Anyone regret taking out a lease/pcp deal?
Discussion
Yes. I took out a 2 year deal on a 2007/8 Smart car, mainly for my wife to use. My circumstances changed soon after; we purchased a plot of land and we moved into a small caravan on site. The world’s economy crashed within a few months, which meant funding the build was more difficult and I ended up selling my own car to help finance it. That left us with the Smart car, which wasn’t much use for a) towing a caravan or b) moving building materials around; I remember loading the rear with rolls of lead.....
The seats were also really uncomfortable. Thankfully everything worked out in the end, and the day I handed it back was joyful.
The seats were also really uncomfortable. Thankfully everything worked out in the end, and the day I handed it back was joyful.
Yes and no
M135i on a "cheap" lease deal. Yes it was cheap, next to buying one using BMW's own PCP offers.
£2500 deposit and then about £300/month. 10k miles per annum and then around 10p per mile after. The trouble is, we hit 18k miles at about 18 months. So every time we used it we were paying 10p per mile (plus vat), plus fuelling it. So we didn't really use it much after that. And the car was about to need its first service at roughly the time it was due to go back.
In the end i think at about month 20 we paid half of the remaining monthlies just to be rid of it. And we were offered a nearly new car from a relative for their part-ex price, so we jumped on that.
Also i bought a new fireblade on PCP in 2014. 4 year deal at £150/month. And about £2500 deposit. 0% interest. Problem with that was i got really fed up with paying for it over the winter when not being able to use it due to weather (and not wanting to ruin my first ever new bike). Then i broke my leg and couldn't ride for about 6 months. Once i got back on my feet i sold it. Fortunately because the deal was a good one, i walked away with a decent chunk of money (a few grand).
PCP and leases are brilliant depending how good the deal is. But if circumstances change it good to have flexibility. The bike for example i simply paid off the remaining balance from savings and then sold it privately. The M135i we were able to exit for a fee (£450 or so), but i was pleased to be out of it and glad it was only a 2 yr deal
Oddly i have massive cravings for a newer fireblade and M135i now. And that's another problem with these deals. Once you've tasted newer stuff it's quite hard to replace them with older stuff, dropping the costs, but then not feeling like you're missing out!!!
M135i on a "cheap" lease deal. Yes it was cheap, next to buying one using BMW's own PCP offers.
£2500 deposit and then about £300/month. 10k miles per annum and then around 10p per mile after. The trouble is, we hit 18k miles at about 18 months. So every time we used it we were paying 10p per mile (plus vat), plus fuelling it. So we didn't really use it much after that. And the car was about to need its first service at roughly the time it was due to go back.
In the end i think at about month 20 we paid half of the remaining monthlies just to be rid of it. And we were offered a nearly new car from a relative for their part-ex price, so we jumped on that.
Also i bought a new fireblade on PCP in 2014. 4 year deal at £150/month. And about £2500 deposit. 0% interest. Problem with that was i got really fed up with paying for it over the winter when not being able to use it due to weather (and not wanting to ruin my first ever new bike). Then i broke my leg and couldn't ride for about 6 months. Once i got back on my feet i sold it. Fortunately because the deal was a good one, i walked away with a decent chunk of money (a few grand).
PCP and leases are brilliant depending how good the deal is. But if circumstances change it good to have flexibility. The bike for example i simply paid off the remaining balance from savings and then sold it privately. The M135i we were able to exit for a fee (£450 or so), but i was pleased to be out of it and glad it was only a 2 yr deal
Oddly i have massive cravings for a newer fireblade and M135i now. And that's another problem with these deals. Once you've tasted newer stuff it's quite hard to replace them with older stuff, dropping the costs, but then not feeling like you're missing out!!!
No, but as above I would do if my circumstances changed, especially now.
