Golf R or a45 - Pcp or Contract lease?
Discussion
Hi all,
I have been searching for a new motor and am looking at getting a hot hatch. I was looking at the a45, drove one before and loved it but the pcp price is quite steep, the cheapest I come across is £490 a month with 7k deposit for 3 years. I have also looked at the golf R, on pcp the cheapest I seen is £420 a month with 6k deposit for 3 years but on contract lease it came to £360 a month with 4K initial rental on a 2 year lease. I want to know which deal would be better, pcp or lease?
I have been searching for a new motor and am looking at getting a hot hatch. I was looking at the a45, drove one before and loved it but the pcp price is quite steep, the cheapest I come across is £490 a month with 7k deposit for 3 years. I have also looked at the golf R, on pcp the cheapest I seen is £420 a month with 6k deposit for 3 years but on contract lease it came to £360 a month with 4K initial rental on a 2 year lease. I want to know which deal would be better, pcp or lease?
I assume you've done the math on total cost of ownership, based on the amount of time you intend to keep the car, and balanced your requirements based on the attributes of each of the financing methods?
For example, the lease may be the cheapest, but you have to commit to a term and there's little/no way of getting out of the lease early without significant cost.
For example, the lease may be the cheapest, but you have to commit to a term and there's little/no way of getting out of the lease early without significant cost.
That a45 deal is 36 x £490 + £7000.
That's £24640 to effectively borrow the car from Merc on the assumption you don't pay extra to buy the car at the end.
Why don't you just get a personal loan for £25k, buy a couple year old a45 or Golf R and then when its paid off you actually own a car at the end?
Even if you only want to keep it for a couple of years, a 2 year old a45 is not going to depreciate 24k in that time. You'd save yourself a huge amount.
For context:
You buy a 2 year old Golf R for 22k using a personal loan. The loan is 5% so you owe the bank £23100 and you are paying £300 a month.
You keep the car for 3 years, piling on 30k miles. At this point you've paid the bank £10800.
You decide you want a new car, anything you get for the car above £12300 is yours to keep - I'd estimate 3k.
Repeat with the next car.
That's £24640 to effectively borrow the car from Merc on the assumption you don't pay extra to buy the car at the end.
Why don't you just get a personal loan for £25k, buy a couple year old a45 or Golf R and then when its paid off you actually own a car at the end?
Even if you only want to keep it for a couple of years, a 2 year old a45 is not going to depreciate 24k in that time. You'd save yourself a huge amount.
For context:
You buy a 2 year old Golf R for 22k using a personal loan. The loan is 5% so you owe the bank £23100 and you are paying £300 a month.
You keep the car for 3 years, piling on 30k miles. At this point you've paid the bank £10800.
You decide you want a new car, anything you get for the car above £12300 is yours to keep - I'd estimate 3k.
Repeat with the next car.
Edited by Hammy98 on Thursday 26th July 11:45
Hammy98 said:
That a45 deal is 36 x £490 + £7000.
That's £24640 to effectively borrow the car from Merc on the assumption you don't pay extra to buy the car at the end.
Why don't you just get a personal loan for £25k, buy a couple year old a45 or Golf R and then when its paid off you actually own a car at the end?
Even if you only want to keep it for a couple of years, a 2 year old a45 is not going to depreciate 24k in that time. You'd save yourself a huge amount.
For context:
You buy a 2 year old Golf R for 22k using a personal loan. The loan is 5% so you owe the bank £23100 and you are paying £300 a month.
You keep the car for 3 years, piling on 30k miles. At this point you've paid the bank £10800.
You decide you want a new car, anything you get for the car above £12300 is yours to keep - I'd estimate 3k.
Repeat with the next car.
You haven't included the costs of MOT, Tax, Major service, the likely earlier replacement of the part worn tires etc, all of which add up and detract from the appeal of a used car.That's £24640 to effectively borrow the car from Merc on the assumption you don't pay extra to buy the car at the end.
Why don't you just get a personal loan for £25k, buy a couple year old a45 or Golf R and then when its paid off you actually own a car at the end?
Even if you only want to keep it for a couple of years, a 2 year old a45 is not going to depreciate 24k in that time. You'd save yourself a huge amount.
