Hire purchase vs leasing vs PCP for dummies

If you go through Tesla finance which is done by Black Horse you'll be 4.9% APR.

Between HP and PCP this article gives a good overview - PCP vs HP – what's the difference?

With a lease, you do deposit and monthly payments, but then have to give the car back at the end. Tesla only offers PCP or HP directly, lease you have to go through a 3rd party.

Another option is to finance the car yourself with a basic loan or try to arrange your own PCP/HP agreement.

 

With PCP and HP you have an asset to trade, think of PCP like HP but back-loaded (the big (optional) final payment)

Think of a lease as a long-term hire car, you don’t own it but are liable for the full term agreed

 

Yes, the major difference is backloading on PCP, you need a smaller deposit but then that becomes the optional balloon payment at the end. In terms of what is best for you, only you can make the decision!

 

I was reading from another thread that you should be careful with your initial deposit, in case your car get totaled,
as in the majority of cases, you will not receive any money back from the initial deposit.
The OP recommended to have $0 deposit and full payment of the lease as first payment,
and return the car at the end of the lease, or get a new lease with the same conditions if the car get totaled.

 

You will not save money on PCP Vs lease. Lease payments are less per month than PCP simply because you are only basically paying the depreciation.