GolfGTIforum.co.uk
Model specific boards => Golf mk7 => Topic started by: brown.jamesa on 18 January 2017, 11:11
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All as the title says, I am looking at getting a new car soon (GTI PP) and have looked at the cost savings between leasing vs purchasing the car outright.
As far as I can tell, purchasing will always be cheaper, unless I am missing something?
Here are my calculation based on a standard 5 door GTI Performance Pack with Nav (no options):
Lease
https://www.firstvehicleleasing.co.uk/car-leasing/volkswagen/golf/golf-hatchback/2.0-tsi-gti-5dr-dsg-%5Bperformance-pack*nav%5D (https://www.firstvehicleleasing.co.uk/car-leasing/volkswagen/golf/golf-hatchback/2.0-tsi-gti-5dr-dsg-%5Bperformance-pack*nav%5D)
Initial payment: £1,161.45 (3 x £387.15)
35 months: £13,550.25 (35 x £387.15)
Admin Fee: £198.00
Total over 3 years: £14,909.70
Total per month: £414.15 (£14,909.70 / 36)
Purchase
Carwow cash purchase quote: £24,721.00
Depreciation over 3 years: £12,360.50 (50%)
Sell car put money back in the bank: £12,000 (est)
Total over 3 years: £12,721.00 (£24,721.00 – £12,000.00)
Total per month: £353.36 (£12,721.00 / 36)
Comparing the above figures that’s a saving of £2188.70 over 3 years or £60.78 per month.
Am I calculating this right or am I missing something?
Cheers
James
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Cost of credit for the initial 24K ?
The lease option requires a very small amount of initial capital
The purchase option requires you to have the full amount upfront (if you are going for a straight purchase)
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Hi Tony,
I already have the money upfront, plus my current car which is worth ~£11k
So would either do:
a) part-ex + cash
b) cash
So would be paying myself back the cash I have saved over x years.
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Also depends what lease deal offers are available at the time. Couldn't resist a standard GTI on the following:
£2400 initial
23 x £95.99
24 months
5000 miles per anum
7.2p per mile excess
=4607.77 for two years in a new GTI :grin:
Even going over the mileage limit should work out at less than two years depreciation.
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Also depends what lease deal offers are available at the time. Couldn't resist a standard GTI on the following:
£2400 initial
23 x £95.99
24 months
5000 miles per anum
7.2p per mile excess
=4607.77 for two years in a new GTI :grin:
Even going over the mileage limit should work out at less than two years depreciation.
Its very close....
lets say you do an average of 10k per year, so your lease would have cost the following after 2 years:
£2400 initial
23 x £95.99
24 months
5000 miles per anum
additional 5000 miles per year @7.2p (£720)
£5327.77 over 2 years
£221.99 per month
Based on getting 25% off old list prices and with 30% depreciation, it still would work out cheaper:
£27,495.00 GTI Standard List
£6,873.75 25% off list
£21,996.00 Cash purchase price
£15398.20 Values after two years (-30%)
£5224.05 Cost over 2 years
£217.66 Cost per month
There is just no way a lease deal is going to be cheaper that buying the car with cash, unless you are lucky to grab a limited deal which is a lose leader to encourage other people to join at a higher price, which looks like you have :-)
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The trick seems to be:
1) beat the price down as low as possible (drive the deal)
2) take a PCP deal out to get VW finance contribution (usually runs at about £2k)
3) withdraw (not cancel) the finance in the first day of delivery, pay off the outstanding amount - keeping the deposit contribution :)
That should probably take a £30k car down by about £7k at least. Which almost certainly will make it cheaper than leasing, although you do need to allow for road tax, which leasing includes always.
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The trick seems to be:
1) beat the price down as low as possible (drive the deal)
2) take a PCP deal out to get VW finance contribution (usually runs at about £2k)
3) withdraw (not cancel) the finance in the first day of delivery, pay off the outstanding amount - keeping the deposit contribution :)
That should probably take a £30k car down by about £7k at least. Which almost certainly will make it cheaper than leasing, although you do need to allow for road tax, which leasing includes always.
