New car - leasing

robcmar

Can anyone explain clearly and simply how leasing a car works ? Peugeot have what appears a great deal at the moment, £179 pm for a 207, free servicing, freen insurance etc. They call it the Just Add Fuel® package

So I pay per month then have the option of buying the car at the end of the agreement for £4420.

They say:
There are two ways to enjoy the Just Add Fuel® package:
Either using our Personal Finance Lease programme, where you never have the option to own the vehicle.

Or for the same or similar monthly payment you have the option to own the vehicle at the end of the contract using the Peugeot Just Add Fuel® Passport programme, Representative 10.5% APR.

What are the real costs of all of this ? Cheers.

Hintza

Assuming you hand the car back it really needs to be in immaculate condition and if you go over the agreed mileage then you will have a charge.

Whithout looking at it in particular that should be all (insurance covered as well?)

robcmar

Yes, insurance is covered. Shouldn't think the mileage is a problem as I'm semi retired so not doing the work run.

property.advert

I looked at this and if you do the maths right, you find that unless your insurance premium would be infeasibly large, the numbers just don't stack up.

Flyboy152

The first option appears to be straightforward finance lease and the second is a PCP. Both options with a service and insurance plan.

The first is more suitable for the business user and the second for the private buyer. To really establish whether this this good value for money, it would be better to know what the figures are; deposit, monthly payments etc., also what it would cost you to insure the vehicle over the three years.

robcmar

I'll try and get further details. Didn't realise there would be a deposit !