I'm a sucker for a good deal on a car that seems 'out of reach', so I've ended up with a new vantage and an RRS, the former PCP'd and the latter leased. Both these deals were genuinely fantastic (the Aston was a once in a lifetime, widely posted on here) but I'm now paying a fairly large amount per month for them. I'd already signed all the paperwork for the RRS and it was being built as the Aston deal landed, had this not been the case there's no way I'd have gone through with it as I'd have rather leased something much cheaper instead.
I can justify the above as I own my house, I have no plans for kids or moving anytime soon and I work for the company we own as a family, which isn't going anywhere anytime soon, so stuff like annual mileage and disposable income for cars are known entities. There's no way in hell I'd finance something expensive if my employment wasn't water tight or I was living at home/renting/paying a big mortgage.
I'm a sucker for a good deal on a car that seems 'out of reach', so I've ended up with a new vantage and an RRS, the former PCP'd and the latter leased. Both these deals were genuinely fantastic (the Aston was a once in a lifetime, widely posted on here) but I'm now paying a fairly large amount per month for them. I'd already signed all the paperwork for the RRS and it was being built as the Aston deal landed, had this not been the case there's no way I'd have gone through with it as I'd have rather leased something much cheaper instead.
I can justify the above as I own my house, I have no plans for kids or moving anytime soon and I work for the company we own as a family, which isn't going anywhere anytime soon, so stuff like annual mileage and disposable income for cars are known entities. There's no way in hell I'd finance something expensive if my employment wasn't water tight or I was living at home/renting/paying a big mortgage.
Yes my leased Mercedes 250d. Interestingly if I had PCP'd the car I would not have regretted it as I could have sold the damn car. It was the lack of lumbar support from the seats that I had not noticed on the test drive. So I was leasing a car for 40k miles that I hated.
Only lease if you have a good idea of how good the car is, as there is no way out.
Only lease if you have a good idea of how good the car is, as there is no way out.
Yes, kind of. My wife has a leased BMW that barely gets used. It's done 4500 miles in the first year (3 year contract) at a cost of £300+ a month. It doesn't bother me greatly, but I'm finding myself using it more and more just to get some value out of it. I may see if I can reduce the contracted mileage allowance at some point.
Yes, and the lesson is never buy a car for a job you haven't started yet
I had an abarth 500 which I loved and then got a new job with a 70 mile a day commute but also with a car allowance, before I'd even started the job I pcp'd a diesel jeep renegade with 18k peer annum allowance.
Job turned out to be properly horrible and after 3 months I took a new role nearer home so I now had an expensive PCP I no longer needed (short commute) and no car allowance to pay for it.
Ran it for another 15 months then sold it for and used the payment plus £2.5k of my own money to clear the balance and went shedding for a while.
The car was also dull, very very dull to drive.
Fast forward and I'm back in an abarth on a much better PCP deal
I had an abarth 500 which I loved and then got a new job with a 70 mile a day commute but also with a car allowance, before I'd even started the job I pcp'd a diesel jeep renegade with 18k peer annum allowance.
Job turned out to be properly horrible and after 3 months I took a new role nearer home so I now had an expensive PCP I no longer needed (short commute) and no car allowance to pay for it.
Ran it for another 15 months then sold it for and used the payment plus £2.5k of my own money to clear the balance and went shedding for a while.
The car was also dull, very very dull to drive.
Fast forward and I'm back in an abarth on a much better PCP deal
Yeah, a B9 Audi A4 Sport 1.4 TFSI manual in a very ironic "Brilliant Black". I got it on a stonking lease deal when they were first released. I think it was 3 + 23, 8k miles PA, £208 PM. 2 years of my life that I'll never get back. It was just extremely boring to drive and i couldn't wait to hand it back at the end.
Outstanding value for money though. The car just wasn't for me.
Outstanding value for money though. The car just wasn't for me.
I've never actually had one for the reasons people have posted above. On top of that whilst I think they are an affordable way to 'own' a car that would normally be out of financial reach, the commitment to the payments without an 'out' is something that puts me off.
