PCP -v- Lease

[Dan_The_Man]

Always bought cars for cash (run arounds mostly (<25K)
Rightly or wrongly this time I'm going to buy a so-called 'premium' car (Audi, BMW ..usual humdrum models) ..its heart rather than head decision

PCP end game after 36months

1. Buy it (the ballon payment aka the guaranteed price)
2. Hand keys back and walk away
3. Roll over (you need another deposit to go again - some equity may supplement)

Either way whatever option you pick ..seems to me you end up with ZERO in terms ownership of the car BUT useful if you end up with some equity depending on demand for that car at the time....(offsets the apr I suppose)

Its a game I'm ok with it ..as I have funds to play around with and buy the car if it suits me

As I'm happy to just pay say 10K pa (normalising repayments and deposit per annum) for the privilege of driving it and walk away when im done (the big ole Diesel Audis/BMW may very well be below balloon payment anyway)....I am considered leasing....

Came across this Lease plan .com (personal plan)
Any experience with this company?
Any feedback personal (not a business plan) Leasing in general over PCP?

 

[Leo]

Came across this Lease plan .com (personal plan)
Any experience with this company?
Any feedback personal (not a business plan) Leasing in general over PCP?

You have to hand the car back at the end of the term, but leases can be an attractive (lower monthly payment) way of regularly upgrading, but it can become a trap and there are strict rules on mileage, servicing and car condition that can bite you.

There are some decent PCP deals to be had if you do need to finance the purchase. They're designed to encourage you replace the car every 3 years. In most cases, the car will be worth more than the final payment at the end of the 3 years, so it makes most financial sense to pay it off with savings, or further finance if you absolutely have to.

LeasePlan's rates start at €594 for the lowest spec BMW 3 Series over 4 years with a 10% deposit with a limit of 10,000km pa. Additional mileage will cost more. All in it will cost So it costs just €33k+ to have the car for 4 years, at the end you walk away with nothing. BMW have a 3.9% APR HP deal which would see you pay €596 per month and €50k over 5 years to own the car outright, albeit with a 30% deposit.