PCP is a lot more expensive than Personal Contract Hi re- or leasing. Not sure why. I always start with www.whatcar.com/car-leasing/deals/personal/. One catch - Gap insurance is needed with a lease, because insurance won't replace a leased vehicle with new if there is an early write off, for some crazy reason! Cost - from £100 (one payment) depending on the value.

We have leased a Skoda Rapid since Dec 15, but it is now about to be changed to a SUV style that we don't want, so we have ordered an Octavia replacement. Recently, it was possible to get a 1.0L TSi in the standard paint colour for £130/month - probably an 8K, 2 year deal.

After decades refusing to buy new because of the initial depreciation, I have changed my tune for a few reasons.

New car - everything (the latest technology) works - and under manufacturer's warranty the whole time (That needs the initial purchase of the 4th year in the case of our Octavia which is a 4-yr deal). We like DSG, but want it covered, so we would never hold on beyond the lease period - though we have unexpectedly been offered a good price to keep the car.

You can opt for monthly maintenance to cover all consumables or anything not covered under warranty such as brakes. You can pay monthly to replace the tyres - but our Rapid is still on 4 to 5mm after 30K, and we had to pay for a irreparable tyre, so that was a waste of about £150.

One snag is that any options have to be fully paid for during the deal - so if you have significant option cost, it makes sense to take out a deal for as long as you can (with warranty in parallel).

That means that the monthly cost is essentially fixed - no more £1200 bills to get through the MOT or sensors that suddenly need replacing for £350.

Despite HJ's answer today, www.honestjohn.co.uk/askhj/answer/114123/can-i-put...d-

We had a private plate from new, but it will have to revert to the official plate for a short time before the Octavia comes with the personalised plate transferred.

Bit worried about the condition check, but blemishes are only slight, so crossing fingers. Valeting is essential of course.

May I be permitted to say the OP asks a very reasonable and relevant question and it makes a change from "what small hatchback should I buy for my wife".

And he has had a sensible first reply too.

The first question that always springs to my mind when I see that there are good lease or PCP deals to be had is ... but how does someone like me get to know about these deals and how do I know that they are,genuinely, such a good deal?

There are adverts and special offers literally everywhere. At least if I buy a brand new car with my own money I can see exactly what I'm paying and if I chose to use finance I can see what the rate is ... and I can hazard a guess as to what it might, possibly, be worth in x number of years time.

With PCP there are variables such as balloon rates and interest rates and monthly contributions and upfront charges plus mileage limits and damage rectification costs at the end - and, despite bods coming on here, and elsewhere, I just can't get my head around them. Maybe lease rates are easier to understand?

I know that Ling has been around for ages and must have thousands of customers, past and present - plus you can go to your main dealer for a PCP quote or to any number of other places advertising to do a PCP or lease deal.

But, to quote your phrase "if you're fairly flexible about what you want" ... presumably that means trawling through, not only loads of different main dealer showrooms or websites but all those other places offering contracts and trying to compare like with like. I don't mind doing the research - but I honestly don't know what to look for and how to recognize one of these "good deals". I, too, would drive a BMW or a Merc if I thought it was gonna cost me less for three years than a Suzuki or a Skoda. (although I'm not sure that I'm a BMW or an Audi man, if you know what I mean).

To be honest I only have interest in buying (or, should I say, owning) new coz I like to know what's happened to the car from the off and it pleases me to have from new - but ultimately it's in my own financial interest to pay as little as possible after, say, three years for the pleasure of driving it AND if I thought that, after that period of time, that it was gonna cost me less to PCP it rather than buy it and sell on then my ears prick up.

Have I made hard work of that or does anyone understand me.. Maybe the OP and I are thinking along the same lines?

Edited by KB. on 12/11/2018 at 16:58

Another sensible reply, but it just goes to prove (to me, at least) that there isn't a single, obvious answer.

Personally I cosset my cars and they are invariably immaculate at all times in their life, so the end oif contract repair question might not be significant, but that's only a drop in the ocean when trying to foresee what's gonna be best for us in 3 or 4 years time.

I hope I get some ejumacation here in the forthcoming responses.

There are three ways to make your motoring really expensive. One is to have a new car, one is to regularly change your car, and the third is to rent a car. The OP seems to be wanting to do all three. I can think of no more expensive way to be on the road. It astonishes me that upwards of £3000 per annum is acceptable just to have use of one nearly new fairly mundane car (it's only new on the first day!).

