PCP vs Leasing
Discussion
Hi there
Wonder if you learned people might be able to advise.
Background is that I need a very safe but not too expensive car for pootling round with my 2 year old son. My old dull family Mazda 3 sport was damaged in a non fault accident 2 weeks ago and I've been told today that the car is a total loss.
Rather than buy a car outright as I've always done in the past I've been following the leasing deal thread with some interest since the accident but have been thrown a bit of a curve ball today by a Nissan dealer offering a PCP deal at very similar amounts.
Gateway2lease are offering a brand new Nissan note Acenta premium for a deposit of £977 and then £162 per month (all inc Vat for a personal deal) fully maintained. Mileage of up to 10000 per year. The deal is for 2 years - I've never kept a car for more than 2 years so this suited me.
However, my local Nissan dealer has offered me the same spec car - ex demo (8 months old) for a deposit of £1000 and then £164 a month over 3 years with a guaranteed value at the end of £5000. Mileage is up to 8000 per year on this deal. He's tried to sweeten the deal by offering 2 years free servicing.
My question (I am getting there, honest) is based around the fact that I doubt I'll keep it beyond 2 - 2.5 years. With a PCP deal, could I legally obtain a settlement figure before the PCP period is up and sell the car privately to cover the balance remaining on the car?
I doubt very much I'll buy another Nissan after this so don't want to be tied into trading my current car in against a car of the same marque.
I've gone round and round in my head re this and I'm a bit clueless so any thoughts are grateful received.
Thanks
Wonder if you learned people might be able to advise.
Background is that I need a very safe but not too expensive car for pootling round with my 2 year old son. My old dull family Mazda 3 sport was damaged in a non fault accident 2 weeks ago and I've been told today that the car is a total loss.
Rather than buy a car outright as I've always done in the past I've been following the leasing deal thread with some interest since the accident but have been thrown a bit of a curve ball today by a Nissan dealer offering a PCP deal at very similar amounts.
Gateway2lease are offering a brand new Nissan note Acenta premium for a deposit of £977 and then £162 per month (all inc Vat for a personal deal) fully maintained. Mileage of up to 10000 per year. The deal is for 2 years - I've never kept a car for more than 2 years so this suited me.
However, my local Nissan dealer has offered me the same spec car - ex demo (8 months old) for a deposit of £1000 and then £164 a month over 3 years with a guaranteed value at the end of £5000. Mileage is up to 8000 per year on this deal. He's tried to sweeten the deal by offering 2 years free servicing.
My question (I am getting there, honest) is based around the fact that I doubt I'll keep it beyond 2 - 2.5 years. With a PCP deal, could I legally obtain a settlement figure before the PCP period is up and sell the car privately to cover the balance remaining on the car?
I doubt very much I'll buy another Nissan after this so don't want to be tied into trading my current car in against a car of the same marque.
I've gone round and round in my head re this and I'm a bit clueless so any thoughts are grateful received.
Thanks
Stooky said:
My question (I am getting there, honest) is based around the fact that I doubt I'll keep it beyond 2 - 2.5 years. With a PCP deal, could I legally obtain a settlement figure before the PCP period is up and sell the car privately to cover the balance remaining on the car?
Yes you can - the agreement will be regulated by the consumer credit act so you can settle the agreement at any time and benefit from a regulated settlement figure. If you'd like an example of a regulated figure then pop the full quote up here (purchase price, deposit, payments - how many and how much, balloon, and doc fees) and I'll calculate the settlement figures for you.I think leasing is basically where you 'hire' the car for a set term, pay the monthly fees (which cover mainly depreciation) and hand it back at the end regardless.
PCP, gives you more options I belive as there car is more 'yours' if you get me. You basically pay for the car in monthly instalments with a final payment. If you pay this final payment, the car is yours, or you can simply hand it back and use any equity (if the car is worth more than the final payment) towards another pcp, or simply hand the car back and walk away, as you would in a lease.
PCP, gives you more options I belive as there car is more 'yours' if you get me. You basically pay for the car in monthly instalments with a final payment. If you pay this final payment, the car is yours, or you can simply hand it back and use any equity (if the car is worth more than the final payment) towards another pcp, or simply hand the car back and walk away, as you would in a lease.
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