[VastGirth]

I am looking to purchase an EV this year, probably the EV6 (delivery times dependent of course)

I have enough (just about) to buy out right, but with devalulation and upcoming advances in battery tech i wonder if the better option is to contract hire or PCP?

I'm interested in what method people on here used to buy their vehicles and what they think is the best method.

 

[JK-KIAEV6]

If you have the money then I would say buy outright as you will not pay interest on the car and your save money in the long term.

If you do not have the money then depending on what deal you get and rate you get it will be what suits you best, Contract Hire your stuck for a set period you agree to at the time of taking the car where as PCP you can take a 3 year PCP deal but at any time you can trade the car in or sell it as long as you cover the balance outstanding on the PCP deal.

If your someone who changes your car a lot then the PCP deal may work better for you.

If your happy to keep the car for 3 years then you may find Contact Hire works just as well.

 

[tangey]

I am looking to purchase an EV this year, probably the EV6 (delivery times dependent of course)

I have enough (just about) to buy out right, but with devalulation and upcoming advances in battery tech i wonder if the better option is to contract hire or PCP?

I'm interested in what method people on here used to buy their vehicles and what they think is the best method.

Its a complicated decision and one that I am unsure about myself.

A three year old car with a real world range of circa 250 might seem primitive compared to the range of the cars available 3 years from now.

If as a result of that, or simply because its a "kia", the car depreciates a lot, then if you buy it outright you are carrying all that depreciation yourself, On a PCP, you are of course paying the interest, but only carrying the can for part of the depreciation. The amount of interest depends on your deposit, but the bigger the deposit the more depreciation you are carrying personally on the PCP.

 

[Desmo]

I go PCP on something like this. It's not the cheapest way to buy but it covers any risk of huge depreciation whilst still giving the option to buy and own at the end.

 

[VastGirth]

Its a complicated decision and one that I am unsure about myself.

A three year old car with a real world range of circa 250 might seem primitive compared to the range of the cars available 3 years from now.

If as a result of that, or simply because its a "kia", the car depreciates a lot, then if you buy it outright you are carrying all that depreciation yourself, On a PCP, you are of course paying the interest, but only carrying the can for part of the depreciation. The amount of interest depends on your deposit, but the bigger the deposit the more depreciation you are carrying personally on the PCP.

It's tricky isn't it. You don't want to pay thousands and then be left with nothing to show for it, but you also don't want to be left with really outdated, unwanted tech and take a big hit off that too. I know owning a new car is never going to be a cheap option, but when spending this amount of money you really want to do it as wisely as possible.

I would be really interested to know what you end up doing.

 

[Desmo]

You don't want to pay thousands and then be left with nothing to show for it, but you also don't want to be left with really outdated, unwanted tech and take a big hit off that too.

Which is why I think PCP is a good middle ground. You get the option to buy, but if the value takes a nosedive due to better tech, the finance company takes the hit.

 

[dc30307]

EDIT: never mind, I don't think my comment is really relevant for the UK market.

 

[Inforce]

I'm taking the risk and buying outright, don't like being in debt for anything.

My take is if I don't have the money then I can't buy it and have to save up. Doesn't always work out though.

I realise that this is not always possible, so might have to sell my private jet and yacht in the future

 

[ev6akb]

Me too think PCP is a better option as EV is still technology in development.
Three years is a long time in the current EV market, and with some break through battery technology all the current cars may depreciate heavily.

 

[Desmo]

I benefited with PCP when I sold my Tesla. Had a £33.5k balloon payment but second hand values are so high I sold it for a smidge under £40k. Had it gone the other way I get to just hand it back and walk away.

 

[JK-KIAEV6]

PCP is a safe option as you know at the end if the car is worth less you have not lost more money but if its worth more then you have got some of your interest payments back.

 

[tangey]

PCP is a safe option as you know at the end if the car is worth less you have not lost more money but if its worth more then you have got some of your interest payments back.

Yeah, Although I sold my previous car for cash which covers 95% of the cost of the EV6, and I've never previously done PCP,I'm veering towards PCP myself.

Mind you, given I don't know if it'll be 2022 or 2023, if it falls into a new car year what spec the car will have and whether the new car year will mean a new price, and what interest rate/offers KIA will have at the time of purchase, I'll defer that decision until I have something definite to buy, or have moved on elsewhere.

 

[ev6akb]

Me too think PCP is a better option as EV is still technology in development.
Three years is a long time in the current EV market, and with some break through battery technology all the current cars may depreciate heavily.

The rate has gone to 6.9% APR. Almost 7K in interest for 3 year PCP :-(
Seriously reconsidering my previous stance as I intend to keep the car atleast for 5+ years.

 

[VastGirth]

The rate has gone to 6.9% APR. Almost 7K in interest for 3 year PCP :-(
Seriously reconsidering my previous stance as I intend to keep the car at least for 5+ years.

That is the rate if you get finance direct from Kia.

According to MSE its only 4.5% if you get it from Lloyds...

https://www.moneysavingexpert.com/loans/personal-contract-purchase/

 

[ev6akb]

That is the rate if you get finance direct from Kia.

According to MSE its only 4.5% if you get it from Lloyds...

https://www.moneysavingexpert.com/loans/personal-contract-purchase/

Thank you @VastGirth for this info.
I was under the impression that we need to take PCP deals through the dealer.
Will check this.

 

[ev6akb]

Finally decided to buy outright instead of PCP.
Collected last Friday, so far has been very impressive.
Planning to keep the car for few years.

 

[VastGirth]

Finally decided to buy outright instead of PCP.
Collected last Friday, so far has been very impressive.
Planning to keep the car for few years.

You got your ev6 already? When did you place your order? Which model did you go for?


I have recently got a new job and the company are introducing a EV leasing scheme in a few weeks, hopefully i can get a good deal on an EV6 through that. So purchase plans on hold for a bit for me...

 

[ev6akb]

@VastGirth EV6 GT Line RWD with HP, ordered mid Nov, delivered on 13th May (last Friday).

Company lease is a good choice now, considering the low BIK rates.
My company wasn't giving that option.