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Leasing deal algorithm?


Wrex

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10 minutes ago, Wrex said:

Does anyone know what the calculation to use to establish if the deal is good/bad?


I don’t know of one. But if your other options to get a golf R is a pcp then it’s a good basis of comparison. But you need to consider what you plan is long term before doing the sums. Let’s say your are paying £18k on a lease over four years (easier to compare as most pcp’s are 4 years) at x amount a month plus deposit with a lease. Then compare to a pcp which are generally higher monthlies and deposit. Lets say you end up pay paying £24k over 4 years. However.... you get discount on a new car with a pcp so you MAY end up with negative equity or a few quid equity which you can put towards another car. They quote a Gvf on pcp’s so gives you an idea IF you keep it the full term of the pcp within the miles/condition agreed. 
 

I was once told with a lease you’re essentially paying for the depreciation on a vehicle. Sort of makes sense although not an exact science. 
 

This is my experience. Having discussed on the other threads there are other things to consider. Road tax is paid on lease, zero chance of negative equity but the car is not in your name. You do get the option to buy at the end which people don’t know (you do with VW finance anyway). 
 

With a pcp. The car is in your name, but still owned by the finance company until you pay it off (same as lease). I have lost on mK7 gti (two years in to 4 year pcp and made a few quid on an S3 deal when I only had it 1 year). The gti was £300 a month with £3k down on pcp. I lease one for £107 a month with £2400 down after my S3.

 

get the right lease deal and IMO you will do ok, get the right pcp deal and you will probably have something to show if you go full term. 
 

There are a million other points of discussion, ie outright purchase with cash or a loan. It can make you head hurt. 
 

Ask yourself.... what do you want to pay? For me it’s as little as possible.... how long do you want to keep it... for me it’s now 4 years (needed that to get it on my budget) and what do you to do at the end of it? I give it back and start again.... others may keep it long term.

 

Hope this helps 
 


 

 

 

 

 

 

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