For example if you get a PL for a car, you own the asset (car) and should your financial situation change then you can always sell the asset. Something that's not available should you have a lease deal (in <50% of the payment situation)
For example if you get a PL for a car, you own the asset (car) and should your financial situation change then you can always sell the asset. Something that's not available should you have a lease deal (in <50% of the payment situation)
I've not actually regretted a lease, however I always regret it when they are coming to an end (like later this year) when I cant see anything remotely as good in the pipeline.
I've got a battery issue with current lease and the dealer is terrible, however being a leased car the stress levels are far less and I'm just putting up with it for now as I don't have the time or inclination to sort Hitachi Capitals car out.
I've got a battery issue with current lease and the dealer is terrible, however being a leased car the stress levels are far less and I'm just putting up with it for now as I don't have the time or inclination to sort Hitachi Capitals car out.
culpz said:
Yeah, a B9 Audi A4 Sport 1.4 TFSI manual in a very ironic "Brilliant Black". I got it on a stonking lease deal when they were first released. I think it was 3 + 23, 8k miles PA, £208 PM. 2 years of my life that I'll never get back. It was just extremely boring to drive and i couldn't wait to hand it back at the end.
Outstanding value for money though. The car just wasn't for me.
Came here to post more or less exactly this.Outstanding value for money though. The car just wasn't for me.
Mine was a SE (though I optioned the Comfort and Sound Pack on top) also in Brilliant Black - £267pm 10k pa, 3+23, maintenance included.
Like you say, quite a boring drive but the manual made it laborious on top too. I think if it was an automatic, I wouldn't have terminated 6 months early.
Ironically I'm getting dangerously close to committing to a deal on a Ceed GT Line S this week, absolutely cracking car. Deal is better than PCP or depreciation so I'm not too fussed about paying more (not masses more, mind, but still more).
Not yet...
I am quite a prudent person and although I am on a PCP so could limit my exposure by selling and paying off or coming to a deal with the brand/dealership, I am about a year and a half in to a 4 year PCP, so would have to fund the delta if I had to exit (not fun, but manageable). I had originally intended to keep the car, but now I am not so sure long story short:
- I regret taking the PCP for 4 years, it will need an MOT after year 3 and there is always the possibility of a potential bill and then give the car back. The sweet spot of keeping options open is 3 years.
- The industry I work in is going through tough times and whilst I don't think it will impact me, you never know and it probably causes some sort of subconscious niggle.
- I keep looking at other cars because I am basically a magpie and like shiny new things or different old things (my current hankering is a Toyota Century for no good reason what so ever).
In reality I know I have a good deal, fingers crossed nothing goes wrong with the plan/commitment and I manage to contain my desire for expensive random flights of fancy (the article on a quatroportte today didn't help).
I am quite a prudent person and although I am on a PCP so could limit my exposure by selling and paying off or coming to a deal with the brand/dealership, I am about a year and a half in to a 4 year PCP, so would have to fund the delta if I had to exit (not fun, but manageable). I had originally intended to keep the car, but now I am not so sure long story short:
- I regret taking the PCP for 4 years, it will need an MOT after year 3 and there is always the possibility of a potential bill and then give the car back. The sweet spot of keeping options open is 3 years.
- The industry I work in is going through tough times and whilst I don't think it will impact me, you never know and it probably causes some sort of subconscious niggle.
- I keep looking at other cars because I am basically a magpie and like shiny new things or different old things (my current hankering is a Toyota Century for no good reason what so ever).
In reality I know I have a good deal, fingers crossed nothing goes wrong with the plan/commitment and I manage to contain my desire for expensive random flights of fancy (the article on a quatroportte today didn't help).
Moonpie21 said:
- I regret taking the PCP for 4 years, it will need an MOT after year 3 and there is always the possibility of a potential bill and then give the car back. The sweet spot of keeping options open is 3 years.
You can hand the car back after 50% is paid - woudn't that be the case after 3 years in your case?(look up voluntary termination)
I don't "regret" it (not that kind of person, don't regret anything in my life), but i would not do it again.
