Skoda Yeti - Lease or Purchase?

[Shivers]

Hi, I've owned a Skoda Yeti for 2 years but I'm new to this forum. I currently have a 12 plate Yeti Urban and was thinking of purchasing a new(er) model but when I visited the local Skoda showroom yesterday I found out that the model is being discontinued and replaced with the Karoq. I love the Yeti because it's ideal for the school-run and longer trips including camping as we can get so much packed in the back of the car. The Kodiaq is far too big for our family of two and I think the Karoq will be too big also. As much as I love the Yeti, my concern is now about purchasing a car that will be discontinued. Not due to parts availability but more about residual value. I've only ever owned a car outright but wondered if leasing in this instance might be better? I had a Golf before the Yeti so another option might be to go back to the Golf but my daughter loves the elevated seating position in the Yeti. I would really welcome any advice on this. Thanks in advance! 

[JCP]

Just bought a 1.2 Drive SEL and that is my response to the decision to make bigger and more anonymous Skodas. I have gone PCP and have little fear my last PCP worked splendidly for me final payment 9k traded in at 11.6k so new car new deal and a fat cheque. pure lease most attractive if you can offset against business use.

[SurreyJohn]

You will only be able to get a lease on a stock vehicle, no idea if it will be a sensible price per month.

 

If buying, obviously residuals will be hit, but in short term you get about £2000 of free equipment on an end of line drive model, which offsets some of the extra fall in value.  

 

Clearly if you buy one then you have a car you like, which you can keep for a long time.  If you lease then might be cheaper short term, but you may just be creating a similar replacement problem 2 or 3 years down the line.  If you buy new (if dealer can still find spec you want in stock) then there are some hefty contributions on the PCP which you can pay off later.

[Expatman]

It really depends on how long you plan to keep your new Yeti. If you keep it for 5+ years then buying is the way to go and you can get a great deal at the moment. Personally I generally keep cars for 6-7 years and have never had a major breakdown expense. I changed my 5 year old Yeti for a new one because, like you, I didn't want a bigger car. Buying new and keeping for several years means I can add all the extras I want without worrying about depreciation. You will have to get a stock car but look for one with the extras you want, buy it and keep and enjoy it for many years.

[kenfowler3966]

Since Skoda contribute a significant amount to a lease deal at the moment and the deal is at 0% interest I cant see why anyone would pay cash or use a loan to buy the car?

As above you may get a very good offer during the lease or near the end to change to another car, or you can pay the balloon payment at the end and keep it.

My car will be delivered on 1st July (I can't take it until my curent Yeti company car goes back) and will do around 15k a year for private and work use

£1500 from Skoda towards a lease deal.

Excellant discount by shopping around

42 month lease with payment at the end if I want to keep it, or if worth more can put difference in as deposit on another car

 

I had intended to put down a large deposit and borrow the balance, but ths way I save thousands of pounds, have only had to put down a small deposit and have more than the final payment sitting in premium bonds.

I might even win!

I have also gone for the extended warranty which can be added to the lease cost so I can keep the car to 5 years old with no worries until after I retire. 

If all goes well the car could be a keeper well into my retirement.

[Shivers]

1 hour ago, JCP said:

Just bought a 1.2 Drive SEL and that is my response to the decision to make bigger and more anonymous Skodas. I have gone PCP and have little fear my last PCP worked splendidly for me final payment 9k traded in at 11.6k so new car new deal and a fat cheque. pure lease most attractive if you can offset against business use.

Thanks JCP. I only use the car for leisure use and can't offset. I'm really disappointed that Skoda have gone this route given the popularity of the Yeti. The new range of vehicles are all going to look so similar and potentially rather bland. Plus there must be other buyers like me who find the new options too big, particularly when you do a lot of around-town driving.

[Shivers]

1 hour ago, SurreyJohn said:

You will only be able to get a lease on a stock vehicle, no idea if it will be a sensible price per month.

 

If buying, obviously residuals will be hit, but in short term you get about £2000 of free equipment on an end of line drive model, which offsets some of the extra fall in value.  

