PCP / lease 'deposit denial'

[nuttywobbler]

I'm noticing that deposit denial is becoming more widespread.

Case in point; discussing cars with a work colleague last week. He's telling me about his new 'AMG Mercedes' (turns out it's an A200 diesel AMG Line).

He's raving about how it only costs him £299 per month on PCP. Only after me repeatedly asking him about the deposit did he finally let slip that it was an additional £5500 up front.

So it's not really £299 per month, is it?!

Edited by nuttywobbler on Monday 18th March 10:00

[anonymous-user]

Don't forget the often £300 document fee as well.

There are also the people who believe that you can lease a brand new car for less than it costs to run a shed. These are the people that claim "The girl at work is leasing a Citroen C1 for less than her monthly mobile phone bill"

My brother's wife is another one who believes the young girls at her work are all leasing Audi A1s for £179 a month and why should she drive a shed (aside from the inside looking like a tip and constantly driving into things)?

She would not believe me when I told her they were probably paying a £3k deposit, even when I ran a quote through leasing.co.uk she still didn't really believe me.

I think the real reason is because people justify it to themselves by thinking "it's only £299 a month" and don't want to work out the real monthly amortised figure.

[ilikejam]

Why do you care?

[HTP99]

The weekly PCP/PCH bashing thread is here!!

Who gives a monkey's what people are paying or how much they have put in to achieve said payment!!

Edited by HTP99 on Monday 18th March 11:14

[av185]

Is pcp deposit denial a recognised medical or mental health issue yet?

[OMITN]

Very difficult to diagnose this deposit denial - there’s often a lot of misdiagnosis of advance payments as deposits.....

But no doubt there’s an ointment for it.

[Roger Irrelevant]

ilikejam said:

Why do you care?

I sort of care because quite often I read on here of cars that I'd consider buying that are supposedly available for '£300 per month' on PCP, and I think 'Blimey, sounds like a bargain, I'll take a look at that'. Then when I do I find it is indeed £300 per month, but only after you've paid a deposit of more than my current perfectly good car cost me to buy outright. Oh and usually a mileage limit of 5,000 miles per year too. Note that this is not 'bashing PCPs' as I've said I'd be perfectly happy to buy a car using that method. And no this quibble is not the most important thing I've got going on in my life right now.

[pavarotti1980]

Roger Irrelevant said:

I sort of care because quite often I read on here of cars that I'd consider buying that are supposedly available for '£300 per month' on PCP, and I think 'Blimey, sounds like a bargain, I'll take a look at that'. Then when I do I find it is indeed £300 per month, but only after you've paid a deposit of more than my current perfectly good car cost me to buy outright. Oh and usually a mileage limit of 5,000 miles per year too. Note that this is not 'bashing PCPs' as I've said I'd be perfectly happy to buy a car using that method. And no this quibble is not the most important thing I've got going on in my life right now.

Read the small print before getting excited

[Earthdweller]

[quote=Joey Deacon]Don't forget the often £300 document fee as well.

These are the people that claim "The girl at work is leasing a Citroen C1 for less than her monthly mobile phone bill"

I genuinely know someone who leased a C1 for £99 pm with £99 upfront

Used it to commute, as it was worked out cheaper than using his discovery which he kept for towing and weekends

[JaredVannett]

Joey Deacon said:

My brother's wife is another one who believes the young girls at her work are all leasing Audi A1s for £179 a month and why should she drive a shed (aside from the inside looking like a tip and constantly driving into things)?

She would not believe me when I told her they were probably paying a £3k deposit, even when I ran a quote through leasing.co.uk she still didn't really believe me.

This made me chuckle.

I guess she feels bitter to some degree - back when she were a younger lass she had to make do with old bangers, or probably had to use public transport? Roll on a few decades, climbing up the career ladder and still driving a shed, she's now looking at her younger co-workers, Brittany, Chantelle and Kimberly parking up in their new shiny Audi's wondering how?


Note: Shedding = a way of life.

[anonymous-user]

JaredVannett said:

Joey Deacon said:

My brother's wife is another one who believes the young girls at her work are all leasing Audi A1s for £179 a month and why should she drive a shed (aside from the inside looking like a tip and constantly driving into things)?

She would not believe me when I told her they were probably paying a £3k deposit, even when I ran a quote through leasing.co.uk she still didn't really believe me.

This made me chuckle.

I guess she feels bitter to some degree - back when she were a younger lass she had to make do with old bangers, or probably had to use public transport? Roll on a few decades, climbing up the career ladder and still driving a shed, she's now looking at her younger co-workers, Brittany, Chantelle and Kimberly parking up in their new shiny Audi's wondering how?


Note: Shedding = a way of life.

Pretty much spot on, she only earns around £25k a year, but and I quote "want people to think I am doing well". The car my brother bought for her (she she didn't even pay for the car she is moaning about) is 54 plate and was very clean and immaculate when she got it. Less than a year later it has never been cleaned and she has hit a tree stump and driven into the back of another car (which wasn't her fault apparently). Can you imagine the return costs on a lease!

As you say, she sees Kimberly and Brittany looking young and hot in their Audi A1s and gets very jealous. It doesn't seem to register that they all still live with their parents and spend all their money on their cars and going out.

[Dr Jekyll]

I was talking to someone recently who had just financed a Tesla S over three years and was trying to persuade me to do the same and raving about not having any petrol bills, Then he mentioned he'd put down a £15,000 deposit.

