PCP/PCH

[Osc]

Sorry to bring this up again but just need some help checking I havent missed something.

Currently own mk2 blackline which will be 4 years old in January,I have been on skoda web calculator and

tapped in following for octavia 1.4 SE Sport:-

 

Deposit £1200

Monthly £ 303

10000 miles

36 months

fnial payment  around £7000 or give it back

 

Went on what car web and found lease

Deposit £1200

Monthly £ 201

10000 miles

36 months

 

Why is there such a big difference or what have I missed.

 

Thanks

[silver1011]

PCP's are often more expensive as there is meant to be equity in the deal at the end (although the recent threads on here are testament to that rarely being the case). The idea being this equity is ploughed back in to the deposit on the next new car.

 

PCH has no options at the end, throw the keys back.

 

The focus right now is on PCH, this is where the deals are to be had.

Edited 4 September, 2016 by silver1011

[Osc]

Thanks for reply I was looking at just handing car back after the 3 years and as it was 0%

diddent think there would be £100 a month difference!

[silver1011]

To put the PCH deals into context, the deal you highlighted above breaks down as follows:

 

1st month = £1,200

35 months @ £201 = £7,035

Total = £8,235, or per month = £229.

 

Why have a lowly 1.4 SE when you can have a vRS estate for only £30 more per month...

 

1st month = £1,289

23 months @ £215 = £4,940

Total = £259.

 

http://www.parkvehicles.co.uk/skoda-offers/view/1112/Skoda-Octavia-Estate-20-TDI--pound179PM

Edited 4 September, 2016 by silver1011

[silver1011]

Thanks for reply I was looking at just handing car back after the 3 years and as it was 0%

diddent think there would be £100 a month difference!

 

Handing a PCP car back would be disastrous. Using your numbers:

 

PCP:

 

1st month = £1,200

35 months @ £303 = £10,605

Total = £11,805.

 

PCH:

 

1st month = £1,200

35 months @ £201 = £7,035

Total = £8,235.

 

Making the PCP £3,570 more expensive.

Edited 4 September, 2016 by silver1011

[silver1011]

If the vRS / diesel is not for you here is an even better deal on the 1.4 SE Sport you mentioned...

 

https://www.contracthireandleasing.com/car-leasing-companies/independent-brokers/fleetprices-co-uk-limited/skoda/octavia/116482834/

 

1st month = £544.11

35 months @ £181 = £6,335

Broker fee: £240

Total = £7,119, or £198 per month.

 

£31 per month cheaper then the price in the OP.

 

Right now it makes no sense to buy or PCP.

Edited 4 September, 2016 by silver1011

[Osc]

Again thanks for your replies so it looks like I didn't miss anything the £100 difference is  £3600 saving so what is the incentive for PCP at dealers.

Also £30 more for vrs looks tempting.As mk 3 is bigger I am having extended test drive Tuesday to make sure it fits into drive easily-we live in a tight cul de sac so space is tight!

[Osc]

Have just been on we buy any car and worth £8500 could use this cash for 3 year PCH deal with warranty etc.

still seems to good to be true-

[Orville]

PCH is cheaper because Lease companies can obtain decent discounts and dodge the VAT. For cars that maintain high residual-values, leasing can be very attractive. Examples are BMW 140i's for £300pm, Jaguar F-Pace for £400pm, Skoda Superb SEL Exec for £235pm, Fiesta ST-Line 140PS for £125pm, all inclusive of VAT and with 10K Miles pa.

 

The Missus wants an F-Pace once I dump the VRS. Leasing makes one far more affording than PCP or a loan.

Edited 4 September, 2016 by Orville

[Has]

If you go PCP you could trade in your current car and use the value towards your deposit, if you go PCH you'd need to sell your car private.

PCH is less flexible than PCP but there are deals to be had, new PCH deals get launched every quarter, next deals will be in October. Keep watching the lease websites!

[DaryllH]

If you go PCP you could trade in your current car and use the value towards your deposit, if you go PCH you'd need to sell your car private.

PCH is less flexible than PCP but there are deals to be had, new PCH deals get launched every quarter, next deals will be in October. Keep watching the lease websites!

I was offered a very good part-ex price for a deposit right off the bat from Simpsons Skoda. Ended up selling privately for £1k more, but that's the luck of the draw! I'm 1.5 months into my PCH and really happy with it.

