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.
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.
[quote=simmy said]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 ****s, 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 + (24x152) = £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
[url= http://www.whatcar.com/car-leasing/deals/?to=150 ]lease deals under £150[/url]
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.
Just looked at the cheaper ones linked above and the suzuki alto as an example. You pay over 3 years £4500k and dont own it but the car only costs £5999 to buy. So i guess only some are worth dojng
^ yep, some no good, but on the specials page, had some good deals for poncey vehicles
How much is a £6k car worth after 3 years, assuming average mileage? What does the £4.5k include?
Dunno but id have thought it was worth more than 1.5k tbh all ypu get is the car and 8k miles pa i think
Some of the deals are definitely more financially sound than others. Surprised at the article mentioned above as think PCP can vary a great deal between agreements. Suppose it doesn't hurt to be wary of any car deal at the outset however.
That's not the case there are plenty of lease deals available at low monthly installments e.glease deals under £150
It just depends if this type of ownership suits the buyer.
Sorry Skoda-boy, you are wrong there (obviously depending on how you define ultra-cheap motoring, but you really would be clutching at straws to argue that point). A £150 a month lease deal is not cheap in the bangernomics scale (i.e ultracheap motoring). Bangernomics people wouldn't dream of spending that much money on something they give back after 3 years.
sectuerfive - Member
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...
pfft, fail - you could almost have got a Fiesta for that money!
Sorry Skoda-boy
I can't believe we have got this far without you telling us about your car....you are obviously chomping at the bit.
My point was that it can also be a plausible way to buy a cheaper new car.
My point was that it can also be a plausible way to buy a cheaper new car
I don't disagree with that, but you are changing your argument. I wrote:
My original point was leasing isn't for people looking for ultra cheap motoring.
You replied:
That's not the case there are plenty of lease deals available at low monthly installments
...which isn't ultracheap motoring (on the bangernomics scale, which I mentioned by name, in my initial post).
That's the same as saying leasing isn't for people wishing to buy a second hand car :roll:. I was giving you the benefit of not making a redundant point. I presume you meant an ultracheap new car.
That's the same as saying leasing isn't for people wishing to buy a second hand car :roll:. I was giving you the benefit of not making a redundant point. I presume you meant an ultracheap new car.
Well, the reason it isn't a redundant point on singletrack is that anytime someone starts a car thread some joker comes on and starts preaching about how hopeless it is to spend any money on a car, and buying old sheds like they do is the only way. Either that, or they recommend a Skoda. I was just pre-empting that inevitability by making the point that leasing is not an alternative to ultracheap motoring (which excludes any way of buying a new car).
I've yet to see a *lease or finance deal cheaper overall (on any new car over 3 years) than just buying the car outright in cash providing you negotiate on the list price in line with the market. The problem is that most people don't have the disposable cash available and therefore lease/finance is their only option.
*lease deals on some cars e.g. Mondeo are pretty close on overall cost.
In order of cost, it is nearly always:- cash < finance < lease
Almost all manufacturer incentives (and thus the best deals) these days are for finance arrangements.
The best PCP deals were still a lot more than my lease, and I wouldn't have a hope of getting out 2/3 years after a cash purchase for less than the lease cost.
I got a price for a brand new skoda yeti 1.6 tdi.
£540 initial payment then 36 payments of £180.
12000 miles per year.
don't know if this is good or not.
Lease, or PCP? With VAT or without?
Doesn't sound too bad to me!
My PCP deal for the *Skoda Fabia Estate was cheaper than buying outright; as they wouldn't discount it a jot (at two dealers) - and the car was on offer with free servicing for 3 years.
It wouldn't make sense to pay cash at all, when I can leave 12.5 in the bank for 3 years. That's approx £800 in interest too.
I think you have to look at each individual situation. Second hard cars are not that cheap to run in my experience, you're handing over a big chunk of money - and it's likely to cost more over its life than a car with no MOT for 3 years, free servicing and warranty.
*(as for comments about Skodas, they're the Aldi of cars in a good way - but cost cutting does take place no two ways about it; no rear electric mirrors, rear drum brakes, cheap paint on the wheels, creaks on the door inners - what are you gonna' do! It's a brand new half-decent estate with more or less great reliability/warranty for 3 years trouble free motoring. But I'm under no illusion as should any long term owner - there is cost-cutting in producing the vehicle - even if it has a VW engine!)
My PCP deal for the *Skoda Fabia Estate was cheaper than buying outright; as they wouldn't discount it a jot (at two dealers) - and the car was on offer with free servicing for 3 years.
I'm very surprised. DTD shows a discount of £2300 on a bog standard Fabia Estate. What's your PCP deal APR?
Almost all manufacturer incentives (and thus the best deals) these days are for finance arrangements.