My records go back to just before marriage. In 39 years I have bought eight cars - grand total £55100. That's less than £700 per annum. We still have three of them, and since 1981 have always had two cars (since 1993 three cars) on the road. That's less than £350 per car per annum (I don't count the third low mileage sports car which stopped depreciating long ago). Now clearly I am at the other end of the car buying spectrum in that I bought good used cars and made them last for many years. So, OP, please continue with what you are doing to ensure a good choice of car for people like me!

Edited by John F on 12/11/2018 at 17:19

^^ Re. the above. Food for thought. The sort of snippets I,and maybe senex was hoping for.

I can readily see that a car with a three yr warranty and a three year PCP or lease would match each other and you might estimate a three year deal is the obvious one to consider. But where might manufacturers like Toyota, Hyundai and Kia fit in to the picture? Would you perhaps conssider a five, or even seven year PCP or lease? ...... I would doubt it myself but having had both my current cars from new and owned them for 7 years then, obviously enough, I can envisage long term ownership on an "outright purchase" basis and haven't had sufficient problem with either of them to make me wish I'd done otherwise.

But, things change and what was right fore the past seven yrs might not be so for the next.

EDIT. Like senex, I too have DSG to consider ... something I would think long and hard about if buying outright next time.

In fact - - I wouldn't.

FURTHER EDIT. I spotted senex's reference to the possibity of an extra year's extended warranty and the question of whether it would be prohibitively expensive.

It might be worth looking at the warranty offered by, what used to be called, CSMA but is now renamed Boundless.

I used them for years four and five on my Yeti DSG and the cost was reasonable. Cover provided by Car Care Plan who provide cover for many major manufacturers in the form of approved extended waranties. Over five years the cost goes up and the items covered comes down hence I decided to take my chances with the DSG.

Maybe worth a look. You have to join Boundless for about £25 a year but in doing so you get free (or included) Legal Expenses insurance cover which costs about the same if added to your motor policy.

Edited by KB. on 12/11/2018 at 23:24

Ta for that ... all good common sense.

BiL did a deal this weekend. Built-to-order VW Passat. £8000 deposit of which the VW dealer paid half. Guaranteed min final value of £8500. BiL will be paying £250 a month.

It would be a help to anyone trying to work out if this is a good deal if you could tell us:

1) The mileage allowed per annum?

2) How many years the agreement runs for?

3) The model of Passat and which engine it has?

Without these details it's impossible for anyone to work out if it's a good deal or not. It's a bigger car than I would be interested in so these details are of no consequence to me, but they would help someone interested in a larger car and isn't sure whether to lease (or PCP) or buy. At the moment all we know is it's £7000 for the 1st year and £3000 for each of the following years.

Edited by FiestaOwner on 19/11/2018 at 17:17

It's the 1.5 petrol engine. Deal is for 3 years but I forgot to ask the mileage, but I'll try to find out. I thought it sounded a good deal when he mentioned it, but admittedly I didn't go through the financials.

Penumbra, were you asked by the salesman how many miles per annum did you envisage covering in the 3 years of possession??

My bet is that the Contract you describe will be over a very low mileage, and if that fits your circumstances then absolutely fine. If not, then it's a classic example of mis-selling.

The Motoring Trade Press have been very active recently in projecting that this all-too-common malpractice, when selling PCP products, will be the next major mis-selling scandal after PPI !

Since I was made redundant in the early 90's being left financially embarrassed with HP on a car I took the decision to try and always have the funds to buy any car. Since then I always try and save a bit and research my car purchases to reduce the potential capital outlay waiting for the right moment – eg last car was a nearly new end of model Skoda Superb with a huge saving. As I do a high mileage I also keep cars for a long time, ignore depreciation and effectively throw away at the end.

However things may change when I retire in a few years, I’m starting to think the way forward is PCH – ie effectively just hiring a car. Some stonking deals around e.g. Skoda Octavia 1.0 SE Technology 24 months 8000 miles/year First payment £1345 then 23 x £112 - This includes car tax as well. Need to check It’s OK driving abroad and what happens if the leaseholder suddenly can’t drive anymore (eg ill health or worse!) , but the other half can. At least it's not possible to be made redundant when retired!