To lease or PCP
Author
Discussion

jimbop1

Original Poster:

2,441 posts

234 months

Saturday 5th October 2013
quotequote all
Hopefully this is in the correct forum.

Just wondering if anyone knows the advantages and disadvantages of leasing rather than a dealer PCP deal?
Are service and tax included in leasing a vehicle?

Any help would be much appreciated!

Cheers

Truckosaurus

13,290 posts

314 months

Saturday 5th October 2013
quotequote all
Servicing can either be included in a lease or not.

Tax usually is (as you probably won't have the V5)

The advantage of a lease is the possibility of a bargain if the manufacturer wants to offer discounts (eg. Mercedes)

Disadvantage is that you hand the car back with nothing to show for your efforts (for good or ill)

Also, certain options are expensive on leased cars.

HarryW

16,052 posts

299 months

Saturday 5th October 2013
quotequote all
I aSsumed I'd have nothing to show for it at the end. Therefore I'd go with the lowest monthly total deal on either of them. Works for me....

jimbop1

Original Poster:

2,441 posts

234 months

Saturday 5th October 2013
quotequote all
I'm on a pcp at the moment. Put 6 grand down as a deposit 3 years ago and won't make anything on the car now.
That's why I'm asking for the benefits of leasing really because I don't believe I could make any money on either.



Andy665

4,197 posts

258 months

Saturday 5th October 2013
quotequote all
Impossible to give a definitive answer, depends on:

1. What your circumstances are and what you want to achieve

2. The car you want

3. The deals on offer


okie592

2,711 posts

197 months

Saturday 5th October 2013
quotequote all
Leasing is normally much better, especially if it's on a car you won't want to keep after the term is over.

You can get maintained leases which included tyres, servicing, your tax Ect. You are limited to your mileage but you have that on pcp too. The deposit is normally a lot smaller too.

A pcp is good if you want to keep the car at the end of the 3 years where you just pay off the final payment, or hand it back and then you can sit the difference in the value of the car and the remaining finance payment as a deposit on a new car, useful if your going to buy another model from the same dealer. Servicing is not normally included nor are tyres, but you can buy plans or they are thrown in with finance payment.
The deposits always seem a bit high for me, for instance a jag xf you put down somthing like 11k and then £400 a month but then you can get a lease with £2k down and a &500 payment a month all in. Just seems better to me

I would personally lease, there's not many cars that are special enough to keep after the term tbh.


SV8Predator

2,102 posts

195 months

Saturday 5th October 2013
quotequote all
jimbop1 said:
because I don't believe I could make any money on either.
How could you possibly expect to 'make any money?'


jimbop1

Original Poster:

2,441 posts

234 months

Saturday 5th October 2013
quotequote all
SV8Predator said:
jimbop1 said:
because I don't believe I could make any money on either.
How could you possibly expect to 'make any money?'
Badly worded!

I meant have anything to sell at the end. Unless obviously I bought the car out right on the pcp. Still wouldn't get the deposit Back I out down though

jimbop1

Original Poster:

2,441 posts

234 months

Saturday 5th October 2013
quotequote all
The way I see it is after 3 years pcp I just hand the car back or buy it out right. Won't get anything towards a new car with bmw so lost my deposit!

I'm never going to keep a car long than 3 or 4 years. Looks like I should lease now then?


okie592

2,711 posts

197 months

Saturday 5th October 2013
quotequote all
This is pistonheads so I'm afraid I do have to suggest buying a £1000 mx5.

I would personally lease, yes you loose your deposit at the end but your loosing that now. And even if
You did have equaty left in your BMW now, you would still loose that if you wanted to buy a Merc or such like.

Depends what car you want really, currently loads of good run out deals. Iirc some people on here have got c63 amgs on lease for less than £500 a month, similar or a m3.

Shop about really. It's worth mentioning looking at pre reg cars with a bank loan, then you can sell when you want, still have the car at the end, normally cheaper, bit adds servicing and tax etc.

jimbop1

Original Poster:

2,441 posts

234 months

Sunday 6th October 2013
quotequote all
okie592 said:
This is pistonheads so I'm afraid I do have to suggest buying a £1000 mx5.

I would personally lease, yes you loose your deposit at the end but your loosing that now. And even if
You did have equaty left in your BMW now, you would still loose that if you wanted to buy a Merc or such like.

Depends what car you want really, currently loads of good run out deals. Iirc some people on here have got c63 amgs on lease for less than £500 a month, similar or a m3.

Shop about really. It's worth mentioning looking at pre reg cars with a bank loan, then you can sell when you want, still have the car at the end, normally cheaper, bit adds servicing and tax etc.
It is pistonheads so instead of the mx5 I'm going for the next best thing... 330d!! Ha sorry but it's true. Got the real toy in the garage locked up wink

May very well look into a bank loan! Very much liking the lease idea though

Thanks for your input guys

poing

8,743 posts

230 months

Sunday 6th October 2013
quotequote all
jimbop1 said:
It is pistonheads so instead of the mx5 I'm going for the next best thing... 330d!! Ha sorry but it's true. Got the real toy in the garage locked up wink

May very well look into a bank loan! Very much liking the lease idea though

Thanks for your input guys
Bank loan can be a better rate but often dealers will give bigger discounts with a lease but won't with a cash purchase because they make more profit selling the finance/lease etc. It's a balancing act and varies a lot. If going for a lease have a look at the various online brokers and take that price to the dealer to see if they can match or better it.

jimbop1

Original Poster:

2,441 posts

234 months

Sunday 6th October 2013
quotequote all
poing said:
Bank loan can be a better rate but often dealers will give bigger discounts with a lease but won't with a cash purchase because they make more profit selling the finance/lease etc. It's a balancing act and varies a lot. If going for a lease have a look at the various online brokers and take that price to the dealer to see if they can match or better it.
Bloody good idea!! What do you think are the chances of a dealer matching a lease deal?

Andy665

4,197 posts

258 months

Sunday 6th October 2013
quotequote all
If you have absolutely no interest whatsoever in keeping the car at the end of the period then lease would be worth investigating

PCP offers all the advantages of a lease but also the option of keeping the car at the end of the agreement - many manufacturers are offering good levels of deposit subsidy on PCP deals

It should all come down to the numbers - work out how long you want the car for and work out whats going to be cheapest - its really no more complicated than that

okie592

2,711 posts

197 months

Sunday 6th October 2013
quotequote all
Lots of websites will have lease desks at good rates, not sure which is the best but first vehicle leasing had a Astra gtc 1.4 turbo for £160 maintained which was a bargain IMO.

Some dealers will match but it's normally called hire purchase or contract hire

Little Lofty

3,906 posts

181 months

Sunday 6th October 2013
quotequote all
Lease is normally cheaper, but it does depend on the model your after.The only advantage with a PCP is that you can end it at any time, whereas a lease is very expensive to get out of mid term.You dont have to buy another BMW if you have a BMW PCP, it can be traded at any dealer at any time.