Hyundai Tuscon - PCP v Lease offers - advice please

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Tue 7 Jan 2025 01:43
Hyundai Tuscon - PCP v Lease offers - advice please - dazzabeezer

I have 2 offers to purchase a new Hyundai Tuscon

PCP - £6k deposit, £2k dealer contribution, £402 per month, 6.9% APR, 36 months, 17,741 baloon payment. Total £40,257

Lease - £4k deposit, £323 per month, 36 months

To me the cost over three years the lease seems a no brainer? Thoughts please.

Edited by dazzabeezer on 07/01/2025 at 01:44

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Tue 7 Jan 2025 06:43
Hyundai Tuscon - PCP v Lease offers - advice please - SLO76
I’m actually amazed anyone takes a new car on PCP when 95% of the time leasing is cheaper. At the end of the term you’re in the same position, you hand the car back. Very few people pay the final balloon to buy it as it’s often more than the car is worth, and you can buy it (although it’s more complicated) at the end of a lease too. We ran a new Honda CRV on a lease for 4yrs as it was cheaper than both PCP and the depreciation had I bought the car outright using a conventional loan. At the end of the term I handed it back but also asked for a figure to buy it which was reasonable. In order to buy it you’d need to get a non family memberto buy it in their name for tax purposes however.

The big leasing firms buy in bulk and get huge discounts which are passed on through lower payments. You’re effectively renting the car on a PCP anyway. But I’d make sure you shop around first the best deal and watch those excess mileage charges on both.
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Tue 7 Jan 2025 07:59
Hyundai Tuscon - PCP v Lease offers - advice please - Adampr

The idea with PCP is that you're supposed to end up with equity at the end that you can use to save on a new car when the PCP term ends. In reality, you don't, you just pay over the odds to lease a car. Take the lease if you want a new car and have no intention of keeping it long term.

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Tue 7 Jan 2025 08:40
Hyundai Tuscon - PCP v Lease offers - advice please - daveyjp

In both cases for a true monthly amount you need to add the cost of replacing the deposit to the monthly repayments.

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Tue 7 Jan 2025 11:58
Hyundai Tuscon - PCP v Lease offers - advice please - movilogo

PCP = can keep car if you want after paying balloon payment

Lease = no such option, consider it as long term hire only.

If you don't want to keep the car then lease is better.

If you want to keep the car, then if possible, cash purchase is best - unless sometimes dealers increase prices for cash because of losing commission on PCP. In that case you can use PCP and pay off soon after when you can.

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Tue 7 Jan 2025 14:23
Hyundai Tuscon - PCP v Lease offers - advice please - SLO76

PCP = can keep car if you want after paying balloon payment

Lease = no such option, consider it as long term hire only.

If you don't want to keep the car then lease is better.

If you want to keep the car, then if possible, cash purchase is best - unless sometimes dealers increase prices for cash because of losing commission on PCP. In that case you can use PCP and pay off soon after when you can.

You can actually buy the car at the end of a lease, but it’s more complex for tax reasons. When we handed back our CRV I asked for a price to buy it and they offered me it around £800-£1000 behind retail. I decided that as the car was due 4 tyres and a service that buying another one approved used would be more sensible as that would come serviced and with a years Honda warranty. It was only after I started looking that I regretted my decision as I couldn’t find another one that had been looked after properly. I should’ve bought the one we had.

Edited by SLO76 on 07/01/2025 at 14:24

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Tue 7 Jan 2025 15:23
Hyundai Tuscon - PCP v Lease offers - advice please - Chris M

"When we handed back our CRV I asked for a price to buy it and they offered me it around £800-£1000 behind retail. I decided that as the car was due 4 tyres and a service that buying another one approved used would be more sensible as that would come serviced and with a years Honda warranty."

From you of all people SLO, that surprises me. Tyres are a consumable and an approved used is very unlikely to come with 4 new quality tyres. I'd choose a car with a known history every day over an unknown, even with warranty.

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Tue 7 Jan 2025 16:19
Hyundai Tuscon - PCP v Lease offers - advice please - dazzabeezer

Thank you all. From the messages received, I was thinking lease looked the best option and this would appear to be the case.

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Tue 7 Jan 2025 16:26
Hyundai Tuscon - PCP v Lease offers - advice please - SLO76

"When we handed back our CRV I asked for a price to buy it and they offered me it around £800-£1000 behind retail. I decided that as the car was due 4 tyres and a service that buying another one approved used would be more sensible as that would come serviced and with a years Honda warranty."

From you of all people SLO, that surprises me. Tyres are a consumable and an approved used is very unlikely to come with 4 new quality tyres. I'd choose a car with a known history every day over an unknown, even with warranty.

Yup, absolutely. I much regretted that choice. In the past when looking at approved used Honda’s I found the standards to be very good, but in more recent years they seem to have let them plummet. Mostly thanks to PCP/Leasing being the most common means of financing a new car these days. The first keeper never owns it and thus doesn’t care about it or want to spend money looking after it. Service records are often non-existent or patchy, clocking is rife again and poor quality paint repairs are often carried out before handing cars back at the end of term to avoid penalties. I should’ve kept the car I knew, as I had maintained it meticulously and SWMBO actually liked it.
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Tue 7 Jan 2025 17:02
Hyundai Tuscon - PCP v Lease offers - advice please - dazzabeezer

And from your experience of leasing how much give and take is there for damage? I am not talking about dents and large scratches, but lets say stone small sone chips on the paint, some minor scratches on the allows, a small stone chip on a windscreen (that remains legal and barely noticeable to the naked eye)?

