Contract/lease Hire - anyone do this??

Bladerider · Post by **Bladerider** » Mon Nov 19, 2007 11:50 am

PCP allows you to buy the car as follows....

Deposit
Number of monthly payments
Final settlement

The final settlement figure is calculated by the dealership on what car it is, what miles you do, and the length of term of the contract, and the projected future value that would mean for the vehicle. They then agree this is the value that you have 4 choices on at the end of the agreement. You can pay the figure as a lump sum and take ownership of the vehicle, you can refincance this figure as straight HP to take ownership after the last payment, you can say "No thanks" and just hand them the keys and walk away, or you can part ex the vehicle against another one if theres some equity left in it to form a deposit.

To take the 535...

Its worth 50k new
You pay 10k deposit
You will have a 3year term
You do 25k miles a year
So they guesstimate that the value of a 3year old 535 with 75k miles on it to be 15k lets say.

So you pay 36 monthly payments at 5% APR on the total borrowed of 40k, but are actually only paying off 25k of cost of the car (ie there will be 15k left at the end) which would be around

blacky · Post by **blacky** » Mon Nov 19, 2007 1:49 pm

Cheers Bladey

Thats helped me out..... As much as I would like a nice Bimmer, I think I will have to take cheaper car, looking at either a Golg GTI, or a GT TDI or a Honda Civic etc... Looked at the Beemer 320d coupe but they are not meant to be that quick...

I will see what the account thinks is the best way forward, but maybe going on doing 15k a year, tehn getting a PCP personally then claiming the mileage might be the best way....depends on what the tax benifit is caompared to actully having a car as the companies.

blacky · Post by **blacky** » Mon Nov 19, 2007 1:58 pm

Oh, and for PCP etc, do you recommend going thro a main dealership or all these finance companied that seem to be doing these deals???

Bladerider · Post by **Bladerider** » Mon Nov 19, 2007 3:45 pm

Well,

I have a Golf GT Tdi 150 as well that is Karens main car.

It does 50mpg without breaking sweat and she drives like a nutter alot of the time, best I have seen was 66mpg on a 40mile journey, worst I have seen with me wheelspinning everywhere with the traction turned off in the wet was 31mpg !!! You can chip 'em to 180bhp easy peasy and having also test driven the 330d at the same time I'd say the Golf felt quicker, was MUCH MUCH more economical, and generally more useful as 3series are a surprisingly small car inside, unless you get a touring.

They handle like boats so Im going for KW coilovers, poly bushes, and some 18" 5spoke split rim type alloys when I get round to it and have some spare cash for her, but its done over 100k miles its still happily starting and stopping like new and is just brilliant. Cant rate it highly enough for its purpose.

If you are only doing 15k miles a year you might find the PCP the best option as the residuals will be much better. I wouldnt like to sway you one way or another for the finance. My experience of PCP is....

Mercedes finance PCP on the van worked very well, no probs, bought the van by refinancing the bubble over 9 months at end of term

Second van was just as easy, but was too old for Merc to finance direct so went with similar scheme with Lombard i think.

Audi wouldnt do PCP direct on the Audi due to mileage so went with BlackHorse instead who were perfectly pleasant but didnt offer the refinance option at the end of term so I just paid 9k direct (I actually sold the car for 17.5k so it shows they tend to hedge their bets quite a lot !!)

GT3 was my personal car and i only quoted 6k miles per year, I have only done 4k in that time and it hasnt depreciated by one penny so its a bit academic !!

BMW I have bought personally on straight HP so I can claim mileage, as I worked out this would have saved me 11k in the 2 years I owned the Allroad.

I still wont say which I feel is better but you can see what I have done and why as time has gone on.

J.

Post by **Stuart** » Mon Nov 19, 2007 4:07 pm

Great thread.

Nearly settled on a 3litre Hilux with all of the bits for Tan. Works out at about

duncan · Post by **duncan** » Mon Nov 19, 2007 4:24 pm

yep my chequered history has a lot to answer for ... it might be why I am so in debt now :lol:

blacky · Post by **blacky** » Mon Nov 19, 2007 5:07 pm

Stu, is that a PCP? as that my other option, is get a twin cab pick-up, Narava is my favourite at the moment. 170bhp. Whats the 3 ltr Hi-lux?

is that thro Toyota direct of another company.

Yep, excellent thread, as I have been reading up a bit but its always good to speak with people who have done it before, as its a resonable commitment so I didn't want to just jump in cold!

My other option is to buy a cheaper 2nd car outright, but 1, there are risks of it being rubbish, and I really don't have time to mess about with 2 cars, and 2, I have always fancied a brand new car!

Bladerider · Post by **Bladerider** » Mon Nov 19, 2007 5:08 pm

If you were a semi professional bean counter it sure as fcuk explains datalogging your toaster !!!

Stu,

Tans a wonderful woman, WANTING a hilux is quite unusual amongst the fairer sex

J.

duncan · Post by **duncan** » Mon Nov 19, 2007 5:12 pm

Bladey - I wasnt a bean counter for them - far from it

Bladerider · Post by **Bladerider** » Mon Nov 19, 2007 5:22 pm

No worries fella,

Still wouldnt surprise me if you started a thread about the optimum speed for perfect coffee grounds !!

lmfao !!!

J.xx