For context:
You buy a 2 year old Golf R for 22k using a personal loan. The loan is 5% so you owe the bank £23100 and you are paying £300 a month.
You keep the car for 3 years, piling on 30k miles. At this point you've paid the bank £10800.
You decide you want a new car, anything you get for the car above £12300 is yours to keep - I'd estimate 3k.
Repeat with the next car.
Edited by Hammy98 on Thursday 26th July 11:45
Oh and any potentially ruiness out of warranty repairs!!
From your options you pay
£686 per month for merc
£527 for leased golf
£587 for pcp golf. If you can afford/justify the above from your take home pay then go the merc as the nicer car. Personally I would also get a loan for a used car instead, but glad some people buy these new as keep supply of used cheaper ones for rest of us.
£686 per month for merc
£527 for leased golf
£587 for pcp golf. If you can afford/justify the above from your take home pay then go the merc as the nicer car. Personally I would also get a loan for a used car instead, but glad some people buy these new as keep supply of used cheaper ones for rest of us.
About a month ago I ordered a Golf GTI ( Stourbridge VW Steve )
I haven't got all the figures with me at the mo but a direct lease with VW was approximatly £150 cheaper per month than PCP. It was a special offer that PCP couldn't get near. Downside as said above you're in a lease deal but I can manage a GTi for 3 years easy ;-). The offer may still be on, any dealer should see it as it is VW direct.
Have fun
I haven't got all the figures with me at the mo but a direct lease with VW was approximatly £150 cheaper per month than PCP. It was a special offer that PCP couldn't get near. Downside as said above you're in a lease deal but I can manage a GTi for 3 years easy ;-). The offer may still be on, any dealer should see it as it is VW direct.
Have fun
mikey P 500 said:
From your options you pay
£686 per month for merc
£527 for leased golf
£587 for pcp golf. If you can afford/justify the above from your take home pay then go the merc as the nicer car. Personally I would also get a loan for a used car instead, but glad some people buy these new as keep supply of used cheaper ones for rest of us.
How many miles is the lease quote based on? This Golf R deal works out at £368 a month, for 10k miles per year - a lot cheaper than the £527 above https://leasing.com/independent-brokers/smart-leas...£686 per month for merc
£527 for leased golf
£587 for pcp golf. If you can afford/justify the above from your take home pay then go the merc as the nicer car. Personally I would also get a loan for a used car instead, but glad some people buy these new as keep supply of used cheaper ones for rest of us.
I'm considering a PCP at the moment, on an EV - because I don't really want to own a 3 year old EV in the future. For a nice ICE I'd probably be more inclined to own it on finance or loan, especially if you've got £7k spare for a deposit.
Having said that, "they" reckon car hire/loan per usage is the future, might as well get used to it now.
Having said that, "they" reckon car hire/loan per usage is the future, might as well get used to it now.
Integroo said:
21k to drive a Golf for three years. Wow.
Only if you don’t shop around 3 year deal for £12.7k https://leasing.com/independent-brokers/neva-direc...Uahmed92 said:
Hi all,
I have been searching for a new motor and am looking at getting a hot hatch. I was looking at the a45, drove one before and loved it but the pcp price is quite steep, the cheapest I come across is £490 a month with 7k deposit for 3 years. I have also looked at the golf R, on pcp the cheapest I seen is £420 a month with 6k deposit for 3 years but on contract lease it came to £360 a month with 4K initial rental on a 2 year lease. I want to know which deal would be better, pcp or lease?
That lease deal on the Golf isn't great. For example on a 9+23 with 8k miles/yr I paid £2800 initial and £311/mo for fully maintained (includes all tyres, servicing etc) on a 5dr DSG, the only option I added was metallic paint.I have been searching for a new motor and am looking at getting a hot hatch. I was looking at the a45, drove one before and loved it but the pcp price is quite steep, the cheapest I come across is £490 a month with 7k deposit for 3 years. I have also looked at the golf R, on pcp the cheapest I seen is £420 a month with 6k deposit for 3 years but on contract lease it came to £360 a month with 4K initial rental on a 2 year lease. I want to know which deal would be better, pcp or lease?