I bought a Fiesta ST on Lease/PCH at a very good price. Had a good, comfortable disposable income. About half way through the lease I lost my job and was out of work for a few months; and then I had some very poorly paid work. The monthly payments were a huge burden and i did get quotes for early termination, but it would have been very expensive.
Also, because it's someone else's car I had to take much more care of it. I've done various bits of damage to the car that if it was my own car, I wouldn't fix. (alloy kerbing, small dents and visible scratches, lost key)
Also the mileage limit is restricting. I bought the lease with way more miles than I would normally need, "just in case". still ended up going over and suddenly every 100 miles you do is an extra £15 in fees.
I got the car because I could not afford a decent car and didn't want to buy a shed that would keep breaking and bringing up other costs.
Also despite it being a new car, it's had a bunch of stuff needing doing; 5 repairs under warranty, plus I've had to have a new clutch which was £400. so I haven't saved as much as i thought it would.
I bought a Fiesta ST on Lease/PCH at a very good price. Had a good, comfortable disposable income. About half way through the lease I lost my job and was out of work for a few months; and then I had some very poorly paid work. The monthly payments were a huge burden and i did get quotes for early termination, but it would have been very expensive.
Also, because it's someone else's car I had to take much more care of it. I've done various bits of damage to the car that if it was my own car, I wouldn't fix. (alloy kerbing, small dents and visible scratches, lost key)
Also the mileage limit is restricting. I bought the lease with way more miles than I would normally need, "just in case". still ended up going over and suddenly every 100 miles you do is an extra £15 in fees.
I got the car because I could not afford a decent car and didn't want to buy a shed that would keep breaking and bringing up other costs.
Also despite it being a new car, it's had a bunch of stuff needing doing; 5 repairs under warranty, plus I've had to have a new clutch which was £400. so I haven't saved as much as i thought it would.
cicada273 said:
Definitely avoid these insidious car financing scams schemes if you can. There's a reason why the scamsmen salesmen push them so hard, and it's not for your benefit...
They're not scams though are they. Taking one out involves signing documents that clearly explain what you are paying - initially, ongoing each month, and in total, details the interest rate, terms and conditions etc etc. When making a big purchase and financing it, read the paperwork, ask questions, if you don't like it, nobody is forcing you to sign/buy.Have I regretted it? Yes and no.
Yes for a lease purchase type agreement many years ago, as I didn't realise I HAD to buy the car at the end of the agreement and didn't want to, but that was my fault for not reading the paperwork. A helpful salesman actually got me out of it by pointing out and explaining I could use the VT option to hand the car back.
I'm approaching the end of my 2nd lease and I'm thinking of buying my next car just to get out of the cycle.
I've spent about £14k over 4 years of leasing and have nothing to show for it other than 4 years of trouble free motoring ;-)
The thought of financial hardship mid way through a lease does make me think but I'll have to get a loan to fund a purchase anyway so I'm in 2 minds!
Recently dealing with brokers and their shady advertising practices has pushed me towards buying but I might risk it for a biscuit and get a stock car at the last minute.
I've spent about £14k over 4 years of leasing and have nothing to show for it other than 4 years of trouble free motoring ;-)
The thought of financial hardship mid way through a lease does make me think but I'll have to get a loan to fund a purchase anyway so I'm in 2 minds!
Recently dealing with brokers and their shady advertising practices has pushed me towards buying but I might risk it for a biscuit and get a stock car at the last minute.
yellowbentines said:
cicada273 said:
Definitely avoid these insidious car financing scams schemes if you can. There's a reason why the scamsmen salesmen push them so hard, and it's not for your benefit...
They're not scams though are they. 
So PCP has never been missold...?Definitely avoid imo. Take the cash option or a 2% loan if you have to. The master class is taking the incentives "deposit contribution" then clearing the finance as soon as practicable.
All about keeping people on the treadmill, a definite trap for the unwary.
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