Lease or PCP?

[looksfast]

Evening all. I am chewing something over and would appreciate thoughts and any advice please. My Wife's PCP is due to expire in a couple of months and the favourites are a Volvo XC60 or a Q5. The question though is whether we take out a PCP or a lease given that it seems to me that with a lease we will have to accept the car largely as specified or pay through the nose for extras which seem very expensive on a monthly basis? The addition of extras on a pcp doesnt seem to have the same effect and might perhaps improve the Final Payment (or whatever it is called).

I haven't gone completely anorak on the specifications so can't say exactly what extras we want, but air suspension is one and that clearly is not dealer fit.

Anyhoo - that's part of the thinking which I wanted to get thoughts on please.

Thanks

[numtumfutunch]

You need to do some research of your own Im afraid

A patient broker will tell you what options cost on a lease car

PCP works in a similar way
Some options lift the GFV and so cost less over the term, but for most you just pay the full cost with no return at the end

For PCP there are several easily found resources online with published monthly costs of options and effects on residual

Id personally have loved a towbar
Both lease and PCP would have just divided the cost by the term and added it to the price with no value at the end

My leased BMW had a modest uplift for the pro nav (waste of space) and so it cost me half of the cash price over 2y
Most, but not all, options are just added to the term in full

Cheers

[looksfast]

Thanks for the reply; I had wondered if there were some golden rules or rules of thumb to follow as I have seen a few comments suggesting as much.

I shall do the maths and pore over specifications!

Thanks

[rsbmw]

There are only two considerations really, what's it costing you over your planned ownership period, and do you need the additional flexibility a PCP offers (being able to shift it on in 12 months if your circumstances change).

[Yipper]

The only number that matters is total cost of ownership (TCO).

Estimate how long you might own it. Calculate the total cost, in £. And whatever is the lowest number wins.

It matters not, whether you use PCP, PCH (lease), or magic beans.

[Big GT]

OP I'm in same position.

Lease depends on the deal or promotion from the manufacture or dealer. Usually at the end of each quarter so Aug Sept are good time.
For example a £30000 Jag maybe 350 per month but a £ 30000 Mercedes 550 per month. Whereas on PCP the figures would be similar.

I'm looking at a golf GTE. To PCP over 36 months its around 450 month, to lease £350 month (inc VAT)

the advantage of lease is it just goes back!
But as others have mentioned PCP is more flexible and better if you option up the car.

I todays climate with unknown residuals on diesel and Hybrids I would lease if the deal is right.

[deason]

I'll be in the same boat soon on this.

Lease is new to me, but residual value and the level of NE i've got on my current car that is on PCP alarms me.

Tis a Audi so maybe its just them on the slide since diesel gate?

[anonymous-user]

How far in to the PCP are you?

It’s perfectly normal for PCPs with small deposits to be fairly heavily in negative equity especially in the first couple of years, they only really tend to catch up and move into having a little positive equity when the depreciation curve settles down later in the cars life.

[deason]

charltjr said:

How far in to the PCP are you?

It’s perfectly normal for PCPs with small deposits to be fairly heavily in negative equity especially in the first couple of years, they only really tend to catch up and move into having a little positive equity when the depreciation curve settles down later in the cars life.

Enough to do a VT, but i'm still going to lose money on it getting it back to them. Just a case of how little that amount can be...

[anonymous-user]

I don’t understand, how can you lose money on a PCP, just hand the car back at the end and walk away? OK you may not have much or any equity but you I didn’t think you have to make up any shortfall. If you’re in a position to VT it must be not far off finished anyway?

[rsbmw]

you don't lose money VTing either, just tell them where to collect the car and that's it.

[valiant]

You can't lose money on a pcp if you keep it straight and within agreed mileage allowance. That's one of the benefits of pcp. If the market tanks then you simply hand them the keys and walk away as it's the dealers/manufacturers problem, not yours.
Ok you will have to find the deposit for the next car but I find that manufacturers are pretty accurate that their GMFV matches what the car is really worth at the end.

[deason]

Ok, sorry, phrased wrong.

I've miscalculated the best length for my PCP (was set to have to fork money on servicing) and condition (Door damage somebody did i need to pay to repair), and mileage is a bit over.