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| Simon Audi Member Since: 19 Nov 2020 Location: Newport Posts: 544  
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A Lease is Not a PCP
PCP has the 50% Hand Back option A Lease or PCH does not have this option - you have to pay to the end....no exit possible... maybe death? |
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4th Feb 2021 8:18am |
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| Supacat Member Since: 16 Oct 2012 Location: West Yorkshire Posts: 11018 
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You are correct ~ apologies for loose language.
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4th Feb 2021 8:24am |
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| Scotnoob Member Since: 10 Jan 2021 Location: Scotland Posts: 25 
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Yeah as per above. Even pcp is not that easy to get out of sometimes. My a4 is one month from term and still 3k in negative equity!!
Some leases have 50 percent termination fee but most are more or less 100 percent There is some debate about being out of warranty on a lease. Some think that it's in the contract to keep you in a working car but I wouldn't risk it or want the hassle of the argument. Imagine a turbo or air suspension going on year 4! I just came out of an 18 month lease on an ipace. It was only 290pm but only 5k The best thing about it was I didn't have to even change tyres so that cost was truly all in. Ideally you want to research the maintenance windows and time it so all the costs are accounted for. Ps voluntary termination can mean three things. First is the "mid point" in pcp contract where you have the option to give the car back. Second is where you terminate a pcp or hp early and pay any negative equity. This can be expensive on some luxury cars with artificially high balloon payments. The third is a right you have under special legislation. Anyone in any kind of hop or pcp can hand a car back if 50 percent of the cost is paid. This won't happen in a pcp before the mid point anyway most likely. It also won't make you popular with th dealers as they hate it. FYI that audi pcp was 4 years and I was hit by a 1200 quid major service 3 months before hand back! |
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4th Feb 2021 9:15am |
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| Simon Audi Member Since: 19 Nov 2020 Location: Newport Posts: 544
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Also why PCP is Typically 37 month or 49 month - so you MOT and service before handing back..
But at least with PCP you can sell the vehicle and exit and the 50% break. We VT a mini Countryman around a year early when it reached 50% mark and was already in serious negative equity and I wanted to change - no issues at all. PCP also for my mind is better than HP in that you can give it back if at the end you dont need it, want it or there is trouble with it... so keeps some ownership with the finance company. |
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4th Feb 2021 9:36am |
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| SN Member Since: 29 Jun 2007 Location: SK6 Posts: 729 |
I went PCP on both my Discovery's - the first finished Jan 2009 - right on the tail of the 2008 financial crash - the joy of handing back a car with a £16k balloon but only worth about £12k was immense, and I moved immediately onto a new car. Learning their lesson LR set the balloon on the second (a higher spec one) at only £8.5k because the deal was ridiculously discounted by LR to shift stock - I bought it outright at the end of the PCP and still got 25% more for it when I sold it 3 years later. Horses for courses. For me PCP provides a level of protection from negative equity.
BTW very good point on the PCP 37/49 month terms - might have to tweak mine back a month... Steve N | 21MY Defender  | 08MY Discovery 3 (history) | 06MY Discovery 3 (ancient history) |
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4th Feb 2021 9:50am |
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| Scotnoob Member Since: 10 Jan 2021 Location: Scotland Posts: 25
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For pcp is it not 50
Percent of the entire amount? Not sure how it could have been 50 A year early in that case unless a big deposit? |
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4th Feb 2021 9:53am |
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| Simon Audi Member Since: 19 Nov 2020 Location: Newport Posts: 544
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Yes - 50% of the entire amount owed under the contract taking into account deposit and interest.
Yes - put down a large deposit / PX / Dealer Deposit Contribution (Discount on List) and the monthlies were like £400 a month on the car which from memory was £34,000 (top of range All Road Countryman) So say with interest - total due was around 36,000 (It was a low rate finance deal) 50% figure was 18,000 2 years in it was worth the £18,000 and then 1 month later I had paid the 50% so VT it The ballon was close on the 18K mark too. The dealer deposit contribution and my deposit must have been close to 10K. But this was 2014 car - so this time in 2016... so exact numbers not 100% sure... bought 5 other cars since then... |
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4th Feb 2021 10:05am |
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| Supacat Member Since: 16 Oct 2012 Location: West Yorkshire Posts: 11018
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I understand the benefit of removing the uncertainty regarding residuals, but wasn't some, if not all, of the £4k clawed back in the cost of finance during the term? Scotnoob - do you have a cost for excess mileage on your new Defender deal? |
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4th Feb 2021 10:11am |
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| Scotnoob Member Since: 10 Jan 2021 Location: Scotland Posts: 25
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With expensive cars like these you will always pay a lot in interest, depreciation etc. He just clawed a bit back himself.
Not sure about excess mileage yet. It was only initial calculator I used. |
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4th Feb 2021 10:16am |
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| Supacat Member Since: 16 Oct 2012 Location: West Yorkshire Posts: 11018
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4th Feb 2021 10:21am |
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| mse Member Since: 06 Apr 2008 Location: UK Posts: 5038 
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Excess mileage is interesting and Consumer Credit Act doesnt allow for it.
What i have learnt, i think is that there are different rules re VT and final payments/hand back Mike |
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4th Feb 2021 11:01am |
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| jim4244 Member Since: 13 Apr 2014 Location: Bedfordshire Posts: 808 
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Seems that prices are coming down still. This looks good value.
Click image to enlarge Jim |
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4th Feb 2021 8:39pm |
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| DSL Member Since: 20 Aug 2007 Location: Wandering the wasteland. Posts: 837
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What was the list price of the D240 FEs?
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4th Feb 2021 8:43pm |
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| jim4244 Member Since: 13 Apr 2014 Location: Bedfordshire Posts: 808
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I believe that it was around £64k?
Jim |
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4th Feb 2021 8:45pm |
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