Treating a PCP like a lease

[arj7]

I've been looking for lease deals on various cars but seem to miss the good ones because my timing is off.
I was wondering what your view is on getting a PCP but treating it like a lease.

So get a car over a 3 year term pay monthly costs towards it then at the end, hand it back, get another deal or buy it?

Am I missing something? What's the difference?

I know a few people who do this but I don't really understand the ins and outs.

For the record I am looking at an S3 Sportback

[anonymous-user]

No, you're not missing anything. PCH/Leasing usually only makes sense over a PCP where the cost over the term for the same car is significantly cheaper on PCH.

The key is to compare the cost of the different ways of financing a new car and pick what works best for you. Brokers/CarWow can result in some huge savings off list for zero effort.

[ikonic]

One thing to consider is if you intend to make a house purchase on a mortgage some time soon, you may want to consider a lease rather than PCP?

In my experience, a lease will only show up the total value of the payments over the term on your credit record, whereas a PCP will show the full retail value (plus interest) of the car against it.

So depending on the car, you could have tens of thousands of more credit against your name on a PCP than a lease.

[arj7]

ikonic said:

One thing to consider is if you intend to make a house purchase on a mortgage some time soon, you may want to consider a lease rather than PCP?

In my experience, a lease will only show up the total value of the payments over the term on your credit record, whereas a PCP will show the full retail value (plus interest) of the car against it.

So depending on the car, you could have tens of thousands of more credit against your name on a PCP than a lease.

I currently have a mortgage, would that affect that?

I've done the sums and i can't get an S3 for a good deal on a lease

[GG89]

arj7 said:

ikonic said:

One thing to consider is if you intend to make a house purchase on a mortgage some time soon, you may want to consider a lease rather than PCP?

In my experience, a lease will only show up the total value of the payments over the term on your credit record, whereas a PCP will show the full retail value (plus interest) of the car against it.

So depending on the car, you could have tens of thousands of more credit against your name on a PCP than a lease.

I currently have a mortgage, would that affect that?

I've done the sums and i can't get an S3 for a good deal on a lease

What deal you got?

[arj7]

GG89 said:

What deal you got?

Nothing really specific was looking at leases and they were all crazy money. Hence why I had the idea for PCP.

[BlueMeganeII]

ikonic said:

One thing to consider is if you intend to make a house purchase on a mortgage some time soon, you may want to consider a lease rather than PCP?

In my experience, a lease will only show up the total value of the payments over the term on your credit record, whereas a PCP will show the full retail value (plus interest) of the car against it.

So depending on the car, you could have tens of thousands of more credit against your name on a PCP than a lease.

It could be better than that. Neither of my last two leases show at all on my credit record, only the regular monthly payment occurring. Both VW Finance leases.

[arj7]

Ive been keeping my eye on the golf r leases missed the boat on those, got into an S3 and fell in love with it.

If I get a tempting a PCP I might go for it!