 

Clearly if you buy one then you have a car you like, which you can keep for a long time.  If you lease then might be cheaper short term, but you may just be creating a similar replacement problem 2 or 3 years down the line.  If you buy new (if dealer can still find spec you want in stock) then there are some hefty contributions on the PCP which you can pay off later.

Thanks SurreyJohn. I would like to get a similar spec to the Urban which I believe the new SE Drive might have. I usually purchase a car that is about a year old so I need to check if there are good deals available on nearly-new stock. I normally keep a car for 5-10yrs which is why I've always paid in full before but if I'm looking to spend a lot more than I normally do! 

[kenfowler3966]

If you go nearly new you have to pay interest on the deal?

This is your last chance to get a new one if any are still unsold.

As the Yeti is not being replaced and the replacement looks like a Seat clone to me which i had already discounted before ordering, I think I made the right decision ordering the Yeti.

Had there been a Yeti mk2, depreciation would have been bad, now the Yei could become sought after 2nd hand in 2 or 3 years time as no equivalent replacement car available.

[Shivers]

1 hour ago, Expatman said:

It really depends on how long you plan to keep your new Yeti. If you keep it for 5+ years then buying is the way to go and you can get a great deal at the moment. Personally I generally keep cars for 6-7 years and have never had a major breakdown expense. I changed my 5 year old Yeti for a new one because, like you, I didn't want a bigger car. Buying new and keeping for several years means I can add all the extras I want without worrying about depreciation. You will have to get a stock car but look for one with the extras you want, buy it and keep and enjoy it for many years.

Thanks Expatman. I do normally keep the car for 5-10yrs and it's unusual for me to change after 2yrs. It's just that I quite liked the new design and if the car is being discontinued then there might be good deals available later this year. Is the best thing to hold off for now and go to dealership in September when the new Karoq is due to delivered to the showrooms? Are any Skoda dealerships recommended on this site? My nearest dealership is in Croydon but I went up to Newcastle to pick up my Urban Yeti as there were very few around in the dealerships and very few available privately. 

[Shivers]

42 minutes ago, kenfowler3966 said:

Since Skoda contribute a significant amount to a lease deal at the moment and the deal is at 0% interest I cant see why anyone would pay cash or use a loan to buy the car?

As above you may get a very good offer during the lease or near the end to change to another car, or you can pay the balloon payment at the end and keep it.

My car will be delivered on 1st July (I can't take it until my curent Yeti company car goes back) and will do around 15k a year for private and work use

£1500 from Skoda towards a lease deal.

Excellant discount by shopping around

42 month lease with payment at the end if I want to keep it, or if worth more can put difference in as deposit on another car

 

I had intended to put down a large deposit and borrow the balance, but ths way I save thousands of pounds, have only had to put down a small deposit and have more than the final payment sitting in premium bonds.

I might even win!

I have also gone for the extended warranty which can be added to the lease cost so I can keep the car to 5 years old with no worries until after I retire. 

If all goes well the car could be a keeper well into my retirement.

Thanks Ken. Which dealership did you use? It looks like there are different deals available depending on the Skoda dealership. I will have £8500 to put down in deposit and only do about 8-9K mileage per year.

[Shivers]

6 minutes ago, kenfowler3966 said:

If you go nearly new you have to pay interest on the deal?

This is your last chance to get a new one if any are still unsold.

As the Yeti is not being replaced and the replacement looks like a Seat clone to me which i had already discounted before ordering, I think I made the right decision ordering the Yeti.

Had there been a Yeti mk2, depreciation would have been bad, now the Yei could become sought after 2nd hand in 2 or 3 years time as no equivalent replacement car available.

I think you're right although some drivers will always opt for a new design vs. and old one. The initial reviews of the Karoq are good. Given the spec I would like, the best option seems to be the new SE Drive rather than the previous models. I only hesitate purchasing a new car because of the immediate value knocked off the car once it leaves the forecourt. 

