Help with my PCP/Lease deals

[Grim_Reaper]

hey guys

need a bit of advice with some PCP or lease deals. my last car engine blew, and only can afford £750 deposit. Want to keep the monthly repayments below £415 preferably. I've spoken with two dealers and currently have 2 options:

- 2016 Skoda Superb L&K estate with 70,000 miles. Car price is roughly £15,000. I'm getting PCP with Deposit: £750, Term: 25, Monthly: £415, Balloon: £6,500, Mileage: 10,000. 2 years warranty, servicing and MOT.

- 2017 BMW 520d M Sport estate with 70,000 miles. Car price is roughly £18,000. I'm getting PCP with Deposit: £750, Term: 36, Monthly: £361, Balloon: £9,000, Mileage: 10,000. 1 year warranty.

I've never bought a car with PCP or HP. My cars are usually bought outright, and for less than £4,000.

Just need some advice on whether these are good deals, and if not, can someone point me in the right direction. Need an estate that's nice to drive and can eat up the motorway miles. also, i am familiar with how PCP, HP and leasing works, and with both the PCPs i do NOT plan to pay the optional payment at the end to own the car.

thanks

Edited by Grim_Reaper on Tuesday 11th June 11:38

[Tommo87]

Are you intending to definitely NOT pay off the balloon payment at the end and just hand the car back under half’s and thirds rules.

If so, then that £400 might be better sunk into a new car lease so you get new car warranty.


https://www.pistonheads.com/gassing/topic.asp?h=0&...

For example this week.

08jsmi said:

Just opted for one of the DSG Seat Ibiza's in Xcellence Lux trim from Nationwide Vehicle Contracts, estimated delivery in August.

1+23 | 8000 miles | £249.32

Not the best deal there's ever been by a longshot, but equally not awful IMO in current conditions. Needs must, unfortunately.

Edited by 08jsmi on Monday 10th June 09:50

Lease prices include VED also, unlike PCP, so you can save a bit there.

Edited by Tommo87 on Tuesday 11th June 11:59

[Grim_Reaper]

said:

Won't pay either of the balloon payments. Didn't know about the halves and third rules. I did read through the contract of the PCP, and saw that I could possibly terminate the contract for the Skoda. Haven't looked at the BMW contract

[Tommo87]

Grim_Reaper said:

said:

Won't pay either of the balloon payments. Didn't know about the halves and third rules. I did read through the contract of the PCP, and saw that I could possibly terminate the contract for the Skoda. Haven't looked at the BMW contract

Once you have paid a third of the ‘invoice total price’ they cannot repossess.
Once you have paid half of that value, you can hand the car back and walk away.

[Fox-]

These cars are quite old to be taking out this sort of finance agreement on, especially with only a year of warranty. It's all very well intending to hand the car back but they are at the point in their life where they are going to need money spending on them at some point over the next 3 years - this is a good investment if its your car but do you really want to be having to pay to maintain and repair a car you intend to hand back?

The 5 Series is almost £14,000 spent to simply use it for 3 years until its a decade old and then hand it back, before you've spent any money on repairs and maintenance.

Edited by Fox- on Tuesday 11th June 12:04

[Gericho]

Grim_Reaper said:

I've never bought a car with PCP or HP. My cars are usually bought outright, and for less than £4,000.

That's what I'd do. Although I'd spend a little more than £4k.

[Grim_Reaper]

Tommo87 said:

Once you have paid a third of the ‘invoice total price’ they cannot repossess.
Once you have paid half of that value, you can hand the car back and walk away.

Ah okay, that's made it interesting then. So I could have the BMW for 1.5 years and then terminate. Doesn't sound so bad now

[Grim_Reaper]

Fox- said:

These cars are quite old to be taking out this sort of finance agreement on, especially with only a year of warranty. It's all very well intending to hand the car back but they are at the point in their life where they are going to need money spending on them at some point over the next 3 years - this is a good investment if its your car but do you really want to be having to pay to maintain and repair a car you intend to hand back?

The 5 Series is almost £14,000 spent to simply use it for 3 years until its a decade old and then hand it back, before you've spent any money on repairs and maintenance.

Edited by Fox- on Tuesday 11th June 12:04

You're right, it does get quite expensive. These are the prices after I've tried haggling too, so there isn't anymore wiggle room. That's one of the biggest downsides with the BMW. If something fails after the warranty, it will be expensive.

