I was looking at a contract hire scheme that SWMBO is eligible for her next car, and being please with the Octavia we would certainly consider another.

However, looking at the prices for a 1.6TDI SE Estate, the Octavia is a whopping £2,584 more expensive than an otherwise identical Golf 1.6TDI SE Estate over the 3 year term of the lease.

I was kind of expecting it to be the other way around. Not really knowing how these schemes work, I assume it's to do with residual value after 3 years and that the Golf depreciates less (to the tune of 2.5K).

Anyway, looks like the next car might be a Golf.

Are you spec and RRP wise they are the same?

I understand it is the residuals, I had a chat with my director a couple of years ago as I was astonished by the contract hire costs for an Octavia vRS. Went down the PCP route instead.

Are you spec and RRP wise they are the same?

The specs are very similar - the closest match within the two ranges.

As far as price goes, purchase list price the Octy is listed at £17,170 and the Golf is £19,505 so the Golf is £2.3K dearer to buy (as expected) but is £2.5K cheaper to lease.

On the lease deal, monthly payments are always the same, but there is a one off initial payment of £3033 for the Octy whereas the Golf is only £449, hence the £2.5K difference. Insurance and servicing are inclusive, so maybe VW comes out more favourably on these hence some of the price difference.

Just out of interest how much does it cost a month?

Just out of interest how much does it cost a month?

£212

Ouch.

3033 + (212x36) = 10665

Even though it does include insurance and servicing it does seem like a hell of a lot of money.

Ouch.

3033 + (212x36) = 10665

Even though it does include insurance and servicing it does seem like a hell of a lot of money.

Well, if you were to buy at list price, and then get 39% back after 3 years according to depreciation figures, cost of ownership for 3 years would be £10,474 but that doesn't include 3 years insurance and servicing costs. But then I guess not many are going to pay full list price for a new car, especially atm.

I guess the Golf deal stacks up even better at £8081 over 3 years.

They must be able to buy VW from a mega dealer at better rates than a Skoda one.