PCP or PCH car leasing?

[somapop]

My car is on pcp and I'm buying it in June by paying the balloon payment.
Going to get MOT done in May and as long as no major problems, pay the car off in June then I'm free of direct debit payments for it.
I could sell it to webuyanycar for a few grand more than it's going to cost me if u wanted.
Will probably keep it for a couple more years then get an electric one if the prices come down a bit.

Couple of Qs here if you don't mind?

What's a balloon payment and how long and you been paying the PCP for?

The bit I'm not sure about if the differences between PCP and PCH/leasing and how they can potentially trap you at the end of the lease/s?

 

[somapop]

For what it’s worth I bought a brand new troc rline June last year.
We had to wait 6 months due to the global semi conductor shortage but it was actually cheaper than a 1 year old used troc.
Unbelievable I know but it was true as you just could not find a new 23 model year car
At the spec that I wanted.

Anyway the car has been fantastic and can highly recommend if you go for one of these.

Edit: haven’t followed the thread so wasn’t aware of your financial status
I put down a 10k deposit which was a trade in plus cash on a pcp deal this gave me a sub £300 per month payment and should
Mean I have a decent equity should I decide to go again(unlikely as I’m an foc).

I’ve also got a 8 year old golf gtd which I’ve had for 6 years it has 10k on the clock and has now got 92k it’s been the most reliable car I’ve ever had.
Just the usual service on it and apart from brake pads and tyres it’s wanted nothing.
Point I’m making is you could probably pickup one of these with 50-80k miles for around 5-7 k good reliable motor 50 mpg
The fucker has got me points over the years as it’s quite quick for a diesel lol

Yeah, I was on the VW forums and the t-roc gets a lot of praise.
I just like the look of them. The sizes is about right (with family member to fit in/holidays) - not too big, not too small. They seem v reliable too. Our old family car was a Touran which was a solid motor (both to drive and in terms of barely ever going wrong with it).
I do like golfs btw, but the T- roc just gives me that extra bit of space.

With that deposit and sub £300 pm pmt, could I ask how long that is for? Just out of interest, as I'm thinking of getting something a few years older atm.

 

[117 M34]

Couple of Qs here if you don't mind?

What's a balloon payment and how long and you been paying the PCP for?

The bit I'm not sure about if the differences between PCP and PCH/leasing and how they can potentially trap you at the end of the lease/s?

My car is on a 3 year term and i got it in July 21.

Balloon payment is the optional payment at the end if the deal to keep the car. Mine is £10800.
At the end of the deal you can make the balloon payment and keep the car, hand the keys back or sign into a new deal using the equity in the car as a deposit on the new one.

 

[1961_vintage]

Ultimately there's going to be a fair few trade offs here (and money pit either way).

Leasing a car gives you the surety of exactly what it will cost you per month/year based on your budget situation.

You also determine how much you want to pay up front (eg 3 months' rental) and for how long (2 years, 3 years or (which I think is the sweet spot, 4 years).

PCH (Leasing) protects you from the variability of depreciation (ie the risk is carried by the lease company who owns the vehicle).

You can include replacement tyres, glass and maintenance in your monthly payment (although the reliability of cars makes this of less value in my opinion, same for tyres if you do low-ish mileage for example).

Set your budget firmly and then play around on the leasing sites would be my advice.

 

[roach3]

Yeah, I was on the VW forums and the t-roc gets a lot of praise.
I just like the look of them. The sizes is about right (with family member to fit in/holidays) - not too big, not too small. They seem v reliable too. Our old family car was a Touran which was a solid motor (both to drive and in terms of barely ever going wrong with it).
I do like golfs btw, but the T- roc just gives me that extra bit of space.

With that deposit and sub £300 pm pmt, could I ask how long that is for? Just out of interest, as I'm thinking of getting something a few years older atm.

Without digging out paperwork not sure on balloon figure but it is over 5 years

This is for the 1.5 rline dsg model

I’m gonna guess the balloon would be about 10.5k

I’m guessing this will be my last ever car at my age, I’m only in it at weekends as the wife uses it for work 6 miles a day
I use the golf 80 miles a day for work
Once I’m retired in 2 years the golf will go.
It’s a testament to vw that my 8 year old golf gtd with 85k on the clock is still worth between 10-12k I’ll be sad to see it go.