Cars - Buy/PCP/Lease?

[Pupbelly]

4 years old and 24k on the clock, and it owes you nothing, why on earth saddle yourself with additional debt just for the sake of it? If it is just a mode transport from A to B then run it into the ground. Seems silly to buy another car because you're bored of it. PCP & lease are just utter wastes of money, buying outright is too. The fact is a car is a money pit, so unless you are a car fanatic or want to keep up with the Jones' the most economic route is to drive a nice reliable car and keep it well maintained.
Edit: If you 'must' change, buy second hand, avoid VW, Audi, Seat, Merc, BMW in fact anything german, or French or Vauxhall (which is now owned by Citroen/Peugeot.) If you are not 'car people' stick with Japanese or Korean, but I would personally stick with the Corsa, look after it and use the spare money on holidays to say... Florida for example!

[YorkshireT]

Originally Posted by barryp1

I'd change lease company if I was you. £6,800 for 2 years is excessive

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£3400 a year for a new £25k car is excessive? You’d lose a lot more in depreciation if you bought one.

[daytonababe]

If you only do 6000 miles a year I can’t see the point in taking on a debt to buy a new car.

I’d keep on running that one till it starts to cost you money which could be years away ..

[barryp1]

Originally Posted by YorkshireT

£3400 a year for a new £25k car is excessive? You’d lose a lot more in depreciation if you bought one.

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But who buys a new car at list price?

I looked back to 2017 when the poster took out the lease and for an Octavia vrs the rates were less than £6k.

hotukdeals/deals/sko...utions-2858195
or

hotukdeals/deals/sko...prices-2821889

[gl20]

There always seems to be a misunderstanding that leasing somehow means you swerved depreciation. You haven’t. All other things being equal, if car A depreciates more than car B it will cost more to lease (and this is true which ever way you finance). However, some extra discounting may be packaged into a lease deal that isn’t available on, say, a straight purchase or a PCP, meaning it’s the best option.. or other times, there may be more discounting on the PCP option. As any discounting is bundled into the deal there’s no hard and fast rule as to which will be best.

I think there are 3 things to consider:

- if you want a low cost and don’t have to have new, then buy used. 95% of time your total cost of ownership will be less.
- whether new or old, you need to try and work out the total cost of ownership of each finance option (ie factor in the up front cost, monthly payments, final payment, part exchange value, maintenance. Whichever bits are relevant to each finance option)
- consider how much uncertainty you can live with ie if you’re more comfortable knowing exactly how much your total costs will be, then go for a lease or PCP, even if it ends up costing a bit more than a cash purchase (and often it will be cheaper anyway)

Personally, I’d consider any financing option, depending on what was working out to be the best offer, applying the above. But if it all sounds too complicated and you just want a new, cheapish runabout and you’re flexible on make/model, Id just go and look at what deals are available on the main leasing sites. As per posts above, there’s generally loads of good offers. If you wanted a new Ferrari then leasing is generally a very expensive way of doing it!

[Pupbelly]

Leasing and PCP are fine providing you understand you do not own the vehicle and you are in a never ending commitment to 'borrow' a car. On the plus side any issues with the car should be handled by the lease / PCP company, but on the flip side they will / may sting you at the end of the term due to excess mileage, scuffed alloys, body damage etc. Also bear in mind when getting a new car or nearly new it is unlikely that in the event of an accident the insurance will cover the value of the car leaving you with a financial void. This is where 'gap insurance' comes in and should be considered if you are looking at new high value cars.

The fear of second hand cars is a concern to most and think a PCP or lease is a better option, but I can assure you that unless it is fresh out of the box the shiny new looking lease / PCP cars have received some 'action' before arriving with you, but they are valeted and painted to look like new.

Cars are a gamble and there is no definitive answer as to what is right, just do the maths and decide what is right for you!

[OLS]

Originally Posted by YorkshireT

£3400 a year for a new £25k car is excessive? You’d lose a lot more in depreciation if you bought one.

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Agreed YorkshireT

Originally Posted by barryp1

But who buys a new car at list price?

I looked back to 2017 when the poster took out the lease and for an Octavia vrs the rates were less than £6k.

hotukdeals/deals/sko...utions-2858195
or

hotukdeals/deals/sko...prices-2821889

See more...

It was 2018 when I got it not 2017 so the prices had increased slightly - don't worry about me, I'm quite adept at "shopping around" and also look at various options to get the best price for me and when I ordered this, it was the best price for the car that I wanted with the additional extras that I wanted to add on (I added on Keyless Entry, Heated Seat, Rear Camera which don't come on as standard etc) so it wasn't base price... and yes I am aware anything I add on I am paying for over the term of the lease, I am happy to pay that for the things I wanted. The 2 links you posted from the year before were only a max of £1000 less overall however bare in mind that was A) a year earlier and special offer deals that had finished / changed by the time I ordered B) without the additional extras and C) the 245 model was unavailable when I ordered as they had taken it off the assembly line so you were only allowed to ordered from existing stock which meant the prices for them sky rocketed

When I got mine in 2018
Lease Company over 2 years = £6760
Skoda Over 2 years = £13,600
£28k loan over 5 years (however would have been more than 28k with the optional add ons) = £546 per month (based on Tesco loan online rates right now)

Lease is the best & cheapest option for me for the actual car that I want and that is why I said "It's personal preference"

(FYI I paid less than your quoted prices for 2017 when I got my other VRS in 2016 (ordered end of 2015) if that makes you happy!)

[Anne K]

Sometimes adding options reduces the monthly lease payment, as the value at end of contract is calculated to be higher.