Car finance options - help

EllieP · 21 Oct 21, 07:32 PM

Hi All,

We are looking at changing our car in the next month or so. We have had our current car VW Tiguan from new 2013. We are looking to change to a Jaguar E or F pace.
We are planning on buying something that’s around 18 months old as don’t want to purchase new again. I’m confused with the different payment options nowadays. There’s so many different options to what we used previously which was the normal finance and then Paid off at the end. Are there advantages to one over other and how does the lease option work. It just seems so confusing. 😕

**tocpe321** · 21 Oct 21, 07:43 PM

We are currently in the process of updating our cars. One via PCP where you pay a deposit, monthly payments and at the end have the option of paying a balloon payment to own the car, rolling any residue forward to PCP another car or just walking away.

The other is PCH or leasing where you pay a deposit and monthly payments, but don't have the purchase option at the end.

This is a link to the Money Saving Expert page on these and other deals. As it says there's no one size fits all.

moneysavingexpert/lo.../#alternatives

novocastrian · 21 Oct 21, 07:49 PM

leasing is effectively renting the car

personally I'm old school & buy car then save up for the next one, trade it in then get a new (to me) one

avoids any interest doing it this way

Mr Tom Morrow · 21 Oct 21, 08:18 PM

OP. There are a host of ways of purchasing a car but I would simplify the whole process.

Go to your local Jaguar Dealer and latch on to something that basically ticks the boxes of what you want even though you don’t intend buying it.

Then get them to do all the hard work and explain to you what the price is with cash, HP, finance from Jaguar and PCP. Leasing is a separate issue which they probably don’t do.

Gather all the figures, assume they are scamming you and walk away. Then sit down at home and crunch it all. The answer will come to the surface based on your mileage, deposit if any, needs and desires.

Edit. Don’t be surprised if it’s a better deal to go for a brand new car with manufacturers discount then a second hand one.

sully301 · 21 Oct 21, 08:23 PM

We used to buy 18 m old cars but we lease now. Our last car was a Jaguar XF and we had lots of problems with it. We had bought the extended warranty but that is pricey. When we did the maths the amount that car cost us was more than the cost of a lease on a brand new Tiguan - I got that in 2018 - I loved that car. I've now gone on to lease an electric and DH a Tiguan - he pays just over £300pm inc maintenance

EllieP · 21 Oct 21, 08:31 PM

Fab info here - thanks all.
There are so many options 🤯
Thank you all and Mr Tom Morrow I have just read your response to hubby and he said that’s what we will do. I am surprised re the new purchase price being a better deal than used. So will find out about this when visiting too. Thanks again all

Blue nose · 21 Oct 21, 08:52 PM

Originally Posted by EllieP

Fab info here - thanks all.
There are so many options 🤯
Thank you all and Mr Tom Morrow I have just read your response to hubby and he said that’s what we will do. I am surprised re the new purchase price being a better deal than used. So will find out about this when visiting too. Thanks again all

I did Mr TM method with my last but one car.

I actually found it cheaper to buy from them with their finance - from memory they discounted car from £14k to £10 to keep my monthly payments at under £200 a month. I took their finance, took their car and the settled finance with a cheaper bank loan. So a £4k discount on my own interest rates.

I asked a hypothetical question of winning lottery and paying off in full without penalty to be sure my way worked.

Always walk away and do maths at home.

**tocpe321** · 21 Oct 21, 09:04 PM

I found Car Wow a really useful site. You can make very specific searches and get quotes for PCP, PCH.

I used this to reduce the cost of the offers made by the dealers.

We're getting a Skoda SUV on lease from Skoda leasing. A referral was made by the main dealer.

I know you mentioned second hand, but just so you're aware the lead times at the moment for new cars are quite long. There is a shortage of electronic component chips.

21 Oct 21, 07:43 PM	#2
	21 Oct 21, 07:43 PM tocpe321 VIP Dibber ✓Premium Member
tocpe321 VIP Dibber Join Date: Apr 12	We are currently in the process of updating our cars. One via PCP where you pay a deposit, monthly payments and at the end have the option of paying a balloon payment to own the car, rolling any residue forward to PCP another car or just walking away. The other is PCH or leasing where you pay a deposit and monthly payments, but don't have the purchase option at the end. This is a link to the Money Saving Expert page on these and other deals. As it says there's no one size fits all. moneysavingexpert/lo.../#alternatives __________________ tocpe

21 Oct 21, 07:49 PM	#3
	21 Oct 21, 07:49 PM novocastrian Imagineer
novocastrian Imagineer Join Date: Aug 14	leasing is effectively renting the car personally I'm old school & buy car then save up for the next one, trade it in then get a new (to me) one avoids any interest doing it this way

21 Oct 21, 08:18 PM	#4
	21 Oct 21, 08:18 PM Mr Tom Morrow Imagineer
Mr Tom Morrow Imagineer Join Date: Jul 14 Location: The Tiki Room. theDIBB Guidebook Pages Created: 3	OP. There are a host of ways of purchasing a car but I would simplify the whole process. Go to your local Jaguar Dealer and latch on to something that basically ticks the boxes of what you want even though you don’t intend buying it. Then get them to do all the hard work and explain to you what the price is with cash, HP, finance from Jaguar and PCP. Leasing is a separate issue which they probably don’t do. Gather all the figures, assume they are scamming you and walk away. Then sit down at home and crunch it all. The answer will come to the surface based on your mileage, deposit if any, needs and desires. Edit. Don’t be surprised if it’s a better deal to go for a brand new car with manufacturers discount then a second hand one. __________________ "PAGING MR MORROW, MR TOM MORROW..." ''I drink Wine and know things'' DVC Owners at SSR since 2003. Multiple annual visits to America since 1976 Edited at 08:19 PM.

21 Oct 21, 09:04 PM	#8
	21 Oct 21, 09:04 PM tocpe321 VIP Dibber ✓Premium Member
tocpe321 VIP Dibber Join Date: Apr 12	I found Car Wow a really useful site. You can make very specific searches and get quotes for PCP, PCH. I used this to reduce the cost of the offers made by the dealers. We're getting a Skoda SUV on lease from Skoda leasing. A referral was made by the main dealer. I know you mentioned second hand, but just so you're aware the lead times at the moment for new cars are quite long. There is a shortage of electronic component chips. __________________ tocpe Edited at 09:16 PM.