the difference betwen PCP and Leasing ?

[blahblop123]

as far as i'm concerned, PCP is a lease contract plus an option to buy the car outright with balloon payment at the end of the agreement. why do people even offer lease contracts now since PCP does exactly the same thing, only with an option to buy? or are there other advantages to leasing over PCP? :P

[TVR1]

PCP final values are generally fixed, although some finance companies wil allow you adjust them downwards. A lease allows more flexibility with the final payment and therefore possibly lower monthlies but with the gamble of negative equity. Leases would generally be used by a company rather than a private individual. Furthermore, interest is calculated slightly differently on the outstanding amount.

[va1o]

With PCP you are technically taking out a loan for the full amount of the car, which the deposit + monthly payments + balloon payment equates too. Its just dressed up in such a way that the balloon payment is underwritten as a guaranteed future value.

Leasing is not taking out a loan, its just paying a monthly payment for the usage of a vehicle. Generally cars are cheaper this way but you loose a lot of the flexibility PCP offers.

[andy-xr]

Sometimes you might want to own the car at the end of it, or refinance it and keep hold, other times you just want a car for a bit and get shut at the end of the contract without any bullst. I've done both, leasing was easier to get hold of but had a higher initial deposit, 3 months in my case.

[Rick101]

I lease. Flexibility is the main thing.

On PCP the deposit was much higher to get the same monthly as leasing.