Love the idea of the "VW finance contribution", any issues or penalties of paying that off straight away?
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You have to be careful with the words you use to bail from the PCP, but its definitely something loads of people do on here. Someone can give you the exact details I am sure.
(I learnt the trick from here... in fact i learnt a lot of stuff from here :D)
Not sure if the deposit contribution is running at the moment, but they come and go, sometimes different values but its a gift horse!
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Apologies for hi jacking this thread (seems the best one to) for selfish purposes but know some really informed folk are on the MK 7 forum and need their general advice without starting new thread.
Landmark date coming up for Wife in October and I want to lease a Mini Cooper Chili Pack Auto for her as a surprise and could go to local dealer and just pay the price
expected mileage would be low, 5k at most, so it has me looking at lease but PCP also if the deal better?
So what seeking is best option on value to achieve a Mini Cooper Chili Pack Auto for October (so when best time to start process)
All advice greatly appreciated
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Apologies for hi jacking this thread (seems the best one to) for selfish purposes but know some really informed folk are on the MK 7 forum and need their general advice without starting new thread.
Landmark date coming up for Wife in October and I want to lease a Mini Cooper Chili Pack Auto for her as a surprise and could go to local dealer and just pay the price
expected mileage would be low, 5k at most, so it has me looking at lease but PCP also if the deal better?
So what seeking is best option on value to achieve a Mini Cooper Chili Pack Auto for October (so when best time to start process)
All advice greatly appreciated
It would probably best to ask the guys over on the mini forums:
http://www.mini2.com/forum/ (http://www.mini2.com/forum/)
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Apologies for hi jacking this thread (seems the best one to) for selfish purposes but know some really informed folk are on the MK 7 forum and need their general advice without starting new thread.
Landmark date coming up for Wife in October and I want to lease a Mini Cooper Chili Pack Auto for her as a surprise and could go to local dealer and just pay the price
expected mileage would be low, 5k at most, so it has me looking at lease but PCP also if the deal better?
So what seeking is best option on value to achieve a Mini Cooper Chili Pack Auto for October (so when best time to start process)
All advice greatly appreciated
It would probably best to ask the guys over on the mini forums:
http://www.mini2.com/forum/ (http://www.mini2.com/forum/)
Knew that was an option, but some really informed and trusted guys here who understand this stuff generically aside from VW so will see what response get here first as its more the best places and types of deals to look at opposed to the car itself.
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Apologies for hi jacking this thread (seems the best one to) for selfish purposes but know some really informed folk are on the MK 7 forum and need their general advice without starting new thread.
Landmark date coming up for Wife in October and I want to lease a Mini Cooper Chili Pack Auto for her as a surprise and could go to local dealer and just pay the price
expected mileage would be low, 5k at most, so it has me looking at lease but PCP also if the deal better?
So what seeking is best option on value to achieve a Mini Cooper Chili Pack Auto for October (so when best time to start process)
All advice greatly appreciated
The 'go to' guy on the BMW forums TRL (username) seems to recommend this guy when it comes to MINI's, same dealer group I'll assume: gareth.roberts@berrymini.co.uk maybe try dropping him a quick email to test the water.
Aside from that and as per the cheap £95 lease deals they did on GTI's very briefly last year the only other way of getting the very best price is when the leasing companies get a promotion deal from time to time. There were several deals on MINI's last year so it can be a matter of just keeping your eye keenly on the leasing company websites. The very best deals tend to be quite short lived.
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Back on topic as far as VW's go.
Leasing comes into it's own when VW finance or another of the big finance companies are doing a promo deal and the car you want is on special and you don't want any extras. You'll pay fractionally more car insurance on a lease but don't pay VED as mentioned previously.
