Deleted member 296722
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I think already prices are coming down and in term of finance deals are good right now.
Except another 3 years of monthlies......without seeing any increase in PCP cost.
That's fine, but would I rather pay £239 per month for a brand new car, with full manufacturer warranty and support, including breakdown cover and replacement car, or knock around in a 10 year old banger which I will need to repair if (when) it breaks down, sort out the MOT, breakdown cover, replacement car etc.Except another 3 years of monthlies......
Our friends have just handed back their Mini on PCP and got £4k back in equity such is the strength of the used car demand. They have bought a 12reg Astra until the market settles.
PCPs and leases are high at the moment due to the uncertainty in the motor trade so they need to hedge their bets on the GFV, which will likely tumble.
I think car (un)reliability is rather over egged.That's fine, but would I rather pay £239 per month for a brand new car, with full manufacturer warranty and support, including breakdown cover and replacement car, or knock around in a 10 year old banger which I will need to repair if (when) it breaks down, sort out the MOT, breakdown cover, replacement car etc.
This car is used by my wife, who uses it to look after her elderly father, so reliability and a high level of support is high on our requirements. I have a leased Golf GTD, but will be swapping it for an EV on salary sacrifice once it's up for renewal. I can get a Volvo XC40 EV fully insured and all consumables covered for less than £400 per month net. That's less than I would pay on a bank loan, traditional lease or PCP.
The Ford warranty scheme is one of the better ones. A courtesy car or free hire car is provided for all warranty work, and it gets completed as a priority. On a previous Ford, we had a dodgy starter motor, and they repaired it in good time.I think car (un)reliability is rather over egged.
I have a 64 Reg Octavia which is coming up to 100k. It has needed a single rear wheel bearing which cost me £35 in all those miles (Previous "owner" is my best mate).
Costs £30 a year to tax, £40 to MOT (which didn't have a single advisory), £180 a year to insure and I have breakdown on my bank account.
It is also worth £500 less than I paid for it 5years ago with 48k on the clock.
I suppose I have the assurance of a "spare" car if it did need work in a garage, but my experience of dealers in the past does leave a lot to be desired with them never having courtesy cars available and repairs taking much longer than they quote or not being able to fix them fully requiring multiple visits......VW and BMW, I am looking at you!
Just watch how your pension contributions are affected on a sal sac lease scheme, especially if it is NHS.
Another option is extension of manufacturers warranty (not aftermarket ones). I bought my Golf R with 5yrs warranty. She was 7 years old yesterday and I've extended the warranty for £220 a year with a £50 excess. Mostly due to the fact it has a large turbo, a haldex and DSG, none of which are cheap or easy repairs.The Ford warranty scheme is one of the better ones. A courtesy car or free hire car is provided for all warranty work, and it gets completed as a priority. On a previous Ford, we had a dodgy starter motor, and they repaired it in good time.
In terms of pension, yes, that's accounted for. We have Sal Sac for pension in place, so it gets taken first, before the reduction for the car.
Yep, never had much confidence in VW and my current Golf will be my last. It's had software issues with the self driving (Travel Assist) functionality, whereby it goes into Failsafe mode and decides all speeds are in KPH. This leads to it slamming on the brakes to go from 70MPH to 70KPH (44 MPH), which is not fun. It also refuses to overtake cars, as it thinks it's in Germany and we're trying to undertake cars. Both now fixed with a software update, but it took them 14 months to get there.Another option is extension of manufacturers warranty (not aftermarket ones). I bought my Golf R with 5yrs warranty. She was 7 years old yesterday and I've extended the warranty for £220 a year with a £50 excess. Mostly due to the fact it has a large turbo, a haldex and DSG, none of which are cheap or easy repairs.
I took said Golf in for a service on Monday and I was sat near the service desk drinking the free coffee and I was shocked at the calls some of the service people were making ripping people off on things like tyres, brakes, headlight alignment etc which a. Probably wasn't needed and b. Can be done for a fraction of the cost elsewhere.
I was advised I need new tyres as they're down to 4mm. I advised the adviser it passed an MOT last week with no advisories and a tyre that has 8-9mm new and a legal limit of 1.6mm is only around 50% worn. He went quiet after that.
No issues with the ACC on mine or my other halfs old 18reg Passat (Passat doesn't let you undertake but the Golf does!). I guess they have made it more software based since the launch of the ID models, which VW have really hashed up.Yep, never had much confidence in VW and my current Golf will be my last. It's had software issues with the self driving (Travel Assist) functionality, whereby it goes into Failsafe mode and decides all speeds are in KPH. This leads to it slamming on the brakes to go from 70MPH to 70KPH (44 MPH), which is not fun. It also refuses to overtake cars, as it thinks it's in Germany and we're trying to undertake cars. Both now fixed with a software update, but it took them 14 months to get there.
I've heard them tell people similar things for tyres and wiper blades, but main stealers are not alone. Auto Windscreens were offering blades for £40 when I had a windscreen changed, which was more than VW wanted for them!
