299 Per Month

[Steve]

I was looking at the Lexus IS200 deal for £299 per month and it has dawned that this is a really good deal if you intend staying with lexus for many years.

Cash price £20,605.00

Initial deposit £4,047.75

Monthly payments x 35 £299.00

Final payment (GMFV) £9,307.00

APR 8.6%

Total amount payable £23,859.75

Now the hefty last payment sort of put me off.. but then realised that in 35 months you could trade the car in and get a new one and continue paying £299 a month! It all made sense that it is a great way of keeping up to date with a new Lexus. You would not need to make the last payment if it was all paid off when traded in.

This way Lexus keep their customers this way and not have to find the big lump at the end.

Am I correct here and this would work right?

[Steve]

Our simple Personal Contract Purchase Plan lets you own a Lexus IS200SE, priced at £20,605.00 on the road by paying manageable amounts over three years. You then have the option to part exchange for another Lexus, pay off a balance, or return the car at the end of the three years.

i should read more next time

still very clever marketing and a cracking deal!

[Rodders_UK]

A PLP is a very expensive way to own a car mate, and the terms of the contract are often very retsrictive - best read the small print

[javaboss]

I must admit that I never considered it when I ordered my new IS200 yesterday. I'm going to pay the whole balance in cash.

Does anyone know if it would be better to bank the money and lease one?

I've never owned a new car for more than 3 years. I forsee that I will buy a new car every 3 years in future if possible. With that in mind, I am wondering if it would be better to lease a vehicle? I don't drive high mileages - 8k a year and look after my car well.

Is it possible to contract hire an IS if you're not a company? I'd always want to replace the car with a new one every 3 years.

[Mike246]

Steve,

It all depends how you look at it. If the contract runs the full term your ownership cost is £ 93 per week (plus lost interest). This assumes that the car is worth no more than the GMFV.

By comparison, The mid-range Vectra SXi is being offered at £ 15,990 with 3 years' interest free. Assuming it is worth 6k at the end, the ownership cost will be £ 64 per week.

One great benefit of PCP. The law says you can give the car back and walk away when you have paid half of the credit amount. My daughter did this on a Saxo and I'll bet her payments never covered the depreciation!

No one says the Vectra compares with an IS - I'm still getting posts protesting that I thought the new Avensis looks all right