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Discussion Starter #1
Ok, this is a bit embarrassing and I should know this.
I've bought many cars in all my years but I've never, ever, bought any of them on any type of finance, preferring to just pay cash. After the usual 4 day test drive, I've decided to get a Tekna 30kw but I'm totally confused as to whether I should pay for it cash or get a PCP for a couple of years. I know I can get a good deal on a ex demo Leaf for cash but others have told me that it's better to use PCP as you can just hand the car back after a couple of years and not have to worry about resale value etc.
The problem is that I just can't get my head around handing the dealer £8k or so and having absolutely nothing to show for it after a couple of years.
To make matters worse, the number and type of PCP deals are bewildering and I'm usually left more confused as a result of trying to work out what may be the best for me.

Can anyone advise me on this? I've definitely settled on the new 30kw model, I just need to understand what my best options are!

Many thanks.
 

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Hi,
I looked at all the ways to do a purchase. In the end I paid cash for one as I would have to wait a couple of months. The PCP way is not bad and new cars/batteries are coming out all the time. So good as a wait and see strategy and have a bundle of fun as well. But I bought a six month old Acenta ex demo for £12000. It still has the warranty. It saves me about £2000/year and after three years its value will be - ? But if it's over £6000 it will have cost me nothing. Also I can choose when to sell and buy another. PCP does tie you to a date (and annual mileage). I don't think there is a right or wrong way to do it as we cannot predict the future.

Richard
 

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You have to compare £8k over 3 years with no car at the end of it vs say £24k for a car worth £8-12k after 3 years - the latter being a much greater loss.

It all depends how long you think you might keep the car. Comparing ownership over 2-3 years only the PCP will be cheaper. If you want to keep it 5-6 years or more it will probably be better to buy it outright.

You still always have the option with a PCP to buy it at the end of the term if you want to.
 

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You haven't said how long you plan to keep it and that is a big factor.

If 5 years or more I suspect buying outright would be cheaper, but if things continue as present, it could be cheaper to PCP, give car back after 3 years and buy a different used model! You need to look at total costs over your usage period.

If you only keep 3 years then it would be a gamble on future values to buy outright. By then 60kW cars will be the "norm", so demand for 30kW could be low and used values poor. Conversely, it is likely that in the rush to the 2020 LEZ in London that people will be buying used EVs for short/medium distance commuting, so demand will be strong and used values better than expectations. It wouldn't matter where you are - EVs will end up migrating to London through trade sellers.
 

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Discussion Starter #5 (Edited)
I can't imagine keeping the car over 3/4 year, or be honest.
Many of the PCP quotes seem to crazy high GFV's -around £13k. I'm pretty sure that no Tekna is going to be worth that in 3 years so at that point I imagine that the sensible thing to do is to just walk.
What about a deposit? Isn't it better to pay little or no deposit? I'm assuming that if you walk away after the term is finished, you wave all of the deposit goodbye?
 

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The other thing to take into account is the rate at which technology is changing in the Electric Vehicle market.

You can reasonably expect that, in a couple of years, there will be:
a/ a much wider range of cars available and
b/ significant improvements in battery technology meaning models with either:
(i) greater distance range/battery capacity or
(iI) faster charging, and perhaps both.​

6 months ago, I went for a PCP because this is my first time in an EV and, while I can live with the range of my Leaf, I'd prefer it to be double, so I don't have to charge as often (at least once a day at the moment).

I like most things about the car, but the need for incessant charging is a faff. I could probably eke out a few miles more per charge if I didn't use heating and drove it like a milk float, but I want to treat it like any other car, just one that has different fuel.
 

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I'm just buying used Leaf with a bank loan over 3.5 years.

My next car will be new eNV200 or equivalent - if there's one announced but not available till 3 months after my 3.5 years, I need to still have the car - not hand it in to PCP finance company or pay GFV.
 

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What about a deposit? Isn't it better to pay little or no deposit? I'm assuming that if you walk away after the term is finished, you wave all of the deposit goodbye?
100% correct. On a Leaf/Zoe PCP deal you want as low deposit + as low £££/month. Regardless of fuel costs buying a brand new car (EV or not) is never going to be cheap. The biggest cost to new car ownership is deprecation. Even on the most deprecation resistant cars will loss 50% of its value over the first 3 years.

So on a £25k car you can either pay £25k cash and than sell in 3 years for £12.5k 'losing' £12.5k in the process. Or 'buy' on lease/finance and pay the £12.5k (for example) and hand the car back with nothing to show for it. Both situations costs the same, both lets you have a new car for 3 years, the difference been the cash buy option ties ups £25k initially. Actually on a Leaf/Zoe the initial deprecation is horrific, around 30-40% in year one alone. Which means your cloud easily 'loss' £10k on a £25k Leaf in just 12 months if you buy with cash!!:eek:

BUT you can get around deprecation if you don't sell the car. If you buy cash no one is forcing you to sell up at 3 years, and deprecation drops off as cars get to 5 years+ old. You've already paid the original price, it's a sunken cost, if you don't change cars you don't have to worry about finding another deposit or on going costs per £££. Where as on finance/lease you have no option but to 'buy' another new car and take another hit in deprecation.

