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My local dealer told me that Personal Contract Hire is available to non-business users and that the way to work out the price was simply the business PCH rate plus vat. Does anyone know if this is right and, if so, is the pricing based on the list prices or is there a negotiation on the overall package cost which is then converted into a deposit plus monthly hire amount?
 

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plusmore said:
My local dealer told me that Personal Contract Hire is available to non-business users and that the way to work out the price was simply the business PCH rate plus vat. Does anyone know if this is right and, if so, is the pricing based on the list prices or is there a negotiation on the overall package cost which is then converted into a deposit plus monthly hire amount?
There are various ways to pick up a PCH, either via a Broker or direct from a Dealer, if going via a Broker there is invariably a fee for doing this versus a fee free deal from a Dealer. The general way to look at a deal is to work out the amortised cost over the hire period against the RRP of the vehicle so an example: normally 6 months up front say £230 per month = £1380 then 23 payments of £230 = £5290 this gives a total cost of £6670. You then apply this as a percentage of the RRP say £27,000 which then equals 24.7% so the rule of thumb as to whether it's a reasonable deal or not is anything below 25% is good if you edge towards 20% then that a great deal. The example I have given is not taking any broker fees into account so would change the percentages, the best way to start looking at the merits/disadvantages of PCH is to have a look at some of the Leasing Websites like Contract Hire and Leasing, Whatcar Leasing and if you want to track any deals that are being offered have a look at Piston Heads Website under car buying, the latest forum postings are up to 311 pages so a lot of activity, most regular contributors on there seem to think that prices in general have gone up over the last month or so but deals should start to filter through in the next few days. Deals that come up tend to be snapped up very quickly and can disappear within a matter of days, in my case I ordered a Tiguan1.4TSI BMT 150 SE NAV from a Dealer as a factory build as it was a good deal and I was happy with the price, but deals can and do change so if you see something that is good preferably direct from a Dealer do it and don't hesitate.
 

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My car is on PCH (as is my Golf). If the right deals come along they are cheaper than the depreciation you would suffer buying outright and they are almost always cheaper than the PCP equivalent. To give you some examples:..

My Tiguan is a white 2.0 TDI SE Nav. I made a £2400 initial payment and pay £120 per month (for 23 months). I give it back after two years.

My Golf R required a £1300 initial payment and then £220 per month for 23 months.

All prices include VAT. The Tiguan has a 5k per annum mileage cap and the Golf a 10k per annum. Excess mileage is 7pence per mile so I'm not too bothered about going over it.

If you like changing cars every couple of years I really recommend PCH ("leasing").
 

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Leasing works for me and I find it a very cost effective way of driving a new car doing 8 - 10K miles a year. I think it would get less cost efficient if your mileage gets higher.
I took out my current leased CC via an online broker, but my new Tiguan was cheaper going directly via the local dealer and I also got the chance for a test drive. The one potential downside is that you have to give it back in pristine condition (subject to industry standard fair wear and tear guidelines). I look after my cars as well as I can, but will still have to spend a few quid to rectify the odd stone chip and scuff on the wheels, otherwise risk getting a bigger sting from VW when I hand it back.
 

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plusmore said:
The general way to look at a deal is to work out the amortised cost over the hire period against the RRP of the vehicle so an example: normally 6 months up front say £230 per month = £1380 then 23 payments of £230 = £5290 this gives a total cost of £6670. You then apply this as a percentage of the RRP say £27,000 which then equals 24.7% so the rule of thumb as to whether it's a reasonable deal or not is anything below 25% is good if you edge towards 20% then that a great deal.
[/quote]

What are the target %ages if you are looking at a 3+35 deal?

Thanks

Kevin
 

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if you go for pcp and put max deposit down they still want to charge you nearly 3.5 k interest on half the balance , the car is still worth what they its worth after 3 yrs either way , take the pcp to get 1k deposit contribution and pay off the balance within 14 days , on top of the discount you have negotiated.

they want you to take the pcp because they move more new cars and after 3 yrs they still get a shiney well looked after car back which they can sell on at a nice fat profit and get you into another new car for the same payment
 

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Had a good shop around for PCH prices last few weeks

Eventually settled on a 2.0tdi 150 SEL in white, in stock, therejust waiting for 17 plates to arrive before they deliver.

