Best finance car deals?

10
Posted 11th Sep 2020
Best finance car deals? Haven’t financed before but looking into it now as I’m not bothered about owning the car after.

I’d probably need a minimum of 10k miles annually. Quite open-minded about the type/brand/model of car. Not sure what the going rate is but £250-400 seems a good price.

Appreciate the help as I’m new to financing!
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So you are looking for a PCH lease, how many years do you wish to take the car for and what type/size vehicle are you looking for? Do you need one immediately or can you wait for one to be factory ordered?

Here is an example of one of the cheapest leases available today.


41890344-XFMxX.jpg

If you want to keep your running costs to a minimum, then you can also get the awesome new Renault Zoe for not much more, you could opt for the lower mileage and pay the excess, just find out what the cost per mile is vs paying upfront, sometimes it is cheaper to pay the excess.

41890344-YqyRj.jpg
If you are doing 10k miles per year, and assuming you can charge at home, you'd save over £1,000 a year on fuel assuming you are doing 40mpg on average at about £1.20 per litre, which in effect makes this car cheaper than the one above by a good margin.

Both of those deals are for two years, or 24 months and I've selected the no upfront payment option so all you pay is the monthly payment for each month, and servicing if/when required.
Edited by: "Uncommon.Sense" 11th Sep
So between £3k and £5k per year? It sounds expensive when you put it like that doesnt it?

If you really arent fussed them look up which models are about to be replaced - there are always run out deals.
Before signing up for a lease check the pcp offers on dtd and carwow - manufacturer contributions can be significant and you can choose to walk away at the end of the term.

Premium brands often a better choice because of the residuals.
Edited by: "mas99" 11th Sep
Uncommon.Sense11/09/2020 11:44

[Image] If you want to keep your running costs to a minimum, then you can …[Image] If you want to keep your running costs to a minimum, then you can also get the awesome new Renault Zoe for not much more, you could opt for the lower mileage and pay the excess, just find out what the cost per mile is vs paying upfront, sometimes it is cheaper to pay the excess.[Image] If you are doing 10k miles per year, and assuming you can charge at home, you'd save over £1,000 a year on fuel assuming you are doing 40mpg on average at about £1.20 per litre, which in effect makes this car cheaper than the one above by a good margin.Both of those deals are for two years, or 24 months and I've selected the no upfront payment option so all you pay is the monthly payment for each month, and servicing if/when required.


Do renault still have battery lease or has that gone now? If it doesnt apply then that zoe has to be worth a good look at. 50kWh battery will do what? 250 miles?

With our leafs we think the fuel savings vs diesel have paid the depreciation on the cars - I think we even made a profit running the first one.
Edited by: "mas99" 11th Sep
mas9911/09/2020 12:18

Do renault still have battery lease or has that gone now? If it doesnt …Do renault still have battery lease or has that gone now? If it doesnt apply then that zoe has to be worth a good look at. 50kWh battery will do what? 250 miles?


Battery lease is gone now. Yeah it will do 250 miles in summer, a bit less in winter due to battery temperature/chemistry, air density, and climate control etc. Not that two of those things don't effect an ICE car mind!
Uncommon.Sense11/09/2020 11:44

So you are looking for a PCH lease, how many years do you wish to take the …So you are looking for a PCH lease, how many years do you wish to take the car for and what type/size vehicle are you looking for? Do you need one immediately or can you wait for one to be factory ordered?Here is an example of one of the cheapest leases available today.[Image] If you want to keep your running costs to a minimum, then you can also get the awesome new Renault Zoe for not much more, you could opt for the lower mileage and pay the excess, just find out what the cost per mile is vs paying upfront, sometimes it is cheaper to pay the excess.[Image] If you are doing 10k miles per year, and assuming you can charge at home, you'd save over £1,000 a year on fuel assuming you are doing 40mpg on average at about £1.20 per litre, which in effect makes this car cheaper than the one above by a good margin.Both of those deals are for two years, or 24 months and I've selected the no upfront payment option so all you pay is the monthly payment for each month, and servicing if/when required.


mas9911/09/2020 12:18

Do renault still have battery lease or has that gone now? If it doesnt …Do renault still have battery lease or has that gone now? If it doesnt apply then that zoe has to be worth a good look at. 50kWh battery will do what? 250 miles?With our leafs we think the fuel savings vs diesel have paid the depreciation on the cars - I think we even made a profit running the first one.


Thanks for the suggestions, will definitely look into it. Hadn’t thought about electric cars. Have always been a bit worried about not finding a charge point but 250miles is really good. I do sometimes do longer journeys though, how long does it take to fully charge the battery?

