Someone tell me please....... I am currently looking at getting another car...........considering leasing one on a personal basis. My stepson has just got got himself a brand new black Merc SLK '2 point something' diesel.......10000 miles per year, possibly only one service, no road tax to pay for.......after two years he gives it back and gets another....all for approx £250 a month on a personal lease.. Makes sense to me.......... .........so why do effing car dealers keep trying to push me down the road of PCP (Personal Contract Purchase) instead? Am I missing something here? AL
Pcp is similar but you pay more interest over the balance I think. Also leasing is not for everyone: pcp ends with something that may be part ours, ie your money isnt all sunk, where leasing its just rental payments
Yes, thanks.... that's what I thought...........a bit like a mortgage as opposed to rent...........with a mortgage you might actually own something at the end of it........ ......the PCP deal seems to include the option of coughing up a balance so you can actually buy the car...........but apparently my stepson can buy his if wants to at the end of the deal..... So why do these bl**dy salesmen want me to go doen the PCP route? Suerly it shouldn't matter to them which option I want? AL
With my stepson's one, there were three months payments upfront (which out of 24 isn't too bad I guess).... If I go PCP route there seems to be a flexible deposit figure say, £300 to £1000+...... With the lease option, it could be anything from three to six months payments up front or some sort of 'deposit' of £1100 - £1600. To me, there is sod all difference in two actual options, although I think the lease option is cheaper.
Reckon its the interest thing, bigger baloon balance to have interest charged against. Suspect its a commission and paperwork/availability thing Google is your friend on this, no reason to use local dealer, find a leasing specialist
OP, is your stepson self employed? Leasing normally means that you can claim the VAT back on the monthly payments. Something that can't be done on PCP as you own the car. If he's employed, it would seem to me from recent experiences that Merc are more set up for leasing than other brands. A mates just got a cracking deal on an E coupe, again leased but he's employed, does a lot of miles & just hands the car back at the end.
My stepson is a Director of a company which means he is employed, but his lease has been done as a personal lease...........I'm also Director of my company and therefore employed; and I also want a personal lease.........but I think you are right about Mercs and leasing. Bradders...........Yes, I have been looking at the leasing comparison sites...........I think you may be right about commission.......if its PCP, the dealer is in a roundabout way selling me a car, so the salesman gets a commission..........Leasing, though, seems to be done through a middleman (dealer, maybe.....but normally a leasing specialist) who puts together a lease deal between a dealer/manufacturer and a finance company.........I'm sure the commission to the 'dealer' would be less because he isn't actually selling a car. Thanks AL
I have a limited company so one of our cars we run through the company and lease it as a company car, the lease deals for small companies are very keen indeed and you can claim some VAT back. However the lease deals are not so good on a personal basis, a PCP is probably cheaper, the other problem with leasing is excess mileage and any damage on the car when you return it, however if ours are scruffy we just buy it at the end of the term and sell it straight on.
That's a good point about damage etc.......however I try to look after my cars...........unfortunately 'Madam' doesn't........had three prangs in three years.........'kin liability. Interestingly the lease deals on some of the comparison sites appear to be the same for 'business' as they are for 'personal' only the VAT makes a difference. I'm VAT registered, but I have found it is to my advantage to claim mileage rather than have the company own the vehicle. AL
My father in law is a retired accountant and he's just got a Merc on a lease plan, and when it comes to money he doesn't waste it so I guess it's a better deal! I can find out who he did it through if you want. Chris
I work for Audi and often get people in showroom with these merc deals on lease. I have I agree they are bloody good value but leasing isn't often good for private individuals, should you wish to change early in the agreement you effectively have to buy your way out which can be excessive. If you know you're going to stick to length of agreement then you can get a lot of car for your money. They are offering C63 AMG for circa £599 per month but I've known customers wanting to get out early and been £10k upside down to cars worth. PCP can also be very cheap as often manufacturer will help towards deposits and offer low interest with flexibility of coming out early.
Leasing is definitely the way to go if you're getting a new car. We did it with our Roadster - FAR cheaper than any deal the dealers were doing. They like to push their finance packages because they make loads of money on them, but they cost a lot more than leasing. I would highly recommend Wessex Leasing...
Reminds me of some advice from an American millionaire with a gorgeous girlfriend - "If you drive it, fly it or f**k it : rent it!"
When we got our Roaster the alternative was a finance "deal" from a Merc dealer - we did the calculations, and over three years, including all the options to buy at the end of the lease and the "ballon payments" etc, it worked out about 3£K cheaper to get it on lease. Didn't seem to matter if we decided to keep it after the lease period or not, it worked out cheaper either way...
Normally ou'll get a buy option, end of the day they have to sell so likley somewhere between retail and auction rate applies. And if you have run it, and happy, you are buying something pretty safe comparing others
pcp has a greater commission for the salesman, as well as that at the end of the term you can make the choice to keep the car or restart with a new vehicle, but in reality they're never as clear cut as that - mileage limits etc. As bradders says, its a greater interest rate over the term as well as a more 'consumer' orientated package, making it feasible they have the maximum flexibility with the vehicle in some instances.
That's the conclusion I was coming to..........I was offered a lease today by a dealer in this are for a Peugeot 207CC (madam likes them!! ) and the monthly figure he gave me exceeded the monthly payments my stepson is making for his SLK.....needless to say, Madam won't be getting a 207CC. AL
