Car Leasing

[warmwaterdiver]

not if you already get 40p per mile

[shog69]

Greenpants - I work for Arnold Clark Fleet, what sort of car are you thinking about, do you want it with maintenance or not?. Do you want the option to own the car at the end of the agreement?. SOME GOOD ADVICE AND SOME BAD ADVICE ON HERE SO FAR. Leasing is a good option if you don't want the hassle of having to get rid of a vehicle at the end of the term but your not doing huge mileage, 15K to 20K is a lot more common these days, with 30K to 40K being more common for the business user. Unless your getting a decent amount for opting out of a company car scheme ie (£500 a month) then i would never advise anyone to do so, unless their happy to buy a used car in the region of £9K to £10K. I personally run a Toyota Hilux 3.0 D4D Invincible which i use for business use only and for the commute to and from work, Under the new rules i therefore pay £0.00 for company car tax and £0.00 for the free fuel allowance i get.

Anyway, if you want to let me know what sort of vehicle your thinking about, i can do you some figs.

[shog69]

david.robertson@arnoldclark.co.uk

[greenpants]

Originally Posted by shog69

Greenpants - I work for Arnold Clark Fleet, what sort of car are you thinking about, do you want it with maintenance or not?. Do you want the option to own the car at the end of the agreement?. SOME GOOD ADVICE AND SOME BAD ADVICE ON HERE SO FAR. Leasing is a good option if you don't want the hassle of having to get rid of a vehicle at the end of the term but your not doing huge mileage, 15K to 20K is a lot more common these days, with 30K to 40K being more common for the business user. Unless your getting a decent amount for opting out of a company car scheme ie (£500 a month) then i would never advise anyone to do so, unless their happy to buy a used car in the region of £9K to £10K. I personally run a Toyota Hilux 3.0 D4D Invincible which i use for business use only and for the commute to and from work, Under the new rules i therefore pay £0.00 for company car tax and £0.00 for the free fuel allowance i get.

Anyway, if you want to let me know what sort of vehicle your thinking about, i can do you some figs.

shog69, I've sent an email.
thanks mate
Dan

p.s. Ooops forgot to put on email....with maintenance....probably.. unless it's expensive...

[Jay Tee]

Leasing makes a lot of sense but it's not for everyone, if you want a new car every 2 to 3 yrs with little hassle moving your part X etc. then it's great.

If you don't want / need a new car then buying could be the best option.

Before you do either sit down and do some maths, - work out the cost of your new car on the road, how you fund it (cash, loan, HP etc. factor in the interest on this) then estimate what you would get for the car in 2/3 yrs at TRADE price - be realistic and research it properly. Add it all up & divide by the months 24 or 36 - the figures become a bit scary here.


Then compare with leasing and the cost per month plus any deposits.


My other half is on her second private lease and it suits her, she needs a good solid reliable car for work etc. and I don't want the hassle of garage bills when it coughs and stops working.

Our first car was a Golf diesel MK5 which was around £215 a month with a mileage loading included at the end of term (18 months) and now she has a 56 reg. Renault Coupe/Cabrio at £265 a month with 15k miles allowance over 2 years, (no service plan), she averages just around that figure so we shouldn't get any surprises at the end of lease.

Her car previous to this was 51 reg. Clio we bought this and had for just over 3 years, when we sold it privately at over trade value we worked out that it had cost us over £250 a month with some repair cost but not servicing so for us leasing a was 'no brainer' really.

Another consideration too is how much 'equity' do we really have in our own cars, they depreciate so fast now because we have a flooded market
which means most folk haven't paid off their current one when they get fed up and do the deal for a new one.

Before the 2 yrs. is up she'll shop around for another deal and simply step into the next car and as long as the old one isn't knocked around too much the lease company will be happy (some wear & tear is expected and it's in the small-print).


Check it out.

[Jezza]

You do not have to lease a new car

We all get a car allowance at work, we all tend to lease 12 month old BMW's they've taken the initial hit on depreciate and hold their value well so you don't lose as much.

My 320D saloon cost me less that £300 per month on a 20k contract, plus at the time they were offering 3 years free servicing and warranty. In the end it was cheaper to run than my previous Focus.

Talk with the business manager at your local stealer, he will give you an ideal of what your budget is, you can negotiate on rates, I tend to pay between 5-6% APR (it was 2% over base rate). I don't know where your based we have a good dealer near us, it's more like a family run business that a main dealership.

(and for those of you who know the area - I'm not talking about the one in Bournemouth!)

[NotDeadYet]

Is there much advantage in leasing a car as a private individual? You won't get the VAT back and you still get battered for tax, though I'm not an accountant so maybe talking rubbish.

I lease a pickup but I put it through my company books, as it's classed as a LGV I get 50% of the VAT back and I get tax benefits on the lease payments as it goes against company profit. Commercials get treated on a much lower rate to cars as a benefit for personal tax. I couldn't justify the cost of leasing a car, it was a load more expensive and too much complication.

With the deal I've got I get a new truck every six months which means I never hit the first service on the vehicle so no real maintenance costs (it's new so under warranty anyway), 24000miles p.a. as standard and I'm only tied in for six months, after that it's one month's notice for cancellation. The downside is that the company only offers certain vehicles so I couldn't get what I wanted (I wanted a Nissan Navara but ended up with a L200 instead), the usual handing it back in good condition clause (doesn't really matter to me as it's not getting any abuse) and I can't modify it (I'd like a towbar & hard-top on it).

Another thing to remember is that insurance companies may not pay out the full replacement value if it's written off or stolen. I'm still debating whether or not a gap insurance policy is worthwhile, though it's only another £60 or so.

Cheers,

Stuart

[Scuttler]

I know when I did the sums for my car it, due to the mileage I do (minimum 25k per year), it worked out £65 a month more to lease. That was based on putting down no deposit on the car I was buying and funding it with a 100% loan. If you have a deposit then it will probably be a wider difference.

Which over the life of the lease is £2340.

You have to remember that the leasing company have to make a profit somewhere and it doesn't come solely from discounts negotiated with the manufacturer!

[Ian@1904]

Do check the small print about the condition you must hand the car back in. Scuffed tyre rims, scratches and dents etc. This is especially important if you go for a 6 month contract. New vehicle every six months sounds great but you may be expected to return the vehicle in near show room condition, the repair bill can be big.

I used to work in the trade so so speak.
Fast food, dodgy motors and now drugs

[Garf]

I gave up leasing. I do 30k a year business miles, and the cars demolished. Leasing companies love it becuase they shaft you for both the mileage and the condition. In the end I just started buying my own and claiming my 40p from the company.