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Post by davidwilson on Oct 12, 2018 10:12:39 GMT
Has anyone any experience of Personal Contract Hire as a way of leasing/renting a car?
I have in the past always concentrated on buying a car rather than buying a finance package. However I am not good at keeping a car too long, although I have sometimes had to through lack of cash! Anyway I have wondered about a PCP as a future way of buying a car if I could get a good deal from a manufacturer. But one of my son in laws has found a Personal Contract Hire PCH deal that looks good. I had not heard of them before but do wonder if it is a good way of running a new car - never owning the car just paying rental. From what I can see the amount paid out is less than the depreciation on the car so looks too good to be true! I can't see the catch though. Has anyone had a PCH ?
Thanks, David
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Post by Hoovie on Oct 12, 2018 10:24:38 GMT
catch could be on the mileage - but I am guessing you are not a high miles driver?
If you tend to buy a brand-new car, have it serviced by a garage rather than DIY, and don't fiddle around with it (change radios, wheels, whatever) then I would think a PCH would be worth checking out.
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Post by davidwilson on Oct 12, 2018 10:42:08 GMT
catch could be on the mileage - but I am guessing you are not a high miles driver? If you tend to buy a brand-new car, have it serviced by a garage rather than DIY, and don't fiddle around with it (change radios, wheels, whatever) then I would think a PCH would be worth checking out. At this stage I am looking for my son in law but I must admit I am interested for myself in the future if it is really as cheap as it sounds! The mileage could be a catch but on one of the deals it looks a low loading! The more I look at them the less I can figure them out! |
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Post by philip42h on Oct 12, 2018 12:35:12 GMT
Get yourself a quote (online) and then decide whether the 'cost' of hassle free motoring is really worth it. I did a very quick check on how much it would cost to lease a top of the range RAV (list, no extras) with maintenance over four years - around £21,200 for a £35,300 car at list price (no discounts) and nothing to show for it at the end. You wind-up not being able to haggle the price down or get a better part exchange value, pay all the depreciation and take all the risk for any excessive wear and tear ... but you can set a budget and pretty much forget about it for a few years.
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Post by davidwilson on Oct 12, 2018 14:10:31 GMT
Get yourself a quote (online) and then decide whether the 'cost' of hassle free motoring is really worth it. I did a very quick check on how much it would cost to lease a top of the range RAV (list, no extras) with maintenance over four years - around £21,200 for a £35,300 car as list price (no discounts) and nothing to show for it at the end. You wind-up not being able to haggle the price down or get a better part exchange value, pay all the depreciation and take all the risk for any excessive wear and tear ... but you can set a budget and pretty much forget about it for a few years. Yes, I have been doing that and it seems to vary from one car to another. It doesn't seem to me to make much difference on the price to pay each year for two, three or four years leasing. So I would think lease over two years and then start again. I suppose it shows the huge cost we pay for driving a new or newish car. The car he is considering is an Octavia 1.0TSI 115PS SE Technology Hatchback. £2490 initial rental and then 23 monthly rentals of £69 including VAT. Mileage allowance is 8000 per annum. 24 Month Contract. Excess mileage over 16000 is charged at just 3.6 pence per mile for 1.0TSI engine variant. |
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Post by Hoovie on Oct 12, 2018 14:28:20 GMT
Get yourself a quote (online) and then decide whether the 'cost' of hassle free motoring is really worth it. I did a very quick check on how much it would cost to lease a top of the range RAV (list, no extras) with maintenance over four years - around £21,200 for a £35,300 car as list price (no discounts) and nothing to show for it at the end. You wind-up not being able to haggle the price down or get a better part exchange value, pay all the depreciation and take all the risk for any excessive wear and tear ... but you can set a budget and pretty much forget about it for a few years. Yes, I have been doing that and it seems to vary from one car to another. It doesn't seem to me to make much difference on the price to pay each year for two, three or four years leasing. So I would think lease over two years and then start again. I suppose it shows the huge cost we pay for driving a new or newish car. The car he is considering is an Octavia 1.0TSI 115PS SE Technology Hatchback. £2490 initial rental and then 23 monthly rentals of £69 including VAT. Mileage allowance is 8000 per annum. 24 Month Contract. Excess mileage over 16000 is charged at just 3.6 pence per mile for 1.0TSI engine variant. That to me sounds very cheap! £2,000 per year cost per year (2 year deal) on a brand new car is much less than the depreciation would be I am sure. Is there VAT on top of that to pay? As an aside, is a 1 litre engine enough on a car that size? Or am I just being old-fashioned? |
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Post by davidwilson on Oct 12, 2018 14:56:44 GMT
