Discussion
This completely depends on the car you are considering and what mileage you'll cover - quite often there will be PCH deals that are significantly cheaper than those available on PCP and vice versa. Realistically the first thing you need to do is decide on a car and then get quotes for both finance options.
rfoster said:
This completely depends on the car you are considering and what mileage you'll cover - quite often there will be PCH deals that are significantly cheaper than those available on PCP and vice versa. Realistically the first thing you need to do is decide on a car and then get quotes for both finance options.
I have done just that.3x 252 36x 252 pch
or 6k down 1.5k manu deposit and 151 x 36 with a 7.5k end payment
PCH you don't have to pay VED as the lessee does that for you, however as it's their car and not yours any damage at the end is basically up to them what they will charge you and you can get really stung. PCP is usually the same price as PCH or so and if you're that way inclined (and the car is under miles and in good nick, or you've been watching the market) you can pay it off at the end and sell privately for a bit of cash back in your pocket.
PCH is obviously cheaper in this case (£1600 over the term if I have worked it out correctly). Additional advantages may include 'free' road tax for the full term.
The downside of this lower overall PCH outlay is that you are contracted for the full term. No changing your mind and swapping it for something else. With PCP you could effectively pay it off with cash (or another loan) and change (it would cost you, but possible).
The downside of this lower overall PCH outlay is that you are contracted for the full term. No changing your mind and swapping it for something else. With PCP you could effectively pay it off with cash (or another loan) and change (it would cost you, but possible).
chrisx666 said:
PCH is obviously cheaper in this case (£1600 over the term if I have worked it out correctly). Additional advantages may include 'free' road tax for the full term.
The downside of this lower overall PCH outlay is that you are contracted for the full term. No changing your mind and swapping it for something else. With PCP you could effectively pay it off with cash (or another loan) and change (it would cost you, but possible).
yep good point you can't get out of it and 'lease swaps' are not something you can do quite so easily these days. That said on PCP because of the payment profile you are most likely in negative equity all the way to the end so the only option to get out of it is to handback at the halves and quarters, terms permitting.The downside of this lower overall PCH outlay is that you are contracted for the full term. No changing your mind and swapping it for something else. With PCP you could effectively pay it off with cash (or another loan) and change (it would cost you, but possible).
Blown2CV said:
yep good point you can't get out of it and 'lease swaps' are not something you can do quite so easily these days. That said on PCP because of the payment profile you are most likely in negative equity all the way to the end so the only option to get out of it is to handback at the halves and quarters, terms permitting.
Thanks to you both. You have been helpful. The car I'm looking at the VED is only £125 PA so that's not an issue. The issue with damage is interesting. Please can you explain a little further. The car is for my wife and her history of dinging cars isn't the best.
Will dents and dings have an impact on the PCP as well?
tyeo86 said:
Thanks to you both. You have been helpful. The car I'm looking at the VED is only £125 PA so that's not an issue.
The issue with damage is interesting. Please can you explain a little further. The car is for my wife and her history of dinging cars isn't the best.
Will dents and dings have an impact on the PCP as well?
Yes if you return the vehicle, yes if you p/x it as condition obviously has an impact on valuation, no if you keep car at end of agreement The issue with damage is interesting. Please can you explain a little further. The car is for my wife and her history of dinging cars isn't the best.
Will dents and dings have an impact on the PCP as well?
tyeo86 said:
Blown2CV said:
yep good point you can't get out of it and 'lease swaps' are not something you can do quite so easily these days. That said on PCP because of the payment profile you are most likely in negative equity all the way to the end so the only option to get out of it is to handback at the halves and quarters, terms permitting.
Thanks to you both. You have been helpful. The car I'm looking at the VED is only £125 PA so that's not an issue. The issue with damage is interesting. Please can you explain a little further. The car is for my wife and her history of dinging cars isn't the best.
Will dents and dings have an impact on the PCP as well?
Now with PCH you can really get into trouble with damage at the end. It's their car and you broke it
They are able to charge you whatever it says on their damage repair cost policy - you sign up to that (but usually won't get shown it) at the point of purchase. It's usually way over market rates. You'd be best off getting a SMART repairer to go over the car as cheaply as possible before handing it back. Some repairers even do a 'lease pre-handback repair' for this reason. It will obviously cost you, but nowhere near as much as just ignoring it. Multiple panel damage, they could try and get you for thousands in theory. However they are always willing to negotiate on the cost, which is annoying as it obviously means they make decent money from it. Some say this is where they make their money on the entire lease tbh. The best advice you can be given in any case is just to be careful and not ding it
Blown2CV said:
well there is always an impact, but it varies to the amount. Most people who take a PCP don't do a hand-back at the end, mainly they either trade it in and let the dealer they are buying the new car from take care of it all, or they pay it off and sell privately but if the car is a bit tatty this may not be worth doing. Now it might be worth checking the terms but i don't believe on a PCP they care too much about the condition of the car if you were to hand-back, only if it's over mileage (and on PCH that matters too). The condition of the car matters if you are trading it in or selling it privately (as it would in any instance).
