On my current car the total costs over the 4 years on lease was £10k less than on PCP. I didn't/don't believe the car's value in 4 years would be anywhere close to £10k higher than the residual value. Had it been £2-£3k difference then I may well have gone for it and been happy to potentially to "lose" that amount for the flexibility PCP gives.
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Higher value EVs not eligible for £3,000 PiCG (grant) anymore!
- Thread starter kelvin 660
- Start date
My calculations show loan is best....
From my 2019 SR+ purchase:
37k car (after grant)
35k loan (from the bank - zero deposit) plus 2k tradein.
18 month later had 25k remaining (including £700 early repayment charge)
Sold the car for 32k and had 7k left over.
My total spend over 18 month was 5k (not including electricity and insurance etc.) zero service obv. so 278/mo. If you include the EAP I bought which was not valued at all it comes up to 8.5k. 472/month.
I drove 14k miles
Now I got a LR. Car is 51k -3k grant = 48k, Interest is 5.1k So total of 53.1k. minus 7k deposit (from car sale) my payments are now ~£630 over 72 months. Credit of 41k.
IfI sell this car after 18 months like the last one (no plans to do so, but *sugar* happens) I will have repayed ~630*18 of the loan, leaving ~ 35k left on the car. If we take the same loss of value as I had on the SR+ (40k car selling for 32 ~ 13%) and apply it to the LR (51k car, 13% of that is 6.6) an LR will sell for ~ 44k in 18 months.
so if I have 35k left to repay, and I sell the car for 44, I'll have 9k left over.
Of course these cars could depreciate much more, but point is you will get your deposit back. With PCP or lease, you wont. With PCP my bet is that you would be better off buying the car and then selling it. It actually doesent lower the monthly amount that much, so not sure what the point is. Lease is just daylight robbery....
Given some of the SR+ new inventory are quoting a range, VIN and interior picture all commensurate with Freemont production, I think we'll have to agree to disagree
New & Used Electric Cars | Tesla
Find new and used Tesla cars. Every new Tesla has a variety of configuration options and all pre-owned Tesla vehicles have passed the highest inspection standards.
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Given some of the SR+ new inventory are quoting a range, VIN and interior picture all commensurate with Freemont production, I think we'll have to agree to disagree
New & Used Electric Cars | Tesla
Find new and used Tesla cars. Every new Tesla has a variety of configuration options and all pre-owned Tesla vehicles have passed the highest inspection standards.
Jason71
Well-Known Member
They could depreciate much more but not much sign at present and the price just went up by 3k That is going to help.
I am quite happy with my LR but I still wish I had bought a P simply because until today the LR was pretty much the same price I paid for it 16 months ago but the P has gone up 8-10K since I bought mine. Probably would have had near zero depreciation at this point
They could depreciate much more but not much sign at present and the price just went up by 3k That is going to help.
I am quite happy with my LR but I still wish I had bought a P simply because until today the LR was pretty much the same price I paid for it 16 months ago but the P has gone up 8-10K since I bought mine. Probably would have had near zero depreciation at this point
I remember it was like 3k more to upgrade to a P.. But then LR was a bit over priced at the time... Fun times.
Tesla offered me £1,600 more for my M3P in a recent trade-in estimate than they did 6 months ago in October. I was actually surprised at how competitive it was.They could depreciate much more but not much sign at present and the price just went up by 3k That is going to help.
I am quite happy with my LR but I still wish I had bought a P simply because until today the LR was pretty much the same price I paid for it 16 months ago but the P has gone up 8-10K since I bought mine. Probably would have had near zero depreciation at this point
Anecdotal of course, but seems to show that depreciation isn't too savage (touch wood).
I would've lost just under £7k in a year based on what I paid, if I had taken them up on it.
It was £56,990 on Monday when I ordered my LR M3. I know this because I did the maths to see if I could stretch to one (sadly I couldn't)
That's very interesting, at the time I purchased I did consider a loan or buying it outright. My only concern with the bank loan was buying the car and not knowing if I would keep it. I didn't know how the EV life would fit into my lifestyle and a number of different factors also came into play. I wanted the flexibility of being able to hand the car back or buy it off them depending on my situation. I opted to go with PCP for that reason, I could sell the car privately if I wanted to or own it in the end. It definitely would be interesting to see how the balloon compares to the market at the end of my term.