[blandy123]

PCH is cheaper because Lease companies can obtain decent discounts and dodge the VAT. For cars that maintain high residual-values, leasing can be very attractive. Examples are BMW 140i's for £300pm, Jaguar F-Pace for £400pm, Skoda Superb SEL Exec for £235pm, Fiesta ST-Line 140PS for £125pm, all inclusive of VAT and with 10K Miles pa.

 

The Missus wants an F-Pace once I dump the VRS. Leasing makes one far more affording than PCP or a loan.

 

Friend of mine has just got a M140i on a £300 a month PCH deal.........took me for a spin in it the other day WOW WOW WOW WOW!

[TDIum]

But only 10k miles p/a?

 

Friend of ours has her C220 coupe off the road for the next year 'cos she's up to the mileage limit on her PCP.

[Orville]

7,900miles is the average annual mileage for a 4-wheeled vehicle within the UK. 10K will be fine for most people but choose a higher value if you need it. Also check the excess mileage rates as most companies charge between 7p to 12p. This will add £70 to £120 per thousand miles if you go over.  The same consideration is needed for both PCP and PCH.

 

edit: A 140i for £300pm is a LOT of sports car for the money. You can even throw a couple of kids and a medium-sized dog in the back if you need to. If I did not have bigger kids I would consider one myself.

Edited 5 September, 2016 by Orville

[SC03OTT]

But only 10k miles p/a?

 

Friend of ours has her C220 coupe off the road for the next year 'cos she's up to the mileage limit on her PCP.

If she's on a PCP, who cares? Is she going to hand it back? If not, drive away.

[TDIum]

Not exactly sure what type of plan it is, but WTF I've never understood these things anyway. 

[Welsh_kai_boy]

PCP mileage only comes into play if you are going to hand the car back. If you use the car to fund your next PCP (as an example) they just value the car based on condition and mileage.

[davitc]

Friend of mine has just got a M140i on a £300 a month PCH deal.........took me for a spin in it the other day WOW WOW WOW WOW!

 

PCH

The M135i are on very good deals, seen £350 with 15K. Audi TT, 1.8TSFI cheaper. Golf R about the same

 

I got a vRS TDI with 12K including maintenance and servicing for £274 per/Month

Edited 5 September, 2016 by davitc

[silver1011]

Plenty of deals out there for PCH but you have to find them.

 

PCP is pedalled by every main dealer and most independent dealers across the UK.

 

PCH isn't.

 

If you are prepared to scour the internet for hours on end you'll eventually get lucky. You also have to act fast too, the really good deals don't last long. If you are are ditherer then PCH might not be for you.

 

I put down £2,400 for month one and pay £100 per month for this Scout so £4,800 across two years. 8,000 miles per year, £70 excess for every 1,000 miles over...

 

 

Bargainlicious.

[Niall]

If only I didn't do 20k miles pa - not much bargains for the likes of me (or not that can I unravel from the leasing websites).

[999pooch]

If only I didn't do 20k miles pa - not much bargains for the likes of me (or not that can I unravel from the leasing websites).

They are still to be had. But on a 2 year lease (23+6) 5k, you're looking at an extra £75 / month for a the mileage you do

[silver1011]

If only I didn't do 20k miles pa - not much bargains for the likes of me (or not that can I unravel from the leasing websites).

 

It depends.

 

Take my Scout deal. £4,800 over two years for 8K a year.

 

Let's assume I ended up like you doing 20K a year.

 

20,000 miles x 2 years = 40,000 miles, minus the 16,000 mile allowance = an excess mileage of 24,000 miles over the lease term.

 

7.2 pence per mile excess (or £72 per 1,000 excess miles) = a final excess charge of £1,728.

 

Add this to the £4,800 of my PCH and you get a total of £6,528. Divided by the 24 month term means it'll cost you £272 per month.

 

£272 for a brand new car every two years covering 20,000 miles per year? Sounds a no-brainer to me.

Edited 5 September, 2016 by silver1011

[GoneToBeemer]

PCH

The M135i are on very good deals, seen £350 with 15K. Audi TT, 1.8TSFI cheaper. Golf R about the same

I got a vRS TDI with 12K including maintenance and servicing for £274 per/Month

There are Golf R DSG deals for 3+35 at 15k for around £300.

[Wakey]

Out of interest, as I've little knowledge of the PCP/H thing....What happens if you are in a 2 year deal and then something happened that meant you could not continue? what would the lease company do?

[TDIum]

You still have to make the car pristine again when you hand it back - so also budget for a couple of wheel and ding repairs and a full valet.