Yes, I have been doing that and it seems to vary from one car to another. It doesn't seem to me to make much difference on the price to pay each year for two, three or four years leasing. So I would think lease over two years and then start again. I suppose it shows the huge cost we pay for driving a new or newish car. The car he is considering is an Octavia 1.0TSI 115PS SE Technology Hatchback. £2490 initial rental and then 23 monthly rentals of £69 including VAT. Mileage allowance is 8000 per annum. 24 Month Contract. Excess mileage over 16000 is charged at just 3.6 pence per mile for 1.0TSI engine variant. That to me sounds very cheap! £2,000 per year cost per year (2 year deal) on a brand new car is much less than the depreciation would be I am sure. Is there VAT on top of that to pay? As an aside, is a 1 litre engine enough on a car that size? Or am I just being old-fashioned? Yes it does sound good but my son in law has found good deals on other things before! I believe the VAT is included. He is worried about the 1 litre engine and is talking of trying one and also a 1.5 litre. But I think the 1 litre will be fine - it has a turbo and will give good performance and good economy. If I were buying the car I would be concerned over the effect on the longevity of the engine but I can't see that is his problem on a 2 year lease. My son has a 1.8 litre Civic but the new Civic now has a 1 litre or a 1.5 litre. Our CRV has a 2 litre but the new CRV just out has a 1.5 litre with a turbo. I am interested in the latest hybrid CRV that comes out next year with a 2 litre engine and a pair of electric motors. The main problem is that my wife has a 2017 car with a 5 year service plan - still I am sure I can come up with something that sounds very reasonable to convince her to upgrade! |
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Post by philip42h on Oct 12, 2018 14:57:06 GMT
That does look a reasonable deal (if you want a Skoda Octavia 1.0TSI 115PS SE Technology Hatchback). This looks to be Skoda offer that is valid for October only (?) ... which makes me think that Skoda have an excess stock that they wish to shift and that they'll be happy to have nearly new cars coming onto the secondhand market in a couple of years time. And if that suits you / your son-in-law then why not!
I used to work for a company that was owned by General Motors. As a company car we could have anything we liked just as long as it was a Cavalier / Vectra. The deal was that you had the car for 10 months or 10,000 miles whichever came first. GM owned the cars and once we'd run them in they went straight into "ex-demonstrator" or equivalent stock. That suited GM - I suspect this PCH deal suits Skoda.
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Post by davidwilson on Oct 12, 2018 15:08:55 GMT
That does look a reasonable deal (if you want a Skoda Octavia 1.0TSI 115PS SE Technology Hatchback). This looks to be Skoda offer that is valid for October only (?) ... which makes me think that Skoda have an excess stock that they wish to shift and that they'll be happy to have nearly new cars coming onto the secondhand market in a couple of years time. And if that suits you / your son-in-law then why not! I used to work for a company that was owned by General Motors. As a company car we could have anything we liked just as long as it was a Cavalier / Vectra. The deal was that you had the car for 10 months or 10,000 miles whichever came first. GM owned the cars and once we'd run them in they went straight into "ex-demonstrator" or equivalent stock. That suited GM - I suspect this PCH deal suits Skoda. I think it must indeed be something like that. And you are correct: one of the problems is that one ends up buying a finance package rather than a car - I wouldn't be allowed to buy a Skoda unless my wife could disguise the badge! I think I could be persuaded though for a money saving deal! I think I may keep abreast of this PCH way of using a car and consider this or a PCP in the future. I suppose a PCP on a nearly new and heavily discounted car would be good. |
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Post by Hoovie on Oct 12, 2018 15:16:27 GMT
That does look a reasonable deal (if you want a Skoda Octavia 1.0TSI 115PS SE Technology Hatchback). This looks to be Skoda offer that is valid for October only (?) ... which makes me think that Skoda have an excess stock that they wish to shift and that they'll be happy to have nearly new cars coming onto the secondhand market in a couple of years time. And if that suits you / your son-in-law then why not! I used to work for a company that was owned by General Motors. As a company car we could have anything we liked just as long as it was a Cavalier / Vectra. The deal was that you had the car for 10 months or 10,000 miles whichever came first. GM owned the cars and once we'd run them in they went straight into "ex-demonstrator" or equivalent stock. That suited GM - I suspect this PCH deal suits Skoda. If the driver of this particular car likes it, then it could mean that this sudden influx of same spec Octavias in 2 years time might make them a good priced used car as well? be worth while checking what the options are at the end of the 2 year term. On a PCP, I think it was hand back, keep and refinance, or pay the balloon payment and keep (which usually ended up working as a deposit contribution for a new PCP deal). On a Van Lease, there is often a clause to say you CANNOT buy the vehicle yourself - so you end up selling to a friend at the appropriate price and then buying back off him later. I wonder if the PCH has something similar? |