[JCP]

Consider the 0% PCP and put your 8.5 k away in order to pay the final payment. Skoda will put £1500 into the deal and after 3.5 years at 0% you buy the car better than money in the bank as things stand-someone earlier suggested premium bonds to store the cash you have since you could even win!

[Expatman]

If you prefer the bigger Karoq then the earliest you will get one is Spring 2018. Discounts will be minimal on a new model and lease deals will be much more expensive than the current Yeti.  Check deals on the Ateca to get an idea of likely prices/deals. 

[Shivers]

37 minutes ago, Expatman said:

If you prefer the bigger Karoq then the earliest you will get one is Spring 2018. Discounts will be minimal on a new model and lease deals will be much more expensive than the current Yeti.  Check deals on the Ateca to get an idea of likely prices/deals. 

I've just had a look at the Ateca but I think that is still too big so will stick with the Yeti.

[logiclee]

I think some people on this thread are confusing lease and hire purchase.

 

There are many ways to purchase. Cash, Straight Finance, or Personal Contract Purchase (PCP)

 

With PCP you will have a deposit to pay, a number of payments and then a Guaranteed Future Value. You can either hand the car back, pay the GFV and keep the car or trade it in for another if it has any equity. As you are financing the entire car including the offset value and the VAT on the purchase price the interest rate is critical for these deals.

You will be the registered keeper and will own the car subject to keeping up the payments.

 

Then there is lease. For the private individual from the manufacturer that will be Personal Contract Hire (PCH)

For PCH you pay a deposit and a monthly fee. Usually road tax will be included and maintenance can be added. At the end of the lease period the car is returned.

It may be possible to purchase the vehicle but the lease company will not usually sell to the person who took out the lease and there is no pre agreed value.

Leasing can be cheaper as VAT is not paid on the vehicle value but on the payments which gives an immediate 20% saving on the initial price.

There have been some very good lease deals on the Yeti as low as £2k deposit and 23 payments of £90.

The leasing company own the car and will be the registered keeper.

 

Lee

Edited 28 May, 2017 by logiclee

[kenfowler3966]

2 hours ago, Shivers said:

,Thanks Ken. Which dealership did you use? It looks like there are different deals available depending on the Skoda dealership. I will have £8500 to put down in deposit and only do about 8-9K mileage per year.

I don't think I should name the dealer as I never quote specifics, but the initial quotes were through Carwow.

However get your wife or friend to get the quote, find the best combination of price and dealer location, then consider a deal with them in your own name.

Dealers prefer to deal direct and may even improve the deal if no commission to Carwow. However once you have a quote through Carwow like I did the sale has to go through them.

Don't add any extras, just get a quote on a standard car to get the percentage reduction offered, then contact the chosen dealer to see what existing car they can find for you with that discount. You can see what colours are still available and if any may have some options you would like.

I was going to put down a large deposit like you suggest but that is the wrong way to do it.

Go for the minimum deposit (£500?) and put the balance away in a savings account or premium bonds in case you decide to buy the car at the end. Why have £8k not working for you unless you need to reduce the monthly payment? Even in premium bonds that should win you at least £250 over 3 years, and you may be much luckier.

About 35 years ago my brother won £1000 with only a £100 investment. That must be about £10k equivalent now!

[Expatman]

Whatever you decide do it quickly! Every day that passes the choice of stock cars reduces and you will end up with no choice at all.

[Nobbi1977]

I lease and have done for a while now. I had a Citroen C1 for 2 years and then replaced it with another one with the fancy roof. I only needed to commute so the low payment and small car works. Kids getting bigger so I have leased a L&K Yeti. £150 a month with 2k down so not a huge amount, given the list price.

 

In two years I can reassess my situation and go bigger or small again if I need. I advocate leasing as I have got used to a brand new car every two years built to my spec. To late for the Yeti now as you can only get a pre ordered one but the deals are fantastic 

[Falmouthboy]

16 hours ago, kenfowler3966 said:

Since Skoda contribute a significant amount to a lease deal at the moment and the deal is at 0% interest I cant see why anyone would pay cash or use a loan to buy the car?