Yep, my Passat was fine for ACC, but didn't have traffic sign recognition. The Golf has Travel and Traffic Jam Assist, so quite happily drives itself on dual carriageways and in heavy traffic.No issues with the ACC on mine or my other halfs old 18reg Passat (Passat doesn't let you undertake but the Golf does!). I guess they have made it more software based since the launch of the ID models, which VW have really hashed up.
I have been a lifelong VW fan and I didn't even bother to test drive the ID.4/5 as it is truly a bad car with poor efficiency and appalling infotainment system which is downright dangerous.
On the flip side, for service, I had a Tesla mobile tech come out to me yesterday (no waiting around a dealer) to replace a faulty wing mirror and he was the nicest guy you could meet. Makes you wonder why other manufacturers don't have mobile techs for the simpler "on the drive" jobs.
I would say to make sure you don't put too large a deposit in if you are looking to Contract Hire (where you basically agree to hire the car for a set number of years). Many deals are advertised with 9 or 12 months as an initial rental but this really doesn't make any sense to do when contract hire is involved. For leasing (PCP) you have an ownership stake in the car so a larger deposit can be useful if you wish to lower the monthly payments. However, be aware that a large deposit at the start of the deal does not mean a large deposit at the end of the deal - the deposit will be reduced due to the reduction in the monthly payments. Your percentage of equity in the car remains the same at the end of the deal whether you have a large deposit or not.Bump for this, im thinking of a new car to replace my 2013 focus st estate. Its done ove 110k so I wouldnt get a good amount for it. Ive been thinking of leasing, but having never done it, its a bit daunting tbh…any tips and advice?
Just something else to consider: Are you at risk if the mortgage rate goes up further during the next 2-3 years you 'own' this lease car? You're tied into the payments, with penalties for early cancelation if you find you're struggling to afford the payments and you can't just take it down to WBAC (though I suspect used prices for nearly new cars might start to dip more if a recession does hit).Thanks for that, lots to consider.
It depends upon whether you want to drive around in a brand new car, which has a full 3 year warranty and much lower service costs, or buy an older vehicle with little or no manufacturer warranty.Just something else to consider: Are you at risk if the mortgage rate goes up further during the next 2-3 years you 'own' this lease car? You're tied into the payments, with penalties for early cancelation if you find you're struggling to afford the payments and you can't just take it down to WBAC (though I suspect used prices for nearly new cars might start to dip more if a recession does hit).
Caveat: I can't get my head around paying thousands to then hand it back after 2-3 years, so I'm not the target audience for PCP, leasing, etc as I prefer to run an older car that I've paid for.
Most agreements you can hand back the car past about half way though without issue, just check your agreement before signing. Owning a car has the downside that you have to sell it before purchasing a new one, that can be disappointing. So it is swing and round about as to which is the best option.Just something else to consider: Are you at risk if the mortgage rate goes up further during the next 2-3 years you 'own' this lease car? You're tied into the payments, with penalties for early cancelation if you find you're struggling to afford the payments and you can't just take it down to WBAC (though I suspect used prices for nearly new cars might start to dip more if a recession does hit).
Caveat: I can't get my head around paying thousands to then hand it back after 2-3 years, so I'm not the target audience for PCP, leasing, etc as I prefer to run an older car that I've paid for.
Most agreements you can hand back the car past about half way though without issue, just check your agreement before signing. Owning a car has the downside that you have to sell it before purchasing a new one, that can be disappointing. So it is swing and round about as to which is the best option.
I didn't mean to rattle those who are pro lease/PCP, just thought it only fair to caveat my comments. Committing to large monthly payments just to have a new car on the drive might not be the most important thing if someone is struggling with a big mortgage/big increases in the next year.Owning a car has the downside that you have to sell it before purchasing a new one, that can be disappointing. So it is swing and round about as to which is the best option.
No im not at risk with mortgage rates now.Just something else to consider: Are you at risk if the mortgage rate goes up further during the next 2-3 years you 'own' this lease car? You're tied into the payments, with penalties for early cancelation if you find you're struggling to afford the payments and you can't just take it down to WBAC (though I suspect used prices for nearly new cars might start to dip more if a recession does hit).
Caveat: I can't get my head around paying thousands to then hand it back after 2-3 years, so I'm not the target audience for PCP, leasing, etc as I prefer to run an older car that I've paid for.
I would say no one should be at risk if they have done their some. It does seam to be odd to me that when rate were low people locked in for 2 years. I was locked in for 10, but this ends soon so I have chosen to lock in for 5 at 4.28% no great issue back in 2019 the BOE had been warning us of rate hikes.I didn't mean to rattle those who are pro lease/PCP, just thought it only fair to caveat my comments. Committing to large monthly payments just to have a new car on the drive might not be the most important thing if someone is struggling with a big mortgage/big increases in the next year.
I never buy newer than about 5-6 years so it's not an issue to me about having the latest gizmos. I did have new company cars regularly when I was working, but we always bought older cars for the rest of the family. As per my other thread I do all my own DIY as well, so I'm aware I'm an outside case, but I do believe that having a lot of stuck 'on tick' might prove to be a problem for some households in the next few years. Cheap finance has trapped people into having to replace with a new car every 2-3 years, great while the rates are low, but they won't stay that way for long now I suspect...