rowley Posted June 8, 2009 Report Share Posted June 8, 2009 Hi There, I've been looking to get an S5 for some time now, and have always only really thought about purchasing. But with all my recent cars, I have been on a pcp plan and have handed the car back. Therefore I'm just wondering why I would choose to buy (get finance) instead of leasing instead? Can I spec a lease car how I want it? Would I go through Audi or a third party leasing company? This would be a personal lease (or personal contact hire as I've seen it refered as), so i would pay VAT. Never done this or considered it before Leasing does appear to be a cheaper option than getting finance - just basically wondering what the drawbacks are? I've seen personal leasing of an S5 for approx £600 a month. Would appreciate any comments from people who have leased in this manner. Thanks Andy Link to comment Share on other sites More sharing options...
Booster Posted June 8, 2009 Report Share Posted June 8, 2009 Its Contract Hire that you are talking about. You can spec a car exactly how you want to but bear in mind, options are very expensive. For example, on a two year deal an option that costs £2400 would cost you £100 per month as they take the cost of the option and divide it over your deal period. It can be a good way of getting into a car if you go in with your eyes open and also set the mileage limit at a realistic level as the penalties for going over can be costly. Most prices include metallic paint and you also get road tax thrown in. You can include maintenance as well if you want. Deposit is normally pretty low; 2 months down on a 24 month deal and 3 months down on a 3 year deal. If you are used to the costs of a PCP and are happy to return the car in good condition then this method of funding may make sense for you just go easy on the options! Link to comment Share on other sites More sharing options...
rowley Posted June 9, 2009 Author Report Share Posted June 9, 2009 Hi Booster, Many thanks for this - didn't realise the options bit, so will bear that in mind when I spec - typically all the options I would want are pretty pricey! However for me it still makes sense, as ultimately I don't want to own and want to try a variety of cars. I guess early termination also has its penalties? Cheers for advice Thanks Andy Link to comment Share on other sites More sharing options...
Booster Posted June 9, 2009 Report Share Posted June 9, 2009 Yep, you really have got to commit to the car for the duration of the CH agreement as penalties for early settlement can be as much as 9 monthly payments!! Link to comment Share on other sites More sharing options...
rowley Posted June 12, 2009 Author Report Share Posted June 12, 2009 thanks Do you think I'd be able to take advantage of the scrappage scheme if I chose to go on Personal Contract Hire?? Cheers Andy Link to comment Share on other sites More sharing options...
Booster Posted June 12, 2009 Report Share Posted June 12, 2009 Nope. Can't be done on that type of finance. There can be no part exchange. Link to comment Share on other sites More sharing options...
rowley Posted June 13, 2009 Author Report Share Posted June 13, 2009 ok, many thanks Link to comment Share on other sites More sharing options...
bec21tt Posted August 23, 2009 Report Share Posted August 23, 2009 Sorry to butt in, but, do you get the deposit back at the end of the lease agreement? Thanks Bec Link to comment Share on other sites More sharing options...
Booster Posted August 24, 2009 Report Share Posted August 24, 2009 Nope. Its not a house rental Link to comment Share on other sites More sharing options...
cosmicblue Posted August 24, 2009 Report Share Posted August 24, 2009 Hi There,I've been looking to get an S5 for some time now, and have always only really thought about purchasing. But with all my recent cars, I have been on a pcp plan and have handed the car back. Therefore I'm just wondering why I would choose to buy (get finance) instead of leasing instead? Can I spec a lease car how I want it? Would I go through Audi or a third party leasing company? This would be a personal lease (or personal contact hire as I've seen it refered as), so i would pay VAT. Never done this or considered it before Leasing does appear to be a cheaper option than getting finance - just basically wondering what the drawbacks are? I've seen personal leasing of an S5 for approx £600 a month. Would appreciate any comments from people who have leased in this manner. Thanks Andy Personal contract hire (PCH) is absolutely the way to go and has more upsides than down: 1) A much smaller deposit, typically 3 months plus an admin fee so more of your capital stays in the bank. If you PCP the car the difference between the GMFV and the trade-in price will not be reflected in your original deposit - money down the drain. 2) Just give the car back at the end of the term, technically you have no right to buy though you can ask the leasing company for a price. 3) You can spec to your desires, options are not expensive, roughly speaking a £200 option is £5 a month over 3 years. 4) Check my signature file for the car I have on order which will be on a PCH, the Audi dealer wanted a deposit of over £8000 for a PCP over 4 years to equal the PCH monthly payment over 3 years. The PCH deposit will be under £2K. 5) If you have a personal reg plate you can make the leasing company the nominee have the plate on your car - even though the reg doc isn't in your name. 6) Audi dealers don't do personal contract hire and appear to be losing increased amounts of business because of it - to the point of being annoyed. 7) There are specialist brokers that will do all the legwork of finding the best PCH price for you - PM me for the one that took £40 of Nationwide's best price for the car below. 8) The exit from a PCH (it is a finance agreement) is similar to that of a PCP, if if you exit early from a PCP then the true value of the car is way below what you actually owe. If you can find a catch do let me know! Link to comment Share on other sites More sharing options...
Merlot Posted August 24, 2009 Report Share Posted August 24, 2009 (edited) No problem with the idea but with options you are paying the whole cost of the option over the term so they cost a lot IMHO. What about the VAT? Also I've heard some issues with people potentially losing their cherised plate if the car is written off. Is this true? Edited August 24, 2009 by Merlot Link to comment Share on other sites More sharing options...
cosmicblue Posted August 24, 2009 Report Share Posted August 24, 2009 No problem with the idea but with options you are paying the whole cost of the option over the term so they cost a lot IMHO. What about the VAT?Also I've heard some issues with people potentially losing their cherised plate if the car is written off. Is this true? £ for £ the options would cost more in cash terms than the outright purchase of those items - but few options carry over their value into the residual value of the car anyway if you bought/or financed via PCP - auto transmission and Satnav perhaps but that's about it. You lose the rest in most cases. You pay VAT on a PCH, however your monthly payment on a PCH is lower than and equivalent PCP and you have a considerably lower capital investment too. The cherished plate bit is just an admin function of the leasing company. Link to comment Share on other sites More sharing options...
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