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MK8 Lease and PCP Deals


gazzab

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Hi All,

Newbie here so please go easy on me.

I'm making the jump from a Mk7.5 GTD to the MK8 R and have gone stir crazy working out numbers.

 

Just wondered what peoples thoughts are on PCP vs Lease.

Best deal I've found on a lease for the below spec based on 15k per year on a 6+35 is £534 p/m (inc deposit) with Vehicle Savers. 

 

PCP is coming out about £500 p/m over 4 years with a £4.5k deposit based on similar miles direct with VW which is better than the C2C and DTD quotes I've had. 

Lease seems the cheaper outlay over 3/4 years but I keep getting pulled back to the PCP for some reason 🤔

 

Any opinions or advice would be great. Thanks.  

 

Spec

Lapiz Blue

Harmon Kardon

Performance pack

Winter Pack 

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If you are loading with options I think a lease can become poor value for money. However you have your road tax included in a lease so that will save you annually as well and given its in the £40k plus bracket then it will add up.

 

I am leasing but put a bogo spec of paint and wheels. 


I have lease for years now. I have done the pcp thing and always ended up with negative equity or no equity when it came to trade in time. Luckily I managed to sell private to end up with a few quid at the end.

 

Unfortunately it’s a personal choice. People can’t believe I put a load of money in to a lease just to hand it back. But when you factor in depreciation, road tax, running costs etc it can sometimes work out better value than a pcp. Ie you can pay all that money out on a pcp only to find the car is only worth what you owe on it or even worse less than what you owe. 
 

People also don’t realise you can buy the car at the end of the lease for a reduced rate in the majority of cases.
 

The pcp vs lease things has been done to death over the years. There is no right or wrong answer unfortunately. Crunch the numbers and see what’s best for you. 

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1 hour ago, TrickyC said:

Hi All,

Newbie here so please go easy on me.

I'm making the jump from a Mk7.5 GTD to the MK8 R and have gone stir crazy working out numbers.

 

Just wondered what peoples thoughts are on PCP vs Lease.

Best deal I've found on a lease for the below spec based on 15k per year on a 6+35 is £534 p/m (inc deposit) with Vehicle Savers. 

 

PCP is coming out about £500 p/m over 4 years with a £4.5k deposit based on similar miles direct with VW which is better than the C2C and DTD quotes I've had. 

Lease seems the cheaper outlay over 3/4 years but I keep getting pulled back to the PCP for some reason 🤔

 

Any opinions or advice would be great. Thanks.  

 

Spec

Lapiz Blue

Harmon Kardon

Performance pack

Winter Pack 

Do you intend to buy the car at the end of the PCP deal?  Can you keep up the payments throughout the contract period on both options?  

 

If you don't intend to buy the car on the PCP deal then get the lease (if it's cheaper) as you're basically doing the same thing...paying a monthly payment with no intention of ever owning the car.  Don't forget with VW PCP deals, depending on the sales campaign, there's usually some incentives to be had such as 2-3 years free servicing, MoT protection, extra years warranty for £99.  All must be specified at the time of purchase but it's an extra few hundred quid saved over the cost of the first 3 years or so and there's nothing stopping you from paying off the finance at any time and still getting these incentives honoured. 

 

Don't forget with a lease it's hard to just walk away if you change your mind/your circumstances change; though there are exceptions such as leasing directly with VW you can request a Preferential Early Termination but there's a few restrictions in place which mean you need to cough up a bit of cash to buy yourself out of the deal (and then you must take out another VW finance product).  Specialist lease companies will just want the outstanding payments before you can hand the keys back. 

 

With a PCP you can theoretically p/x the car at any time if you need to reduce your costs or you no longer like the car.  Once you pay off 50% of the *total* amount of agreement you can request a Voluntary Termination from the finance company.  This is put in place to protect the consumer and is your right to request/invoke it.  It doesn't affect your credit history.  You won't be charged for any excess miles but the car will need to be inspected and any damage which does not fall within the allowance detailed in BVRLA guidance will be billed to you.  You will also have to pay for the inspection, collection etc. 

 

So pro's and con's of each product but if your intention is to just 'drive an R for a few years' then get what's cheapest and don't forget to factor in any incentives you may get for going down the PCP route when comparing it to the overall cost of a lease. 

 

 

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1 hour ago, TrickyC said:

Hi All,

Newbie here so please go easy on me.

I'm making the jump from a Mk7.5 GTD to the MK8 R and have gone stir crazy working out numbers.