I am a little anxious about any 'hidden' charges at the end. This is my first time not buying a car outright, and my first getting a new model.

Edited by dazzabeezer on 07/01/2025 at 17:03

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Tue 7 Jan 2025 19:25
Hyundai Tuscon - PCP v Lease offers - advice please - SLO76

And from your experience of leasing how much give and take is there for damage? I am not talking about dents and large scratches, but lets say stone small sone chips on the paint, some minor scratches on the allows, a small stone chip on a windscreen (that remains legal and barely noticeable to the naked eye)?

I am a little anxious about any 'hidden' charges at the end. This is my first time not buying a car outright, and my first getting a new model.

About the same as handing a car back at the end of a PCP. My car incurred no charges despite having a few minor scratches and chips.
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Tue 7 Jan 2025 20:16
Hyundai Tuscon - PCP v Lease offers - advice please - Marlin1

I have looked at a few (well 4) lease contracts recently and all of them have clearly stated that you will not be able to buy the car at the end of the lease.

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Tue 7 Jan 2025 22:14
Hyundai Tuscon - PCP v Lease offers - advice please - SLO76

I have looked at a few (well 4) lease contracts recently and all of them have clearly stated that you will not be able to buy the car at the end of the lease.

And “you” won’t... however a friend can buy it with your money, put the V5 in their name then you can take possession with one extra name in the book. At the end of your lease call or email and ask for a price to buy it and most of them will happily oblige as it saves them money having to send someone to pick it up and it’ll save auction fees etc.
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Wed 8 Jan 2025 08:47
Hyundai Tuscon - PCP v Lease offers - advice please - Brit_in_Germany

An alternative would be to hide an airtag in the car when you hand it back to find out which dealer has acquired it, then make them an offer.

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Wed 8 Jan 2025 09:15
Hyundai Tuscon - PCP v Lease offers - advice please - RT

An alternative would be to hide an airtag in the car when you hand it back to find out which dealer has acquired it, then make them an offer.

Which would mean an extra mark-up in price - the dealer will still want to make a profit and has to cover their potential costs of Consumer Rights Act 2015 provisions.

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Wed 8 Jan 2025 11:42
Hyundai Tuscon - PCP v Lease offers - advice please - SLO76

An alternative would be to hide an airtag in the car when you hand it back to find out which dealer has acquired it, then make them an offer.

Exactly what I should’ve done. The price they offered it to me at was only around £800-£1000 less than an equivalent approved used car at a main dealer. I figured that since the car needed 4 tyres and a major service it would better to buy another one, but I couldn’t find a good one at the time and very much wished I’d put a tracker in mine and bought it from the dealer it ended up at. Still worth calling for a price.
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Wed 8 Jan 2025 16:16
Hyundai Tuscon - PCP v Lease offers - advice please - skidpan

I have 2 offers to purchase a new Hyundai Tuscon

PCP - £6k deposit, £2k dealer contribution, £402 per month, 6.9% APR, 36 months, 17,741 baloon payment. Total £40,257

Lease - £4k deposit, £323 per month, 36 months

To me the cost over three years the lease seems a no brainer? Thoughts please.

Could you not do the very simple maths? Your PCP figure is way out, you don't add the contribution, you subtract it. The word "contribution" is a clue.

PCP = £6000 + (£402 x 36) - £2000 = £18472

Lease = £4000 + (£323 x 36) = £15628

Lease would be £2844 less.

The PCP balloon payment would only apply if you wished to keep the car and that could more or less than buying a similar used car, do you have a crystal ball?

And don't forget that at the end of any lease or PCP if you hand the car back you will be over charged for any damage to the car.

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Wed 8 Jan 2025 18:08
Hyundai Tuscon - PCP v Lease offers - advice please - movilogo

Lease is typically less than PCP monthly payment because you pay interest on PCP deals where as not on lease as you are not buying the car.

If you definitely want to own the car - cash or a bank loan is probably best option.

If you definitely want to hire the car - lease is cheapest

If you can't decide - go for PCP and pay interest for indecision :-)

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Wed 8 Jan 2025 18:15
Hyundai Tuscon - PCP v Lease offers - advice please - Adampr

And from your experience of leasing how much give and take is there for damage? I am not talking about dents and large scratches, but lets say stone small sone chips on the paint, some minor scratches on the allows, a small stone chip on a windscreen (that remains legal and barely noticeable to the naked eye)?

I am a little anxious about any 'hidden' charges at the end. This is my first time not buying a car outright, and my first getting a new model.

About the same as handing a car back at the end of a PCP. My car incurred no charges despite having a few minor scratches and chips.

My experience too. When I returned our leased car, I got the nearside alloys refurbed as they were heavily curbed. Then I took it to the car wash. No charges.

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Fri 10 Jan 2025 21:26
Hyundai Tuscon - PCP v Lease offers - advice please - Halmerend
I’ve acquired my last two cars on PCP to secure the dealer contribution then paid the balance off after a couple of months to avoid the daft interest charges that they levy.
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