Car leasing worth it or a waste of time

Flyboy152

You're not. Have you reported it spam?

rodenal

Leasing can work out, as above just do all your sums carefully, as you are only paying for depreciation in theory you shouldn't lose out.

If you want quite a new car then your best option financially is often a year old model that has taken its depreciation hit, but still has warranty cover for the next two years (at least).

bauk

Hammyman wrote: »

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.

You don't get a bill... if is lower then you can just walk away. This is how it was explained to me. This is how PCP works, it takes the risk out of buying a car and its depreciation.

rodenal

With PCP you can walk away if the car is valued lower than the 'guaranteed' value. What tends to happen though, is the guaranteed value will be set almost stupidly low so that you will have around £1.5k value left in the car when the term is over. Why is this a bad thing.......

.....You are paying for more than just the depreciation for the car as they have set this value artificially low; i.e £ bought value - £deposit - £ predicted future value = Total to be paid / nr of months to pay over, if you check the predicted value given by retailers against the actual trade price of a 2/3 year old car you will see quite a difference. There may be £1.5k left in the car at the end term for you to trade to another car, but it's just your money anyway!

This is why you need to add up all the numbers carefully when considering pcp / leasing - not just the monthly payment.

I'm about to lease (personal contract hire) my second car - so long as you work out costs realistically I find it a good way to have a new vehicle with pretty much fixed costs

Flyboy152

bauk wrote: »

You don't get a bill... if is lower then you can just walk away. This is how it was explained to me. This is how PCP works, it takes the risk out of buying a car and its depreciation.

It is indeed how a PCP works, but a PCP is not leasing.

highet

leased a couple of cars for my wife several years back - when i did the figures re depreciation/servicing/road tax and interest gained on my money still in bank rather than spent on car it worked out cheaper - unfortunately over last couple of years leasing rates seem to have shot up and when getting her last car i could no longer make the leasing figures stack up

GlynD

I'd be inclined to speak to my accountant. For me this meant going on contract hire, which is no good unless you are VAT registered. If not then a PCP is probably the best option.

vikingaero

G_Shapland wrote: »

Having said that, Target Car Leasing have some amazing deals on Mercedes Benz Personal car leasing & Business Contract Hire. They lease everything under the sun so its worth having a look at their website or giving them a call on 01903 368664

!!!!!!. :mad: You've had loads of spam posts concerning Target Car Leasing removed. Stop spamming your company:


http://uk.linkedin.com/pub/gary-shapland/a/919/156

Flyboy152

GlynD wrote: »

I'd be inclined to speak to my accountant. For me this meant going on contract hire, which is no good unless you are VAT registered. If not then a PCP is probably the best option.

Contract hire is good for businesses, even if not VAT registered. As a revenue expense, the payments are tax deductible (within specific limits), as well as being able to claim mileage allowances.

oceanscape

vikingaero wrote: »

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

This is too true! Mercedes-Benz finance want over a £1k from me for "damages" to the Grand Cherokee I returned. It was in PERFECT condition and I'm furious.