Leasing vs Contract Hire vs Buying a Car...List the pro's and con's.

Hintza

beach86 wrote: »

I am also looking to lease. Anyone got any recommendations of some of the cheapest companies?

Horses for courses I'm afraid. Just keep checking.

taff007

I'd recommend looking on http://www.contracthireandleasing.com . This will give a good idea of the available prices and who is offering the best deals on the particular car or cars you like. You can then contact the companies for a detailed quote.

I've been speaking to a couple of companies over the past few weeks to replace my car when the lease ends in November. They've both said that the current quarter ends on the 30th September, so they'll have a better idea of what offers will be available next week - I don't know if this to my advantage or not.

Hintza

taff007 wrote: »

I'd recommend looking on http://www.contracthireandleasing.com . This will give a good idea of the available prices and who is offering the best deals on the particular car or cars you like. You can then contact the companies for a detailed quote.

I've been speaking to a couple of companies over the past few weeks to replace my car when the lease ends in November. They've both said that the current quarter ends on the 30th September, so they'll have a better idea of what offers will be available next week - I don't know if this to my advantage or not.

Again you pays your money and takes your chance. I started looking before Christmas last year for February. All I spoke to said it was best to wait until the new year. Needless to say the great deals weren't available then.

Can you drag yours out until December? That might help?

Hintza

boots_babe wrote: »

So those of you who have decided against GAP insurance because your normal insurance will replace with new under 1 year old, are you planning to take out GAP insurance once the car is 1 year old?

My mother would say I am foolhardy so I won't be. But it really depends on your view to risk and insurance in general. When you look online the folk that tell you how important it is are the ones selling it.

beach86

So typically, if you can, better at looking at deals in December / New Year?

taff007

I get the impression that the best deals are towards the end of each quarter (March, June, September & December) as the dealers try to meet their targets. But I guess there is the potential for better savings at the end of December as it is traditionally a quieter period(?). Although my current car goes back the middle of November I'll probably wait a month to replace it (as hintza suggests).

Hintza

taff007 wrote: »

I get the impression that the best deals are towards the end of each quarter (March, June, September & December) as the dealers try to meet their targets. But I guess there is the potential for better savings at the end of December as it is traditionally a quieter period(?). Although my current car goes back the middle of November I'll probably wait a month to replace it (as hintza suggests).

Just start your search early and be ready to move fast if something exceptional turns up but the closer to the end of the year you can wait probably the better.

Turns into a potential game of chicken, but my advice is don't wait until 1 Jan.

Little_Otter

I went to look on Lingscars, his descriptions made me laugh...

'I tell you again the model is a New Vauxhall Tigra 1.4 i 16v (90bhp) Air Coupe-Cabriolet (2-seat) 2dr 1364cc Petrol Manual with Metallic paint. There may be extra equipment that it's worth for me to point out in addition to the stuff you usually find in this Vauxhall Tigra, but you should check exactly on car maker website. I do not have computer chip in head to remember every small thing...

• Electric Windows
• CD Player
• Alloy Wheels

Note that at end of the contract you just hand back. Payment is off your balance sheet. You have no risk or reward. You can't buy it, there is no "balloon" or end payment. You don't own it, you just rent it, give it back. Then you are free. Get another new car, or walk away. Your choice, OK? Why put company money into depreciating asset? Use big bag of money to run business, not to buy cars. I try to explain well, but my English not perfect. Contract hire is beautiful easy product, you see?'

my busuness lease is up 29th November, it MUST go back on that date, we can try and renew our lease for the same (really good) price, its on a bodyshop deal with my oh's company but they may not offer us this price again as it was so cheap, or try and get another deal/better car

I would prefer a soft top/open roof car but these are usually expesive. Anyone know of any deals that are good??

Thanks

Carbuyer100

Contract Hirers Beware

There are various mentions of GAP insurance on here in relation to contract hire. Many posters have decided not to bother about GAP insurance but they are perhaps unaware of the micro print on their contracts.

On contract hire agreements there will be a section about liability in the event of a total loss. Most people assume that if this happens and your insurance company pay out thats the end of it and you start again. WRONG.

In the small print there will be either a percentage of outstanding payments due or it will be shrouded in insurance speak but either way in the event of a total loss you will be liable for a percentage of outstanding payments regardless of the insurance payout. Most companies require around 50% but the odd one will require up to 100%. So in a typical example this is your liability.

Original Car Price

Carbuyer100

There are various mentions of GAP insurance on here in relation to contract hire. Many posters have decided not to bother about GAP insurance but they are perhaps unaware of the micro print in their contracts.

In contract hire agreements there will be a section about liability in the event of a total loss. Most people assume that if this happens and your insurance company pay out thats the end of it, you simply start again. WRONG.

In the small print there will be either a percentage of outstanding payments due or it will be shrouded in insurance speak but either way in the event of a total loss you will be liable for a percentage of outstanding payments regardless of the insurance payout. Most companies require around 50% but the odd one will require up to 100%. So in a typical example this is your liability.

Original Car Price £20,000
Monthly Rental £360.00
Term 36 months
% Liability 50%

If the loss takes place in the first month (worst possible) you are liable for:

50% of (36 x £360) = £6480

Now this puts a whole new light on Contract Hire GAP and once people realise this the generally go and buy it straight away. There a a few companies selling these policies on of which www.ala.co.uk specialise in this product. If you do look on their site put in this code and get a bit of discount. PRM1053

You can even take out a policy after taking delivery of the car up to a maximum period of time.

Hope this helps.