anyone tell me about car leasing. please.

my 07 astra needs a load of work, and i fancy a change.

Ton
Just about to take delivery on lease from LingsCars.
3 + 35. So three months up front then 35 monthly payments. £180 arrangement fee up front as well. Three years time hand it back.
Have to pay for own servicing,tyres etc but covered by manufacturers warranty and breakdown etc. they pay car tax. Does stipulate main dealer servicing but as it’s a Skoda shouldn’t be too bad.

You give them money… they give you a car…

3 years later… they take the car back.

http://www.tilsungroup.com/ford-grand+c+max-1.6-tdci-zetec-5dr-diesel-estate-car-2026#.VDgfVWxOWM9

You give them money… they give you a car…

3 years later… they take the car back.

Then give them more money for all the scratches, scuffs and dings you didn’t notice. That’s after you exceed your milage allowance of <200 miles per week.

I pay £275 for the Fiesta per month for that I get 30k mileage allowance, fully serviced and tyres.

For me it works but they always find some damage when they go back and charge for it.

That seems steep but the 30K mileage must boost the cost quite a lot. I’m looking at a lease deal through my employer. Fiesta Ecoboost Titanium 125hp 5dr for £190/month all in. Has a mileage limit of 12K/year though (I only do 6K typically).

Had two qashqai+2 on lease – worked out great. Didn’t have anything to pay when the contract had finished.

Do you not find it works out more expensive than buying?

Also, do you always have to hand it back at the end of the lease?

Put simply, you buy them a car and whilst you are buying it for them, you get to drive it about but with mileage restrictions or you get penalised after you give the car you bought to them, same if there are any scratches or dents.

They then sell the car your bought for them.

Alternatively, get a £6k loan, buy yourself a car. After 3 years stop paying for it and continue to drive and pay nowt for a year or two.

Then give them more money for all the scratches, scuffs and dings you didn’t notice. That’s after you exceed your milage allowance of <200 miles per week.

Never paid for any dings or scuffs for about 6 lease cars now and I’ve always paid for enough miles to cover my mileage.

My A3 will go back in about 6 months, I’ll have paid just short £11k in that time, it gets serviced regularly, taxed, insured, new tyres. A £11k loan over that period will have cost me around the same payments, give or take but I’d need to insure the car, tax it, pay for servicing and tyres.

With leasing or PCP (Personal Contract Purchase rather than angel dust….i think) you pay for the car on a lesser amount than you would with HP as you are effectively paying off the depreciation plus some interest. This takes into consideration a mileage allowance.

Your repayment can include a set amount upfront e.g. 3+36 or it can be without a deposit. At the end of your payment plan you then have 3 options. Pay the final installment which is the residual value of the car, hand the car back or trade the car in on another finance agreement.

If you trade in it doesn’t have to be with same dealer as they will give you a trade in value of your car which will hopefully cover your final payment. If you trade in with the same dealer they are likely to wave any excess mileage penalty.

Its a good hassle free way of buying (well leasing really) a car but doesn’t make sense if you are putting a large deposit down.

With leasing or PCP (Personal Contract Purchase rather than angel dust….i think) you pay for the car on a lesser amount than you would with HP as you are effectively paying off the depreciation plus some interest. This takes into consideration a mileage allowance.

This is the way I understand it. It is based on residual value. So for example you lease a 50k car, and it’s worth 40k by the time you send it back, then you pay 10k for it. Obviously that’s massively oversimplified, and the leasing company need to make a profit in there somewhere, but that’s the gist.

So going by that logic, you could theoretically lease a more popular, expensive car that holds its value, for less money than you could a cheaper model that would depreciate faster.

I actually have no clue… Economics is not my thing, and I’ve never leased, or even bought a new car, but I’m curious if it actually works this way?

So going by that logic, you could theoretically lease a more popular, expensive car that holds its value, for less money than you could a cheaper model that would depreciate faster.

Yes. I just started a PCP contract on a car and it worked out only £2 more expensive a month to get the 2.0tdi rather than the 1.6tdi because the residual was going to be more. It also made more sense getting a more expensive special edition rather than adding options as the residual value doesn’t take these into consideration.

As a business leaser, I can agree – more expensive cars cost not much more than basic cars – just choose one with good residual value.

anyone tell me about car leasing. please.

In most cases it’s more expensive than buying outright, but obviously more convenient if you don’t have the cash available.

I’ve looked at leasing v buying outright on several cars recently and most are significantly cheaper without finance. PCP deals always look good on paper and do minimise monthly payments, but they do charge interest from Day 1 on the full cost of the car, not the difference between the cost and the balloon as some people presume. PCPs also tend to suck you into buying a new car every 3 years and therefore perpetuating the loan.

Sometimes lease deals are favourable when heavily subsidised by the manufacturer. Mercedes and BMW have been very aggressive in subsidising their finance deals in recent years to move cars, while Porsche finance deals are a complete rip-off. It’s all demand v supply dynamics at play.

Which? did a comparison of lease v purchase deals on a range of ordinary family cars and most of them came out a fair bit more expensive overall on lease, but there was the odd exception eg. Mondeo I think was cheaper on finance due to poor residuals.

