Contract Hire?

Dr_Crypto

How does this compare to buying a car with a car loan?

smitchy73

For a start a Contract Hire you are only leasing the car, whereas the car loan you are buying it outright, and as you are paying cash you could negotiate good discounts, depending on the car.
Some contract hire, you can arrange to have it fully maintained, therefore not paying for road tax, servicing, tyres, breakdown cover etc.
The most important thing to remember is the car isn't yours, you just pay for it, insure it, and fuel it.
Hope this helps.

Dr_Crypto

That sounds great, as I'm not taking the hit of depreciation. There must be some downsides. Are there are online tools to help cost it?

Hintza

Dr_Crypto wrote: »

.............as I'm not taking the hit of depreciation.

How do you figure that out?

You need to do your sums and figure ouy how long you will be keeping the car.

mark5

Whenever I've thought of leasing a car the figures never stack up for me and I end up talking myself out of it.

for example Ford Focus Zetec £1050 deposit plus 35 x £350 = total of £13300

Then you hand the car back with nothing to show for it!

MX5huggy

If you always buy a new car every 3 years on finance it probably makes sense to lease instead.

Hintza

mark5 wrote: »

for example Ford Focus Zetec £1050 deposit plus 35 x £350 = total of £13300

Why would you want a focus (in most cases you will really struggle to get a lease to work out cheaper on a car that shifts plenty of units)? You need to look for the deal and not the make/model.

plane_boy2000

mark5 wrote: »

Whenever I've thought of leasing a car the figures never stack up for me and I end up talking myself out of it.

for example Ford Focus Zetec £1050 deposit plus 35 x £350 = total of £13300

Then you hand the car back with nothing to show for it!

Thats not a great quote TBH, but Focus's are not that cheap to lease anyway - list prices are far to high which probably screws the residuals. You can pick up Astras for around 200 per month and 600 ish up front - BMW 1 series from just over 300, and 350 a month would give you a good choice of models / spec.

Really it comes down to being open minded and keeping a look out for the deal rather than a specific model - I got luckly in that my choice of car came up cheap so I did well - same car now is 80+ quid a month more which would rule it out.