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Discussion Starter #1
Had a call from the dealer I bought my 68 reg R110 ZE40 (leased battery) and I'm 18 months into my 3 year PCP deal. I do 20,000 miles a year so I pay a high monthly payment. I'm currently paying approx £300PCM including battery hire with about £3k final payment, which I probably wasn't going to pay because my thought process was 3 years later tech would have moved on and I'd want something else.

The offer I have is to give back my ZE40 and get a brand new Iconic R135 (obviously battery owned now), no cash to pay, but it would be an extra £20pcm for a 24 month PCP for the new car. HOWEVER the final payment now goes up to nearly £15k! Now I wouldn't pay £15k in 2 years time to keep it, but am I missing something obvious? What are they getting out of it? Is it that the residual on my ZE40 is better than expected and they want to tempt me out of it? I mean on the surface it looks like I sign up for an extra 6 months (with the associated cost granted), but get a better car for near enough the same monthly price. It just feels like there must be a catch.
 

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I think the £15k is the catch. I wonder if this is anything to do with the news about RCI offering to sell leased batteries we've all been speculating about?

Frankly, in your shoes, I would stick with the ZE40, but up to you.
 

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So they'll be taking your car plus £7,680 from you over 24 months. Or you can pay £5,400 + £3000 in the next 18 months so only £800 more and own the entire vehicle?

Seems like you're getting the poopy end of the stick if you take the deal.
 

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Discussion Starter #5
So they'll be taking your car plus £7,680 from you over 24 months. Or you can pay £5,400 + £3000 in the next 18 months so only £800 more and own the entire vehicle?

Seems like you're getting the poopy end of the stick if you take the deal.
TBF I wouldn't own the battery on the ZE40, I'd still be paying £110 pcm ad infinitum.

Although I get point.

My original intention was to just give it back at the end of the PCP (or trade in if it had decent residuals) because I expect a wider range of 'better' EVs to be available by then. It's sort of why having the ZE50 now sounds good because in theory I was always giving it back. However is a 2 year old ZE50 worth over £10k more than a 3 year old ZE40 (battery lease)?

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Discussion Starter #6
your car is probably worth more than you paid so thats why - they are potentially struggling to fill customer needs for cheaper EVs.

i'm looking to swap to an e208 if the deal is good enough

JJ
I'm guessing that might well be right. Looking on auto trader. A 64 plate 22kWh, leased battery with 50,000 miles on the clock is on for £8,000. Given my final payment is only £3000, I'd guess it will be worth plenty more than that at the end of my 3 year PCP, even if I've put 60,000 on the clock (although I think I might end up more like 55,000 miles).

I think the ZE50 sounds nice and enticing, but the ZE40 does everything I want now, and looking at prices around, maybe worth keeping until the end.

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You still OWE 8.400 from your old car.

R135 ze50 can be negotiated around 25k
320x24 + 15k = 22.680 = price you'd have to pay

They are basically offering 2320 (+8400 you owe= 10620) for "trading in" your car.
If you pay it off (the £8400 you owe), and then sell it privately for 12-13k~ you'd have 4k in the hand to put as a deposit on the new ze50 (instead of 2320 deposit by trading in) and then get about £250 for 2 years + 15k final payment instead (based on the same offer)
 

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TBF I wouldn't own the battery on the ZE40, I'd still be paying £110 pcm ad infinitum.
However by that point you'll be able to buy out the battery if you decided to keep it longer. I'd also say the car will be worth at least the amount you'll be spending over the next 18 months, so it's more like saving up money from this point forward, rather than spending it, as anything you continue to pay in you'll likely get back. You'd never get the money back from the ZE50 as you are just paying the deprecation.
 

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New battery owned cars are about £10k more than the ze40 leased ones were new. That's why the residual is 15k. If you can sell it independently for more than trade in after paying it off you'd put the extra into the new ZE50 and pay the same suggested payments to have a smaller balloon at the end.

I'd ask them about the cost of a 3 year PCP on the ZE50. That might make more sense than a 2 year. The new renaults have 5 year warranties instead of 3 so they are a better buy altogether.
 

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You're getting all caught up in focusing only on the finance monthly figure and missing the important details.

What are they offering as trade value on your ZE40 and what price are they offering you for the ZE50?

How this is paid for using a loan (PCP loan in this case) is largely irrelevant and only matters from your point of view in terms of affordability.
 

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It's just a callback to the good old days of inflated GFVs to shift cars.
 

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Discussion Starter #12
You're getting all caught up in focusing only on the finance monthly figure and missing the important details.

What are they offering as trade value on your ZE40 and what price are they offering you for the ZE50?

How this is paid for using a loan (PCP loan in this case) is largely irrelevant and only matters from your point of view in terms of affordability.
See on the phone I wasn't told, but I asked them to email me the details. However the email doesn't tell me what they are offering me for my current car or the actual price of the car I'm getting (although I can get it from the renault website). It tells me what they are contributing to the deposit, the government grant, monthly payment and the final payment. Also no mention of interest rate. Not a very professional email TBH.

I'm going to ask for some more information, but at the moment I'm leaning to sticking. However I'll have a haggle and see what else they can do.

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Just looked at the one example for a ZE50 on a 4 year PCP via DSG and the total cost is over £10k more than we're paying over 3 years for our ZE40. The interest is higher because of the term and lower deposit... but bloody hell! £10k!
 

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When I got the phone call and this was 100% the case. But then they never mentioned the new final payment on the phone, that was only in the email.

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Yea I can imagine.

Once you have those details, see what sort of trade price you can get for your car for indie EV specialist and other places. See how it compares with what they are offering.

Next run the same car on CarWow and see what discount they are offering on the ZE50 and see how that compares.

There is nothing stopping you selling the car to someone else and buying the new car from another.

Finally, remember PCP is just a loan secured on the car. There is nothing unique to PCP in being able to buy a new car on finance and swap it out in a few years time. The important thing to look for is how expensive the loan is. Look at the total cost of interest and compare that to other types of finance.
 

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^^

Basically don't fall for the sales pitch and marketing until you have dismantled all of the data given, and explored all the options that would put you in the same place with the least monies spent.

Or stick with what you have, and see how cheap at 18 month old ZE 50 is 18 months. :)
 

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^^

Basically don't fall for the sales pitch and marketing until you have dismantled all of the data given, and explored all the options that would put you in the same place with the least monies spent.

Or stick with what you have, and see how cheap at 18 month old ZE 50 is 18 months. :)
If you want another quote for comparison just drop a PM with your reg number and current mileage ?
 

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Ask for RCI for a settlement figure for your car.

Then compare that with the lowest priced closest comparison to your car on Autotrader

If it’s up for sale for more than your settlement figure and you want a 50, sell yours privately and PCP, buy or lease a 50 on your terms.

Audi dealers work like this. This level of customer convenience will always leave the dealer quids in. Not the customer.
 

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Discussion Starter #20
Thanks for all the help, especially Badger for the quote and highlighting some other routes I can go down. I'll talk to my dealer (and quite possibly Badger some more) have a think and see what options I have.

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