Sorry should have mentioned that Leasing and finance are not the same thing.

It allows yoofs who work in takeaways to ‘buy’ white Audis.

Leases are good way of getting Premium models at around ish the prices you could get a skoda/ford etc.

Ive got a BMW 3 series touring £340 per month, fully maintained, insured, no deposit, 12k miles per year.

Ive never done a lease before, and love it. A bulb went the other week, just went to a BMW dealer, they changed the bulb, and they just invoiced the lease company.

Bear in mind you are covering the first years massive depreciation. I generally buy vehicles around 10/11 months old on finance.

Generally I take out a 4 year deal and sell it after 2 – works out similar/less costs to leasing and even clocking up 35k+ p.a. I have always had enough residual value to pay off the finance with enough left for a decent deposit on the next one.

Examples since I have been working for myself over the past 4.5 years…

Ford Ranger pick-up (this one was 3 years old) – £12,500 – no VAT (can’t remember deposit) – £295 for 2 years, sold for £7500, owed around £4000 on the finance.

Navara pick-up – 10 months old – £18,500 + VAT (get the VAT straight back) for a £25k+ motor – £375 a month (4 years). Got smashed up after 2 years, but received £12k from insurers – owed £8k

Navara pick-up – 11 months old – £21k + VAT (this one was £35k new), paying over 5 years this time @ £379 a month – put £2.5k down.

It depends on individual circumstances, mileage etc.

If I were to buy a 10 month old 3 series, monthly payments over 4 years would still be over £500 per month for a 2nd hand car with only 2 years warranty, plus servicing costs etc.

I bet when you work it out there wouldn’t be much in it… Unless you managed to get a loan at 0% finance.

I would see it more as a way to get a new car with a reduced payment and minimal deposit rather than a way to get “premium” brand car.

Some manufacturers also offer deals with 0% finance and free servicing so an additional maintenance contract is not required.

As stated above you are repaying the depreciation….but if you get a good deal you pay less interest.

So going by that logic, you could theoretically lease a more popular, expensive car that holds its value, for less money than you could a cheaper model that would depreciate faster.

Also if you can be flexible on what you want, even better if you aren’t obsessive even to the spec / model there are often huge deals to be had. A colleagues new car was heavily discounted / subsidised because it was a new model and there weren’t many on the road at that point and the supplier wanted to get some out so people see it, and create interest.

Also – car plants work on volume, in simple terms you pay the same costs for the equipment, staff, etc whether they’re turning cars out as fast as they can or sitting on their arses. So better to keep the plant busy and find a means to place the excess cars into the market – which often results in special editions, discounts, and cracking lease deals.

Leasing may only make financial sense if you value getting a new car every 3ish years, which is an expensive thing to do however you do it. Leasing can be cheaper than facing the steep initial depreciation directly, if you pick the right deal. Leasing is not for cheapskates, skoda drivers, bangernomics ****, or anyone who is adverse to opening their wallet to get a decent new car. I have never leased, but can see the appeal, and may consider it in the future if the right deal is out there.

Generally with PCP ( not sure with lease) the total cost would be the same if you did a deal for (for example) 30k x 3 years of miles up front, vs a deal for 12k x 3 then paid the excess mileage cost on the other 54k at the end of the term. So, in case circumstances change and you end up not doing your planned (in this example) 90k and paying for miles you don’t use, contract up front for as few miles as you can, but put away enough each month to pay the excess mileage bill at the end. Then if you only do say 65k, you save a few quid. (25k x excess mileage charge…maybe 3p a mile, £750)

Leasing is not for cheapskates, skoda drivers, bangernomics ****, or anyone who is adverse to opening their wallet to get a decent new ca

Think you are missing the point of leasing. It enables you to get a new car that enables hassle free driving. You don’t have to worry about warranty, servicing, MOT and you get a modern car that demands (in most cases) less car tax and is more frugal. It is not for everyone….but to a lot of people it does makes economic sense. Brand snobbery does not enter into the equation.

As above, reasonable way to get a regular new car, but this is an expensive thing to be doing.

Basically you buy a car but have to give it back when you’ve finished paying for it unlike finance where you get a car at the end of it.

There is an alternative to leasing that gets round all the problems of leasing. You can go for the ballon structure HP deals that most if not all main manufacturers offer. So you pay a deposit (would be larger than the leasing deposit), pay a monthly finance payment which only contributes to say, half the value of the car, after 3 or 5 years there will be about 50% of the cars value sat there, so you can either pay that off and keep the car, give the car back (the value of the car should be greater than the balloon payment) or part ex the car, net everything off and use any excess as a deposit towards another car.

the only downside to this over leasing, to me, seems to be the larger upfront deposit, but the upsides are no limitations to use (no mileage limitations, use of roof bars, tow bars etc.) and none of the hand back issues which can sometimes be a problem.

But again, any of this really only depends on your desire to have a brand new car. Personally I battle with justifying this in light of some great 2nd hand car pricing, especially with petrol engined cars, which are still considerably cheaper to buy and run, unless you do silly mileage.

