Just debating new car (don't worry, this isn't a 'what new car' thread).
There is no scheme at work so I'll be sorting this all out privately. So basically it's down to buying car outright, or doing some sort of lease. I don't need finance so it's purely down to the cheapest way to go.
Next door neighbour said his mate leased a car but wasn't sure about the details.
I'm assuming I can as an individual just go to the right company , pay some sort of deposit, agree some time scale for lease and pay a monthly figure. At the end I give it back and start again?
What would I be required to pay on top - tax, servicing etc.?
Any gotchas I need to look out for?
Presumably someone on here has done the maths and worked out new car depreciation versus just 'renting' it.
Yes (business rental here - all I pay for on top is fuel and insurance)
Anyone can rent but personal rentals usually cost a little more. There are loads of ways of financing - just go speak to your local dealer or look online.
The one worry with leasing is ANY damage in return WILL cost you - and some less reputable companies will do all they can to screw a bit of money out of you.
If its for personal use a PCP (a variant on leasing) might be better.
Car in registered in your own name. You get a guaranteed future value for it - but it could be higher - so there's an incentive to look after it.
Once the term is up - hand it back, trade it in (just any value higher than the guarantee) or buy it for the guaranteed price.
You have to pay for insurance, servicing and tyres (some leases include this).
Like a lease though there are penalties if you have to hand it back sooner, damage it etc.
Second recommendation for the PCP.
Most new cars are available on a PCP with an attractive APR too, used cars up to about 3 years old are also eligible, depending on mileage.
After the 2 or 3 years that you sign for, you can give it back, buy it, or sell it/trade it in, anything above the guranteed value is yours to keep. As long as you stick to the agreed mileage and look after it, there's no risk.
If you go for a lease, they are not designed to be ended early, so if your circumstances changed, you'd be stuck with it.
A PCP is just like a normal HP agreement with an offset final payment so you can settle it whenever you wish. [/car sales manager mode]
Ta. Fotgotten I'd actually done PCP with a Vaxhall when it first came out many moons ago. Need to work out if depreciation is bigger than monthly PCP payments now....
But leasing is FINANCE, if you have the cash, just buy a car - otherwise you are paying more out in interest/costs than you'll ever make from your cash in the bank.