Looking at one of the great PCH deals floating around at the moment on an Octavia Scout.

 

I've got my head around never actually owning the car and decided to give it a go.

 

£2,090 deposit, £149 per month, 24 month term, 8,000 miles a year so basically £230 per month for two years or £2,760 a year.

 

I want the best deal so have been trying to get my head around the pros and cons of PCH, PCP and a straight forward bank loan.

 

I have an 8 year old Scout that is currently worth £6K that I've used in my calculations.

 

Am I missing anything?

 

 

* My PCP / Loan examples above does not include any possible maintenance (tyres, brakes) or repair costs (outside of the warranty period).

* To keep it simple I've left out tax, insurance, servicing etc. assuming these are the same or similar across all three options.

 

I fully understand the pros and cons of each:

 

PCH

 

(+) Cheap monthly payment.

(+) New car every two years.

(+) No worries over big bills (under warranty, no tax, tyres etc.). 

(-) Early exit fees (if made redundant etc.).

(-) Extra scrutiny for damage at the end of the term.

 

PCP

 

(+) Option to buy the car at the end.

(+) Low MFGV (Minimum Future Guaranteed Value) to enable sufficient equity for the deposit on the next rolling PCP deal.

(+) Easy to exit beyond the half way mark.

(+) Currently 0% interest and a £1,000 Skoda UK deposit contribution.

(-) Higher deposit / monthly payments.

 

Loan

 

(+) More cost effective to add options.

(+) You own the car from day 1 (unsecured loan).

(-) Open to unexpected repair costs after three years.

(-) High monthly payments.

 

To me, once you are over the fact you'll never own the car, and assuming you take good care of it (as if it were your own) then the PCH deal is a no-brainer?

Edited 6 March, 201610 yr by silver1011

Not wanting to **** on your bonfire fella but, your Scout is worth about £4k.............unless you are very very lucky...

Already been offered £5,500 in part exchange on the above PCP deal from a Skoda main dealer.

 

Figured I'd get another £500 for a private sale.

 

Even 'We Buy Any Car' valued it at £5,800.

 

This one, a year older, with 20,000 more miles and being the cheaper petrol model sold for just under £5K...

 

http://www.ebay.co.uk/itm/2007-07-SKODA-OCTAVIA-SCOUT-2-0-FSI-4X4-MANUAL-ESTATE-SUV-DIAMOND-SILVER-MET-/331747620294?hash=item4d3db2f5c6:g:STQAAOSwa-dWjCks

Edited 6 March, 201610 yr by silver1011

"To me, once you are over the fact you'll never own the car, and assuming you take good care of it (as if it were your own) then the PCH deal is a no-brainer?"

That's what I figured. I did all the sums. Local salesman in comparing the PCH deal to his proposed PCP said " I couldn't get you in anything that nice for that money!

My apologies.....