Now with PCH you can really get into trouble with damage at the end. It's their car and you broke it They are able to charge you whatever it says on their damage repair cost policy - you sign up to that (but usually won't get shown it) at the point of purchase. It's usually way over market rates. You'd be best off getting a SMART repairer to go over the car as cheaply as possible before handing it back. Some repairers even do a 'lease pre-handback repair' for this reason. It will obviously cost you, but nowhere near as much as just ignoring it. Multiple panel damage, they could try and get you for thousands in theory. However they are always willing to negotiate on the cost, which is annoying as it obviously means they make decent money from it. Some say this is where they make their money on the entire lease tbh.
The best advice you can be given in any case is just to be careful and not ding it
thanks for this I think pcp is gonna be better for me.Now with PCH you can really get into trouble with damage at the end. It's their car and you broke it
They are able to charge you whatever it says on their damage repair cost policy - you sign up to that (but usually won't get shown it) at the point of purchase. It's usually way over market rates. You'd be best off getting a SMART repairer to go over the car as cheaply as possible before handing it back. Some repairers even do a 'lease pre-handback repair' for this reason. It will obviously cost you, but nowhere near as much as just ignoring it. Multiple panel damage, they could try and get you for thousands in theory. However they are always willing to negotiate on the cost, which is annoying as it obviously means they make decent money from it. Some say this is where they make their money on the entire lease tbh. The best advice you can be given in any case is just to be careful and not ding it
tyeo86 said:
Blown2CV said:
well there is always an impact, but it varies to the amount. Most people who take a PCP don't do a hand-back at the end, mainly they either trade it in and let the dealer they are buying the new car from take care of it all, or they pay it off and sell privately but if the car is a bit tatty this may not be worth doing. Now it might be worth checking the terms but i don't believe on a PCP they care too much about the condition of the car if you were to hand-back, only if it's over mileage (and on PCH that matters too). The condition of the car matters if you are trading it in or selling it privately (as it would in any instance).
Now with PCH you can really get into trouble with damage at the end. It's their car and you broke it They are able to charge you whatever it says on their damage repair cost policy - you sign up to that (but usually won't get shown it) at the point of purchase. It's usually way over market rates. You'd be best off getting a SMART repairer to go over the car as cheaply as possible before handing it back. Some repairers even do a 'lease pre-handback repair' for this reason. It will obviously cost you, but nowhere near as much as just ignoring it. Multiple panel damage, they could try and get you for thousands in theory. However they are always willing to negotiate on the cost, which is annoying as it obviously means they make decent money from it. Some say this is where they make their money on the entire lease tbh.
The best advice you can be given in any case is just to be careful and not ding it
thanks for this I think pcp is gonna be better for me.Now with PCH you can really get into trouble with damage at the end. It's their car and you broke it
They are able to charge you whatever it says on their damage repair cost policy - you sign up to that (but usually won't get shown it) at the point of purchase. It's usually way over market rates. You'd be best off getting a SMART repairer to go over the car as cheaply as possible before handing it back. Some repairers even do a 'lease pre-handback repair' for this reason. It will obviously cost you, but nowhere near as much as just ignoring it. Multiple panel damage, they could try and get you for thousands in theory. However they are always willing to negotiate on the cost, which is annoying as it obviously means they make decent money from it. Some say this is where they make their money on the entire lease tbh. The best advice you can be given in any case is just to be careful and not ding it
chrisx666 said:
In either case if you return the car at the end of the agreement you need to sort significant wheel scuffs etc. beforehand. No different for PCP/PCH. Check the company is a member of the BVRLA, who publish clear guidelines on what is and what is not acceptable wear and tear.
ok thanks buddy.you have all been very helpful
va1o said:
PCP is best for the flexibility as you can come out early and adjust your deposit etc. PCH is only good if you can commit to the monthly payment and mileage limit, which if your circumstances suddenly change could be a problem.
you can put a higher deposit with PCH too, to reduce the payments, but it works out to the same end. At least with PCP if you buy cleverly and own carefully you stand a chance of getting a chunk of money back. I once put £6k down on a PCP and got it back in equity at the end. Gassing Station | General Gassing | Top of Page | What's New | My Stuff