[jas xjr]

Joey Deacon said:

Pretty much spot on, she only earns around £25k a year, but and I quote "want people to think I am doing well". The car my brother bought for her (she she didn't even pay for the car she is moaning about) is 54 plate and was very clean and immaculate when she got it. Less than a year later it has never been cleaned and she has hit a tree stump and driven into the back of another car (which wasn't her fault apparently). Can you imagine the return costs on a lease!

As you say, she sees Kimberly and Brittany looking young and hot in their Audi A1s and gets very jealous. It doesn't seem to register that they all still live with their parents and spend all their money on their cars and going out.

I think the problem here is that Kimberly and co are young and hot

[anonymous-user]

Dr Jekyll said:

I was talking to someone recently who had just financed a Tesla S over three years and was trying to persuade me to do the same and raving about not having any petrol bills, Then he mentioned he'd put down a £15,000 deposit.

What is funny is even though I can afford it I can't even imagine spending £15k out right to buy a car let alone that being the lease deposit.

In my current shed Megane Dci I get around 1000 miles per £105 of Diesel. For £15k of diesel I could do nearly 143k miles......

[joropug]

I'll raise you one higher.

A distant family member has an Audi A1 on PCP, I asked her whether she'll keep it after the 4 years and she was really confused.

It transpires she had no idea there was a final payment to keep the car of over 10 grand.

It doesn't take a genius to work out even without a deposit 200 per month for 4 years is less than 10k. So she thought she bought an A1 worth say 18k, for 10k.

Could argue misselling but people just don't think or even stop to work out the true cost these days. I like the option of leasing as it's a bit more up front and transparent. Can also filter deals by overall cost not just monthly.

[Over over under steer]

joropug said:

I'll raise you one higher.

A distant family member has an Audi A1 on PCP, I asked her whether she'll keep it after the 4 years and she was really confused.

It transpires she had no idea there was a final payment to keep the car of over 10 grand.

It doesn't take a genius to work out even without a deposit 200 per month for 4 years is less than 10k. So she thought she bought an A1 worth say 18k, for 10k.

Could argue misselling but people just don't think or even stop to work out the true cost these days. I like the option of leasing as it's a bit more up front and transparent. Can also filter deals by overall cost not just monthly.

Gosh I feel both sad for her, but also happy that she will learn a lesson and maybe approach future financial decisions with a more thorough process

[HTP99]

When we took over the dealership where I now work; been here almost 15 years, it is amazing how little people knew about their options at the end of their PCP agreement, many actually thought that the balloon payment was a guaranteed physical amount to put towards their next PCP agreement, the terminology of a "Minimum Future Value", I think confused people, plus the sales guy at the time probably wasn't overly forthcoming in telling the customer how it actually all works.

Also many would have traded in a car with a decent amount in; £5k for arguments sake, their monthlies would be say £150.00, they would come back in 3 years time and then wouldn't have the £5k trade in so their monthlies would then practically double, I have had many a difficult discussion in the past due to this.

Had a girl this weekend who is paying £286 on a basic 108 on a Just add fuel deal, she had just been going back and the garage had been rolling any negative into the new agreement thus making her monthlies ever higher.

[untakenname]

I noticed this deal a few days ago for £299 a month to have Mercedes-Benz CLA200 Coupe AMG Line Night Edition Plus

1+11 lease profile
£299 a month
8000 miles
Total cost for 12 months = £3588


Seemed pretty cheap all in, if I didn't have 3 cars I'd probably consider it.



Edit: Saw AMG and thought it would have a bit of poke but it has 150bhp so wouldn't consider it.

[page3]

Joey Deacon said:

There are also the people who believe that you can lease a brand new car for less than it costs to run a shed.

Depends on the shed. My full service history, well looked after, reliable Volvo cost me an absolute fortune in the 18 months I had it before it committed suicide. My leased SEAT Leon was far, far cheaper over the three year lease, came with full warranty, breakdown cover and less time off work fixing it!

[anonymous-user]

HTP99 said:

When we took over the dealership where I now work; been here almost 15 years, it is amazing how little people knew about their options at the end of their PCP agreement, many actually thought that the balloon payment was a guaranteed physical amount to put towards their next PCP agreement, the terminology of a "Minimum Future Value", I think confused people, plus the sales guy at the time probably wasn't overly forthcoming in telling the customer how it actually all works.

Also many would have traded in a car with a decent amount in; £5k for arguments sake, their monthlies would be say £150.00, they would come back in 3 years time and then wouldn't have the £5k trade in so their monthlies would then practically double, I have had many a difficult discussion in the past due to this.

Had a girl this weekend who is paying £286 on a basic 108 on a Just add fuel deal, she had just been going back and the garage had been rolling any negative into the new agreement thus making her monthlies ever higher.

I am not surprised in the slightest, people just see the monthly figure and don't think about anything else. My sister in law was the same, she didn't think there would be a deposit and that they just gave you a new one every three years and you kept paying the same amount.

I also worked with a guy who's boyfriend (yes they were gay but it has nothing to do with this story) was obsessed with having the latest shiny car and convinced him to get a PCP. He had brainwashed him so well that he was trying to tell me the car was an investment and that they could roll the equity (not that would be any) into the next shiny car the boyfriend was already dreaming about.

I don't understand why people are so desperate to change their car so often to the point where they are in such negative equity that they are paying £286 a month for a bog standard 108. Do they honestly trade in their 18 month old 208 and get in their new one and think "this is SO much nicer than the old one"

I also worked with a guy who would get a brand new Focus diesel every three years. When I asked him why he did this he said so he didn't have to take it for an MOT.