UK PCP for Model 3 LR

[alexvlad]

Good morning,
I kept trying to find some "decent" PCP deals for the M3 LR and so far every offer I get is pretty much identical, 530 +/- 48 months and 5k miles, I've been reading some of the older posts and I've seen some got the M3 LR for about 450 a month 10k miles with a 4k deposit, some even cheaper trough salary sacrifice but I'm not sure if my company does that, does the high demand reflect on the current prices or am I doing something wrong? maybe looking into the wrong places? I also considered a PCH but the idea of PCP sounds a bit better just because of the deposit transfer into a newer car. Any info is much appreciated, thank you

 

[sparkymark75]

Check if your bank has a PCP product. My bank (Lloyds) does offer PCP on new cars but only for Lloyds customers which is how I'm funding my Tesla as it worked out cheaper going via them than direct with Tesla.

 

[alexvlad]

Nationwide does not offer PCP anymore :/

 

[Jason71]

I have never done either PCP or lease but recently looked into both on a non Tesla EV for my Dad.
Over the same period the lease was always cheaper (obviously) but paying the extra on PCP was buying you the right to buy the car at the end at an agreed price.
For that to actually make sense the actual final value of the car would have had to be greater than the agreed final minimum value + the difference between the total of the lease payments and the total of the PCP payments.
When I did the maths it never seemed to me on the examples I looked at as if that was going to be the case.
I may have missed something but I hope not since his leased Kia Soul 65KW arrives next week

 

[alexvlad]

It will be my first PCP also, so far I've bought my cars cash, lease prices are better for sure, I got some offers for 440 a month but 5k miles a year which is not ideal, the fact that PCP allows you to move your deposit into a new car is more attractive, I know you do pay a "premium" for that and might not be worth it for some but I find it the best way to get a new car on a low monthly payment, I am also trying to find out more about salary sacrifice, my wife works for the NHS and they do have the scheme available but the problem is she has no drivers license, we did speak to the person in charge of the scheme and he will come back to us. Also I spoke with a third party finance group and they did give a decent offer, 6k miles 4k deposit and 383 a month for 48 months on a LR model, that's the best offer I got so far.

 

[alexvlad]

Actually they quoted me for the standard model, my bad.

 

[DJP31]

I also considered a PCH but the idea of PCP sounds a bit better just because of the deposit transfer into a newer car. Any info is much appreciated, thank you

the fact that PCP allows you to move your deposit into a new car is more attractive,

PCP only works this way IF the car is worth more than the balloon payment at the end of the term. There is no guarantee that at the end of the term the car will be worth more - that can be a dangerous strategy if you are relying on some equity in the car to provide a deposit on the next one.

I have PCP'd many times in the past with varying degrees of success in terms of "profit", but this time the monthly premium was so much higher than PCH it made no sense to PCP.

I'd compare the total cost of both deals over the term and see whether you think the extra paid over the term will come back to you as equity on the PCP.

 

[alexvlad]

you're right, I made an excel graph with pros/cons on both PCP and PCH. Im just trying to find some more offers, different lenders, not sure if anyone worked with Forza Finance before but so far they gave me the best offer for PCP.

 

[DJP31]

you're right, I made an excel graph with pros/cons on both PCP and PCH. Im just trying to find some more offers, different lenders, not sure if anyone worked with Forza Finance before but so far they gave me the best offer for PCP.

How are you determining the best offer? Is that the one with lowest monthly payments or lowest residual or cheapest interest rate?

 

[Jason71]

you're right, I made an excel graph with pros/cons on both PCP and PCH. Im just trying to find some more offers, different lenders, not sure if anyone worked with Forza Finance before but so far they gave me the best offer for PCP.

just out of interest what are they estimating the value of an M3 LR to be in 4 years because right now the residuals are insanely high. In general I favour lease over PCP but if there is one car that looks like it is beating the odds right now its the M3

 

[C225]

The only reason i have been able to consider the M3LR I ordered is because of the insane used prices right now, I am 18 months into my current PCP on a Merc and normally if i were to change right now would be looking at massive negative equity but I'm actually £2k in positive terms right now. So after working out costs and using that as my deposit i am planning on a PCH on the M3 as i never keep my cars at the end so for me lease is probably the better option.

The cost of my current PCP plus petrol and tax will work out identical to what i expect to pay on the PCH for the Tesla plus Electric costs and i want to do it now as when the used market stabilises i'd be looking at negative equity again on my current car.

 

[Jason71]

The only reason i have been able to consider the M3LR I ordered is because of the insane used prices right now, I am 18 months into my current PCP on a Merc and normally if i were to change right now would be looking at massive negative equity but I'm actually £2k in positive terms right now. So after working out costs and using that as my deposit i am planning on a PCH on the M3 as i never keep my cars at the end so for me lease is probably the better option.

The cost of my current PCP plus petrol and tax will work out identical to what i expect to pay on the PCH for the Tesla plus Electric costs and i want to do it now as when the used market stabilises i'd be looking at negative equity again on my current car.