 

Just wondered what peoples thoughts are on PCP vs Lease.

Best deal I've found on a lease for the below spec based on 15k per year on a 6+35 is £534 p/m (inc deposit) with Vehicle Savers. 

 

PCP is coming out about £500 p/m over 4 years with a £4.5k deposit based on similar miles direct with VW which is better than the C2C and DTD quotes I've had. 

Lease seems the cheaper outlay over 3/4 years but I keep getting pulled back to the PCP for some reason 🤔

 

Any opinions or advice would be great. Thanks.  

 

Spec

Lapiz Blue

Harmon Kardon

Performance pack

Winter Pack 

 

This deal looks a little cheaper for your spec:

 

https://www.selectcarleasing.co.uk/car-leasing/volkswagen/golf/hatchback/20-tsi-320-r-4motion-5dr-dsg

 

I make it that it works out at £509 a month including deposit.

 

image.png.f3b79cd57b0e02e6ed2a2a009738bb77.png

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I know very little about leasing, however a mate of mine leased a Fiat Abarth for 3 years and when they picked up the car at the end of the lease they went over it with a fine tooth comb picking up on every single blemish, issue or fault with the car and charging him accordingly for the damage.

 

He was later told "it was part of the lease companys business model" to find faults and charge for them.

 

I look after my cars very well but would feel under constant pressure to keep it looking pristine else face the charges when you hand it back.

 

Not sure of others experiences of handing lease cars back?

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47 minutes ago, dopper99 said:

 

This deal looks a little cheaper for your spec:

 

https://www.selectcarleasing.co.uk/car-leasing/volkswagen/golf/hatchback/20-tsi-320-r-4motion-5dr-dsg

 

I make it that it works out at £509 a month including deposit.

 

image.png.f3b79cd57b0e02e6ed2a2a009738bb77.png


I posted this a few times.... VW are the cheapest for this lease deal. Go direct and save the admin fee! 

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1 hour ago, Penguin said:

Don't forget with VW PCP deals, depending on the sales campaign, there's usually some incentives to be had such as 2-3 years free servicing, MoT protection, extra years warranty for £99.  All must be specified at the time of purchase but it's an extra few hundred quid saved over the cost of the first 3 years or so and there's nothing stopping you from paying off the finance at any time and still getting these incentives honoured. 

 

 

Don't forget the VW deposit contribution too, currently £1250 on the R. It all adds up. Many cash buyers do the 'PCP thing' to get the incentives then cancel (pay off the loan) after a month or so, but this is really a thread for people who don't have the cash to do that. As you say, if you have no intention of buying the car at the end of the period, leasing generally works out cheaper. Just do your research on the lease company. Like anything else, cheapest is not necessarily best.

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I know very little about leasing, however a mate of mine leased a Fiat Abarth for 3 years and when they picked up the car at the end of the lease they went over it with a fine tooth comb picking up on every single blemish, issue or fault with the car and charging him accordingly for the damage.
 
He was later told "it was part of the lease companys business model" to find faults and charge for them.
 
I look after my cars very well but would feel under constant pressure to keep it looking pristine else face the charges when you hand it back.
 
Not sure of others experiences of handing lease cars back?

My dad has recently sent a car back to vwfs.

Standard wear and tear according to the bca requirements were applicable.

He had a schedule of charges applicable to his car if required so if a panel / wheel etc needed repair, the approximate cost was there and on the whole was actually cheaper than repairing it yourself.

For example, he was advised a wheel refurb price of £40 if it was needed.

A refurb was around £75 from a local chain/franchise repairer....

I wouldn’t be that worried about the costs of it going back, at least not beyond what standard I have for my own car anyhow...
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Yeah as long as you look after the car there are no really issues. 

 

Most I paid for a return was £27 for a badly kerbed alloy. I was quoted £120 for a repair as it was diamond cut on a GTI.

 

The wife’s gtd went back a few years ago. Zero charge despite a minor couple of kerb marks and scuff on the front bumper. Deemed fair wear and tear.

 

My R goes back next week now awaits my new one. So I will report back on any charges but can see there being much
 

 

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2 hours ago, TrickyC said:

Thanks everyone for some great advice. I'll see what VW can do with the lease price then make a decision. Either way I cannot wait to get hold of my first R.

All the best and keep safe 👍


Welcome to the forum Leigh, hopefully you can make it work finance wise and will soon be an R owner in waiting!  

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