Yeah, what you can do (and I have) is take out the finance to get the best showroom deal and then pay it off in full during the cooling off period. Saved another £1.5K like this and there's nothing they can do about it.
DTD didn't couldn't get my model exactly.
But it was a discounted model £16000 to spec it up - I paid £12500 with 6% from a dealer.
That website is showing £15965 for my model (before any discount.) And that is not even the same spec, just the closest.
Tell you about car leasing?
It offers you an alternative way to get into a new car. Its not a cheap way, its an alternative way.
Make sure the hire company is signed upto the BVLA's terms of fair wear and tear (for handback time).
When I handed mine back the Mannheim auction bloke told me my car was by far the exception. I had a zero charge. He said most cars had multiple charges and some were plain disgusting yet the person thought you just handed it back and never read anything and didn't know they had to. I had chipsaway around mine, brand new Citroen OEM wheel covers and on the last day a dent puller as someone at a supermarket dinged it with a trolley the day before handback. Luckily it chucked it down on handback day so the guy couldn't see the touched in stone chips (Citroens terms said any stone chips needed a bonnet respray not touched in).
Go on a lease comparison site like: http://www.contracthireandleasing.com/
and look for a good deal.
Then call/discuss and see if you can hammer the deal abit more.
All have some sort of wiggle room. If they haven't a competitor has.
Its cut-throat.
lings USP is to try to standout with her website - her deals are 'ok' but not class leading although I've heard shes easy to deal with at handback time, she competes with shedloads of other leasing brokers (the right term?).
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BWARP! I like my Skoda. It's a chavvy one though.
Anyway, for me leasing my 6 month old ex-demo car wouldn't work. It'd cost me £7500 every 3 years, while my car will cost me £11000 over (hopefully) 7 or 8 years or so, including some potential repair bills and minus the cost of selling it. Works out about £1000 a year less.
When I bought it the mileage I was doing would have meant a PCP would have been £9000 odd for three years!
I bought it on finance to get a deal then paid it off and kept the free servicing.
Based on you having a 7 year old car, I assume you like to keep a car for a while, in which case it may not work for you.
There can be good deals on leases [i]if you were going to be buying a brand new car anyway[/i]. If you normally buy at 3-5 years old then it's not going to be any cheaper. New cars depreciate fast and if you want one you'll have to pay for it. That's life.
Far, far too often you hear people saying they're going to sell their current fully-paid-for car and lease something "to save money". What they actually mean is that they want a shiny new new car and £250/month sounds like not very much money. A car will break down every single day once it's out of warranty. FACT. Apparently.
I always end up in this loop:
1) Ooh, I could manage £250/month and get a brand new Focus (or whatever)
2) £250 x 12 months x 3 years = £9,000
3) I wonder what I could buy outright for £9k
4) I wonder what I could buy outright s/h that would depreciate <£9k in three years
5) Start looking at £20k Porsches
6) Decide that's not a very practical choice for work and forget about leasing until the next time it comes up on a forum
FWIW my commuting car is a £1k diesel hatchback against which I claim 45p per mile from my employer. It doesn't cost me anything - I make a tax free profit from it 😀
(...which allows me to run a Porsche as well...)
BWARP! I like my Skoda. It's a chavvy one though.Anyway, for me leasing my 6 month old ex-demo car wouldn't work. It'd cost me £7500 every 3 years, while my car will cost me £11000 over (hopefully) 7 or 8 years or so, including some potential repair bills and minus the cost of selling it. Works out about £1000 a year less.
I had one of those, also a 6 month old ex-demo bought out of savings. Pretty much convinced me that leasing was worth a go. 2 years later, it had depreciated £6800 (admittedly I may have got more eventually in a private sale but I wanted rid) and I wasn't looking forward to running it out of warranty with all the engine failures. The amount I effectively spent per month on depreciation got me into something quite a bit quicker and nicer, and no angst about selling or px values at the end.
When those crazy Golf R deals were flying around a few months ago I seriously considered getting one but:
I ride mountain bikes
I have a 4yr old son
I park in supermarket carparks
I live in Manchester (it'd be great in an armed robbery).
Finally- the cost of the term to hire was 😯 when all added up.
**** that. I'd rather buy an old Audi S3.
**** that. I'd rather buy an old Audi S3.
You said yourself it's an alternative way into a [i]new[/i] car.
If you were considering buying a brand new Golf R outright then you'd be mad to not to lease one.
Of course an old car will be cheaper. You could buy a 10 year old Corsa for the cost of one months lease on a Range Rover but its really not comparing like for like now is it?
There's still crazy deals on Golf R's. I had a look this morning and you can get one for £230 inc vat per month over 24 months with 3 months up front.
