I am looking at either Leasing or going through PCP deal to get a hold of the Octavia Elegance 1.4 Petrol Auto.

With my specs, the total price of the car is coming up to 24k

 

Ideally I do not want to spend more than £340 a month over 35 months and I can put in a deposit of a maximum of 2k.

 

What would be the best options for me?

I do not anticipate going over 8k a year

 

I am also concerned that with a Lease, when handing the car back due to mainly city driving in  a very populated area I may have little dents/scratches when returning it.

So with the above in mind, what would be the best options?

I do plan in owning the car after the 3 year mark.

 

 

If you plan on owning PCP is really the only option

PCP is basically baloon HP, youre just offsetting a bulk of the payment to the end. With lease its never your car; whilst you "might" be able to negotiate its purchase at the end of term you'll probably pay over the odds and immediately become the cars 2nd registered keeper (despite physically being its only keeper).

In my mind PCP does offer a little additional flexibility than leasing (in that you can sell or trade the car if you can make thd figures work; or at the 50% payment point VT the agreement...all things you cant do with a lease) and I would pay a little extra for that flexibility, especially a heavier use/daily drive vehicle.

Where PCH is attractive to me is if I were to seriously look into running something I either could not (or would not want to) fund via traditional finance methods....i.e I were to treat myself to a 30+k car for a fixed period of time; likely something that wouldnt see hard use or cover lots of mileage but I would enjoy runninf for a couple of years. Again I would want to be in the position that I could financially get myself out of it if I absolutely had to for whatever reason.

Edited 10 March, 201511 yr by pipsyp

Been going through the same thing the last month or so! - i think pch is ok if you can really look after the car, however from the other guys on here even under pcp they are quite strict on condition of the car.

 

The only thing i would say os the deal you posted seems quite expensive compared to pch route

PCP offers more flexibility but PCH is generally cheaper (sometimes much cheaper).

 

*If you know that you will definitely keep the car for 3 years and then change it, PCH will be cheaper and work best.

*If you are unsure of the above go for PCP. You can change the car at any time (with costs), decide to buy it during or at the end of term, or just hand it back. PCP can change to suit your circumstances.

I will definitely keep it for 3 years but I just think if they are that strict of the condition when handing it back, it may of equated to the same costs of a PCP... 

With a PCP can I decide to part exchange 2.5 years into a 3 year deal?

I will definitely keep it for 3 years but I just think if they are that strict of the condition when handing it back, it may of equated to the same costs of a PCP...

With a PCP can I decide to part exchange 2.5 years into a 3 year deal?

Yes in simple terms think of PCP much like traditional HP. The car is registered in your name and technically yours (all the while you make payments and of course make the final baloon payment)....on a PCH the car isnt legally yours...its owned by the leasing company (who may well not be the broker who supplied you the car) they are simply loaning you the vehicle for a fixed period...much like a long term rental.

With PCP you are entitled to sell/trade the car at any given point but will of course be liable to clear any outstanding finance on the vehicle....if the vehicle is in negative equity you'll either have to cough up the shortfall or find some middle ground with the dealer to either absorb it into the deal (as a form of discount) or add it to your new finance arrangement. Trading out of a PCP with a bad equity position without covering it somehow other than pumping lots of your own cash in however isnt the wisest thing to do in any situation....best to keep the vehicle until the position improves significantly or goes positive to leave you with some cash to pump into the new car (even if its just a few hundred quid this could often serve as some/all of the deposit on the next vehicle for example).

As I said before if you intend to keep the vehicle beyond the end of the term, either PCP it and make sure you have a financial arrangement in place to cover the final baloon payment (either a loan or cash if you have it) or simply just buy the car on traditional HP. Where the PCP comes good is its lower (and in some cases zero) interest rates....HP still on the most part is not as competitive.

If you can afford ongoing payments, and you'll have to if you're going to need a loan to pay off the balance at the end of the term, why not just change the car every 2 years, using the higher value worth of your trade-in to pay the deposit on the next new one?

 

This is under PCP and from what I've read, the car will be worth slightly more than the final valuation set by dealer because it will be a year younger with less mileage. There are tons of threads on here about it

If you can afford ongoing payments, and you'll have to if you're going to need a loan to pay off the balance at the end of the term, why not just change the car every 2 years, using the higher value worth of your trade-in to pay the deposit on the next new one?

This is under PCP and from what I've read, the car will be worth slightly more than the final valuation set by dealer because it will be a year younger with less mileage. There are tons of threads on here about it

That is rather assuming the car is worth more than what is owing on finance...I appreciate with well figured PCP's it should be but there are no guarantees.

I am in 4k of neg equity on my Octavia after 1 year....Im not confident that will have leveled by year 2 just as an example.