PCP or Lease MG4 EV - high mileage?

[evglassuk]

Hi all,

I've test drove the MG4 EV and really enjoyed it and want one. Now I'm in two minds on what to do based on my situation, I need a car as currently car sharing with my partner which isn't sustainable for another year.

I hybrid work (sadly no company car offers/benefits) and rack up about 18,800 miles per year travelling to the office - excludes personal life stuff, which isn't much to be fair but still adds to mileage.

So I've had MG4 Trophy Camden Grey quotes back to compare (unfortunately no available standard colours available on leasing):

PCP
49 Month Term - APR 8.9%:
£514.86 PCM
Deposit £3000
GMV: £12,550
Mileage: 20,000 per year
Excess mileage: 14.9p per mile then double thereafter
Total cost at end of 49 month term: £28,228.14

Leasing:
49 month term
£512.52 PCM
Initial rent: £512.52
Admin fee: £149
Mileage: 25,000 per year
Excess mileage: Flat rate 6.9p
Total cost at end of 49 month term: £25,775.00

What would you do?

 

[siteguru]

The cost of the PCP is actually £40,728.14 once the GMV is calculated (in which case you'd own the car). Otherwise you're effectively paying ~£2.5k more to still just rent the car (albeit the GMV is sort-of used towards a deposit for a future PCP).

Does the lease include RFL, servicing, MOT etc? If yes then that makes it possibly better value ... but obviously you never own the car with a lease (though you may get an option to buy at end of lease).

 

[bowfer]

Holy crap, both are mental money.
But then PCP and lease aren’t meant for high mileage owners.
You need to buy outright.

 

[siteguru]

Lease may be suitable for a company car driver with an allowance. Even better would be if the car was offered (leased) by the company as the employee would only pay 2% BIK on the P11D value (taxed at their marginal rate). For the car in question that would be £33,040 x 2% = £660.80 per year. Even at 40% tax rate that's £264.32 per year, or £22.03 per month!