Right now buying outright would be the best option if you can find a car to spec as VW are dropping £3250 off the original list price of all runout Golfs and plus the dealer discounts you can secure. If you have no part ex or are prepared to accept rock bottom trade price for your part ex then the brokers (IF they can get stock) will be knocking out, as an example, a 3 door GTD for just over £20k brand new. Purely using that model as the base line car being as it's the cheapest performance model and going on 'no extras' as it's pretty well equipped anyway. Even though there's a FL model in the wings, getting a brand new GTD for a whisker over £20k can't be sniffed at.
There are no current PCP deals on Golfs so the £3250 discount looks even better if you can get a low rate personal loan and a big dealer discount.
Basically it's all in the timing as to which is the better deal.
If you have a part exchange that's fairly new that would be a pain in the derriere to try and sell privately then the waters are muddied quite a bit.
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Leasing gets expensive when you are a fussy about options and colour as you end up paying the full amount of the options over the full term.
GTD and GTI when they got Nav had a decent spec and look ok in red of white
I was going to keep my Blue R as a daily but when the silly estate lease deal came on it was a no brainer to sell it and shove the money in the bank, only options I had were winter pack and carnet as estate looks ok in white and it is 'just a car' to get me from A to B
Mini deals are a bit scarcer and I have to admit there options confuse me
As for buying or purchasing VWs I am going back to what I always thought of I would only by a limited GTI or there are daft discounts like we have.
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Cheers all,
So on the basis that I will be selecting a FL 7 speed DSG 5 door GTI model when available and adding the digital dash, Sat Nav, Leather + Speaker package.
I am pretty sure that cash purchase is the way to go as I cant see any reason why leasing is cheaper (it wont be, as why are they doing it as a business).
Thanks
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Cheers all,
So on the basis that I will be selecting a FL 7 speed DSG 5 door GTI model when available and adding the digital dash, Sat Nav, Leather + Speaker package.
I am pretty sure that cash purchase is the way to go as I cant see any reason why leasing is cheaper (it wont be, as why are they doing it as a business).
Thanks
With those extras then buying will be the only viable option unless you get a very cheap lease deal over say 3 or 4 years to account for the options prices which you will have to stump up and lose the full value of, unless you can get a personal quote for leasing it that way through a VW dealer directly where they may allow a little bit of leeway with the options if they're going to sell the car off the forecourt at the end of the lease.
Personally I'd drop the leather, even if red checks aren't your thing.
As said elsewhere, if there's a PCP deal running then just pay it off within the cooling off period if that's the best way to secure an up front discount. As the GTI may well come with the 6 speed DSG at first as per the German configurator then you may have a bit of a wait for the 7 speed. If that's the case then the initial interest in the FL model may have dropped a little and there may be better promo deals about. It can be hard to second guess what VW will do.
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If you can find a lease company with a web based configurator pricing tool then you can play around and see which options are fully payable by you.
Just check the VW site for the cost of the option then divide by the number of months of the lease and see if magically the monthly cost increases by exactly that amount...
When I looked it was some and some, 19's for example were 100% paid by me on my company lease scheme. (I decided they weren't worth the money) Whereas NavPro wasn't. It might be that you think f**k it, I'll do it anyway (I did with HBA) but best you are well armed with facts before you drop the dime.
They definitely do try and rip you off...
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Cheers all,
So on the basis that I will be selecting a FL 7 speed DSG 5 door GTI model when available and adding the digital dash, Sat Nav, Leather + Speaker package.
I am pretty sure that cash purchase is the way to go as I cant see any reason why leasing is cheaper (it wont be, as why are they doing it as a business).
Thanks
Having just bought an R and saved up around half the purchase price I was toying getting a cheap loan, paying off the VW PCP deal and then paying so much back into my account with the rest going to pay the cheap loan.
I know its cheaper in the long run but I just can't stomach putting everything into a car then come 4 years team my money is at the mercy of a dealer on how much goes to the next car
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Cheers all,
So on the basis that I will be selecting a FL 7 speed DSG 5 door GTI model when available and adding the digital dash, Sat Nav, Leather + Speaker package.