The reason Leaf/Zoe PCP deals are popular is because most owners will be changing their cars after 2-3 years, on the assumption better range EVs will be out in 2017-2020. So if your already decided to go down the new car route, the best thing to do is to go for PCP/lease. With all the discounts you get on a Leaf/Zoe finance costs are actually much lower than what your loss on deprecation over 3 years, so it's a no-brainer decision - But ONLY If you are 100% sure your changing cars in 2-3 years :).
 

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You might find that even if you do want to keep the car that it would still work out cheaper to do a 3 year PCP deal and then pay the balloon payment. I think this is down to the way that dealers are incentivised to sell cars on finance which creates a steady supply of customers requiring a new car every 3 years. I would plan to hand back the car though.

Buying an ex demo model with very low mileage is the way forward if you actually want to keep the car.

I went down the PCP route with my 30kWh Acenta because there were no 2nd hand ones available when I bought. It's the first car I have bought on finance and I will hand it back after three years. You have to think the Tesla Model 3, Chevy Bolt and the Leaf replacement will all be available by the time my PCP deal ends. This will crush the 2nd hand price of the current Leaf.
 

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If you are a two car household then it might make sense to outright buy one of today's EVs on the assumption that you will be replacing your second car with a next generation EV in 3+ years time. The car you buy today will become the local runaround and you can be content to keep it for a long time and not worry about the depreciation, while the 2nd EV you get in the future can do the long distance journeys and might be on a finance deal - that is a decision for another day!
 

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Some spot on advice here but another thing to add into the mix. Very often if you get a PCP or even other forms of finance the manufacturer or dealer will throw a hefty chunk of cash into the deal.
Often called a finance deposit allowance. IIRC it was £2500 on my Tekna.
 

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@Mr Roboto , PCPs are a gift horse right now. Don't think about not having anything to show for you £8k, think instead what value has it been to see an asset you have bought depreciate by £10k over the same time period.

The PCP rates right now are actually LOWER than the anticipated depreciation. You really have to WANT to 'OWN' a car to ignore that.

But still there is some small degree of potential risk in which prices of EVs are going to go up and you can't find a similar deal at the end of the term. I might have cautioned on that possibility before, but now I see that as very very unlikely. Go for the PCP. Let someone else take all the risk on the depreciation, and look again at the technology on offer in the future. There is a genuine possibility that 30kWh EVs are going to be seen as undesirable 'low range' EVs in the future.
 

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I went through the same dilemma myself a few months ago. I think of the amount of money paid out over the PCP term as roughly equivalent to the amount of depreciation that the car would suffer if I paid cash and then traded it in once the PCP term expires. If you have sufficient cash to buy outright then there is the possibility of using/investing that money elsewhere. In my case I used the money to top up my SIPP (Self Invested Pension Plan) which gives an immediate 20% one-off return thanks to tax relief.
 

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I would, and just did, go PCP.

Nissan and the dealers want to sell the finance, you will find the "deposit contribution" is substantial, this means your deposit contribution can be small - we put down £500 which on a 24 month PCP means ~£21/month over the term on top of the repayments.

+2 years Leaf will have a 60kWh battery, Tesla Model 3 will be out and while not for everyone adding competition, Chevy Volt etc as others have mentioned. Type 2 connectors may become the standard over type 1 on the Leaf, you have ChaDemo and CCS competing for fast DC chargers etc - technology changes. Only had our leaf 3 days, but the heater is your range enemy (Acecnta and Tekna have heat pump once warm to stay warm, electric heater to get warm) - maybe they will come up with a new solution to this on later cars.

Don't worry about the mileage per annum, in fact, go low I would say, having just done a PCP for 8K which is to cover us for our needs, when I picked up the paperwork excess mileage is 8p/mile, so £80/1000 miles - I can see from quotes that adding 1000 miles to PCP up front was adding hundreds of pounds - take a low yearly figure and pay the excess if you need to!

You also get the goverment grant as well, will be less in future I am sure, but you do get it again if you buy another car in 2-3 years - keeping a single car you own you can't access that additional funds to your motoring costs.
 

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If you want a brand new, out of the showroom car, then PCP is the only way forward.
If you want a 1 year old car with 5000 miles that has a 2 year Nissan Warranty and a 4 year battery warranty that drives as well as a new car but costs 50% less, then buy with cash.
 

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If you want one now then yes, the 30Kw are definitely in short supply used and at premium prices. You need to consider whether you actually need a 30KW in real terms. A 24kw driven well will outrange a 30kw driven badly :)
 

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Discussion Starter #19
Problem is that I need a range of 90 miles every day so that puts me right on the cusp of the 24kw range - cold weather and rain will reduce the range and leave me miles short. I'm familiar with driving these things gently - when I borrowed the 30kw, I was getting well over 110 miles without much problem. I've not driven a 24kw so I don't know what I could get out of it!
 

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I see. Whilst 90 miles is possible in a 24kw - it would require very delicate driving and an unexpected detour or delay could strand you as you would have no reserve.
 
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