personal car leasing. Advice please.......... pros cons

[The History Man]

The old passat is due for a change.

seems I can get a new new car a couple of years for less than the loan payments on a few grand to buy one.

Also seems too good to be true.

all advice gratefully received as I know nothing of this but looks attractive.

thanks THM

 

[xxnick1975]

Re:

Nothing to get too worried about.

Check inc or ex VAT, check mileage limits, check deposit amount

Theres no cheap way of driving a new car, own/lease/company car, all works out close to the same in the end financially.

Method often decided by job security, hassle factor, life stage, capital requirement

 

[technodup]

Re:

I've got a client who has a car hire franchise. He has customers who rent cars long term, paying (to me) well over the odds for a new (but shitty wee) car.

He reckons by the time you've factored in insurance, tax, servicing and any bumps or repairs (which they pay for) it's not as stupid as it sounds. The other big advantage over lease/PCP/loan is that it runs on weekly terms so you can stop at any time with no penalty.

I still prefer to buy an older car outright and take my chances but it did open my eyes a bit.

I know that doesn't really answer the question but

 

[daugs]

Re:

they do it as a business so out of your payments they are making a profit for themselves so question becomes can they get all the bits a lot cheaper than you can, and what are all the other costs you don't see.

 

[The History Man]

I've always bought my cars outright but use one for a 350 miles per week commute and not much else. I can lease a reasonable car for less than £200 a month over 3 years and 15k miles per year.

This would get me 6.5k on a loan over the same period but then i would own the car. Lease takes away all he risk of buying a nail and gets me a nicer car but loan feels normal.

scratches head.

 

[firedfromthecircus]

I did all the sums a couple of years back when my wife needed a new car. It did turn out cheaper with a personal lease and we got 3 years free servicing thrown in, though that was just the deal Skoda had at the time. You could have got that on an outright purchase too. Fast forward 18 months though, and my wife got a new job, with a car! But we can't hand back the leased car until we have paid back a certain %. So we have had a spare car for 6 months with another 3 to go before we can get rid. It means I have used that instead of my van whenever I can so I'm keeping the mileage on my van down, but it's still an unfortunate position to be in. And when we do hand it back (6 months before full term) we will get nothing back, so the deposit we put down is gone.
I wouldn't rule out doing it again, but I would need to be as sure as possible that our circumstances would not be changing any time soon.

 

[The History Man]

Just been to see a ford fiesta titanium 59 plate 1.6tdci with 47k very nice. surprisingly big in the front.

think i'll just get a loan as there seem to be some decent cars locally

but i am tempted by the lease thing.

 

[Midlife]

The concept of lease is "use not ownership", we (not my car) have a new Mini on the drive, £3 grand odd deposit, £200 odd a month, and then a final payment (nose bleed time)...... I think we will hand it back and the garage get a mint second hand mini to sell for more profit.


I read somewhere that GM finance make more money than the car division.

Shaun

 

[pigman]

Re:

Mate o mine leased a yeti over 3 years. When it came to hand it back they scruitinised every last detail - stone chips, bumper scuffs, interior trim marks and handed her quite a hefty bill to put it all right, as this was apparently in the terms. However, they offered her another lease, for an upgraded Yeti, which would cost more per month, but they'd then waive the 'repair' bill. She went for this.
My perception is that its about tie-ing you in long term.

I always remember a tradesman I had round telling me it was time to renew the lease on his missus's VW, but had to take it to a body shop first to get tidied before return. My mate's experience now puts this in context.

 

[Midlife]

Re: Re:

Mate o mine leased a yeti over 3 years. When it came to hand it back they scruitinised every last detail - stone chips, bumper scuffs, interior trim marks and handed her quite a hefty bill to put it all right, as this was apparently in the terms. However, they offered her another lease, for an upgraded Yeti, which would cost more per month, but they'd then waive the 'repair' bill. She went for this.
My perception is that its about tie-ing you in long term.

I always remember a tradesman I had round telling me it was time to renew the lease on his missus's VW, but had to take it to a body shop first to get tidied before return. My mate's experience now puts this in context.

Funny you should mention that, the Mini garage have been in contact to say that we can upgrade to a new car after only a year, more expensive than the deal at present (surprise surprise) but at 1 year old our mini will be in better nick for them to take back......

Shaun