M3P lease or pcp opinion

[Futur3EV]

Hi everyone,

Hoping to get some advice/personal opinions on leasing and pcp (sorry I know this has been asked quite a few times)

I've been looking at alot of quotes and have got my 3 best options and would like your thoughts on what you think would be best and why.

I could lease through tesla for a 5.4k deposit, 10k miles per annum and 740 p/m for 47 months (no maintenance inc)

Pcp through forza is showing as 10k deposit. 10k miles per annum and 740 p/m for 48 months.

I could also do pcp with 8k miles instead which brings the monthly down to 717. However, I've heard with a tesla you will do more miles than expected due to how fun they are (15ppm if I go over) I don't ever do over 8k miles per year at the moment.

Just after some thoughts whether you think spending around 5 to 6k more on a pcp for the flexibility is worth it as oppose to saving it on the lease?

I'm aware of the pros and cons to both leasing and pcp I was just after any other thoughts/opinions which may help my decision as their may be experiences/thoughts I had not considered.

If it helps, the longest I've ever kept a car is 4 years so I likely wouldn't keep it and the gfmv on the pcp is 26k after 48 months.

Much appreciated.

 

[page3]

When I looked neither made sense.

If you have the option of salary sacrifice then that can work out favourably. If you own a business then purchasing from that is a good option.

If neither of these are options like me, then I found cash purchase by far the cheapest. Top up with a bank loan if required.

Personal lease or PCP on a Tesla just seemed really expensive.

 

[MrT3]

Pcp through forza is showing as 10k deposit. 10k miles per annum and 740 p/m for 48 months.

I could also do pcp with 8k miles instead which brings the monthly down to 717. However, I've heard with a tesla you will do more miles than expected due to how fun they are (15ppm if I go over) I don't ever do over 8k miles per year at the moment.

If you decide to PCP and you aren't doing 8k miles per year then go with the cheaper 8k option. You could drive an extra 7,360 miles at 0.15p per mile over the 4 years before it starts to get more expensive than the 10k mile option which you are unlikely to reach.

 

[Futur3EV]

Unfortunately salary sacrifice or business lease isn't an option for me either.

As a cash purchase I would need a loan and even over 72 months it's more expensive monthly unless I put around 8k more into the deposit.

I hopefully wouldn't go over the 8k miles and especially not that much unless something changes in my circumstances. Siding towards this option I think. Plus it's only coming into play if i hand it back to tesla anyway

 

[Limey]

Unless you are doing silly miles, because of their high residual value a lease is burning money.

 

[BushtrimmmerJr]

That lease cost seems astronomical (that’s £40k unless my math is wrong). We leased ours with ZenAuto and paid £554 for a SR+ with no deposit, the 19 inch wheels and 12000 miles a year. Since COVID we’ve knocked it down to 6000 a year and it’s come right down to £440ish.

As others have said the residuals are looking great so we were regretting leasing but if all current prices are similar to yours I’m at least glad we’re paying what we are.

 

[Futur3EV]

That lease cost seems astronomical (that’s £40k unless my math is wrong). We leased ours with ZenAuto and paid £554 for a SR+ with no deposit, the 19 inch wheels and 12000 miles a year. Since COVID we’ve knocked it down to 6000 a year and it’s come right down to £440ish.

As others have said the residuals are looking great so we were regretting leasing but if all current prices are similar to yours I’m at least glad we’re paying what we are.

Yeah all the leasing prices seem really high right now. The LR is good on lease but not the performance. Ive never leased before and I'm pretty sure I'm going pcp this time again. I do around 7.5k miles a year so under the 8k but I might opt for 10 since I will probably use it alot more than usual.

 

[markgyork]

Hi everyone,

Hoping to get some advice/personal opinions on leasing and pcp (sorry I know this has been asked quite a few times)

I've been looking at alot of quotes and have got my 3 best options and would like your thoughts on what you think would be best and why.

I could lease through tesla for a 5.4k deposit, 10k miles per annum and 740 p/m for 47 months (no maintenance inc)

Pcp through forza is showing as 10k deposit. 10k miles per annum and 740 p/m for 48 months.

