i am a business manager here in the states, although with a different manufacturer. I believe what you are calling a pcp is actually a balloon payment that needs to be made at the end of the term. Generally not a good option. I just leased our X5. The lease factor was .00270. This equates to a 6.48% interest rate. (lease factor x 2400 = interest rate). This is usually set by the lease company (in this case BMW financial) but can be marked up by the dealer. The residual was 60% (set by Lease co. also) and not negotiable. I have been leasing for my past 3 cars. it makes sense for our family. we keep the mileage under 15k miles, and we always have a new car under factory warranty. If you drive a lot of miles or keep your cars forever then leasing doesn't make sense. Usually the residual value is higher than the steet value of the vehicle at the end of the lease. Thats when you know you made the right decision. There is also the option of a "one pay lease" basically makeing all of your payments up front for the term of the lease. You still pay interest but its usually less.