Interesting article about future leasing of electric cars: https://uk.yahoo.com/finance/news/single-biggest-threat-electric-vehicle-000100397.html
I know people that lease their cars. They like it, just need to be careful about the mileage and leave it back in decent condition. Can't see many buying expensive cars and bikes in the future, you will just lease or rent them or pay for the time you use them. Autonomous cars are close, jump in, pay per mile. I had the 959 on PCP. paid the final payment and kept it.
My Audi PCP ended last month and I paid it off and kept the car, the most astonishing thing was that I had no communication at all (other than their usual generic spam) from the Audi dealer that sold me the car originally to try and put me into a newer motor on a new PCP deal - maybe we’re all misjudging and they’re selling s&*t loads of new cars still !
I've obviously got an eye for a deal or something. I lease everything. My Sports van Transporter Highline was over 34k to buy and costs me £280 a month on a lease with £1700 down. My golf R funnily enough was also 34k, that was £1800 ish down from memory and about £320 a month. To finance (PCP) one at the dealer was 8k down and WELL over 400 quid a month. No chance. I get my use out of them (which includes road tax every year which is included) and then hand them back and walk away. Rinse and repeat. I can set terms that work for me. Some cars I only keep for a year, like my first golf R. Works for me. I've always got new stuff. It's always under warranty. I don't have to worry about taxing it or if anything goes wrong with it. If the car market totally shits itself I have passed the liability on to something else. I absolutely would not want to be 'owning' a fossil fuel vehicle worth much money over the next 10 years. My mate owns an Aventador which I 'think' he purchased for 260k about 3/4 years ago now. He's been trying to sell it for over 2 years!!
I leased a fiesta a few years ago to basically put bucket loads of miles on rather than my own car. I'd worked out that over 2 years the fiesta was going to cost me around 5K all in, whereas doing the mileage on my car would reduce the value by over 20K. It was a simple decision, although I didn't really want to have to lease a vehicle in the first place. Likewise a few years ago I had my 1199 Tricolore on a PCP, I can't remember what I put down but it was around £180 a month from memory. In the 3rd year (outside of warranty) it went pop and took several months to get resolved... In part due to the push back from Ducati Italy, however my dealer and once Black Horse were involved it was taken care of quickly, to the point BH refunded 3 payments and also paid me some extra cash for the inconvenience. I think at the end of the term the GFV was around 13K which effectively covered my deposit and payments. I ended up selling (sale or return) through my dealer for around 15K.
I now do the same with my cars, lease them. I used to buy them with a loan etc at one time then had a couple of pcp’s but there was never anything left over when you handed it back, or very little. 3 years ago I was wanting a Cupra. Over £31k and a loan was a stupid figure. Pcp was around £400 month with a massive final payment. I leased it for £249 down, £249 month for 3 years then hand it back, total cost £9k. If I went pcp it was about £17k with the deposit. Just ordered an Audi A3 S-Line Dsg with a few extras and it’s £235 month with £1400 down so £9.5k over 3 years. Local dealer wanted £450 with £3150 down on a pcp, nearly £19k !!! If I bought it outright it would be worth around £15-£16k after 3 years so a £15k cost.
To add.. I don't personally believe that the future will be EV's tbh but the sensitivity over it.. the lack of certainty brings a lack of confidence which shags the market naturally. I am keeping a keen eye on Synthetic fuels at present. Which 'could' potentially be the savour of the combustion engine
When you lease a vehicle is that done directly with the dealer? Or are there leasing company’s that specialise in that sort of thing?
Lease companies that specialise. It's funny because they naturally source the vehicles from dealers yet if you go direct to a dealer they are VASTLY more expensive !
Yes, my lease quote from the dealer for exactly the same car was £115 a month more with £1400 more deposit. As mentioned they may come from the very same dealer.
My fiesta was all done on-line via a lease company, I did go to a Ford dealer with said quote and said can you match this... they couldn't. Likewise my wife was after a new car a few years ago, she wanted a big Merc GLC thing, got her an on-line lease quote and then visited our local Merc dealer, same story they couldn't get near so we left there sharpish. Saying that she's now driving a Jeep Wrangler which she has leased from a dealer, looking at quotes on-line for a lease they were around £200 per month more expensive than what she is paying, like for like. It's a case of looking around and a bit of right time right place to get the best deals, from my experience if there's a new model they want to shift the old model so potentially a deal, and vice versa manufacturers want to get the new model out to generate interest, so sometimes offer great lease deals for a new model.
The problem is bikes have become increasingly expensive. Who can or wants to afford £24k for in most cases a toy these days . Without pcps they just wouldnt sell nearly as many. Gives riders a cheaper option to own one . As with everything if you can afford then why not . Downside is the extra amount of debt you incur in these days of debt checking
Manufacturers offload the cars to lease companies at huge discounts to bulk selling. Most lease companies dont let you buy the car at the end wheras pcps from dealers give you the option. Having someone who workes for BMW finance the discounts to dealers are also huge and the mark up to Jo public is huge. This includes bikes.
just done bin it, have it burst into flames or get it nicked! Otherwise that negative equity will become your responsibility (unless you took out gap insurance?)
No it doesn't, 2 options either pay the agreed final payment or hand it back . If its now worth less thats not your problem and nothing to pay as long as mileage and condition is as agreed when you took the pcp out
How do you hand back a bike that has been stolen? Or that you have written off and is now worthless? If you put down a minimal deposit the insurance company will pay out less than you now have on finance, now that you no longer have the bike your not just responsible for the depreciation you financed on the PCP but also the whole of the GFV as well.
I had this when my first golf R got nicked. I didn’t on that occasion have gap. It’s easy to get caught out. However I dug my heals in and eventually they paid the proper market value for it so there wasn’t a problem really
If you’re borrowing, as long as it’s cheap money then go for it. MBNA, Sainsburys and Virgin always have good deals, on money transfer options. I regularly stack up lumps on those and pay them off as I know I can clear it within 12/24/36 months. My mate pays back £1,000 a month in various cards for debt, that using my offers I could have the same credit amount but for £200 a month. Literally burning money. Ridiculous that people don’t focus their attention on this.... Back to the main point, I sometimes go for PCP but never new, always 6-24 months old with low miles, generally smaller deposits with 50% of the payments. I contract lease all my cars, through the business. Sometimes offers are genuinely that good for “new” cars that it would be silly not to. I don’t even like borrowing but if I do, it’s never more than 3%.