A hybrid might be the best option. £300-400 is probably the most I’d want to pay but anything cheaper is worth a look in.
Currently have a hatchback, wouldn’t mind something a little larger. Two year deal is probably ideal but am flexible.
Uncommon.Sense11/09/2020 11:44

So you are looking for a PCH lease, how many years do you wish to take the …So you are looking for a PCH lease, how many years do you wish to take the car for and what type/size vehicle are you looking for? Do you need one immediately or can you wait for one to be factory ordered?Here is an example of one of the cheapest leases available today.[Image] If you want to keep your running costs to a minimum, then you can also get the awesome new Renault Zoe for not much more, you could opt for the lower mileage and pay the excess, just find out what the cost per mile is vs paying upfront, sometimes it is cheaper to pay the excess.[Image] If you are doing 10k miles per year, and assuming you can charge at home, you'd save over £1,000 a year on fuel assuming you are doing 40mpg on average at about £1.20 per litre, which in effect makes this car cheaper than the one above by a good margin.Both of those deals are for two years, or 24 months and I've selected the no upfront payment option so all you pay is the monthly payment for each month, and servicing if/when required.

vivian26511/09/2020 12:58

Thanks for the suggestions, will definitely look into it. Hadn’t thought a …Thanks for the suggestions, will definitely look into it. Hadn’t thought about electric cars. Have always been a bit worried about not finding a charge point but 250miles is really good. I do sometimes do longer journeys though, how long does it take to fully charge the battery?A hybrid might be the best option. £300-400 is probably the most I’d want to pay but anything cheaper is worth a look in.


How long is longer, and how often?

You tend not to charge to full on a long journey you'd typically start with 100%, and if you had a 350 mile trip then obviously you'd need to charge somewhere along the way, but then I don't know anyone that doesn't stop on a 350 mil journey at least once. So, if you did 3 hours driving at 60mph average, that is 180 miles covered, so you'd be below 25%, plug in for 30 mins on a DC rapid charger (if you have the option) or 22kW fast AC, and charge up either all the way to 80%, which would take about 35 mins DC or just over an hour on the AC fast charger. You then have enough range to complete the journey and charge at the other end. If visiting family I have an EVSE (3-pin charger) in the car at all times, and can jsut plug into any normal household socket to add some charge if I want to or need to but it is very rare I do that, it did come useful when I was camping over the summer as I could use the 16A hookup on the campsite to charge the car for free which was awesome.

What you have to consider is the time saved never having to visit a re-fuelling station, so if you fill up once every two weeks, and it takes between 8-15 minutes (according to the RAC) including detours to fuelling station, queues, and waiting to pay if no pay at pump, so 26 times a year = 208 minutes (3h 28m) of time spent filling up, or using the top end figure 390 minutes (6h 30m). Take away the time you'd normally stop during longer journeys, and add on the time you might have to wait a bit longer for the charge and you'd have usually wasted less time over the entire year that just filing up, plus you can leave the house every day with a full 'tank' whenever you want, and if you are sensible you can get the cost per mile down below 1.5p per mile by using Octopus Electric tariff, and do 10k miles for £150.

If you also shop anywhere like Lidl/Aldi/Tesco etc. most of the have PodPoint installed, and no fee to charge there, some retail parks also have them. Which means you can plug in and get some free miles/kWh, as an example I was at Merry Hill (shopping centre in West Midlands) and they have several charge points that are free to use, I need to get some school uniform and nip to Halfords for some car cleaning bits, by the time I had done my shopping, and grabbed some odds and ends from Asda and got back to the car I'd added 11kWh of energy or in my vehicle that is about 55 miles of range for nothing, which covered 2/3 my normal Mon-Fri usage.

Book a test drive, try and get at least an hour in the car, you'll not want to get an ICE car ever again, trust me.
Uncommon.Sense11/09/2020 13:21

