Good morning,
I'm awaiting delivery of my M3 LR - expected mid Nov- early Dec.
I was originally set on a lease, due to low monthly payments making it much more affordable. Including my trade in (7k), lower running cost savings for my twice monthly 600 mile journeys and a travel contribution from my employer, I calculated it'd cost me about £200/pm over 4 years to lease the car.
PCP, on the other hand, is slightly more expensive. I struggle to see any sense in this if I'm not 100% certain I want to make the balloon payment at the end and own the car. But perhaps financing the balloon payment could be an option?
Tesla Loan / Third party personal loan seems to stretch my budget more than I'd like for a longer period of time (5-6 years), but I suppose a couple of years down the line I could sell the car and make the majority of the money back if I'm not happy?
My current thought process and why I'm leaning more towards the lease is:
My current car which I now own was purchased using a combination of PCP and personal loan in order get the most competitive interest rates. I've been driving it for the past 2 years and not having to worry about any costs outside of the usual mot/tax/service. It does feel good to own the car, but at times it was hard work affording it on lower income!
I know my job is secure for the next 3 years at least (very blessed in these uncertain times!), having just accepted a promotion tied in with a contract to extend within the organisation. Because of this, a 4 year more affordable lease seems to be the most sensible option as opposed to a 4 year PCP with balloon payment or a 5+ years Tesla/personal loan.
I appreciate the long read and I'd welcome any opinions / insight from other owners/potential owners - what would you do in my situation? What's your opinions on different types of purchasing/leasing?
Many thanks!
Ash
I'm awaiting delivery of my M3 LR - expected mid Nov- early Dec.
I was originally set on a lease, due to low monthly payments making it much more affordable. Including my trade in (7k), lower running cost savings for my twice monthly 600 mile journeys and a travel contribution from my employer, I calculated it'd cost me about £200/pm over 4 years to lease the car.
PCP, on the other hand, is slightly more expensive. I struggle to see any sense in this if I'm not 100% certain I want to make the balloon payment at the end and own the car. But perhaps financing the balloon payment could be an option?
Tesla Loan / Third party personal loan seems to stretch my budget more than I'd like for a longer period of time (5-6 years), but I suppose a couple of years down the line I could sell the car and make the majority of the money back if I'm not happy?
My current thought process and why I'm leaning more towards the lease is:
- Lower monthly payments will free up a lot of income and allow me to save / not worry as much about being able to afford nice things such as holidaying and socialising more post COVID.
- Although the M3 is great and already ahead of its time, I believe in 4 years, with the expected improvements in battery technology to say the least, I won't want to be in the position of financing a balloon payment / loan for several more years.
- The potential resale value of the vehicle at the end of the lease. I know in a personal lease I will hand the car back, but if I've already paid £30k for a lease on a £46k car (with gov grant), would it not make more sense to pay a little more and have some equity in it? I know it's almost impossible to get a used Model 3 right now and the resale value of nearly new is still 90% of original RRP, but in 4 years time will the car actually devalue that much?
- My job means that I may go away for months at a time. I don't know how I'd feel about paying a lease knowing that I won't be able to make use of the car. However, I'm sure that my family / close friends wouldn't mind making use of it whilst I'm away. I could also reduce the mileage on the lease and reduce the monthly cost.
My current car which I now own was purchased using a combination of PCP and personal loan in order get the most competitive interest rates. I've been driving it for the past 2 years and not having to worry about any costs outside of the usual mot/tax/service. It does feel good to own the car, but at times it was hard work affording it on lower income!
I know my job is secure for the next 3 years at least (very blessed in these uncertain times!), having just accepted a promotion tied in with a contract to extend within the organisation. Because of this, a 4 year more affordable lease seems to be the most sensible option as opposed to a 4 year PCP with balloon payment or a 5+ years Tesla/personal loan.
I appreciate the long read and I'd welcome any opinions / insight from other owners/potential owners - what would you do in my situation? What's your opinions on different types of purchasing/leasing?
Many thanks!
Ash
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