S3 - lease vs PCP
Discussion
I'm thinking of buying a new S3 saloon with comfort and sound pack, and can't decided between leasing or PCP, or possibly even outright purchase.
Best approx total cost lease deals I'm seeing are:
24 months £18k
36 months £21k
48 months £25k
The best value seems to be 48 months but obviously need to factor in a year out of warranty, MOT, service and consumables like tyres.
If I went the PCP route total costs for 48 months, inc deposit, would be approx £29k with final payment of £19k to own outright. Though if I paid cash I would save just over £7k in interest!
I'm not sure how long the high used car prices would hold for, but based on the demand and high residuals for S3's, would it be worth taking the risk of PCP/buying? With the lease deals looking poor logic is swaying me away from it. Assumming I keep the car for 4 years, I would be better off even if the car was worth £19k. £19k for a 4 year old low mileage S3 seems low, even before the mad used prices.
Best approx total cost lease deals I'm seeing are:
24 months £18k
36 months £21k
48 months £25k
The best value seems to be 48 months but obviously need to factor in a year out of warranty, MOT, service and consumables like tyres.
If I went the PCP route total costs for 48 months, inc deposit, would be approx £29k with final payment of £19k to own outright. Though if I paid cash I would save just over £7k in interest!
I'm not sure how long the high used car prices would hold for, but based on the demand and high residuals for S3's, would it be worth taking the risk of PCP/buying? With the lease deals looking poor logic is swaying me away from it. Assumming I keep the car for 4 years, I would be better off even if the car was worth £19k. £19k for a 4 year old low mileage S3 seems low, even before the mad used prices.
I do between 4k and 6k a year and tend to keep my cars for 4-5 years.
I'm flexible with the deposit for both lease and PCP. WIth lease I've read go with the minimum, i.e. 1 month. For PCP quote I chose £3k. Usually I'd stick to the PCP payments but the £7k interest Audi finance is charging it's making me think twice about finance.
Though I would like to try out leasing, the figures I'm finding just don't seem to stack for up a car like the S3 or Golf R, which usually hold their value really well. Calculations are telling me PCP or cash is the way to go in the scenario.
I'm flexible with the deposit for both lease and PCP. WIth lease I've read go with the minimum, i.e. 1 month. For PCP quote I chose £3k. Usually I'd stick to the PCP payments but the £7k interest Audi finance is charging it's making me think twice about finance.
Though I would like to try out leasing, the figures I'm finding just don't seem to stack for up a car like the S3 or Golf R, which usually hold their value really well. Calculations are telling me PCP or cash is the way to go in the scenario.
Thanks for the responses so far. I own my existing car which is worth about £15k p/x. I've got enough savings to buy in cash.
I didn't realise the VWFS inflexibility (55% of outstanding monthlies to be paid), makes leasing even more unattractive. Haven't test driven the new S3 but looking to arrange something in the next couple of weeks. Due to lack of dealer/manufacturer incentives, it looks like I'll buy outright if I like it. Even if the car is worth less than £19k after 4 years, by saving £7k interest I'm still better off, unless the car is worth less than £12k.
I didn't realise the VWFS inflexibility (55% of outstanding monthlies to be paid), makes leasing even more unattractive. Haven't test driven the new S3 but looking to arrange something in the next couple of weeks. Due to lack of dealer/manufacturer incentives, it looks like I'll buy outright if I like it. Even if the car is worth less than £19k after 4 years, by saving £7k interest I'm still better off, unless the car is worth less than £12k.
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