Car leasing worth it or a waste of time

dkkendal

Looking to get a new car and can't decide if private car leasing would be better than getting something new or even a couple of years old. What are the dangers to look out for with leasing?

Hammyman

Avoid balloon schemes. They're where you end up with a bill based on the value of the vehicle. It is sometimes possible to end up with money going in your pocket at the end but not very often.

bigjl

Can't see the point of leasing anything if you can't offset the cost in someway against tax.

Just a waste of money.

Though if you need a new car for say a short term then contract hire can be handy, but keeping a car for three years, making all those payents to walk away wth nothing, nope not for me.

Hintza

Yu just have to do your sums carefully, having said that their are not the deals around that there were 3-4 years ago. But there will still be bargains.

Choose the deal and not the car.

vikingaero

Some leasing companies, especially Mercedes Benz (and Jeep/Chrysler), seem to be taking the Michael on spurious charges for alleged damage on returned vehicles.

Leasing works if you want a new car every 3 years and have a lifestyle in which the mileage is controlled. Try https://www.lingscars.com for a helpful company.

Kilty_2

Hammyman wrote: »

Avoid balloon schemes. They're where you end up with a bill based on the value of the vehicle. It is sometimes possible to end up with money going in your pocket at the end but not very often.

Why avoid them?

Low, fixed monthly payment with no risk of the car depreciating further than predicted and as you say if the value is higher than the final payment you can gain out of it.

Hammyman

Kilty wrote: »

Why avoid them?

Low, fixed monthly payment with no risk of the car depreciating further than predicted and as you say if the value is higher than the final payment you can gain out of it.

And if the value is lower, you get a bill. And as the recent recession has shown, the value of 3 year old cars can nosedive when money is tight.

property.advert

Seems a lot up front with some of these as well. I can't make the sums add up in my favour as yet.

Kilty_2

Hammyman wrote: »

And if the value is lower, you get a bill.

Uh, what?

The final payment on my finance agreement is £2694. If the car is worth more than that I can sell it to a dealer and pay the finance off, retaining the surplus. If it's worth less than that I can hand it back to the finance company and not pay a penny more.

Flyboy152

dkkendal wrote: »

Looking to get a new car and can't decide if private car leasing would be better than getting something new or even a couple of years old. What are the dangers to look out for with leasing?

When you say "private car leasing," I'm afraid you will have to be more specific, because different people get confused over the term "leasing." Do you mean a finance lease, lease purchase, personal contract hire or personal contract purchase (PCP)?

iolanthe07

for more details see the Target Car Leasiong web site at targetcarleasing.co.uk

I thought you weren't allowed to advertise on this site?