R Lease Deal

[matchboy]

I'll give them a ring tomorrow, more for your curiosity than mine.  March pick-up will be nice, definitely don't want it before the new plate.

Do it now 

[dubber36]

At this rate you'll have even me in getting 7R PCP quotes before my first service at this rate and I've always been the most anti car finance person going!!!
 

Probably no more than me. Tempting as these deals might sound, it wouldn't do for me as there will be a decision that HAS to be made at the end of the term. Then there are potential excess mileage penalties, and I've heard tales of customers being billed lots of money to fix minor stone chips and such like when they go back.

From what I have read, lots of people spend countless hours researching which car and what deal to have to finance it soon after getting the keys to their current one. I'm sure that if all that time and effort were chargeable, they would earn enough money to buy the thing outright and be done with it.

[Jimmymature]

At this rate you'll have even me in getting 7R PCP quotes before my first service at this rate and I've always been the most anti car finance person going!!!
 

Probably no more than me. Tempting as these deals might sound, it wouldn't do for me as there will be a decision that HAS to be made at the end of the term. Then there are potential excess mileage penalties, and I've heard tales of customers being billed lots of money to fix minor stone chips and such like when they go back.

From what I have read, lots of people spend countless hours researching which car and what deal to have to finance it soon after getting the keys to their current one. I'm sure that if all that time and effort were chargeable, they would earn enough money to buy the thing outright and be done with it.

I used to think exactly the same way as you but in two years I'd have paid £4k in leasing and handed the car back, but if I bought one I'd lose £6k just on VAT! There's no way I could buy an R then sell it two years later for £26k!


Jim

[dubber36]

Putting it that way, it would be viable to tuck my current Golf up for a couple of years, hoon around in an .:R for sh!ts and giggles, give it back and I'd still have a nice, low mileage GT to ride around in at the end. Except my Golf has too many pedals for my liking and really ought to go whilst it's still worth a reasonable amount of money.

[monkeyhanger]

At this rate you'll have even me in getting 7R PCP quotes before my first service at this rate and I've always been the most anti car finance person going!!!
 

Probably no more than me. Tempting as these deals might sound, it wouldn't do for me as there will be a decision that HAS to be made at the end of the term. Then there are potential excess mileage penalties, and I've heard tales of customers being billed lots of money to fix minor stone chips and such like when they go back.

From what I have read, lots of people spend countless hours researching which car and what deal to have to finance it soon after getting the keys to their current one. I'm sure that if all that time and effort were chargeable, they would earn enough money to buy the thing outright and be done with it.

I used to think exactly the same way as you but in two years I'd have paid £4k in leasing and handed the car back, but if I bought one I'd lose £6k just on VAT! There's no way I could buy an R then sell it two years later for £26k!


Jim

£4k in leasing? It'll cost you more than that all in (deposit, arrangement fees etc), closer to £7k. If you've got the cash, expect £1k more than GFV in px and get 12% discount, you can just about beat the lease deal by buying. It gets better on those terms if you have to get a few options, it's completely dead money in leasing, but you'll get a bit back for them on your bought one.

[Red R]

That's good to hear Monkeyhanger, reading about lease deals had me worried I made the wrong choice going PCP route.

Looking for some equity at the end of 3 years to put on the next car 

[Jimmymature]

At this rate you'll have even me in getting 7R PCP quotes before my first service at this rate and I've always been the most anti car finance person going!!!
 

Probably no more than me. Tempting as these deals might sound, it wouldn't do for me as there will be a decision that HAS to be made at the end of the term. Then there are potential excess mileage penalties, and I've heard tales of customers being billed lots of money to fix minor stone chips and such like when they go back.

From what I have read, lots of people spend countless hours researching which car and what deal to have to finance it soon after getting the keys to their current one. I'm sure that if all that time and effort were chargeable, they would earn enough money to buy the thing outright and be done with it.

I used to think exactly the same way as you but in two years I'd have paid £4k in leasing and handed the car back, but if I bought one I'd lose £6k just on VAT! There's no way I could buy an R then sell it two years later for £26k!


Jim

£4k in leasing? It'll cost you more than that all in (deposit, arrangement fees etc), closer to £7k. If you've got the cash, expect £1k more than GFV in px and get 12% discount, you can just about beat the lease deal by buying. It gets better on those terms if you have to get a few options, it's completely dead money in leasing, but you'll get a bit back for them on your bought one.

That's true, £6k in total including the deposit, but that £6k is less that I'd lose by buying one and id also have to trump up £30k!

I'll be selling mine privately so I won't lose anything in PX.


Still can't see a downside to all these cheap lease deals...


Jim

[p3asa]

Since I'm bored on night shift at work I've thrown a few figures together.

From that leasing link above:

Deposit: 2400
Payments: 179.98 x 24
Total cost £6,719

From the VW site PCP:

Deposit: 2400
Payments 437.25 x 23
Total cost £12,456

Cost of ownership over 2 years without any discount
Lease          PCP
£6,719         £12,456

So far better off going lease as you would have to make about £6000 in equity on your PCP at the end of the 24 months to be the same as a lease and that ain't going to happen.

If you go via drive the deal you can get £3745 off list price which if you add to the £2400 deposit you would be paying anyway gives you an equivalent of £6145 as a deposit on a full price R on the VW site.

This gives you
Deposit: 6145 (3745 discount + 2400)
Payments 263.93 x 23
Total cost £8470

So going with a decent discount from say Drivethedeal after 2 years you would have paid £8470 so to equal the lease price you would have to have equity of £1751 on your R after 24 months!

Is that going to happen? Its certainly a lot more achievable than without a discount.
My experience with PcP's is they offer you not an awful lot more than your GFV though.

Even if they offered you £2000 as equity you have really only gained £250 over the lease deal.

[monkeyhanger]

P3asa: The sums to buy rather than lease make more sense on a standard R (no extras) if you're a cash buyer - solutions interest is a killer (about 1/3 of your monthly payments are interest on a car with great residuals), and I usually expect £1000 more than the published GFV in p/x as well as the discount I negotiate (any extra equity usually comes at the cost of discount against the new one:-

£29990 base 3dr car cost - £3745 DTD discount =  £26245

GFV (£20772) + £1000 "equity" = £21772

Cost in depreciation = £4473 total = £186.38 per month (equal split of total over 24 months).

If you had £26245 sitting in the bank it would've earned (@ 3% interest) £1598.32, so the true cost of being a cash buyer is £6071.32 total, or £252.98 per month (equal split of total over 24 months).

There's only £700 in it (and you do have to have the money in the bank to do it), but you have greater flexibility over how long you're keeping it and you won't get screwed over for punitive charges on a few stone chips or not enough tread left on the tyres (which may or may not happen).

Assuming that you will hit the dealer for a broker sized deal:-

If you have the money in the bank then it's slightly better to buy (on a base model) than lease.
If you don't have the money in the bank then it's probably better to lease (on a base model).
If you're ordering £3k worth of extras it's far better to buy cash than lease and a little better to PCP than lease.

[monkeyhanger]

I'll give them a ring tomorrow, more for your curiosity than mine.  March pick-up will be nice, definitely don't want it before the new plate.

Do it now 

Just for you matchboy, I rang them up and have been given a provisional BW4, which is currently subject to change but will be confirmed/locked in about a months time. Had to endure about 10 mins of dodgy Spanish guitar music to find that out.