I could also do pcp with 8k miles instead which brings the monthly down to 717. However, I've heard with a tesla you will do more miles than expected due to how fun they are (15ppm if I go over) I don't ever do over 8k miles per year at the moment.

Just after some thoughts whether you think spending around 5 to 6k more on a pcp for the flexibility is worth it as oppose to saving it on the lease?

I'm aware of the pros and cons to both leasing and pcp I was just after any other thoughts/opinions which may help my decision as their may be experiences/thoughts I had not considered.

If it helps, the longest I've ever kept a car is 4 years so I likely wouldn't keep it and the gfmv on the pcp is 26k after 48 months.

Much appreciated.

If the longest you've ever kept a car is 4 years, I would recommend looking at a PCH for the saving you'll make.

If you can commit that level of deposit you might also be as well to look at a loan and buy the car outright for all the flexibility it'll offer over and above a PCP. Those lease prices seem incredibly high (should be around £400-500pcm for 48 months if you're putting down £10K).

 

[SpanishJ0n]

Leasing is madness when you consider the very high residuals with these cars. As I understand it you cannot buy the car after the lease so you lose everything you have put in. PCP or loan. That way you have a very high asset after 3 / 4 years.

 

[plisken]

If you decide to PCP and you aren't doing 8k miles per year then go with the cheaper 8k option.

That's one thing that bothers me, there is no 8k option on the Tesla website, 10k is the lowest and there is no way on earth I come close to that. (regardless of how much fun it is to drive).
My current PCP deal with another car (blackhorse) is at 6000 miles per year and allowed a slightly higher deposit that seems to be possible on the Tesla website. I have my delivery scheduled so will really need to make my mind up how I'm paying for it, so think I may need to speak to Tesla and see if there is a way of bringing down the annual mileage together with increasing the deposit if possible.

 

[Maka344]

Leasing is madness when you consider the very high residuals with these cars. As I understand it you cannot buy the car after the lease so you lose everything you have put in. PCP or loan. That way you have a very high asset after 3 / 4 years.

Some lease funders do offer the option to purchase at the end. You just have to ask for a quote.

 

[Big_D]

It was PCP for me. I have the same PCP/lease argument with myself each time I buy a new car. What has done it for me is the commitment to a lease without the option to get out, or at least not without paying a significant penalty. If I look after the car, and don't go over my allocated miles (or do a lot less miles) chances are very high that I have some positive equity to put towards the next car. With lease it's almost the opposite: if you do look after your car you may not be be charged extra (but watch those miles and curbed wheels)

 

[Maka344]

It was PCP for me. I have the same PCP/lease argument with myself each time I buy a new car. What has done it for me is the commitment to a lease without the option to get out, or at least not without paying a significant penalty. If I look after the car, and don't go over my allocated miles (or do a lot less miles) chances are very high that I have some positive equity to put towards the next car. With lease it's almost the opposite: if you do look after your car you may not be be charged extra (but watch those miles and curbed wheels)

Just had the same scenario but I guess it depends on the lease deal.

I’ve just order a Model 3 for delivery next month on the following:

£495pm over 47 months
6 months down
10k miles
Standard in white

Because the lease deal is cheaper than quoted prices in this thread, potentially the saving equate the the same as any equity via going PCP. Values across the board are not going to stay as they are now once the chip situation improves, so there’s that to consider.

 

[Big_D]

Just had the same scenario but I guess it depends on the lease deal.

I’ve just order a Model 3 for delivery next month on the following:

£495pm over 47 months
6 months down
10k miles
Standard in white

Because the lease deal is cheaper than quoted prices in this thread, potentially the saving equate the the same as any equity via going PCP. Values across the board are not going to stay as they are now once the chip situation improves, so there’s that to consider.

I agree, but for me it's the commitment that makes me want to go PCP, even though the monthlies are higher. In your case, your lease company will want 47 x £495 = £23,265. If anything happens to your financial circumstances, the lease company wants that £23,265 and you can't give it back at any point during the 4 years and walk away without having to pay a large portion of that sum. With a PCP I can walk, and all I'll loose out on is the difference between the settlement and the market value at the time I end the agreement. I usually don't achieve positive equity until 3/4 in the agreement, but with Tesla's (currently) holding their value much better, that isn't much of an issue right now.