I am 18months/15k miles into ownership and looking at 10%-12% depreciation up to this point. Which is fairly unheard of on a mass market car. If I had a 3 year 30K PCP I suspect I would be on course to significantly outperform the MFV. I Imagine the rate of depreciation will increase as more EV's become available and the used supply on M3's improves but I can't see it getting close to the 40-50% level PCP probably pegs it at.

 

[C225]

I am 18months/15k miles into ownership and looking at 10% depreciation up to this point. Which is fairly unheard of on a mass market car. If I had a 3 year 30K PCP I suspect I would be on course to significantly outperform the MFV. I Imagine the rate of depreciation will increase as more EV's become available and the used supply on M3's improves but I can't see it getting close to the 40-50% level PCP probably pegs it at.

Yeah in the 18 months i've has my current car, due to the market just now its only lost about 10% as well, my fear is it'll suddenly drop and if I can change now for what is effectively the same cost a month taking everything into account i should take the jump to electric.

 

[alexvlad]

How are you determining the best offer? Is that the one with lowest monthly payments or lowest residual or cheapest interest rate?

Looking at deposit, monthly payment, apr and final payment. Final payment is important because I might want to keep the car, but at the same time there might be a new model that will interest me even more.

 

[alexvlad]

just out of interest what are they estimating the value of an M3 LR to be in 4 years because right now the residuals are insanely high. In general I favour lease over PCP but if there is one car that looks like it is beating the odds right now its the M3

They didn’t quote me for the lr yet, only standard, and their quote looks like this:

 

[GeorgeSymonds]

Prices are mad across the board, not just EVs at the moment. My wifes ICE is worth more than we paid for it a year ago, whereas the Model 3 I just bought from Tesla was a year old almost to the day and £11k less than the new equvalent (I paid 42.5k for a LR, EAP, Tow, ABoost etc). It can be a bit of a lottery.

There's evidence that quite a few are upping their price, I think on.to who were doing popular flexible leases have almost doubled their Tesla prices recently.

The quote you've posted as the FGV as 60%, after 4 years so just as warranty is ending, I imagine thats not going to be a million miles away, quite a few cars coming out by then, the MY will definitely be here, some of the tax incentives may be starting to unwind etc. Its their job to predict. You are paying a lot in interest on that deal though. Not sure what good is now, but a quick look on money saying expert says they start from 2.8% and you're being offered 2% more. On a 40k car allowing for deposit and reducing debt, thats still around £50 a month more than the cheapest rates talked about.

 

[alexvlad]

Prices are mad across the board, not just EVs at the moment. My wifes ICE is worth more than we paid for it a year ago, whereas the Model 3 I just bought from Tesla was a year old almost to the day and £11k less than the new equvalent (I paid 42.5k for a LR, EAP, Tow, ABoost etc). It can be a bit of a lottery.

There's evidence that quite a few are upping their price, I think on.to who were doing popular flexible leases have almost doubled their Tesla prices recently.

The quote you've posted as the FGV as 60%, after 4 years so just as warranty is ending, I imagine thats not going to be a million miles away, quite a few cars coming out by then, the MY will definitely be here, some of the tax incentives may be starting to unwind etc. Its their job to predict. You are paying a lot in interest on that deal though. Not sure what good is now, but a quick look on money saying expert says they start from 2.8% and you're being offered 2% more. On a 40k car allowing for deposit and reducing debt, thats still around £50 a month more than the cheapest rates talked about.

Thanks for the reply, I agree, everything seems to be more and more expensive nowadays, I have been trying to find better deals but no success, I can’t find any pcp that’s less than 4.9%, even on money saving experts.

 

[moosefingers]

Currently looking out for PCP deals myself - be interested in what they come back with on the LR!

 

[Mrklaw]

Prices are mad across the board, not just EVs at the moment. My wifes ICE is worth more than we paid for it a year ago, whereas the Model 3 I just bought from Tesla was a year old almost to the day and £11k less than the new equvalent (I paid 42.5k for a LR, EAP, Tow, ABoost etc). It can be a bit of a lottery.

There's evidence that quite a few are upping their price, I think on.to who were doing popular flexible leases have almost doubled their Tesla prices recently.

The quote you've posted as the FGV as 60%, after 4 years so just as warranty is ending, I imagine thats not going to be a million miles away, quite a few cars coming out by then, the MY will definitely be here, some of the tax incentives may be starting to unwind etc. Its their job to predict. You are paying a lot in interest on that deal though. Not sure what good is now, but a quick look on money saying expert says they start from 2.8% and you're being offered 2% more. On a 40k car allowing for deposit and reducing debt, thats still around £50 a month more than the cheapest rates talked about.

thats a great price on a great spec, wow

 

[alexvlad]

Currently looking out for PCP deals myself - be interested in what they come back with on the LR!

I’ll keep you posted.