Thank You For Taking Up Our Offer Of FREE Training And Info On Our Latest Deals And Offers - Please Scroll Down To Register
How Would You Like To Be Driving A Brand New £20,000 Car For Just £190 Per Month?
You May Be Thinking Yes – But What’s The Catch? Is There A Big Down Payment?
Not Unless You Consider £1,140 A Big Down Payment (5.7% Of The Cost)!
Would You Like To Know More? Oh – And There Are No Catches!
Before I get started I must issue a health warning. Whilst the training I’m about to give you relates to leasing (as most people refer to it) or to give it its technical name Contract Hire or Personal Contract Hire (PCH) you should always consider all of your finance options before selecting one. And make sure you fully understand the implications and your commitment.
From now on I’ll refer to the method as PCH.
I’m going to give you three examples that will put PCH into perspective. There is also a twist at the end.
If you check out my profile you’ll see that I’ve been in this industry for over 30 years. During that time I’ve saved businesses and consumers millions of pounds by redirecting them into better and more suitable ways of financing their cars.
AND I WANT TO DO THE SAME FOR YOU - FOR FREE!
JUST SIGN UP BELOW - AND LEARN THE SECRET TO DRIVING A NEW CAR
FOR LESS THAN A USED CAR
Let Me Explain The 3 Boxes Below
Note: In each case I’ve used £20,000, which is the list price of the Octavia, with an assumed average value after 3 years of £8,000 (40% of list). I’ve used the monthly PCH rate (inc VAT) of £190 in order to arrive at a direct comparison between schemes.
Hire Purchase:
Taking the same cost of the car, £20,000, I’ve calculated the figures based on average APR rates of 4.9%. I’ve calculated the total cost less the resale value of £8,000 to arrive at the net cost.
PCP:
I’ve used the same car cost of £20,000, APR of 4.9% and a final optional payment of £8,000 (giving the car back at the end of the agreement)
PCH
Same car cost of £20,000 with the initial payment and monthly payments based on our special offers as of December 2018
Note: You may receive a discount when you take out the HP or PCP – this would reduce the net cost.
3 Year HP
Cost Of Car: £20,000
Down Payment £13,650
36 x Monthly £ 190
Value Of Car At
End £ 8,000
NET COST TO YOU:
£12,490
3 Year PCP
Cost Of Car: £20,000
Down Payment £ 6,750
36 x Monthly £ 190
Value Of Car At
End (Hand Back) £ 8,000
NET COST TO YOU:
£13,590
3 Year PCH
Cost Of Car: £20,000
Down Payment £ 1,140
35 x Monthly £ 190
Hand The Car Back At The End
NET COST TO YOU:
£7,790
The Final Twist & Note To Journalists
You’ve Seen The Headlines
The press would seem to prefer that you drive a used car than a new car for all the wrong reasons. The headlines read
“Should A Shop Assistant On £15,000 a year Be Driving An £18,000 New Car?”
or
“Factory Worker Shouldn’t Be Driving A New £24,000 Car”
and
“Office Worker Who Normally Dives 3 Year Old Cars Conned Into £30,000 New 4WD”
You’ve seen loads of them I’m sure!
The fact is that the list price of the car has little bearing on the monthly lease payments. Much depends upon the discounts and bonuses provided by the manufacturer, the leasing company and the dealer. It also depends upon the expected resale value of the car at the end of the agreement, some cars depreciate much less than others which also affects the monthly payment.
So what we need to do is ignore the silly headlines and look at the situation from another angle. If we had a deposit of £1,140 to pay upfront and a comfortable budget of £190 per month and liked Skoda Octavias (as in the PCH example above) what car could we be driving using HP or a personal loan?
Think about it. We will spend the same amount but what could we afford as a used car? I’m currently creating an app to do just this but I’ll use the embedded formula to calculate what we can spend. I’ve based the calculation on a 5 year loan period with a settlement after 3 years which is, on average, the break even point. In other words it is when the car is pretty much worth the finance termination settlement figure.
If we apply my formula, which allows for interest at the current rate for a used car, you come up with a figure of:
£11,200
According to Autotrader Trade Ads, this will buy you a 2016 (66 Reg) Skoda Octavia 1.0TSi SE 5Dr Hatch Manual with 31,000 miles on the clock from a main dealer. There were no SE Technology cars 3 years ago,
So For The Same Cost You Could Drive A New £20,000 SE Technology Or A 2016 SE Costing £11,200
(The Technology Version Includes Sat Nav With Wi-Fi, Front & Rear Parking Sensors, Light & Rain Sensors & More)
So Besides The Extra Equipment What Other Benefits Come With The New Car?
- Everything is new – sounds obvious but you won’t have to immediately worry about replacement tyres, brakes etc.
- Comes with a new car manufacturer’s warranty, the used car will have a short period of manufacturer’s warranty – then you will be paying for a used car warranty with less cover.
- Believe it or not used cars cost more to maintain than new cars, dampers, batteries, exhausts, discs, cambelt could all need replacing on the used car.
- Latest safety features in the new car keep you, your passengers and other road users safer
- Better fuel consumption
- Lower emissions to conform to changes introduced in September 2018 – better for the environment
- Latest technology makes driving easier and more comfortable, better interior, sound system, air conditioning, suspension etc.
- Breakdown cover included with a new car. It will cost you for the used car.
- Road Fund Licence included with PCH for the period of the lease.
- With the latest technology, updates are included for the first 3 years (Sat Nav, Wi-Fi etc.), that will cost on a used car.
- Greater choice – usually a range of colours to choose from
- You know that with a new car the car hasn’t been driven badly by a previous owner.
- Finally, driving a new car simply makes you feel good.
WARNING!!
As the Financial Conduct Authority (FCA) is finding out there is a great deal of car finance miss-selling by dealerships – the main source of PCP’s. Equally as bad are some of the practices of brokers – the main source of PCH. So don’t just plump for the cheapest rate, as I will explain in my training, the few pounds you save per month could work out incredibly expensive in the long run. Select your broker very carefully. The test is not how low he can get the rate but the support he can offer when things go wrong.
If friends recommended an insurance company would your selected Insurer be the one that friends said were the cheapest or the one that might be a little more expensive but made immediate payouts without any dramas or delays whenever claims were made?
My team and I specialise in providing contract hire and PCH to those new to the product and may be nervous about the process. I will personally look after you and make sure that the cars are supplied by the best dealers and financed by the best leasing companies. Contact me by using the contact form if you would like my personal help.
Complete the form below to start receiving my free training and to sign up for my free blog.