[DazC]

I've just leased a Honda Jazz for work which I intend to do 20k pa in.

It's a top spec model and is only £160 pm on 20k.

It's just a workhorse car and allows me to keep the mileage down on my other car.

Makes perfect sense to me. As does the original posts thinking as it allows you to change cars every 2 years without the worry of depreciation and trying to sell or trade in.

There are some cracking deals on lease cars if you keep an eye out.

[AndyMD]

Options don't have cost the entire amount. On he Audi I have just ordered it was £10 a month for Auto and £10 a month for the Tech Pack (24 month contract). That's on an S- Line that's pretty well spec'd anyway

[ioannisG]

Really struggle to understand how is leasing different from a PCP other than the option to buy in the end (which most dont exercise) and the ability to VT? The way I understand it is that leasing is basically a more restrictive and possibly cheaper PCP but you have to keep the car for the duration of the lease and are not given the option to buy it. Is that it or am I missing something here?

[JustChris]

We buy a keepe/cheaper car for the Mrs/family car.

We PCP/lease the bigger asset of my high mileage work car. This is my home from home for 2-7hrs a day journeys.

I absolutely take a sledgehammer to crack a walnut and treat myself on these cars, either in model or spec. I don't really feel like a bellend and it's a pretty small part of the household income and savings. That's not a brag just a common sense approach to feeding a hobby/work tool treat.

[225]

I spent a lot of time looking at lease vs pcp and at the time of getting the 340, the pcp seemed less risk as I could sell the car and get out at any time. Yes there would be a hit but at least your not stuck with an expense every month or faced to pay the whole lease cost.

Now however looking again at new cars ( far too early but enjoyable still) 2 yr leases seem to be a winner. Especially for the wife's new car as you can get some great cars on 2yr deals with say 8k mikes which is perfect for her.

For replacing the 340 I guess it would mean selecting a few cars and sitting and waiting for which deal comes in best for anyone of them.

[NotGotABimmer23]

Originally Posted by ioannisG

Really struggle to understand how is leasing different from a PCP other than the option to buy in the end (which most dont exercise) and the ability to VT? The way I understand it is that leasing is basically a more restrictive and possibly cheaper PCP but you have to keep the car for the duration of the lease and are not given the option to buy it. Is that it or am I missing something here?

Pretty much, you arent the registered keeper on a lease so never get the v5, you dont pay tax etc.

[teaston]

Originally Posted by ioannisG

Really struggle to understand how is leasing different from a PCP other than the option to buy in the end (which most dont exercise) and the ability to VT? The way I understand it is that leasing is basically a more restrictive and possibly cheaper PCP but you have to keep the car for the duration of the lease and are not given the option to buy it. Is that it or am I missing something here?

Should answer all you need:

https://www.carwow.co.uk/guides/fina...sing-explained

[4WDriver]

Originally Posted by ioannisG

Really struggle to understand how is leasing different from a PCP other than the option to buy in the end (which most dont exercise) and the ability to VT? The way I understand it is that leasing is basically a more restrictive and possibly cheaper PCP but you have to keep the car for the duration of the lease and are not given the option to buy it. Is that it or am I missing something here?

I’ve been leasing for 6 years. Had 3 cars and just got a 4th. I’ve always had the option to buy at the end. Just call the lessor and ask them for a price. Apparently it’s a legal requirement nowadays.

Leasing tends to be cheaper than PCP because firstly it’s a bit less flexible, you are tied in but can buy your way out if necessary for a fee. Secondly, as the car belongs to a company and it’s their business to hire cars, the don’t pay the 20% VAT. On a personal lease you only pay VAT on your monthlies. They also source cars at fleet prices. Deals appear when they may have sourced a few too many or need to make a volume target. At the end of each quarter?

I just bought my way out of my 335d lease as it needed tyres and was a bit of a t-break build. Cost me 50% of outstanding payments less the VAT I’d have paid. My monthlies were £350 so they demanded £175 less tax so £146 for each month early. So it’s not totally disaterous. It didn’t quite make sense financially but man maths kicked in as I was sick of my visits to the stealers.

If you are going to hand in a PCP at term, as 80% do, all other things being equal, leasing would have been cheaper.

[Broncho]

When I was selling VAG, a while back now, I was business development sales jerk but I was the bloke that did the cash sale, PCP to company car allowance people and contract hire.

For a cash purchase by a company or PCP by a car allowance person the most I could go to was usually 8% discount on a golf or A4 as an example.

The lease companies, Arval, Leaseplan etc received our 8% and up to 30% on top manufacturer support depending on the car, that's why leasing can be and usually is cheaper.

I've said it before PCH and PCP will end up being a single product in the not too distant future.

And yes you can buy your lease car at the end if you want to.

[Cuprat]

Originally Posted by Bryans69

Was the decision to lease, and also for a relatively short period, based on you wanting to only keep the car for a couple of years, or have you gone for a couple of years because over that period it works out cheaper than buying? (hope that makes sense)

Looking at an S4 at the moment, and not sure which way to go. Wanting lots of extra's doesn't help, but a 2-3 year lease probably cheaper than buying, but if we keep for six years (like last few cars) buying makes more sense
(and I can justify a better spec)

I like to change every couple of years and at the time it was cheaper to lease for 24 months that 36 months. So in short it was down to cost.

For me, the driver was not to get fixed on a specific car and be a little flexible. This was easy as it was a second car really... Though the Audi is a nice car.

[AndyEssex330d]

Originally Posted by ioannisG

Really struggle to understand how is leasing different from a PCP other than the option to buy in the end (which most dont exercise) and the ability to VT? The way I understand it is that leasing is basically a more restrictive and possibly cheaper PCP but you have to keep the car for the duration of the lease and are not given the option to buy it. Is that it or am I missing something here?

Cost. Lease cars generally are heavily supported by the manufacturer, big financiers etc. So when we were leasing the qashqai, Nissan wanted £2k £400 per month, on lease it was £1,200 and £200 per month. Will be moving to 12 month leases after this one, no servicing costs, no tax, nothing. Mileage is low so that is why.

[andyzdeman]

Originally Posted by Tengocity

Surely all of us on here are the bell ends as no matter which way you cut it, obtaining new cars repeatedly is a mugs game financially, and mostly about ego arguably.

Only way to really know would who of us are knobs would be if profiles had everyone’s age, job, IQ, annual household finances, savings/debts/investments, family size and details AND cars with their financial details.

I’m sure buying, HP, PCP, least etc can all seem to make the most sense in some scenario.