I am pretty sure that cash purchase is the way to go as I cant see any reason why leasing is cheaper (it wont be, as why are they doing it as a business).
Thanks
Having just bought an R and saved up around half the purchase price I was toying getting a cheap loan, paying off the VW PCP deal and then paying so much back into my account with the rest going to pay the cheap loan.
I know its cheaper in the long run but I just can't stomach putting everything into a car then come 4 years team my money is at the mercy of a dealer on how much goes to the next car
What I try and do is save a set amount of money per month into a savings account (same figure as a lease would cost) and when I have reached my goal, buy a new car with part exchanging my current car which I own outright. Then as soon as I have brought my new car, repeat the process again.
The hardest part is the first purchase and also the temptation of spending the money saved on other toys :-)
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The biggest thing affecting this is how long you will keep the car. leasing is great if you get a special deal and happy to change again in 2 years.. however its still money after something you wont own.
If you like to keep cars longer then you will get the benefit of paying it off and therefore not having the ongoing cost, as well as the depreciation dropping off..
Horses for courses really - it only costs you wedge when you go and trade in and re-commit !
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The biggest thing affecting this is how long you will keep the car. leasing is great if you get a special deal and happy to change again in 2 years.. however its still money after something you wont own.
If you like to keep cars longer then you will get the benefit of paying it off and therefore not having the ongoing cost, as well as the depreciation dropping off..
Horses for courses really - it only costs you wedge when you go and trade in and re-commit !
The logical thing is decide how long you want it and then see what is the cheapest way of achieving that.
I used to have your logic and then worked out how much a R dropped in 2.5 years so the decision was to lease it.
M2 on the other hand I bought out right
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That's kind of my point really, if you buy anything new these days and change after 2 years you get stung, just look at used prices of R's. On the other hand if you buy and keep for 5 years plus and are happy to do so then you get your money's worth.
I have just paid off my 2015 330d finance and for me that is a main car and I wanted it bought and paid for and will likely keep it 5+ years so I bought new, specced exactly what I wanted and got max discount. If I traded after 2 years I would have got slaughtered but with 120k miles on it at 7 years old it will still be worth ok money and / or do a job for me.
I ran a 2004 330ci for 6 months back in 2014, paid £6200 for it, sold it for £6500 and only put fuel in it. If you are happy running a non brand new car you can do it for a lot less than even the best lease deals!
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Apologies for hi jacking this thread (seems the best one to) for selfish purposes but know some really informed folk are on the MK 7 forum and need their general advice without starting new thread.
Landmark date coming up for Wife in October and I want to lease a Mini Cooper Chili Pack Auto for her as a surprise and could go to local dealer and just pay the price
expected mileage would be low, 5k at most, so it has me looking at lease but PCP also if the deal better?
So what seeking is best option on value to achieve a Mini Cooper Chili Pack Auto for October (so when best time to start process)
All advice greatly appreciated
The 'go to' guy on the BMW forums TRL (username) seems to recommend this guy when it comes to MINI's, same dealer group I'll assume: gareth.roberts@berrymini.co.uk maybe try dropping him a quick email to test the water.
Aside from that and as per the cheap £95 lease deals they did on GTI's very briefly last year the only other way of getting the very best price is when the leasing companies get a promotion deal from time to time. There were several deals on MINI's last year so it can be a matter of just keeping your eye keenly on the leasing company websites. The very best deals tend to be quite short lived.
We have a 53 plate Mini at moment, does less than 5 k a year and only has 50k on it, and we plan to give that to youngest as first car. The replacement for wife would do same miles likely.
So given the expected low mileage of 5k and the expected ownership of maybe 5 years then looking as maybe buying used with low mileage as will hopefully will source a car with options seeking.
Think leasing and PCP on new will not give the value given the low miles?
