IS LEASING OR FINANCE (PCP) CHEAPER?

EV Channels Review

The reviewer compares leasing versus Personal Contract Purchase (PCP) financing for electric vehicles, focusing on personal use. While leasing offers a guaranteed, predictable cost over three years, PCP financing, despite a higher initial monthly payment and a significant final balloon payment, is argued to be financially cheaper in the long run. This is primarily due to the strong residual values of EVs, which the reviewer believes will allow owners to sell the car for more than the balloon payment, thus recouping a substantial portion of the cost. The reviewer estimates a Tesla Model 3 Standard Range Plus could be sold for £26,000 after three years, making PCP significantly cheaper than leasing. However, the reviewer acknowledges that leasing provides certainty, whereas PCP relies on accurate future value predictions. An additional factor influencing the reviewer's personal choice for PCP is an emotional attachment to cars, which is absent when leasing, making them less inclined to invest time and money in a car they don't own.