Tesla PCH Questions

[Temper Tantrum]

I am almost ready to pull the trigger on a M3P using the PCH option and having never leased had a few questions if anyone can advise.

Looking at the T&C's the V5 would have Tesla Financial Services as the Registered Keeper. Does this make much of a differeence for insurance purposes as I take it I would then just put myself down as being the legal owner?

I just tried to get a price for GAP incurance on GoCompare but when I select that I won't be the registered keeper I get a message saying 'none of our providers offer gap insurance in this circumstance', any idea what's going on there, I thought that would be pretty normal?

If the car were to be written off by my insurance company, does anyone know what happens then? I take it that my insurance would then pay to replace the car (which isn't mine to start with) but I am assuming that's why GAP insurance would be important to have on a lease?

 

[Barabing]

I lease and got gap insurance from ALA

 

[Temper Tantrum]

Think I've actually just discovered a very big risk when going down the PCH route.

I am looking at putting down around 14K to get the monthlies to where I want them. If I was unfortunate enough to be in a position where the car was a write off then the contract as far as I can see would be terminated, the insurance and Tesla finance sort out the who owes what details, but I'd be left with no car and also lose the original 14K I put in up front

 

[shuhockey]

Think I've actually just discovered a very big risk when going down the PCH route.

I am looking at putting down around 14K to get the monthlies to where I want them. If I was unfortunate enough to be in a position where the car was a write off then the contract as far as I can see would be terminated, the insurance and Tesla finance sort out the who owes what details, but I'd be left with no car and also lose the original 14K I put in up front

This will be why you get gap insurance

 

[73henny]

I don't know why you'd lease over a PCP/loan on a car with good residuals.

 

[Rich Tea]

You got it the wrong way round.

Tesla (or the leasing company) is the legal owner.

You will be the registered keeper.

 

[RobbieBurns]

You got it the wrong way round.

Tesla (or the leasing company) is the legal owner.

You will be the registered keeper.

No - you got it the wrong way round...

Maybe get your facts straight: Tesla Financial Services is the owner and the registered keeper of the vehicle. I am on a Tesla Lease (PCH) and I do not have the V5c.

As a lease holder you DO NOT get a V5c with your name as the registered keeper. If you were on a PCP, you would.

Ask google that question, and you'll see its the first hit.

 

[RobbieBurns]

Think I've actually just discovered a very big risk when going down the PCH route.

I am looking at putting down around 14K to get the monthlies to where I want them. If I was unfortunate enough to be in a position where the car was a write off then the contract as far as I can see would be terminated, the insurance and Tesla finance sort out the who owes what details, but I'd be left with no car and also lose the original 14K I put in up front

I think 14K up front is an astronomical amount to put down on a lease!

I can understand you'd want the monthly payment to be as low as possible for yourself... BUT if I had 14K in my pocket, the PCP looks a better option, as its money going into the car, and you have options at the end, and possible equity in it.

 

[Tony Hoyle]

14k up front I wouldn't be surprised if you could reduce the HP/PCP payments below the lease cost. And you get to sell the car at the end..

 

[Rich Tea]

Lol so angry. My bad. Carry on.

 

[RobbieBurns]

Lol so angry. My bad. Carry on.

Not angry at all. You're just plain wrong. No apologies - I just call it as I see it.

Simply a word of advice: If you're going to post up stuff on the internet for all to see - get your facts straight.

Let's all just jog on our merry way!

 

[MrMoonUK]

Always put down the bare minimum on a lease as you are never seeing that cash again

 

[Temper Tantrum]

I think 14K up front is an astronomical amount to put down on a lease!

I can understand you'd want the monthly payment to be as low as possible for yourself... BUT if I had 14K in my pocket, the PCP looks a better option, as its money going into the car, and you have options at the end, and possible equity in it.

6k Up Front
£650 x48
Total £38,572


14K Up Front
£497 x48
Total £37,692

14k up front I wouldn't be surprised if you could reduce the HP/PCP payments below the lease cost. And you get to sell the car at the end..

The PCP would work out more expensive from what I can see over the course of 4 years:

14k Up Front
£635 x 48
Total £44,480


I wouldn't be looking to keep the car on after the 4 years. I know there is a chance I could have some equity in it, but it's over 100 notes a month less.


My main concern with the PCH is that if I had the car, for example, 3 months and it was stolen or written off then the initial deposit of 14K would be gone.

GAP would cover anything owed on the car, but I would then be back to square one with needing a new lease and new 14K deposit etc.

Unless I have that wrong

 

[Durzel]

It’s 6 of one half a dozen of the other with PCH and initial (“deposit” is an inappropriate word imo even though it is used often, as it suggests it’s recoverable) & monthlies, as all the money you spend is lost anyway.

I don’t know what PCP quotes are like nowadays but I would presume people who did it in 2019/2020 have done well, since used car prices have gone up whereas their payments & balloon were fixed at inception.

As said above with PCH Tesla Financial Services are both the legal owner and registered keeper of the car. The latter is more of a DVLA thing than what one might think is meant by “keeper”. It’s easier to think of PCH as being that TFS give you indefinite permission to use the vehicle.