How long is longer, and how often? You tend not to charge to full on a …How long is longer, and how often? You tend not to charge to full on a long journey you'd typically start with 100%, and if you had a 350 mile trip then obviously you'd need to charge somewhere along the way, but then I don't know anyone that doesn't stop on a 350 mil journey at least once. So, if you did 3 hours driving at 60mph average, that is 180 miles covered, so you'd be below 25%, plug in for 30 mins on a DC rapid charger (if you have the option) or 22kW fast AC, and charge up either all the way to 80%, which would take about 35 mins DC or just over an hour on the AC fast charger. You then have enough range to complete the journey and charge at the other end. If visiting family I have an EVSE (3-pin charger) in the car at all times, and can jsut plug into any normal household socket to add some charge if I want to or need to but it is very rare I do that, it did come useful when I was camping over the summer as I could use the 16A hookup on the campsite to charge the car for free which was awesome. What you have to consider is the time saved never having to visit a re-fuelling station, so if you fill up once every two weeks, and it takes between 8-15 minutes (according to the RAC) including detours to fuelling station, queues, and waiting to pay if no pay at pump, so 26 times a year = 208 minutes (3h 28m) of time spent filling up, or using the top end figure 390 minutes (6h 30m). Take away the time you'd normally stop during longer journeys, and add on the time you might have to wait a bit longer for the charge and you'd have usually wasted less time over the entire year that just filing up, plus you can leave the house every day with a full 'tank' whenever you want, and if you are sensible you can get the cost per mile down below 1.5p per mile by using Octopus Electric tariff, and do 10k miles for £150.If you also shop anywhere like Lidl/Aldi/Tesco etc. most of the have PodPoint installed, and no fee to charge there, some retail parks also have them. Which means you can plug in and get some free miles/kWh, as an example I was at Merry Hill (shopping centre in West Midlands) and they have several charge points that are free to use, I need to get some school uniform and nip to Halfords for some car cleaning bits, by the time I had done my shopping, and grabbed some odds and ends from Asda and got back to the car I'd added 11kWh of energy or in my vehicle that is about 55 miles of range for nothing, which covered 2/3 my normal Mon-Fri usage. Book a test drive, try and get at least an hour in the car, you'll not want to get an ICE car ever again, trust me.


Thank you for your detailed explanation, really helpful! It doesn’t sound like it takes as long as I had thought to charge it. Long journey for me is 300-350 but it’s only a few times a year and if it charged while I stopped for a break, I wouldn’t need to worry about it.

Also, would you recommend a PCH or PCP? HP is a bit more and honestly, I’m not looking for my ‘dream car’ just yet - will want to keep that when I buy that! Just want something that’s cost effective but also a pleasure to drive. I do like something with a power although there’s obviously only so much I can get with my budget. I’ve seen this on leaseloco:

leaseloco.com/car…1-0

Seems a decent car and 15k annual allowance. Looking at both electric and petrol atm.
vivian26511/09/2020 13:46

Thank you for your detailed explanation, really helpful! It doesn’t sound l …Thank you for your detailed explanation, really helpful! It doesn’t sound like it takes as long as I had thought to charge it. Long journey for me is 300-350 but it’s only a few times a year and if it charged while I stopped for a break, I wouldn’t need to worry about it.Also, would you recommend a PCH or PCP? HP is a bit more and honestly, I’m not looking for my ‘dream car’ just yet - will want to keep that when I buy that! Just want something that’s cost effective but also a pleasure to drive. I do like something with a power although there’s obviously only so much I can get with my budget. I’ve seen this on leaseloco:https://www.leaseloco.com/car-leasing/skoda/octavia-hatchback/15-tsi-se-technology-5dr/17175/2-24-15000-1-0Seems a decent car and 15k annual allowance. Looking at both electric and petrol atm.


Do you actually do 15k per year? If you buy more miles than you use, then all you are doing is over paying.for the car. If you look at the saem example for 10k miles is is only £236.60 per month, vs. £290.05 so over 2 years, or 24 months you are paying £1,282.80 for the extra 10k miles, which is 12.9p per mile. If the overage costs are exactly the same (sometime they are less) and you only did 13k miles each year, then you've spent £513.12 more than you needed to. You are best to call up the broker and ask for the break down for the exact costs per mile and several mileage options, don't forget you are the customer so if they want the business they'll bend over backwards for you.

PCP is pointless if you never want to keep the car, unless you can find some sort of mega deal with 0% finance, and a dealer contribution included, and a low monthly payment. On a brand new car you are basically paying the deprecation with PCH, but sometimes you can 'win' by the deprecation being either higher than expected, or the finance options being expensive, and with PCP if the car ends up being worth a great deal more than the dealer predicted, then you can buy it and resell it making the cost for the lease period significantly less, and then the mileage doesn't matter either, since you bought it. It is very hard to get PCP deals that are in your favour by the end though, due to large upfront payment, finance interest and higher monthly payments in general.

If you want to do a comparison ring a couple of Skoda dealers for that vehicle you linked, and see what the total cost would be to own it for 2 or 3 years, vs the low PCH cost, the upfront payment is probably at least half the total PCH cost and that is before you've driven it away. With PCP they hope you had in back/trade it in again a new model any the dealer just keeps winning. They make it look appealing as the second time around you don't pay an large payment up front they just take that as part of the settlement on the old vehicle, and adjust the cost to the new one, so it looks great on paper, until you realised you paid £4,000 upfront the first time, and then £290 a month with 7% APR over three years, totalling over £14.5k, when you could have PCH'd it for 4 years and still have £3k in the bank, or alternatively swapped vehicle at no cast after two years if you found something better or your circumstances changed.

Be warned not all PCH deals are good, some are frankly terrible, but do lots of research and it will pay off in the end.
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