PCP vs Lease on a Polestar 4

PCP vs Lease on a Polestar 4

Author
Discussion

CapScarlet

Original Poster:

66 posts

154 months

Thursday 3rd October
quotequote all
I have been following these for a while and the deals are quite enticing but I am trying to understand why the lease and PCP costs would be so different:

The list price of the car I am looking at is £66,990 and I am comparing 36 month 10,000 mile cost.

Under PCP (0%)
Deposit is £8709
Monthly payments £703.92
Total cost: £34,050.
Final payment / GMFV: £32,940

Under lease
Initial payment (12 months): £7,122
Monthly payments £593.57
Total cost: £28,490

Difference: £5,560

i.e. lease cost is about 14% lower.

How should I think about that difference? i.e. is it simply that Polestar is thinking the future value will higher than the GMFV under the PCP agreement?

Does this seem like a good deal overall?

MondeoMan1981

2,407 posts

190 months

Thursday 3rd October
quotequote all
PCP funder building in plenty fat and lowering their risk for sure. A lot of this going on.

scot_aln

473 posts

206 months

Thursday 3rd October
quotequote all
On the lease you don't pay the road fund licence do you? With the 'high value' addition then over 3 years that's >£1k in the favour of the lease?

chunkyjh

116 posts

175 months

Saturday 5th October
quotequote all
scot_aln said:
On the lease you don't pay the road fund licence do you? With the 'high value' addition then over 3 years that's >£1k in the favour of the lease?
the expensive car supplement is not currently applicable to EV's but is set to be introduced in April 2025, alongside the standard RFL for EV's

Andy665

3,806 posts

235 months

Saturday 5th October
quotequote all
CapScarlet said:
I have been following these for a while and the deals are quite enticing but I am trying to understand why the lease and PCP costs would be so different:

The list price of the car I am looking at is £66,990 and I am comparing 36 month 10,000 mile cost.

Under PCP (0%)
Deposit is £8709
Monthly payments £703.92
Total cost: £34,050.
Final payment / GMFV: £32,940

Under lease
Initial payment (12 months): £7,122
Monthly payments £593.57
Total cost: £28,490

Difference: £5,560

i.e. lease cost is about 14% lower.

How should I think about that difference? i.e. is it simply that Polestar is thinking the future value will higher than the GMFV under the PCP agreement?

Does this seem like a good deal overall?
All depends on how the market goes. If the actual value of the car is above £38.5k at the end of the agreement then the equity you would have (presuming you made the final payment or p/x'd it) would make it a cheaper overall deal then the lease, I doubt it would be worth that much but who knows?

If you have zero interest in acquiring the vehicle at the end of the term then I'd take the upfront savings and lease it.
.

Sheepshanks

35,018 posts

126 months

Saturday 5th October
quotequote all
Andy665 said:
CapScarlet said:
I have been following these for a while and the deals are quite enticing but I am trying to understand why the lease and PCP costs would be so different:

The list price of the car I am looking at is £66,990 and I am comparing 36 month 10,000 mile cost.

Under PCP (0%)
Deposit is £8709
Monthly payments £703.92
Total cost: £34,050.
Final payment / GMFV: £32,940

Under lease
Initial payment (12 months): £7,122
Monthly payments £593.57
Total cost: £28,490

Difference: £5,560

i.e. lease cost is about 14% lower.

How should I think about that difference? i.e. is it simply that Polestar is thinking the future value will higher than the GMFV under the PCP agreement?

Does this seem like a good deal overall?
All depends on how the market goes. If the actual value of the car is above £38.5k at the end of the agreement then the equity you would have (presuming you made the final payment or p/x'd it) would make it a cheaper overall deal then the lease, I doubt it would be worth that much but who knows?

If you have zero interest in acquiring the vehicle at the end of the term then I'd take the upfront savings and lease it.
.
Might there be a tax (VAT) difference in the way PCP and lease vehicles are acquired by the finance company? You can’t normally directly buy lease cars at the end and apparently that’s to do with the tax treatment.

Price difference could just be due to the manufacture giving more support to lease - it’s a way of discounting cars without it being too obvious.

chunkyjh

116 posts

175 months

Saturday 5th October
quotequote all
scot_aln said:
On the lease you don't pay the road fund licence do you? With the 'high value' addition then over 3 years that's >£1k in the favour of the lease?
the expensive car supplement is not currently applicable to EV's but is set to be introduced in April 2025, alongside the standard RFL for EV's