As above you may get a very good offer during the lease or near the end to change to another car, or you can pay the balloon payment at the end and keep it.

My car will be delivered on 1st July (I can't take it until my curent Yeti company car goes back) and will do around 15k a year for private and work use

£1500 from Skoda towards a lease deal.

Excellant discount by shopping around

42 month lease with payment at the end if I want to keep it, or if worth more can put difference in as deposit on another car

 

I had intended to put down a large deposit and borrow the balance, but ths way I save thousands of pounds, have only had to put down a small deposit and have more than the final payment sitting in premium bonds.

I might even win!

I have also gone for the extended warranty which can be added to the lease cost so I can keep the car to 5 years old with no worries until after I retire. 

If all goes well the car could be a keeper well into my retirement.

What you describe sounds like a PCP not a lease?  With a lease you never own the car so will never see any equity at the end and don't normally have the chance to buy it.  Not saying that you don't have a great deal.

[aernala]

On Sunday, May 28, 2017 at 13:11, SurreyJohn said:

You will only be able to get a lease on a stock vehicle, no idea if it will be a sensible price per month.

 

If buying, obviously residuals will be hit, but in short term you get about £2000 of free equipment on an end of line drive model, which offsets some of the extra fall in value.  

 

Clearly if you buy one then you have a car you like, which you can keep for a long time.  If you lease then might be cheaper short term, but you may just be creating a similar replacement problem 2 or 3 years down the line.  If you buy new (if dealer can still find spec you want in stock) then there are some hefty contributions on the PCP which you can pay off later.

I lease my yeti and I specced the vehicle to suit my needs being able to add heated seats and screen and spare wheel . It's ourmoney so never settle for standard spec if you want more ask for it. If you dont ask you don't get. 

[carisbrook]

7 hours ago, aernala said:

ddI lease my yeti and I specced the vehicle to suit my needs being able to add heated seats and screen and spare wheel . It's ourmoney so never settle for standard spec if you want more ask for it. If you dont ask you don't get. 

Interesting,I think the opposite.

If I have no way of purchasing at the end(as my current Yeti lease) there's now way I'm going to add spec on that I won't have when the lease runs out in a couple of years time.

The Monte Carlo comes quite well equipped and all I needed was Climate,bluetooth and cruise

I haven't even paid for smartlink!

As you say its your money.....

[bigjohn]

On 5/28/2017 at 15:19, Shivers said:

I only hesitate purchasing a new car because of the immediate value knocked off the car once it leaves the forecourt. 

 

You can sometimes loose more on a used car the moment it leaves the forecourt - depends on the deal

 

Dealer used car profit margins can be much higher than on new cars - and that's the start of what you would loose

 

[anlygi]

1 hour ago, carisbrook said:

Interesting,I think the opposite.

If I have no way of purchasing at the end(as my current Yeti lease) there's now way I'm going to add spec on that I won't have when the lease runs out in a couple of years time.

The Monte Carlo comes quite well equipped and all I needed was Climate,bluetooth and cruise

I haven't even paid for smartlink!

As you say its your money.....

 

You don't pay the full option price when adding to factory builds though just like you don't pay full price to lease the car. For instance DSG would have cost me £11 more per month if I'd wanted it on my PCH. When buying DSG was £1100 more.

[carisbrook]

1 hour ago, anlygi said:

 

You don't pay the full option price when adding to factory builds though just like you don't pay full price to lease the car. For instance DSG would have cost me £11 more per month if I'd wanted it on my PCH. When buying DSG was £1100 more.

Mine included DSG and metallic paint at a few pounds over £150 a month (including deposit) so low monthly payments are best for me.

[silver1011]

The cheapest way to run a car remains buying nearly new and running it until it dies.

 

Leasing (PCH) is great for those that prefer to change their cars regularly and always enjoy the protection offered by a manufacturers warranty.

 

If you really love the Yeti and can't see any other cars that could be a viable alternative then now is the time to buy your perfect car, as has been mentioned buy now, Yeti's are likely to become thin on the ground pretty quickly.