Not looking to change our Octavia 'till next year but always looking at options.

 

Are PCH deals just for business users or are they freely available for private buyers ? Do all Skoda dealers offer both PCH and PCP deals ?

 

PCH is Personal Contract Hire, so aimed very much at Private buyers

 

Not all dealers offer this option, in my experience. Simpsons and Horton are definitely worth contacting though. The latter certainly offer delivery services, given your location. Not sure about Simpsons.

 

It's certainly an avenue worth exploring. Like any purchasing method, you need to weigh up the pros and cons, and see if it's the right option for you, with total cost in mind.

Not all dealer do PCH, it does look considerable cheaper however, I have concerns about the end of term inspection, my cars aren't pristine when I hand them back

Try Eardleys in Crewe, both my lease cars sourced through them at the cheapest price I could find at the time.

 

When I compared PCH and PCP they didnt even give me the PCP price, it was so far behind it made no economic sense. I usedto keep my cars 7 to 8 years but a 2 year lease is suiting me down to the ground.

Fair wear and tear is allowed. Small dents and scratches, scuffed alloys, scratched door cards etc.

 

Big dents, scrapes, rust etc. is not. If you look after the car like it was your own then you'll have no issues.

 

Be sure the company you lease from is registered with the BVRLA and subscribes to their fair wear and tear guide.

 

http://www.bvrla.co.uk/service/fair-wear-and-tear-guides

I'm on a PCH deal with my current Octy 3, having been down the PCP route with my previous Octavia 3 - to me, PCH is a no brainer, a lower deposit, cheaper monthly repayments and no concerns about depreciation or trade in values make for worry free motoring. At the moment there are some cracking PCH deals around, I just hope they're still available when my contract finishes in 2 years time ( I quite fancy a Superb !).

JKW

Thanks for the info guys.

 

I see the attraction of the lower monthly payments and the no need to worry about the value of the car after 36/42 months but are there any negatives with PCH ?

 

What about insurance ? Can you take the car abroad ? Is GAP ins an issue. Who is the registered keeper of the car?

 

Those of you who have gone the PCH route would you do it again and who did you do the deal with ?

 

Some of these may be daft question !

 

Registered keeper - the lease company, sometimes this will be VW Financial Services - depending on the leasing route

Insurance - only difference is you're not the registered keeper, so you indicate that when applying for insurance. In my experience, that hasn't made any difference to the cover, or to the quoted cost

Car abroad - yes, that's not a problem. You just inform the lease company, so they're aware.

GAP - same question applies to any new car, whether lease, purchased outright or on PCP. Some will go with it, some won't bother. Just make sure you get competitive quotes for the GAP policy, rather than from the supplying dealer.

 

People to deal with - Simpsons, Horton Skoda suggested by me. Plus Eardleys who I wasn't aware offered PCH. Also some recommended others - Hub Leasing (VW Group leasing specialists), Gateway2Lease, CentralUKVehicleLeasing. With the latter two, factor in arrangement fees - usually £180 +VAT or thereabouts.

25 minutes ago, fergiet said:

Thanks for the info guys.

 

I see the attraction of the lower monthly payments and the no need to worry about the value of the car after 36/42 months but are there any negatives with PCH ?

 

What about insurance ? Can you take the car abroad ? Is GAP ins an issue. Who is the registered keeper of the car?

 

Those of you who have gone the PCH route would you do it again and who did you do the deal with ?

 

Some of these may be daft question !

 

 

In addiction to the above, your local dealer in Sighthill (West End Garage) does leasing. I use their branch in Dunfermline as the guys there seem pretty decent. They were very competitive too. 

39 minutes ago, SC03OTT said:

 

In addiction to the above, your local dealer in Sighthill (West End Garage) does leasing. I use their branch in Dunfermline as the guys there seem pretty decent. They were very competitive too. 

 

 

That's interesting, didn't know they did PCH. Can I ask what deal you got (approx).

27 minutes ago, fergiet said:

 

 

That's interesting, didn't know they did PCH. Can I ask what deal you got (approx).

 

£850 down, £289pm for three years. That's a vRS manual hatch, winter Pack, black pack and metallic. 

PCH is easier and cheaper than other purchase methods, and very much fits in with our fast, no strings, quick gratification society etc...

 

However do consider what you are spending over the longer term.

 

For example £850 deposit + 36 months of £289 is £11254 over 3 years, so over 10 years that's £37513, if you kept leasing at a similar price per month.

 

£37513 is a lot for running a car over 10 years, and would buy better cars than an Octavia, assuming savings or 0% interest loans of course...

 

Bearing in mind you can get a discounted VRs Diesel hatch manual for around £21k, with maybe a personal loan at 3.3% APR, so you would pay around £23k total.

 

I'm not against PCH, but do look at the longer term also.

Edited 8 May, 20179 yr by glosrich

With PCH you pay a deposit, and then rent the car for duration of the term. At the end you have no option to buy the car, so you give it back and have nothing to show for it except being ££££ out of pocket.

 

With PCP you at least get the chance to pay the balloon payment and keep the car.

 

I believe the PCH is also much harder to get out of mid term, although not sure. So you may need to keep the car for the full term, unlike HP/PCP where you can pay whats owed and walk away.

 

PCH works for some, in fact I am looking into it for my next car.

Edited 8 May, 20179 yr by mannyo

PCP is only ahead if you have a plan to buy the car, IME.

 

What has tended to happen is the balloon payment is set higher than actual value, to keep the term repayments down. So if the PCP customer then wants to move to another PCP with the same dealer, they find they're offered less than the balloon value, given that part-exchange values would then apply. Which can be a shock to some!

