Maths check please - lease vs PCP

[mr_spock]

Sorry, I'm sure this has been done to death but...

Preamble (ignore if TL):
I've put a lot of miles on my 2014 BMW 520d, although I deliberately bought a higher milage car to minimise depreciation. I paid 14K, it's worth about 8-9.5K now it's 14 months older and 32K miles on. My driving should now drop to about 15K a year, so I'm thinking about a new car. I really like the Volvo V90 estate, don't care about diesel or petrol but the extra range of the diesel would be handy.

Maths: Don't know what I've missed here... I'm ignoring maintenance, fuel and insurance as it should be the same for PCP/Lease, right?

PCP from Volvo on some "special" deal, V90 Momentum Petrol:
Initial payment 3129
Monthly: 299 x 24
10K miles, extra miles up to 5K over @ 7.56ppm, total for 24 months 152
Tax: 220 I think
Total cost 24 months = 10,676

Lease example, Mill North Volvo:
Initial payment 1075
Monthly 359 x 24
15K miles, extras @ 7.56ppm, cost 0 as I expect to be under
Tax: included
Total cost 24 months = 9,691

Did I miss anything?

[barryrs]

Don’t forget to factor VED costs if applicable.

“The premium tax levied on cars that cost more than £40,000 (and which is payable from years two to six) will also rise from £310 to £320 per year. The premium tax is based on the car’s quoted list price before discounts, plus any options you’ve added. The list price should include on-the-road costs such as delivery and numberplates but excludes the first year’s road tax and initial registration fee.”

[Gareth1974]

Cheaper lease price here https://leasing.com/independent-brokers/alpha-cont...

[mr_spock]

barryrs said:

Don’t forget to factor VED costs if applicable.

“The premium tax levied on cars that cost more than £40,000 (and which is payable from years two to six) will also rise from £310 to £320 per year. The premium tax is based on the car’s quoted list price before discounts, plus any options you’ve added. The list price should include on-the-road costs such as delivery and numberplates but excludes the first year’s road tax and initial registration fee.”

Thanks, I did have that in my spreadsheet, at the wrong number - forgot to type it here! Yes, that would be extra, so the difference is 620 larger. If I go over 15K miles the lease will be cheaper for the extra as PCP is over 10ppm after the first 5000 miles.

Edited by mr_spock on Monday 15th April 11:45

[mr_spock]

Gareth1974 said:

Cheaper lease price here https://leasing.com/independent-brokers/alpha-cont...

Nice, thanks! My thought is to see if Volvo will match that, and they can PX the BMW I think.

It seems that a new Volvo will cost me only about 2-3K more than keeping the BMW, and I get to avoid the ULEZ if I have to go into London. And get a new car. And release some cash.

[PixelpeepS3]

What about depreciation ?

If you lease it, you hand it back at the end of the term, job done.

If you PCP it and keep it, you need to factor in how much you've lost on the original 'investment'

[mr_spock]

PixelpeepS3 said:

What about depreciation ?

If you lease it, you hand it back at the end of the term, job done.

If you PCP it and keep it, you need to factor in how much you've lost on the original 'investment'

Thanks, I don't intend to keep it. I'm expecting my circumstances to change in the next 2 years, hence not looking over the 4 years I'd normally keep a car for.

[soxboy]

Have you run the lease figures based on 10k miles initially and with paying excess to bring it up to 15k?

[Doofus]

mr_spock said:

...
PCP from Volvo on some "special" deal, V90 Momentum Petrol:
Initial payment 3129
Monthly: 299 x 24
10K miles, extra miles up to 5K over @ 7.56ppm, total for 24 months 152
Tax: 220 I think
Total cost 24 months = 10,676

5000 miles at 7.56ppm is £378. Over two years, that's £756, not £152.

[mr_spock]

Doofus said:

mr_spock said:

...
PCP from Volvo on some "special" deal, V90 Momentum Petrol:
Initial payment 3129
Monthly: 299 x 24
10K miles, extra miles up to 5K over @ 7.56ppm, total for 24 months 152
Tax: 220 I think
Total cost 24 months = 10,676

5000 miles at 7.56ppm is £378. Over two years, that's £756, not £152.

Ah, yes, only a factor of 10 out. Spreadsheet fail!

[mr_spock]

soxboy said:

Have you run the lease figures based on 10k miles initially and with paying excess to bring it up to 15k?

For some reason, 15K is cheaper even without the extra milage..

[Gareth1974]

This 10,000 mile deal is cheaper. https://leasing.com/main-dealers/stoneacre-volvo-l...

Adding another 10,000 miles at 7.56p would bring the total up to £9148, however I think only the first 5000 miles extra would be at 7.56p, presumably any above 5000 miles would be at a different rate?

[Gareth1974]

How important is it to have the estate? The saloon is just over £8k for 2 years/15000 miles per annum https://leasing.com/independent-brokers/alpha-cont...

Or the Inscription saloon for the same price as the Momentum estate https://leasing.com/main-dealers/stoneacre-volvo-l...

Edited by Gareth1974 on Monday 15th April 14:17

[Gareth1974]

A6 alternative? https://leasing.com/main-dealers/vertu-audi/audi/a...

[mr_spock]

Thanks Gareth,

if it's like the PCP, extra miles over 5000 are at just over 10ppm. I really need the estate, hence my current 520D Touring. A6 not for me, I like the Volvo partly for the Pilot Assist feature and load area. My piano in its flightcase doesn't quite fit across the 5 series or A6. I think it does in the Volvo. If I don't get it, I'll stick with the BMW for a while. Apart from the fact that it's about to go in for another failed head unit, it's been great.

[ED209]

Try ringing Santander and run some v90 quotes through them. They only seem to do 18 month leases but they have some good deals

I’m getting a v90 t4 r design 10000 miles per year. £314 a month with no deposit

[mr_spock]

ED209 said:

Try ringing Santander and run some v90 quotes through them. They only seem to do 18 month leases but they have some good deals

I’m getting a v90 t4 r design 10000 miles per year. £314 a month with no deposit

Thanks! Will have to check WBAC on my 520 though, see if the savings offset the loss on the PX.

[ED209]

Try ringing Santander and run some v90 quotes through them. They only seem to do 18 month leases but they have some good deals

I’m getting a v90 t4 r design 10000 miles per year. £314 a month with no deposit

[mr_spock]

ED209 said:

Try ringing Santander and run some v90 quotes through them. They only seem to do 18 month leases but they have some good deals

I’m getting a v90 t4 r design 10000 miles per year. £314 a month with no deposit

Thanks - they quoted a V90 T4 Momentum Plus, 10K at 359. I don't get it, since this trim level doesn't exist on the Volvo site. It's a 2020 model apparently..

For the 2019, they quoted a V90 T4 R-design, 10K at 316.21. No deposit on either, and 7.56 ppm for the first 5K over.

Looks good, will get my BMW fixed next week (another head unit failure) then decide.

[nick s]

One thing i'd add for consideration is that there's a chance at the end of PCP you could sell the car and make some money back (which you couldn't with a lease).

A colleague just sold his 2017 Golf R privately at the end of his PCP for 26k (within a day of listing it), and paid off his 21.5k balloon. Walked away with 4.5k!