Deal was £322.23 monthly 3+35 12,000 miles + £225 broker fee. - via carleasing4u.co.uk

£12,400 total hire cost over 3 years. 41.6% Car cost which is about right with cars loosing 40-50% over first 3 years

Cheapest SE Nav deal for same mileage/time/deposit above I found was £291. Via 21stcenturymotors

Straight from dealer without broker fee, they wanted £304 for SE Nav, £352 for SEL for a 3+35 12,000 (Wolverhampton dealer)
 

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Hello,

What are the pros v cons of leasing please? I've looked at some prices this morning for a 2.0 SE 150 NAV and everything seems to be over 30%, best price I could find was £1479.6, 6+35 £246.6, but really don't know if it is a sensible route to take or if it s "dead" money and would trap me in the eternity of leasing.
 

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Michael24 said:
Hello,

What are the pros v cons of leasing please? I've looked at some prices this morning for a 2.0 SE 150 NAV and everything seems to be over 30%, best price I could find was £1479.6, 6+35 £246.6, but really don't know if it is a sensible route to take or if it s "dead" money and would trap me in the eternity of leasing.
I think the long and short of it is that there is really no great way to buy a new car without loosing money. I think the good thing about a PCP is that you keep your options open and can return the car.

If you like to change to a new car every 2 to 3 years and you really look after your cars, then dealers are always keen to have it back. Providing it is in mint condition they will nearly always give you much more money back on it then agreed on the finance agreement.

Even if you have cash to buy outright, you are often better going for a PCP finance deal for major discounts and then pay off as soon as you want to.

The down side of a PCP is that you will loose more money if you shift to another manufacturer. Or walk away and hand the car back. Dealers will only give you the minimal value back.

I'm sure there are lots of other pros and cons that I have not mentioned.
 

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Michael24 said:
Hello,

What are the pros v cons of leasing please? I've looked at some prices this morning for a 2.0 SE 150 NAV and everything seems to be over 30%, best price I could find was £1479.6, 6+35 £246.6, but really don't know if it is a sensible route to take or if it s "dead" money and would trap me in the eternity of leasing.
Most people seem to think that the 2 year lease deals are the best, this is a quote from Lookers VW (not sure where they are but delivery would be included)

View All Prices
Business Prices
Personal Prices
Contract Length Yearly Mileage Excess Mileage Initial Payment Monthly Payment Get Quotation
24 months (3+23) 8,000mpa Please Call £770.40 £256.80 (Inc VAT)
24 months (3+23) 10,000mpa Please Call £817.20 £272.40 (Inc VAT)
36 months (3+35) 8,000mpa Please Call £792.00 £264.00 (Inc VAT)
36 months (3+35) 10,000mpa Please Call £820.80 £273.60 (Inc VAT)
24 months (6+23) 8,000mpa Please Call £1,346.40 £224.40 (Inc VAT)
24 months (6+23) 10,000mpa Please Call £1,468.80 £244.80 (Inc VAT)
36 months (6+35) 8,000mpa Please Call £1,468.80 £244.80 (Inc VAT)
36 months (6+35) 10,000mpa Please Call £1,526.40 £254.40 (Inc VAT)
24 months (9+23) 8,000mpa Please Call £1,900.80 £211.20 (Inc VAT)
24 months (9+23) 10,000mpa Please Call £1,998.00 £222.00 (Inc VAT)
36 months (9+35) 8,000mpa Please Call £2,052.00 £228.00 (Inc VAT)
36 months (9+35) 10,000mpa Please Call £2,127.60 £236.40 (Inc VAT)

This info is taken from the Whatcar Leasing Website who only show Dealer Lease deals so no broker fees to be paid, this would be for a Urano Grey car, all other colours would be extra, prices should also include Road Fund Licence for the duration of the lease. Excess mileage will probably be around 7.2p per mile over the mileage allowances above.
 

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Thank you, I suppose it is the decision of parting with £250 a month for the foreseeable future or saving purchasing and then repeating that exercise in 7-10 years, which is the better financial option, but also which is the more comfortable mental leap.

I would love to have a new Tiguan and I would stick with VW, I have not been as impressed with other manufacturers, but it is a lot to spend each month. The 3 year cost comparison between lease and purchase would be interesting, we also tend to do 15k mileage as we live in the middle of nowhere, so that may have an impact too.
 

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Way i see it, if your buying a brand new car, you can expect to loose anywhere between 40-60% of the value over 3 years, so leasing with a good deal your just paying the depreciation over 3 years and get to drive a decent brand new car under warrenty.

VW's and SUV's hold a good tradition of small depreciation; but this is still minimum 40% drop over 3 years on an average popular model (adding expensive toys or silly paint choices will make a higher depreciation figure as car will appeal to less people on resale).

