Car Finance PCP vs Leasing

Hi, first post on here so please be nice :slight_smile:

I’ve tended to take my cars on a PCP deal these days but when my current deal runs out I wont be making the balloon payment. This got me thinking that really PCP is just another form of leasing and whether i should just be doing that instead - i don’t really know much about leasing though and the best way to get a good deal

Are any leasing pro’s able to offer some advice on the pro’s and cons and maybe even suggest some of the good brokers?


Hi Yorkie and welcome :wave:

I’ve done all 3 - bought outright, leased and PCP’d. In the order of (my) preference it would be PCP, buy outright, Lease.

Financially, buy outright is best followed by PCP and lease. The reason I say this is (despite the usual, and rapid depreciation with cars) you have something at the end of it - like to keep, sell or use as a deposit on a newer car. With leasing it’s literally gone and if you can’t afford to buy outright you’ll be back into paying a large deposit on the next lease one.

Also consider hidden costs with leasing. The car is not registered in your name (unlike buying & PCP) - it is the leasing company that own it. So if you speed or get a parking ticket, the authorities send the paperwork to the leasing company who then pass it onto you, along with an extra administration fee. Personalised registrations can also be ‘extra administration’ fees too - both to put on and take off, in addition to the DVLA retainer cost to take off.

Of course, each person’s financial position and preference will be different but in my experience I’d avoid leasing.

There are an infinite number of vehicle leasing companies in the marketplace and some will offer better deals than others. I’d recommend putting time into researching the available options so you’re well prepared if you choose to lease.

Bit of a ‘non-answer’ this, but it’s a big and subjective subject!

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:+1: thank you!! appreciate the advice, I think i may stick to PCP