Wobblis are you thinking PCP? If so they have mileage restrictions. I would also on an HP hand it back thing a car with 100k miles will be worth a lot less than a car with 10k, so either they would factor the deal so that everyone doing 10k would loose out, or risk making a loss. Therefore I can not believe they don’t put mileage restrictions on

You can have a balloon payment with traditional HP as well , but as this is not based on the residual value mileage is not taken into consideration.

Following this thread with interest (no pun intended).
Can anyone help me out by understanding the implications of leasing/etc for a small ltd company, sole director? Currently do 20k p.a. Mostly invoiced to clients, but this is likely to increase to c.30k in the coming years…
What do I have to consider and what’s the best route?

This looks like a pretty good deal on a focus:
http://www.cvsl.co.uk/car-leasing/ford/ford-focus-diesel-5dr-titanium-navigator-16-tdci-115/62106/

The way to look at is the lease on soemthing like is that would cost £1,371 + (24×152) = £5,019 for the two years. You could buy the car new for about £17k, and I guess it would depreicate by more than £5k in the2 years? plus you wouldn’t have to find the money up front going with the lease option.

I get a car allowance from work and part of the deal is that I have to lease. I have always found it cheaper to lease an ex demo car. Current car was 6 months old with 2.5k on the clock when I took out the lease. This seems to give a big saving on the lease price. Although not all companies deal with leases on used cars.

My wife’s car we own, and generally buy a 3-4 year old car and run it for a few years so depreciation isn’t too bad, although we have had a couple of big bills for repairs out of warranty over the years that makes me think the fixed cost of a lease on a new car does make some sense.

Leasing is not for cheapskates, skoda drivers, bangernomics ****, or anyone who is adverse to opening their wallet to get a decent new ca

Think you are missing the point of leasing. It enables you to get a new car that enables hassle free driving. You don’t have to worry about warranty, servicing, MOT and you get a modern car that demands (in most cases) less car tax and is more frugal. It is not for everyone….but to a lot of people it does makes economic sense. Brand snobbery does not enter into the equation.

I guess you drive a skoda then, my condolences :wink:.
In one sense I agree with your point: leasing makes sense if you are willing to spend a fair bit of money to get a decent (not necessarily premium brand), new, (hopefully) reliable car every 3 years, and the hassle-free driving that comes with that. My point was that bangernomics fans can’t comprehend spending that sort of money on a car, that they will give back after 3 years, so it’s not for them.

On the other hand, I’ll think you’ll find in practice that a lot of people lease as a means to get a premium brand car. Also lots of lease deals do not include servicing etc.

I guess you drive a skoda then, my condolences :wink:.

No condolences necessary I am very happy with it. It is as well built and as nice to drive as my previous Audi…whilst having a better engine. I am also happy that I have downgraded in supposed “status” whilst upgrading manufacturer reliability…..albeit remaining in the same group (VW).

As a stab in the dark I’m guessing you drive a BMW?

I’ve recently leased for the 1st time, made perfect financial sense to me, as I never keep cars longer than two years, so I leased myself a BMW M135i for £250/month, over two years it’ll cost me less than the depreciation if I’d of bought one on PCP…

No condolences necessary I am very happy with it. It is as well built and as nice to drive as my previous Audi…whilst having a better engine. I am also happy that I have downgraded in supposed “status” whilst upgrading manufacturer reliability…..albeit remaining in the same group (VW).

…and as sexy as a pair of slippers. They just scream ‘yes, my life is over, and I don’t care anymore’ to me.

Don’t take me too seriously though, I’m aware they are decent cars. I just like to rib Skoda owners a bit as they are ridiculously po-faced and defensive about their cars. I would take the piss less if you stopped obsessively telling how great they are!

Don’t take me too seriously though, I’m aware they are decent cars. I just like to rib Skoda owners a bit as they are ridiculously po-faced and defensive about their cars. I would take the piss less if you stopped obsessively telling how great they are!

I didn’t, I just took you as someone who brought brand snobbery into a discussion about car leasing. I also didn’t mention the fact I had a Skoda until you thought it was necessary to point it out and then only to inform you there was no need for pity.

So BMW then?

I didn’t, I just took you as someone who brought brand snobbery into a discussion about car leasing. I also didn’t mention the fact I had a Skoda until you thought it was necessary to point it out and then only to inform you there was no need for pity.

You are pretty much proving my point about ultra-sensitive Skoda drivers! My original point was leasing isn’t for people looking for ultra cheap motoring.

Come on answer the man. Bmw?? 😉

Btw do you really think the servicing option is worth it? On a car thats 3yrs old at most whats really likely to need doing/replacing

My original point was leasing isn’t for people looking for ultra cheap motoring.

That’s not the case there are plenty of lease deals available at low monthly installments e.g

lease deals under £150

It just depends if this type of ownership suits the buyer.

Article in todays Torygraph motoring section about PCP’s not being that good and to be wary. I’ve done a few short 2 year leases off http://www.dsgauto.com/ contact was a chap called Phil, really helpful, often has some really good deals on cancelled orders.