 

PCH is more rigid, in contractual terms, yes. You're bound to that, whereas you do have some options with PCP as said.

 

All swings and roundabouts - each and every method of new car purchases has its pros & cons 

I found that RRG Rochdale gave better deals than Simpsons on PCH.

 

Just my 2 penneth worth

Thanks for all the info and opinions guys. Gives me a lot to think about.

On 5/8/2017 at 13:10, glosrich said:

£37513 is a lot for running a car over 10 years, and would buy better cars than an Octavia, assuming savings or 0% interest loans of course...

 

 

I'm no fan of PCH (or PCP) but don't forget it is £37K is to run a new car every 3 years over the 10 year period, so that's 4 cars.....not sure that's so excessive if you consider buying outright

 

If we work on a residual of 40% for the purchase option and assume each of those costs £22K then you would have find/finance. 

 

£22K to buy the first car, another £13.2K each after 3,6 and 9 years to have an asset after 10 maybe worth £16K?

 

So thats about £55K sunk by my reckoning?  

   

Edited 9 May, 20179 yr by juan27

22 hours ago, juan27 said:

 

I'm no fan of PCH (or PCP) but don't forget it is £37K is to run a new car every 3 years over the 10 year period, so that's 4 cars.....not sure that's so excessive if you consider buying outright

 

If we work on a residual of 40% for the purchase option and assume each of those costs £22K then you would have find/finance. 

 

£22K to buy the first car, another £13.2K each after 3,6 and 9 years to have an asset after 10 maybe worth £16K?

 

So thats about £55K sunk by my reckoning?  

   

 

I'm not saying have a new car every 3 years, these cars will do 10 years easily, as long as you don't do mega miles. 

 

Maybe in the last 3 years, you will have to replace some brakes, exhausts, but if you maintain them 10 years is no problem.

 

This myth about having a new car every 3 years is created by the car industry to fuel new sales. The reality is you'd be better keeping a car for at least 10 years.

 

Everyone is being brainwashed into having a new car every 2-3 years and perpetually paying finance. Its a conspiracy.

 

 

 

A conspiracy  - that's maybe one way of looking at.

 

Others don't want to keep a car for 10 years. Personally, I'd die of boredom. You also miss out on advances in safety, engines, technology, spec levels etc etc etc

 

I don't think anyone is disputing that a modern car can be run for 10 years - of course it can. The difference is if the first owner wants to run it for that long.

5 hours ago, glosrich said:

 

I'm not saying have a new car every 3 years, these cars will do 10 years easily, as long as you don't do mega miles. 

 

Maybe in the last 3 years, you will have to replace some brakes, exhausts, but if you maintain them 10 years is no problem.

 

This myth about having a new car every 3 years is created by the car industry to fuel new sales. The reality is you'd be better keeping a car for at least 10 years.

 

Everyone is being brainwashed into having a new car every 2-3 years and perpetually paying finance. Its a conspiracy.

 

 

 

I'm not suggesting anyone needs a new car every three years. I've had my Octavia for nearly 7 years from new! What I am saying is that if you want a new car every 3 years leasing seems economically wise if you ignore  contractual risk. Comparing to outright purchase of a "superior" brand and keeping for 10 years is clearly not like with like.

 

This company is based in Livingston not sure if there prices are any good 

http://www.capitalvehicle.co.uk/personal-lease-cars/skoda/octavia-hatchback

There is a search website which enables you to find good deals (but some local deals aren't included) called contract hire and leasing .com

 

Sometimes there are specials at silly prices, for certain models, I got my Yeti SE 1.2 DSG at £1150 deposit and £128 per month.

 

 

If you are using it as a means to have a car for 2/3 years and you have no intention of handing it back at the end, PCH is going to be cheaper. If you go for PCP it's a bit of extra hassle but you can reduce the overall cost of the car by buying it at the end and selling it privately.

 

I've now done both and I would also note that with PCH you do get looked down on by the dealers like some kind of second class citizen. Maybe some dealers are better.

On 10/05/2017 at 12:41, Wardy said:

A conspiracy  - that's maybe one way of looking at.

 

Others don't want to keep a car for 10 years. Personally, I'd die of boredom. You also miss out on advances in safety, engines, technology, spec levels etc etc etc

 

I don't think anyone is disputing that a modern car can be run for 10 years - of course it can. The difference is if the first owner wants to run it for that long.

 

That just shows everyone is different and it's about taking the right option for you.  Personally, I'm going to PCP route as I intend to buy the car after and keep it for a while, possibly even 10 years.  At the end of the day an Octavia, even in VRS trim that I'm looking at is just a tool for family transport and space for trips to the DIY stores.  The money saved buy not leasing new models every 2/3 years will allow me to run something much more exciting along side it.

 

I also don't think there have been massive tech/safety improvements in the last 10 years.  Sure sat nav has improved, but these cars don't offer much more than my old 2005 Golf Gti had.  Things like radar cruise etc are very easy to live without, unless you have had it on a previous car.  The next 10 years might see bigger changes with hybrid tech moving on, but realistically in 10 years time a 2017 Octavia will be a perfectly usable and good car.

 

Of course, for people who get bored quickly, or don't want to fund the large payment at the end of the 3 year period, then PCH is a better option, but also more expensive long term.

Bought my Octavia as a nearly new registered with 11 miles on the clock for a very good price. I intend to keep the car for a very long time. Ideal for trips to the tip and holidays abroad. The car is rattle free and feels well built. 

 

Purchased on a good old personal loan from my bank. 3 years and the cars mine. Tried a PCP with a terrible unreliable Polo and got rid of it at the earliest opportunity. 

Edited 12 May, 20179 yr by threadbear