So you can -

A) buy cash, give them £30,000
Sell car in 3 years for £18,000 maximum (63 plate tiggys on autotrader start at 11k for S models - 16k for r-line models). Unless car is perfect low mileage your probably going to get no where near that though

B) pay PcP, normally. 10-15% deposit down + dealer contribution + interest, + large balloon payment.

Generally in long run you will pay 50-60% of the car value off, but could recoup 5-10% if you choose model and spec/colour wisely and keep in good condition as a good dealer deposit for your next car after

C). Personal hire contract - you hire out the car paying a fixed deposit and monthly payment. Use a broker and shop on every website as everyone has different stock or prices (look for deals!). You pay monthly & never recoup any of the cost, but as long as you look after the car you will probably make a saving with a good deal, 12k over 3 years without the worry of trying to resell car for best value, but its the risk of not damaging the car, not going over mileage & job/payment security.
 

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Lawrie said:
My car is on PCH (as is my Golf). If the right deals come along they are cheaper than the depreciation you would suffer buying outright and they are almost always cheaper than the PCP equivalent. To give you some examples:..

My Tiguan is a white 2.0 TDI SE Nav. I made a £2400 initial payment and pay £120 per month (for 23 months). I give it back after two years.

My Golf R required a £1300 initial payment and then £220 per month for 23 months.

All prices include VAT. The Tiguan has a 5k per annum mileage cap and the Golf a 10k per annum. Excess mileage is 7pence per mile so I'm not too bothered about going over it.

If you like changing cars every couple of years I really recommend PCH ("leasing").
Who on earth did you get that Tiggy deal with? I know its only 5k, but that is bloody cheap.

Also, how do you find putting only 5k a year on a diesel just out of interest?
 

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The thing is you have to look at the physical cost of ownership when buying a car, depreciation is always the main factor, as an example in my case I bought a Seat Leon FR new back in 2015, cost OTR after £3K discount was £18350.00 all but £3350.00 was paid up front with the remainder on 0% finance. I sold the Leon with 4K on the clock for £12645.00 which meant that I took a depreciation hit of £5705 which meant over the 21 months of ownership this car cost me £271.66 per month plus RFL, so when I compare this against the amortised cost that I am paying for my Tiguan which is a lot more expensive car of £278.40 inc RFL it is actually costing me less. My lease is for 8K per year so although less than your estimated mileage if you factor in the extra cost per mile of approx 7.2p per mile it mill give you a better idea of costs, don't forget if you buy the car and do the mileage that you expect it's likely to be worth less for the increased mileage.

At the end of the day it's your money and technically you will not see anything back at the end of the lease but from a financial perspective it's cheaper than buying on a PCP which normally entails a larger deposit and higher payments with a potential of getting something back at the end of the PCP deal or alternately getting a Bank Loan and paying off over a longer period to keep the payments down.
 

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I personally would never get a lease deal from anyone but a main dealer. That is just my preference.

My deal is £250 per month, 6 months up front. No other fees. White car. 2 years. 10k miles per year.

Is this just standard? Assuming I have the piece of mind of a main dealer too, I thought it was a good deal!
 

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PWVWT2017 said:
Lawrie said:
My car is on PCH (as is my Golf). If the right deals come along they are cheaper than the depreciation you would suffer buying outright and they are almost always cheaper than the PCP equivalent. To give you some examples:..

My Tiguan is a white 2.0 TDI SE Nav. I made a £2400 initial payment and pay £120 per month (for 23 months). I give it back after two years.

My Golf R required a £1300 initial payment and then £220 per month for 23 months.

All prices include VAT. The Tiguan has a 5k per annum mileage cap and the Golf a 10k per annum. Excess mileage is 7pence per mile so I'm not too bothered about going over it.

If you like changing cars every couple of years I really recommend PCH ("leasing").
Who on earth did you get that Tiggy deal with? I know its only 5k, but that is bloody cheap.
I'm on the same deal :) Mines from Gateway2Lease.
There were some crazy deals for Tigs at the end of Sept 2016. £120 for SE Nav 2.0 TDI, approx. £180 for SEL 2.0TDI and R-Line 2.0TDI were around £200. all with £2400 upfront.

My deal is as well 5k per annum, but I'm not worried with that mileage cap as excess is just 7p per mile.
 

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Mines with gateway2lease to . I found them to have the best deals ! . My R-line 2.0 150 BMT 4 motion was £2400 up front and £294 for 2 years 8k a year :D
 

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I've just had a quote from CarWow for a 150 2.0 Tdi SE Nav for in Atlantic Blue, with winter pack at £24,854, really good saving. If I sell my current heap for £5.5k that leaves £19k to finance, any thoughts on the best way to do it, 0% credit cards, lease, PCP etc?
 
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