Whats the admin fee and mileage penality/limit?
Also.. is that a company or private rate? If private rate das ist gut!
[url= http://www.whatcar.com/car-leasing/deals/volkswagen/golf/hatchback-2.0-tsi-r-5dr/business/292852/?price_id=1547934#prices ]Here[/url]
Sorry £231.60 per month at 6 month up front then 23 months for private, £193 for business. Doesn't detail admin fee but mileage limit is 10k.
Cheers - I'll pass those onto my bro in law. I've already got a very decent car now though so I wouldn't be getting a better car 🙂
Then give them more money for all the scratches, scuffs and dings you didn't notice.
My experience too. The last one which went back was collected by a [i]team[/i] of specialists who went over the car for the best part of a day, putting arrow stickers over it etc, followed up with a bill. It wasn't in bad nick at all, average for a 3 year old car.
It's probably worth noting the difference between personal contract purchase (PCP) and personal contract hire (PCH).
You can get some stunning cars for naff all on PCH but won't have the option to purchase at the end (which will obviously be a good idea if it's an Audi or a bad idea if it's a Skoda 😉 )
Don't forget that some dealers do PCP on USED cars too - this can often work out very well indeed on cars that have already taken a massive hit of depreciation in the first couple of years (Bimmers for example)
Wrecker who did you lease through?!
I got a price for a brand new skoda yeti 1.6 tdi.
£540 initial payment then 36 payments of £180.
12000 miles per year.don't know if this is good or not.
If this is one of the Skoda 0% deals with free servicing then it looks like a good deal - just check the book value of the car and the residual value they have quoted you. If it truly is 0% then the initial payment + (36*£180) should be the difference.
If you want a specific model, then leasing can be expensive. In this case, look around and see if there is a deal available somewhere. Also worth noting that some deals are business only.
If you are flexible with make/model, then you can get really good deals.
We had a new shape Civic idtec on 3+23, £180 per month, 10k milage p/a.
Watch out for leases with 9+ initial payments or big admin fees, or low mileage allowance.
For us it was a no brainer and worked out about £100 p/m cheaper than a PCP deal on the same car when the deposit was a similar amount to the initial payment.
Wrecker who did you lease through?!
Works car through Peugeot. Godawful car too.
How does leasing work?
A builder gives you a low estimate to win your business on a big extension to your house. At the end he hands you the bill.
You have a sleepless night, a stiff drink and you decide to chalk it upto experience.
How does leasing work?A builder gives you a low estimate to win your business on a big extension to your house. At the end he hands you the bill.
You have a sleepless night, a stiff drink and you decide to chalk it upto experience.
Quite possibly the worst analogy since:
"The little boat gently drifted across the pond exactly the way a bowling ball wouldn't. "....and ...."John and Mary had never met. They were like two hummingbirds who had also never met". They were taken from a High School exam paper.
I have been looking into lease and PCP deals for the last 6 months. After an awful lot of deliberation for me a PCP deal on a Skoda Yeti Black edition 2.0 l tdi 4x4 at 2.9% was the best deal. Tax, free servicing, gap insurance and breakdown included. Option to purchase for 10k after 3 yrs. Should retail at 12.5 k so I will have a bit of equity in the car as opposed to nothing If I lease. Option to chop it in and get an Octy Scout. The yeti was my better half's choice. There were none in the country so I'll have a better chance of one in a couple of years. Leasing sounds great and can be hassle free but after crunching the figures it wasn't for me. A 0% deal sounds really good. The best loans at the moment are about 4 to 5%. Pick mine up next Wednesday.
Isto when have you ever had a tradesman estimate equal the actual bill?
I've been working with a leasing company this year and had never considered leasing myself before.
I'm still not convinced but I know a lot more about it (most has been already covered ^^)
If you want a specific brand new car and don't have the capital (or 0% finance) it's a good way to go.
They make money - lots of money - so it's more expensive for you. If you take out any of the additional services they make more money.
They do base the payments on residuals - it's by far the biggest factor - so you do pay for the depreciation plus their profit.
If you do lease, factor in a visit from chips away (other scratch removal companies are available) and a full valet before you hand it back. it will cost you £150 all in but will save so much more when being inspected.
A lease car with maintenance is a bit like insuring your motoring experience - it costs you more but it's hassle and worry free with a fixed known charge.
However.
They can get some amazing deals from manufacturers. So certain brands / models can work out to be better value by using their discounts plus high residuals. Almost everyone in the company drove a decent BMW for this reason.
I know a chap who leases a T5 Sportline and it's far far cheaper than buying.
He took delivery of a new one and his payments went down as it's more desirable and expected higher residuals. He's already ordered his next due for delivery in 3 years.
It's always more expensive to drive a new car than one that isn't.