Car Leasing

[Lord Tyrion]

Out of curiosity.. what mgp do you get on the XC60. I have a new one and it has done about 4K.. the mpg is very fickle. If i do the usual 30 mile round trip, it gives 30-35mpg avg, but at the same time, i have take in on 400 mile round trip of mostly moterway and the I can get home with more than a quarter tank left!!. I think early days, but wanted to know other's experience

It will partly depend on the model you have. I have 2.0d D4, FWD, manual. In winter I get 40-43mpg, summer 45-48mpg. In summer, me only in the car, long motorway journey, I can get 50mpg and yes I do whoop when that happens, ha ha. Unusual though. Average over the 28 months I have it I would say I get 44mpg. My journeys tend to be free flowing country roads and some dual carriageways, I dream of motorways..........I don't have to do city driving but obviously that would be bad for a car of this type, too heavy for stop start traffic.

I go on a Volvo forum and these figures are matched by others with this model. Those that have the same model but with an auto gearbox get late 30's mpg. They lose about 10-15% compared to the manual version.

What type do you have? At a guess I am thinking either auto or the 4wd version.

 

[vkurup]

It will partly depend on the model you have. I have 2.0d D4, FWD, manual. In winter I get 40-43mpg, summer 45-48mpg. In summer, me only in the car, long motorway journey, I can get 50mpg and yes I do whoop when that happens, ha ha. Unusual though. Average over the 28 months I have it I would say I get 44mpg. My journeys tend to be free flowing country roads and some dual carriageways, I dream of motorways..........I don't have to do city driving but obviously that would be bad for a car of this type, too heavy for stop start traffic.

I go on a Volvo forum and these figures are matched by others with this model. Those that have the same model but with an auto gearbox get late 30's mpg. They lose about 10-15% compared to the manual version.

What type do you have? At a guess I am thinking either auto or the 4wd version.

Yes.. went for the Auto, 2WD.. its great and frugal on long drives but not so efficient on short runs despite the low weight of a 2WD as against a AWD

 

[Lord Tyrion]

Based on that you are getting pretty much the average. I don't know if that makes you feel better but at least you haven't got an odd car that is performing far worse than any other. It is performing how all that version perform. Bloomin comfy on a long journey though.

 

[Big_G]

Sorry to dig up an old thread, but could really do with some advice from peeps who have experienced this.

The better half and I have been exploring the options of either leasing a new car or taking out a PCP

If the latter we would purely be using any capital over their estimated value towards another PCP at the end of the deal

Is it likely there would be any surplus, assuming we keep the car in good condition, I would guess it would be in the dealers interests for there to be some, as you're more likely to buy another car from them?

Really not sure which path to go down, any advice from people with experience would be appreciated as this is all new to us :thup:

I remember a motto someone told me years ago "If it appreciates buy it, if it depreciates lease it"

 

[Dando]

i had a PCP deal on my Renault capture, which after 18 months we decided was too small for the weekends away etc we wanted to be doing so i paid to terminate it early and decided to lease a Hyundai Tucson for 2 years.

I have got my car for 2 years with a 15,000 mile per year allowance. To get the same deal with the Hyundai dealer they wanted an £8K deposit whereas with Nationwide Vehicle Contracts I paid £1K and they delivered the car to my door!

 

[Big_G]

i had a PCP deal on my Renault capture, which after 18 months we decided was too small for the weekends away etc we wanted to be doing so i paid to terminate it early and decided to lease a Hyundai Tucson for 2 years.

I have got my car for 2 years with a 15,000 mile per year allowance. To get the same deal with the Hyundai dealer they wanted an £8K deposit whereas with Nationwide Vehicle Contracts I paid £1K and they delivered the car to my door!

Yes, I see from others posts Nationwide have a pretty good rep, and they don't charge extra for metallic paint in the model I'm after either, everyone else seems to

 

[Oxfordcomma]

Saw this (slightly over the top) piece in the paper this week talking about PCP and how it's turning into a bit of an issue for manufacturers because the used car prices are not matching up to the balloon payments, so people are just handing them back.

Got my car on a PCP at the moment, it's 2 years in to a 3-year deal and having just reviewed it with the dealer I fully expect to hand mine back this time next year as well. Apparently the car is worth £2K less than my balance, despite the fact that an identical model is on sale from the same dealer for £1K more than my balance! (Not still wound up about that, honest).

If there isn't going to be any equity for a deposit on the next one though, I'll be looking at leasing in 12 months time rather than PCP. Same end result, and probably £50-100/month cheaper.