With the car being so new to the market and not enough knowledge of how it would depreciate in a few year's time I didn't want to put all my eggs in one basket. So for me, I pay a little more in interest but have the flexibility of either selling/buying or giving the car back at the end. Even though it's likely I'll end up keeping it longer than I thought, and paying it off early has crossed my mind, but with the uncertainty on what the price could be, I've held fire.
skippyinspace
Member
Just had a call from the people who manage the £28K Scottish loan for domestic vehicles saying that applications will open again in the new financial year for domestic purchases but would assume that that it would be the same for Business purchases and emailed me the contact links for the Business side of things and the page in question now has a form to fill in to register for future rounds of funding,
Low carbon transport business loan
The low carbon transport business loan can help you buy new electric vehicles to reduce the carbon impact and fuel costs of their transport.
energysavingtrust.org.uk
Thanks for this - very interesting.
I hadn't actually considered taking a loan, but you make a compelling case. The Tesla Loan is actually at a better APR than my bank is offering so I may use that. I'm having to clear a lot of negative equity on a PCP with Audi Finance that I want to finish early in order to upgrade to a Tesla and am nervous about tying myself up again. I thought the lease option would be a good alternative, but it's dead money.
I was hoping to get a salary sacrifice LR through my work, and may still do this, however it does tie me in for a long time.
I'm now thinking that a long loan would mean I own the car straight away and would have this as an asset to trade in when I want to upgrade next time.
Has anyone on here had a Tesla financed through a Tesla loan and then traded it in early?
skippyinspace
Member
Out of interest as I'm doing my car buying research at the minute.
Mini electric website is still showing the £3K grant and the price look to have remained the same
Ford Mustang Mach -e their prices went up by £3K at the same time the grant was removed with messages saying the website is in the process of being updated
As I say I had a Tesla Rep contact me and said he didn't know if they were going to go up by 3K, 1.5K, 3K with charging incentives but I got the feeling that would be more of it Will be Next Month than now.
Personally, I think at the moment Tesla have removed the £3K to be compliment with the grant being removed and we might see something in the coming weeks
Mini electric website is still showing the £3K grant and the price look to have remained the same
Ford Mustang Mach -e their prices went up by £3K at the same time the grant was removed with messages saying the website is in the process of being updated
As I say I had a Tesla Rep contact me and said he didn't know if they were going to go up by 3K, 1.5K, 3K with charging incentives but I got the feeling that would be more of it Will be Next Month than now.
Personally, I think at the moment Tesla have removed the £3K to be compliment with the grant being removed and we might see something in the coming weeks
skippyinspace
Member
just saw this when I went to check prices just now
Take delivery of a new Model 3 in March with the £2,500 Plug-In Car Grant covered by Tesla. Explore Inventory
Take delivery of a new Model 3 in March with the £2,500 Plug-In Car Grant covered by Tesla. Explore Inventory
I wonder if they will tack on a years free supercharging to offset the remaining £500
This is exactly the decision I made for my SR+ in 2019 for the same reason. I traded in on Monday and got a new LR on the Tesla loan
Jason71
Well-Known Member
I bought out right because I thought the depreciation would be low for the first few years, And I wanted to make sure I benefitted rather than a finance company. Thus far I think its paying off, and this 3K price rise doesn't do any harm though I predicted that would go at some point in my first 3 years of ownership so that was part of the equation.
Since the M3 had essentially zero direct competitors at launch. I figured in 3-4 years it will have very few equivalents in the used market also and used demand will be high by then. Of course if other brands come in with competitive cars at lower prices residuals could go South pretty quickly. So far though I am happy with how it is holding up. Of course until mid this year, 2 years after UK launch, when the first of the finance agreements come to an end the second hand supply is very constrained, once they start to hit the market in higher numbers we will see what that does to the used price....
curmudgeon
Member
Collected my model 3 LR today and was told same by Tesla... existing inventory cars benefit from the grant and are cheaper than new factory orders that do not benefit from the grant.
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