Edited by Funk on Thursday 26th July 13:52
Funk said:
Uahmed92 said:
Hi all,
I have been searching for a new motor and am looking at getting a hot hatch. I was looking at the a45, drove one before and loved it but the pcp price is quite steep, the cheapest I come across is £490 a month with 7k deposit for 3 years. I have also looked at the golf R, on pcp the cheapest I seen is £420 a month with 6k deposit for 3 years but on contract lease it came to £360 a month with 4K initial rental on a 2 year lease. I want to know which deal would be better, pcp or lease?
That lease deal on the Golf isn't great. You should be looking closer to £300/mo on a 9+23 with 8-10k miles/yr. I paid £2800 initial and £311/mo for fully maintained (includes all tyres, servicing etc) on a 5dr DSG, the only option I added was metallic paint.I have been searching for a new motor and am looking at getting a hot hatch. I was looking at the a45, drove one before and loved it but the pcp price is quite steep, the cheapest I come across is £490 a month with 7k deposit for 3 years. I have also looked at the golf R, on pcp the cheapest I seen is £420 a month with 6k deposit for 3 years but on contract lease it came to £360 a month with 4K initial rental on a 2 year lease. I want to know which deal would be better, pcp or lease?
rudester said:
You haven't included the costs of MOT, Tax, Major service, the likely earlier replacement of the part worn tires etc, all of which add up and detract from the appeal of a used car.
Oh and any potentially ruiness out of warranty repairs!!
A pale amount in comparison to paying nearly 25k to borrow a car over 3 years.Oh and any potentially ruiness out of warranty repairs!!
EDIT: Nothing to stop you extending the manufacturer warranty once the balance expires, you'd still be paying much, much less than if you were to PCP a new one. Not to mention I was lowballing with my estimated value - I'm sure last time I checked the cheapest non Cat D Golf R on Autotrader was 17k+ with nearly 70k miles.
Edited by Hammy98 on Thursday 26th July 14:04
Hammy98 said:
A pale amount in comparison to paying nearly 25k to borrow a car over 3 years.
EDIT: Nothing to stop you extending the manufacturer warranty once the balance expires, you'd still be paying much, much less than if you were to PCP a new one. Not to mention I was lowballing with my estimated value - I'm sure last time I checked the cheapest non Cat D Golf R on Autotrader was 17k+ with nearly 70k miles.
Is the £25k you refer to for the A45? You can get a much better deal than that, £15.8k for 3 years here https://leasing.com/independent-brokers/rgw-vehicl...EDIT: Nothing to stop you extending the manufacturer warranty once the balance expires, you'd still be paying much, much less than if you were to PCP a new one. Not to mention I was lowballing with my estimated value - I'm sure last time I checked the cheapest non Cat D Golf R on Autotrader was 17k+ with nearly 70k miles.
Edited by Hammy98 on Thursday 26th July 14:04
Gareth1974 said:
Is the £25k you refer to for the A45? You can get a much better deal than that, £15.8k for 3 years here https://leasing.com/independent-brokers/rgw-vehicl...
Yep I just pulled that figure from the OPs initial post. £15.8k makes things a bit more reasonable, I assume that's unmaintained yeah?If so we're really just comparing the cost of the lease compared to expected depreciation. Admittedly you get a new car when leasing so the cost associated with mechanical failures is nil, however the cheapest A45 on Autotrader is 20k with 68k miles. So buying a low mileage car for 25-30k is still going to save you between 5k and 10k over leasing.
Obviously any mechanical failures would eat into the saving, but unless something catastrophic goes wrong you aren't going to be spending the full saving on maintenance. - Not to mention should your circumstances change after a year the value of the car should exceed the amount owed, so you should be able to get out relatively easily.
Edited by Hammy98 on Thursday 26th July 14:26
Edited by Hammy98 on Thursday 26th July 14:26
Are we really going to get into the ‘2nd hand cars are cheaper than new cars’ debate, again?
I’ve been looking at Golf Rs and new 310 DSGs can be had for 29,500 new. Any calculation on percentage cost over time would usefully refer to that figure.
If you look at the leasing thread, they have a rough formula for what represents a good lease deal. The golfs probably don’t do too well at current rates.
I’ve been looking at Golf Rs and new 310 DSGs can be had for 29,500 new. Any calculation on percentage cost over time would usefully refer to that figure.
If you look at the leasing thread, they have a rough formula for what represents a good lease deal. The golfs probably don’t do too well at current rates.
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