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.
My current BMW got a free SATNAV package purely because it increases the residuals so much.
One very important thing.
Take out lease GAP insurance. This isn't a recommendation, it is essential.
When I was given my lease car Citroen also gave me an invoice receipt for the full price of the car+ extras. If I crashed the car say with a few months my insurer would have paid out the market rate. The lease company would look to recover from you the price they value the car at. Thats a big gap to factor into your budget.
If you have a lease car currently without GAP- seriously get it now. Don't chance it.
http://www.whatcar.com/car-leasing/car-leasing-guide/gap-insurance.php
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.
I'd agree with that. Sometimes the lease/finance deals can be heavily manufacturer subsidised. BMW sometimes do effectively half price lease deals on certain models to get them rolling. A client of mine is the DP at a BMW franchise and is always trying to get me into one. But still prefer to buy cars outright in general and have done with the last few.
But it was a discounted model £16000 to spec it up - I paid £12500 with 6% from a dealer.
So presumably if you had paid off the finance instantly, you would have saved 6% pa. Or are you getting >6% interest in your bank account? If the latter please point me in the direction of your bank so I can move all our savings there.
some examples here of 'special' lease deals to give an idea
http://www.dsgauto.com/car_leasing-special-offers.html
Should retail at 12.5 k so I will have a bit of equity in the car as opposed to nothing If I lease
Retail price is a lot different to trade in price. Are you sure you'd have that kind of equity?
I've been keeping an eye on PH thread:
[url= http://www.pistonheads.com/gassing/topic.asp?h=0&f=23&t=1346121&i=3760&mid=419377&nmt=Best+lease+car+deals+available%3F ]PistonHeads: Best Lease Car Deals Available[/url]
There seems to be a lot of cheap [url= http://www.gateway2lease.com/z_volkswagen_golf_2.0tsir5dr300bhpmanual_15464_leasing.php#.VD_lgBZCz_g ]Golf R's[/url] on lease.
