[Mark V]

As you may be aware (OK probably not) I ordered an 1.5 TSI Elegance last August for delivery next year as a lease (£1,800 down and £350 a month for 23 months).

With the values of new cars staying so high these days I have become increasingly of the opinion that maybe its not the best time for a PCH lease and that most carefully specced
and looked after cars will show positive equity even after a few months. However I am aware that the Elegance makes a great lease car in free Urano Grey with its high spec - but that the R-Line makes a better private purchase even if having to add the 'missing' spec items.

So thats what I did today - I got 10% off retail price plus the £1,750 VWFS deposit contribution and changed the August order to PCP with the spec as below. Still no idea when its coming but I have been in the queue for a build slot since August so presume at some point next year it will arrive.

Not enthusiastic about the interior seat fabric or haptic s/w buttons but I do like the black headlining and exterior styling and was not really fussed about the sunroof - so hopefully this is a good decision.

Comments welcome!

 

[Yo Quinny]

Interesting. All the advice that I’ve saw at the time of my Tiguan order (inc RAC) was that it’s not a good time to buy another car and that leasing is the way to go !

 

[Rrh888]

I’ve got to agree with Yo Quinny.
a good friend of mine who’s in the motor trade explained in detail to me why at the minute leasing is better. I wasn’t buying nor was he selling. Seemed sensible but everyone’s circumstances are different

 

[Jon1972]

PCP and lease are based of the predicted residuals and I've never had a PCP end up in positive equity based on the real trade price (not a dealer inflated trade in value) but leasing works out cheaper because there are a lot fewer protections for the buyer particularly being liable for the remaining payments if you cancel. You need to be very sure your circumstances won't change over the lease.
It's whatever suits your circumstances but go in with your eyes open and if you end up with 'real' equity well done.

My hybrid R line is £2500 down, £420 a month and 10k miles a year which is a ridiculous amount of money but used cars are waaay over priced.

 

[adamcovfan]

I’ve ordered a r- line I was going to go elegance but the salesman said they have poor residual values.

 

[JBS2472]

I to have ordered an R Line and went in expecting to order the Elegance, but the dealer done a better deal with adding all the options on and still working out cheaper than the Elegance.

 

[rjo]

I managed to grab a new alspace Life from my local dealer which had just got into stock and the new model! . I had initially gone for a 21 late with 13000 miles for more cash! Alright it is a lower spec than I usually like but its new, auto and mine next week!

 

[Mark V]

Thanks for all the replies - I guess its very much dependent on the individual deal. But with new cars retaining their value more than ever (yet still being offered with substantial purchase discounts/incentives), lease deals not being the no-brainer choice they used to be, plus used cars being in very short supply and more expensive than ever, to me it makes sense to go the new car purchase route.

As others have said its also more flexible as you are not tied in to a fixed period deal and can pay off the finance without penalty and get out at any time - and I would think these days you would likely have some equity in a well looked after, low mileage R-Line with the right options.

 

[Jon1972]

Thanks for all the replies - I guess its very much dependent on the individual deal. But with new cars retaining their value more than ever (yet still being offered with substantial purchase discounts/incentives), lease deals not being the no-brainer choice they used to be, plus used cars being in very short supply and more expensive than ever, to me it makes sense to go the new car purchase route.

As others have said its also more flexible as you are not tied in to a fixed period deal and can pay off the finance without penalty and get out at any time - and I would think these days you would likely have some equity in a well looked after, low mileage R-Line with the right options.

If used prices stay where they are the car I am buying would have around 4/5k equity as MGFV are still being calculated on the long term residuals and a Tiguan holds around 45% of it's value at 4 years 40k miles. Question is where trade values are in 4 years. There will be a shortage of used cars over the next 3-6 years which may keep prices high it really will depend on what happens with lease / rental fleets disposing of vehicles. Fingers crossed

 

[ninjin]

I'm sorry but you have miscalculated your risk. Car prices are high at present due to shortage, especially used. New cars in stock have a fraction of the discount usually offered. Once the new car shortage is back to normal, maybe in 9-12months time, the used car prices will readjust back to what it was previously. The used car prices at present will not be the new norm.