Still not sure, and will definitely test the waters with Gareth over all the options, so thanks for that name really appreciated.
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If you want a laugh (you might also want to be sitting down) you should see how much a Civic Type R will cost you to lease over two years :laugh:
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Apologies for hi jacking this thread (seems the best one to) for selfish purposes but know some really informed folk are on the MK 7 forum and need their general advice without starting new thread.
Landmark date coming up for Wife in October and I want to lease a Mini Cooper Chili Pack Auto for her as a surprise and could go to local dealer and just pay the price
expected mileage would be low, 5k at most, so it has me looking at lease but PCP also if the deal better?
So what seeking is best option on value to achieve a Mini Cooper Chili Pack Auto for October (so when best time to start process)
All advice greatly appreciated
The 'go to' guy on the BMW forums TRL (username) seems to recommend this guy when it comes to MINI's, same dealer group I'll assume: gareth.roberts@berrymini.co.uk maybe try dropping him a quick email to test the water.
Aside from that and as per the cheap £95 lease deals they did on GTI's very briefly last year the only other way of getting the very best price is when the leasing companies get a promotion deal from time to time. There were several deals on MINI's last year so it can be a matter of just keeping your eye keenly on the leasing company websites. The very best deals tend to be quite short lived.
We have a 53 plate Mini at moment, does less than 5 k a year and only has 50k on it, and we plan to give that to youngest as first car. The replacement for wife would do same miles likely.
So given the expected low mileage of 5k and the expected ownership of maybe 5 years then looking as maybe buying used with low mileage as will hopefully will source a car with options seeking.
Think leasing and PCP on new will not give the value given the low miles?
Still not sure, and will definitely test the waters with Gareth over all the options, so thanks for that name really appreciated.
I've got a three year old Cooper D bought for wife and sons to roll around in which they love. It was the best BHP per £££ as far as insurance goes with teenagers on the insurance. That was bought as a very low mileage two year old car to replace an old GTI I'd had for years and years which was getting a bit unreliable in daily use.
I tend to keep an older car for main family use and have a newish project Golf for an ornament that gets cleaned more than it gets driven.
Until now that is!
Having decided that my R was depreciating several hundred pounds for every mile that it got used for, plus the (smallish) amount of interest I was paying on a personal loan on it too it was pointless keeping the Golf just to sit in the garage for months on end.
After several months of negotiations with different dealers I finally punted the R into the trade for a fair price and bought a hugely discounted ex-showroom Cooper S D which allowed me to pay off the loan and, in theory, have a car that will cost peanuts to run as it has a service plan for five years, breakdown cover for three years and only £20 a year to tax which is less painful than £180 when the thing spends 99% of its time locked in a garage.
So my experience with MINIs is that they used to be good buys new, like VW's did, as their depreciation used to be very slow and they were in high demand. Unlike a few years ago though they face much tougher competition in sales so initial discounts are available where as they weren't a few years ago. However that means initial depreciation is high until they get to a point where they seem to bottom out in value (just like Golf R's funnily enough) and then depreciation slows right down.
You can sometimes, if you time it just right, pick up pre-registered Coopers at really good prices but if you're going to keep the car for years and years and are prepared to roll your sleeves up then you can actually negotiate good discounts on them new at present. If you only plan on keeping it a few years I'd advise against getting a new one though if it has quite a few options as MINIs are hard cars to get a proper trade valuation on except through MINI dealers who will know that immediately a Chilli Pack adds £1k to the used value and so on. The general trade are unaware of that so struggle to value them correctly.
There was a Cooper S D in a local dealer to me over the summer which had a really fantastic spec on it, full JCW and all the packs that would have retailed at £29k new give or take a few hundred(!!). The garage had it up for nearly £18k at 2 years old but would have taken a lower offer on it which doesn't sound to terrible BUT if you put the car into CAP using just the reg the trade value on it was just £13k!! Run the trade value in the correct way for a MINI and it came out at just over £15k trade value...