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Post by philip42h on Oct 12, 2018 15:49:18 GMT
That does look a reasonable deal (if you want a Skoda Octavia 1.0TSI 115PS SE Technology Hatchback). This looks to be Skoda offer that is valid for October only (?) ... which makes me think that Skoda have an excess stock that they wish to shift and that they'll be happy to have nearly new cars coming onto the secondhand market in a couple of years time. And if that suits you / your son-in-law then why not! I used to work for a company that was owned by General Motors. As a company car we could have anything we liked just as long as it was a Cavalier / Vectra. The deal was that you had the car for 10 months or 10,000 miles whichever came first. GM owned the cars and once we'd run them in they went straight into "ex-demonstrator" or equivalent stock. That suited GM - I suspect this PCH deal suits Skoda. If the driver of this particular car likes it, then it could mean that this sudden influx of same spec Octavias in 2 years time might make them a good priced used car as well? be worth while checking what the options are at the end of the 2 year term. On a PCP, I think it was hand back, keep and refinance, or pay the balloon payment and keep (which usually ended up working as a deposit contribution for a new PCP deal). On a Van Lease, there is often a clause to say you CANNOT buy the vehicle yourself - so you end up selling to a friend at the appropriate price and then buying back off him later. I wonder if the PCH has something similar? With PCH your only option is to hand back the car - they make it pretty clear that you have no option to own the car at the end of the deal ... there may be 'dodgy' ways to acquire it later but effectively you'd be buying it on the used car market just as any other punter. |
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Post by davidwilson on Oct 12, 2018 16:08:26 GMT
That does look a reasonable deal (if you want a Skoda Octavia 1.0TSI 115PS SE Technology Hatchback). This looks to be Skoda offer that is valid for October only (?) ... which makes me think that Skoda have an excess stock that they wish to shift and that they'll be happy to have nearly new cars coming onto the secondhand market in a couple of years time. And if that suits you / your son-in-law then why not! I used to work for a company that was owned by General Motors. As a company car we could have anything we liked just as long as it was a Cavalier / Vectra. The deal was that you had the car for 10 months or 10,000 miles whichever came first. GM owned the cars and once we'd run them in they went straight into "ex-demonstrator" or equivalent stock. That suited GM - I suspect this PCH deal suits Skoda. If the driver of this particular car likes it, then it could mean that this sudden influx of same spec Octavias in 2 years time might make them a good priced used car as well? be worth while checking what the options are at the end of the 2 year term. On a PCP, I think it was hand back, keep and refinance, or pay the balloon payment and keep (which usually ended up working as a deposit contribution for a new PCP deal). On a Van Lease, there is often a clause to say you CANNOT buy the vehicle yourself - so you end up selling to a friend at the appropriate price and then buying back off him later. I wonder if the PCH has something similar? Apparently you just hand it back. I hadn't realised a private individual could lease a car. I was hoping that someone on here had done so but maybe not .... |
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Post by davidwilson on Oct 12, 2018 16:11:01 GMT
If the driver of this particular car likes it, then it could mean that this sudden influx of same spec Octavias in 2 years time might make them a good priced used car as well? be worth while checking what the options are at the end of the 2 year term. On a PCP, I think it was hand back, keep and refinance, or pay the balloon payment and keep (which usually ended up working as a deposit contribution for a new PCP deal). On a Van Lease, there is often a clause to say you CANNOT buy the vehicle yourself - so you end up selling to a friend at the appropriate price and then buying back off him later. I wonder if the PCH has something similar? With PCH your only option is to hand back the car - they make it pretty clear that you have no option to own the car at the end of the deal ... there may be 'dodgy' ways to acquire it later but effectively you'd be buying it on the used car market just as any other punter. I suspect it will go straight to auction, but just my hunch! |
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Post by charliefarlie on Oct 12, 2018 17:39:37 GMT
Mate of mine has just finished one of those deals. He’s paid out every month and at the end has nowt to show for his money. Nowt zilch Bugger all.
Not for me.
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Post by Hoovie on Oct 12, 2018 19:12:18 GMT
Mate of mine has just finished one of those deals. He’s paid out every month and at the end has nowt to show for his money. Nowt zilch Bugger all. Not for me. But how much did he pay in that time? was it less or more then the depreciation he would have lost in the same time in the same car? When you rent a car on holiday you have nothing to show for it at the end either. Co Car the same.... pay your BIK every month plus the cost from your salary package every month and nothing to show at the end of that either (and when I have had Company Cars, it cost a darn sight more than £2,000 a year!) It's just a different way to sort out your transportation  |
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