 

[Oxfordcomma]

Be interested to hear from our resident expert Smiffy if this really is a big issue for manufacturers at the moment? Rob, any comments? My car is an Audi, the guy I did the review with reckoned he had 25 on his desk that were going to hand back.

 

[Bunkermagnet]

Be interested to hear from our resident expert Smiffy if this really is a big issue for manufacturers at the moment? Rob, any comments? My car is an Audi, the guy I did the review with reckoned he had 25 on his desk that were going to hand back.

Had heard the car leasing market was the next sub prime issue.
I did think though that a PCP had a guaranteed value at the end of the fixed term.

 

[Smiffy]

Be interested to hear from our resident expert Smiffy if this really is a big issue for manufacturers at the moment? Rob, any comments? My car is an Audi, the guy I did the review with reckoned he had 25 on his desk that were going to hand back.

It depends on how realistic the particular manufacturer is with their MGFV.
Some manufacturers build in unrealistically high ones.
You'll normally find that these will be on slow moving models to help get them out of the door.
For instance, Nissan set MGFV's very high on the Leaf electric cars. Some people took these out for as little as £90.00 a month. Who couldn't resist the lure of a brand new car for £90.00 a month?
But with an MGFV set at over £15k after two years, who were they trying to kid?
The ONLY option was to hand back at end of term and walk away.
We had two year old Leaf Tekna models (top of the range) for sale on our forecourt at £12k. So how on earth was a 2 year old one going to have a value of £15k????
The Qashqai on the other hand had very realistic MGFV's so it was unusual to come unstuck on one of those.
Another problem is with people putting massive great deposits down on PCP.
You then have a problem at renewal time because payments are going to shoot up massively unless you put the same deposit down next time.

 

[Blue in Munich]

No experience re PCP & cars but motorcycle dealers have been pushing this for a few years now and apparently one of the issues with the bikes being returned is a noticeable difference in standards between a 3 year old bike bought on HP and one bought on PCP; the PCP bikes simply aren't being maintained to the same standards as bikes that are effectively owned rather than loaned, thus affecting their worth against their value. That might be more relevant to bikes, which are more susceptible to corrosion than cars.

 

[Smiffy]

bikes being returned is a noticeable difference in standards between a 3 year old bike bought on HP and one bought on PCP; the PCP bikes simply aren't being maintained to the same standards as bikes that are effectively owned rather than loaned

Both are "loaned" mate. Both HP and PCP are Hire Purchase. You won't own the bike on either until the final payments are made.....

 

[Blue in Munich]

Both are "loaned" mate. Both HP and PCP are Hire Purchase. You won't own the bike on either until the final payments are made.....

Realise that mate, but with the HP payments I'd say the plan is to pay it all off at the end of the loan and own it, maybe keep it; with PCP the plan seems to be hand it back. It's a great way of hiring a new bike for a few years but a lousy way of buying it in my book.

Another point on the bike PCP's is they all seem to be getting away with around 9.9% APR on the loans, the bank keeps offering me around 3%. Why would you take the PCP?

 

[Big_G]

Thanks guys some really interesting answers there

Strangely it was a Nissan we were looking at, the salesman was really good, and advised us against putting too large a deposit (still don't know why it's called that?) for the reasons given by Smiffy

 

[Smiffy]

Strangely it was a Nissan we were looking at, the salesman was really good, and advised us against putting too large a deposit (still don't know why it's called that?) for the reasons given by Smiffy

Because that's just what it is!
A PCP deal is just a hire purchase deal with the benefits of a lower monthly payment.
Nissan are being very generous on deposit allowances on PCP whereas they are offering nothing if you take out standard hire purchase.
They want you to go onto a PCP because it has been proven, time and time again, that a PCP customer is more likely to come back to you to change than a hire purchase customer (because of the end figure).
If you buy the right car in the Nissan range, these finance deposit allowances can wipe out any interest you are paying, so it's actually better than 0% finance.

 

[Smiffy]

The bank keeps offering me around 3%. Why would you take the PCP?

I am assuming that rate is advertised as a "typical" APR.
Try to get it on the loan you are looking at, and I can almost guarantee that the rate will go up at application time.


Also, as I mentioned above, look out for "deposit allowances".
If offered, (and this is the current trend on PCP deals), these can make a big difference to how much you actually pay back.

 

[stokie_93]

Very close to buying a Fiesta Zetec S (140).

Been to test drive it today and just waiting waiting for some final quotes tomorrow!

veryyy nippy compared to what I'm used to and I'm one excited lad :whoo:

 

[KenL]

Fiesta = good car.