seems to me to be more flexible to 1. save money for other important things and 2. have the flexibility that only actually owning the car provides (which obv. you don't with a PCP as you point out yourself).
Plus, there are some amazing s/h bargains around at the moment. Friend of mine is struggling to sell a fully-loaded 330ci, despite it being in VGC, purely because nobody wants a gas-guzzling coupe. Tis a buyers' market, take advantage!
Edited by Arese on Friday 3rd September 11:37
PCP was very popular in the office during the good times, it's died off now as the periods end and people tend to prefer to purchase perfectly good cars a few years old.
I don't see the point in hiring a car to be honest but thats simply me.
Where does it end..? If you rented for 10years thats a huge amount of money to lose with no assest.
I don't see the point in hiring a car to be honest but thats simply me.
Where does it end..? If you rented for 10years thats a huge amount of money to lose with no assest.
Arese said:
Gents
I'm toying with the idea of PCP'ing or leasing my next car. I've been looking around casually for the last few weeks, and the one deal that stands out to me is on the Nissan 370z.
£7900 deposit
£300/month for 2 years
£15,100 total over 2 years including the deposit
The GFV in two years is £16,500 on a list-price of ~£32k, so I suppose there's potential to sell the car privately after two years and make a little profit before paying the £16,500 back. I'm not 100% happy with paying £7500 a year to 'rent' a car but I understand the attraction of driving a brand new 'nice' car etc.
£630 a month is a lot of money for a 350Z when you consider what you could get for that money.I'm toying with the idea of PCP'ing or leasing my next car. I've been looking around casually for the last few weeks, and the one deal that stands out to me is on the Nissan 370z.
£7900 deposit
£300/month for 2 years
£15,100 total over 2 years including the deposit
The GFV in two years is £16,500 on a list-price of ~£32k, so I suppose there's potential to sell the car privately after two years and make a little profit before paying the £16,500 back. I'm not 100% happy with paying £7500 a year to 'rent' a car but I understand the attraction of driving a brand new 'nice' car etc.
Personally, PCP works for me when you put in a low deposit, balance the monthly payment against the depreciation you would lose, then either trade in after the end of term or keep it long term.
Can you not buy a year old one, put in a smaller cash amount and keep a similar monthly payment?
Get them to chuck in a warranty for the PCP term and you'll not have lost anything.....
Arese said:
homerjay said:
625 a month for a 370z?
id be look at a c63 instead.
http://www.dsgauto.com/car_leasing-business-contra...
Stop it, we've already spoken about this! The C63 works out at £17482 total cost, £728 a month.id be look at a c63 instead.
http://www.dsgauto.com/car_leasing-business-contra...
LongLiveTazio said:
I don't understand why you'd only have 5k cash in example number 2 when in the first one you're putting down £7.9k?
Also, your assertions about warranties isn't true. You could buy an M3 from a main dealer, for instance, and buy an extended warranty to cover any big bills. Plus, it's further through its depreciation curve and represents better value. You could buy a really good E39 M5 for £10k.
Depends on the kind of car you want. If you're tied into a deal and you manage to get the missus pregnant then you'll be having a lot of hassle settling the finance (as I discovered when my circumstances changed). Although the issue has been done to death on PH it seems to me to be more flexible to 1. save money for other important things and 2. have the flexibility that only actually owning the car provides (which obv. you don't with a PCP as you point out yourself).
Plus, there are some amazing s/h bargains around at the moment. Friend of mine is struggling to sell a fully-loaded 330ci, despite it being in VGC, purely because nobody wants a gas-guzzling coupe. Tis a buyers' market, take advantage!
Ok, good points. If I could put £8k into a PCP then I could also put £8k with the loan money to get to £15k and reduce my monthly loan payments/term. I agree it would be a nice position to have £15k cash to enter the second-hand market. Lots of good cars at that price point.Also, your assertions about warranties isn't true. You could buy an M3 from a main dealer, for instance, and buy an extended warranty to cover any big bills. Plus, it's further through its depreciation curve and represents better value. You could buy a really good E39 M5 for £10k.
