360 Autoleasing East Midlands

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Should I Choose Leasing or PCP?

Should I choose Leasing or PCP? – 5 key differences to help you decide

Leasing and PCP are considered by some to be ‘the same kind of thing’ but there are key differences which may mean that one may be entirely more suitable to your situation than the other.

Ownership, changeover frequency, affordability and flexibility are the main areas to consider when deciding which is best for you, and we’ve put together this brief guide to help you in your deliberations: -

Leasing is equivalent to renting, whereas PCP is based on you purchasing the vehicle
This will mean that you will never be the owner of the leased car (an option you have with PCP, provided you make the final balloon payment). However, leasing could see you get a nice shiny new car every 3-5 years.

Leasing is applied to brand new vehicles, but PCP options can be on new or used cars
This may be worth particular consideration if you prefer to drive the very latest models, or if the reassurance of having a full manufacturer’s warranty is important to you.

Both schemes involve paying a deposit to decrease monthly payments
When leasing this can be 3 to 12 months payments up-front, but with PCP it is an agreed sum (it should be noted though that this does not reduce the final payment due on the vehicle at the end of the PCP).

Leasing is a contract for the period of the lease whereas a PCP can be ended early
Early termination of a lease involves payment of fees, but with PCP you may be able to hand back the car mid-term – provided you have paid at least 50% of the total amount owed, as per the terms and conditions for your agreement*.

*Regulated agreements only. 

The end of the lease involves no additional payment, but PCP demands a final lump sum
This relates to the final balloon payment in the PCP which is applied if you decide to keep the car – the sum is calculated at the beginning of the arrangement and is based on the projected value of the car, but it can be more or less than the actual value (i.e. you may be able to sell the vehicle privately at a small profit but equally you may find yourself out of pocket).

Here to help
Whichever way you decide to go, as always we’d recommend that you read and digest the fine print. There are specific details which will affect the total cost to you in the end - for example the mileage you have estimated and the excess mileage charges which will apply should you exceed this – so caution is advised.

At 360 Autoleasing we have the knowledge and experience to guide you through what can be a potentially confusing choice. We want you to get to the bit that we all like –enjoying your new vehicle – but we’d like you to do that without encountering any nasty surprises further down the road. If you’d like to speak to our team about your Leasing or purchasing options please don’t hesitate to get in touch or visit

    Contact us

    Email : eastmidlands@360autoleasing.co.uk

    Telephone : 0330 057 7360

    Company Address :
    360 Autoleasing East Midlands
    Office 11, 6 Frederick Street

    LE18 1PJ

    360 Autoleasing East Midlands is a trading name of DMA Vehicle Solutions Ltd. We are a credit broker and not a lender, we are authorised and regulated by the Financial Conduct Authority. Registered No : 798165

    Registered in England & Wales with company number : 10652074 | Data Protection No : ZA305015 | VAT No : 267940369

    Registered Office : 5 The Square, Anlaby House Estate, Beverley Road, Anlaby, Hull, HU10 7AY

    Disclaimer: All vehicle images and descriptions are for illustration and reference purposes only, all vehicle leases are subject to credit approval and subject to change at any time. E&OE.

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