[Terzo123]

Grim_Reaper said:

hey guys

need a bit of advice with some PCP or lease deals. my last car engine blew, and only can afford £750 deposit. Want to keep the monthly repayments below £415 preferably. I've spoken with two dealers and currently have 2 options:

- 2016 Skoda Superb L&K estate with 70,000 miles. Car price is roughly £15,000. I'm getting PCP with Deposit: £750, Term: 25, Monthly: £415, Balloon: £6,500, Mileage: 10,000. 2 years warranty, servicing and MOT.

- 2017 BMW 520d M Sport estate with 70,000 miles. Car price is roughly £18,000. I'm getting PCP with Deposit: £750, Term: 36, Monthly: £361, Balloon: £9,000, Mileage: 10,000. 1 year warranty.

I've never bought a car with PCP or HP. My cars are usually bought outright, and for less than £4,000.

Just need some advice on whether these are good deals, and if not, can someone point me in the right direction. Need an estate that's nice to drive and can eat up the motorway miles. also, i am familiar with how PCP, HP and leasing works, and with both the PCPs i do NOT plan to pay the optional payment at the end to own the car.

thanks

Edited by Grim_Reaper on Tuesday 11th June 11:38

With the £750 quid downpayment , a personal loan for the Skoda over 4 years can be had for £334 quid a month, or £433 a month over 3 years.

[Andy665]

Grim_Reaper said:

Ah okay, that's made it interesting then. So I could have the BMW for 1.5 years and then terminate. Doesn't sound so bad now

You can end a PCP at any time in exactly the same way as any other HP agreement

To Voluntarily Terminate you need to have paid back 50% of the Total Amount Payable, at 1.5 years in to the BMW agreement you'd still be a long way from that point - rough estimation is you would be in a VT position around month 29

Edited by Andy665 on Tuesday 11th June 12:29

[BUG4LIFE]

If you got £400 a month to spend on a car [a decent amount of cash], why not get a loan over 3 years and buy a car outright. At the end of the 3 years you'll have a car to sell then [or keep]?

[ThingsBehindTheSun]

Grim_Reaper said:

- 2016 Skoda Superb L&K estate with 70,000 miles. Car price is roughly £15,000. I'm getting PCP with Deposit: £750, Term: 25, Monthly: £415, Balloon: £6,500, Mileage: 10,000. 2 years warranty, servicing and MOT.

£750 + (25 X £415) + £6500 = £17,625

Grim_Reaper said:

- 2017 BMW 520d M Sport estate with 70,000 miles. Car price is roughly £18,000. I'm getting PCP with Deposit: £750, Term: 36, Monthly: £361, Balloon: £9,000, Mileage: 10,000. 1 year warranty.

£750 + (36 X £361) + £9000 = £22746

Is it me or do both of these quotes seem a lot of money to pay for a seven/eight year old car with 70K miles on the clock?

Grim_Reaper said:

I've never bought a car with PCP or HP. My cars are usually bought outright, and for less than £4,000.

Personally that is exactly what I would do. That is less than the interest you would be paying on the BMW.

If you are set on handing it back, why don't you just lease something brand new?

[PistonTim]

Insane money to be spending on 7/8 year old cars - plus the running costs of the BMW in particular.

[Chris Peacock]

£9k personal loan over 2 years is about £400pm. That would buy you a decent enough car with no restrictions and it'll still be worth a reasonable amount at the end.

Either that or lease something new.

I wouldn't recommend using PCP for a car already 7+ years old.

[Robertb]

Given the quite large sums involved, personally I'd speak to a lease specialist and see what deals they have in comparison for your monthlies... some manufacturers may be looking to shift stock, and it would be great to know the monthly is an "all in" cost.

[jaydeeuk1]

PistonTim said:

Insane money to be spending on 7/8 year old cars - plus the running costs of the BMW in particular.

Exactly. And what will OP do when if / when the BMW develops a catastrophic fault? Massive amount of finance left and no car.

Edited by jaydeeuk1 on Tuesday 11th June 22:25

[Richtea1970]

I don’t want to be rude here OP but if you are struggling to put a £750 deposit together, do you really want to be paying £400 a month on a car?

[Grim_Reaper]

Hey guys,

thanks for the replies and help. made some valid points especially about the potential faults on the BMW and having to fork out the monthly payments.

started looking at lease deals yesterday, and found an astra estate for a great price!

appreciate all advice