Depends on the kind of car you want. If you're tied into a deal and you manage to get the missus pregnant then you'll be having a lot of hassle settling the finance (as I discovered when my circumstances changed). Although the issue has been done to death on PH it seems to me to be more flexible to 1. save money for other important things and 2. have the flexibility that only actually owning the car provides (which obv. you don't with a PCP as you point out yourself).
Plus, there are some amazing s/h bargains around at the moment. Friend of mine is struggling to sell a fully-loaded 330ci, despite it being in VGC, purely because nobody wants a gas-guzzling coupe. Tis a buyers' market, take advantage!
Edited by Arese on Friday 3rd September 11:37
I'm considering the same offer (as explained on another thread) 0% over 2 years is pretty attractive.
I have discussed with a friend who is a car salesman and was previously with Nissan and he thinks the GFV is quite high so it will be likely that it will be a case of handing the car back after the 2 years as it won't be worth buying. He also told me that if I walk in and say you're only buying if they give a 5% discount on list they should go for it!
Let us know what you go for and I'll be keeping an ey eon this thread for other ideas!
I have discussed with a friend who is a car salesman and was previously with Nissan and he thinks the GFV is quite high so it will be likely that it will be a case of handing the car back after the 2 years as it won't be worth buying. He also told me that if I walk in and say you're only buying if they give a 5% discount on list they should go for it!
Let us know what you go for and I'll be keeping an ey eon this thread for other ideas!
10k bank loan (if you can get one ) plus your 5 k it's the best option .
I have tried a bank loan route and they said no, the dealer was happy to give me one for a few quid extra month compared to the bank direct .
At the end of the day in 3 years time you will still have a 10k asset
I have tried a bank loan route and they said no, the dealer was happy to give me one for a few quid extra month compared to the bank direct .
At the end of the day in 3 years time you will still have a 10k asset
£15,100 total over 2 years including the deposit
That can't be too far off the depreciation on a top of the range model over 2 years? So if you bought a brand new car and as you have mentioned its rare that you are going to want to keep it much longer than 2 years you wouldn't be too worse off buying V renting.
If a brand new 370z floats your boat then go for it.
That can't be too far off the depreciation on a top of the range model over 2 years? So if you bought a brand new car and as you have mentioned its rare that you are going to want to keep it much longer than 2 years you wouldn't be too worse off buying V renting.
If a brand new 370z floats your boat then go for it.
Had a similair quandry last May. Was looking at leasing an s2k for about 350 a month over 3 years, not a bad deal I thought. The downside was the mileage was limited to 10k pa and I do at least double that. So I rang my local Honda dealer to see what they could do for a similar monthly sum on a used s2k. They found me a very low mileage 54 plate for a similar sum with a Honda finance deal secured against the car. The deposit was about the same as well. The car came with a propper years warranty, full service and new tyres.
At the end of the term the car is mine to do what I like with, with no baloon payment. Also, as the finance is secured against the car the terms are similar to pcp etc in so much that once 50% is paid off I can hand the car back with nothing else to pay.
I've done 30k in it so far and it hasn't missed a beat. Plus being a pre 2006 car I'm not stuck with the higher ved band.
At the end of the term the car is mine to do what I like with, with no baloon payment. Also, as the finance is secured against the car the terms are similar to pcp etc in so much that once 50% is paid off I can hand the car back with nothing else to pay.
I've done 30k in it so far and it hasn't missed a beat. Plus being a pre 2006 car I'm not stuck with the higher ved band.
BoRED S2upid said:
£15,100 total over 2 years including the deposit
That can't be too far off the depreciation on a top of the range model over 2 years? So if you bought a brand new car and as you have mentioned its rare that you are going to want to keep it much longer than 2 years you wouldn't be too worse off buying V renting.
If a brand new 370z floats your boat then go for it.
agreed, its not a great deal, its just the going rate imo.That can't be too far off the depreciation on a top of the range model over 2 years? So if you bought a brand new car and as you have mentioned its rare that you are going to want to keep it much longer than 2 years you wouldn't be too worse off buying V renting.
If a brand new 370z floats your boat then go for it.
10k 200pm
20k 400pm
30k 600pm
40k 800pm
beat those figures and youve kinda on the right lines imo.
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