 

[mrew42]

I'm sorry but you have miscalculated your risk. Car prices are high at present due to shortage, especially used. New cars in stock have a fraction of the discount usually offered. Once the new car shortage is back to normal, maybe in 9-12months time, the used car prices will readjust back to what it was previously. The used car prices at present will not be the new norm.

That's a very big maybe and a big assumption on used prices too.
Truth is no one can predict what will happen.

 

[A1VWD]

I'm sorry but you have miscalculated your risk. Car prices are high at present due to shortage, especially used. New cars in stock have a fraction of the discount usually offered. Once the new car shortage is back to normal, maybe in 9-12months time, the used car prices will readjust back to what it was previously. The used car prices at present will not be the new norm.

Quite possibly but even in 9-12 months time, assuming things do get back to normal, because fewer new cars are being sold now the knock-on effect means there will still be a shortage of nearly new cars, so prices may well stay high a bit longer.

 

[ThePhatGit]

My stealer has already offered o increase the MGFV on my order and reduce the monthly payments. I’ve so far declined due to the uncertainties of the market. I’ve been fortunate that my first 2 PCPs returned around £4K equity. This one was heading for zero, but is now around £4.5k. However, as the 1Dec price rise has put me back in the luxury VED band, I am thinking about a quick flip in 6 to 9 months, so cutting the payments may be a good option

lots to consider!

 

[ninjin]

Quite possibly but even in 9-12 months time, assuming things do get back to normal, because fewer new cars are being sold now the knock-on effect means there will still be a shortage of nearly new cars, so prices may well stay high a bit longer.

People are only paying high prices for used because of the lead time on new. When the new car supply gets back to normal, then the used price will revert to previous prices. If there is a shortage of nearly new, then people will buy new, as supply will be back to normal then, so the used prices 'will not' be strong like now.

My view of course is my own but I come from over 10yrs of the car trade.

 

[A1VWD]

People are only paying high prices for used because of the lead time on new. When the new car supply gets back to normal, then the used price will revert to previous prices. If there is a shortage of nearly new, then people will buy new, as supply will be back to normal then, so the used prices 'will not' be strong like now.

My view of course is my own but I come from over 10yrs of the car trade.

Like everything else it is all down to supply and demand.

 

[mrew42]

Like everything else it is all down to supply and demand.

Spot on - and you can bet no one has seen anything like this before, so it's all best guess, judgement and ultimately what suits the individual

 

[Yo Quinny]

People are only paying high prices for used because of the lead time on new. When the new car supply gets back to normal, then the used price will revert to previous prices. If there is a shortage of nearly new, then people will buy new, as supply will be back to normal then, so the used prices 'will not' be strong like now.

My view of course is my own but I come from over 10yrs of the car trade.

I‘d agree, 100%. Inside knowledge but I know of one large German brand who have cancelled their normal Christmas shutdown to return to multi-shift working to ramp up, and I mean really ramp up production before year end.

 

[leehal]

Interesting I am considering going from R-Line PCH to Elegance PCP, the opposite of you. My choice more driven by the fact I have massively over paid on a lease for 15K miles a year and I've averaged 4K.

 

[xtrailman]

With inflation going up who is going to be buying these expensive used cars, I suspect they will be holding on to their present cars before buying another used car, same as I am with the Tiguan, I'll be holding on to it for a least another year.

 

[Jon1972]

With inflation going up who is going to be buying these expensive used cars, I suspect they will be holding on to their present cars before buying another used car, same as I am with the Tiguan, I'll be holding on to it for a least another year.

Haven't met a dealer yet who can't get cars fast enough. Question is how long prices remain high and the trade is pretty bullish about that.

With inflation going up who is going to be buying these expensive used cars, I suspect they will be holding on to their present cars before buying another used car, same as I am with the Tiguan, I'll be holding on to it for a least another year.