 

[Maka344]

I agree, but for me it's the commitment that makes me want to go PCP, even though the monthlies are higher. In your case, your lease company will want 47 x £495 = £23,265. If anything happens to your financial circumstances, the lease company wants that £23,265 and you can't give it back at any point during the 4 years and walk away without having to pay a large portion of that sum. With a PCP I can walk, and all I'll loose out on is the difference between the settlement and the market value at the time I end the agreement. I usually don't achieve positive equity until 3/4 in the agreement, but with Tesla's (currently) holding their value much better, that isn't much of an issue right now.

I fully agree and that was our dilemma, too. The lease and PCP work out pretty similar with the possibility of some equity at the end of the PCP. However, the used car market is in a bubble and in reality with new battery tech etc in 4 years, the M3LR might well drop quite significantly. But I do agree, the freedom to walk away at any point with PCP is appealing.

We have two cars and would let the smaller one go before the M3 due to the above if we really needed to. We normally commit to 3 years lease and 4 with PCP.

Have you done any calculations on what equity could be left via PCP at the 4 year point? My employer is looking at a salary sacrifice scheme in the next 2 years and if I’m only mid-way through a lease, I’ll be gutted if it’s much much cheaper than I’m paying.

 

[Futur3EV]

Still haven't placed my order yet. So many variables for me.
Pcp would be on a M3P in red with white interior. 48 months at 740 and a 10k down-payment. 10k miles per annum.
Lease is a standard white LR, 700 p/m for 24 months, 0 down-payment, 10k miles per annum.
I'm fortunate enough that I wouldn't lose my job but other things on life could affect my outgoings. For example, we are considering children in the next 2 to 3 years and this is a big point for me as I would hate to spend 10k cash and realise I could have done with the money.
Heart says get the M3P as it's the one you want and enjoy it whilst you can. Head says save the money and get a new long range every couple years.

 

[Big_D]

I fully agree and that was our dilemma, too. The lease and PCP work out pretty similar with the possibility of some equity at the end of the PCP. However, the used car market is in a bubble and in reality with new battery tech etc in 4 years, the M3LR might well drop quite significantly. But I do agree, the freedom to walk away at any point with PCP is appealing.

We have two cars and would let the smaller one go before the M3 due to the above if we really needed to. We normally commit to 3 years lease and 4 with PCP.

Have you done any calculations on what equity could be left via PCP at the 4 year point? My employer is looking at a salary sacrifice scheme in the next 2 years and if I’m only mid-way through a lease, I’ll be gutted if it’s much much cheaper than I’m paying.

I haven’t done any calculations on equity - I’ll just look after the car the best I can and if there’s positive equity at the end, brilliant!

 

[gangzoom]

For example, we are considering children in the next 2 to 3 years and this is a big point for me as I would hate to spend 10k cash and realise I could have done with the money.

You need to go back to man maths University......

Trust me once you have kids every priority in life changes!!! That's why we bought our X BEFORE having kids, there is zero chance we would waste £££££ on a car right now given the extra responsibility in life children brings........

Oh and enjoy sleeping, I use to enjoy that .

 

[gangzoom]

However, the used car market is in a bubble and in reality with new battery tech etc in 4 years

Have you seen the signals on almost certain raise in interest rates? Mortgage rates are already going up, and wage inflation will pretty much guarantee prices of everything is only going to go one way. Tesla prices are already going up consistently even without inflationary pressure.

As for 'new' battery tech, the Plaid S, the best, quickest, most expensive car Tesla make is essentially using the same battery technology as 2011 S. There is no 'new' battery tech coming any time soon.

 

[Futur3EV]

You need to go back to man maths University......

Trust me once you have kids every priority in life changes!!! That's why we bought our X BEFORE having kids, there is zero chance we would waste £££££ on a car right now given the extra responsibility in life children brings........

Oh and enjoy sleeping, I use to enjoy that .

So you saying get the performance model 3 whilst I can and enjoy it? Or keep the cash for the future?

Yeah I'm making the most of sleeping whilst I can before it all changes. Looking forward to it though! I will get back to whether I feel the same when I get no sleep and I'm running around all the time.