Leasing - a good idea?

thegirlintheattic

I need a new car within the next few months and have been trying to work out the best option.

I've got about 4K for a deposit and can get about 1K part-ex on my current vehicle with some haggling. I do about 12,000 miles a year and need a reliable car as I live in a rural area. I could easily afford up to £250 per month on fiance if needed.

Looking at a Fiesta or Focus edge spec or above (although pref. Zetec) and diesel. I'm struggling a bit as there are very few diesel Fiestas in my area.

I'm weary of getting into debt but have decided against bangernomics so am going to have to take some proportion out on fiance but I'm in a secure job (touch wood) with a reasonable take home pay (net 16K).

My options seem to be:
Used 2009/2010 with up to 30K on the clock which would involve taking 3-4K on Fiance over 2 years.
Nearly new 2011 with up to 10K on the clock which would involve taking 5-6K on Fiance over 2 years.
Leasing - which has only been proposed to me today. Looks like about £220-£250 per month with £700 down initially over 3 years.

At fist I baulked at leasing but having a little read it seems like it's actually a good deal - brand new car, no road tax or MOT, breakdown cover and little likelyhood of problems in those 3 years.
However I would ideally like to purchase the car at the end of it so it looks like I'd go with PCP or lease purchase.

What I would like to know is:
opinions of leasing?
do my maths work out i.e. is it cheaper than ordinary fiance?
any pitfalls?
what happens if I write the car off?
how much will I have to pay at the end of the term to purchase the car? (I've tried several websites to find out but can't seem to get a figure)
Which is better lease purchase or PCP?
Offers a maintenance option - is it worth it?
Any cheaper cars that are similar to the Fiesta?
Is it better once on this route to just keep getting a new car every 3 years?

Thanks in advance for any advice - have only ever brought outright before so this is completely new to me.

plane_boy2000

I've leased my last 2 cars, and my next one comes next week.

Always worked well for me - lots of people knock leasing, but i like having a fixed motoring cost and a new car every couple of years.

Although not guaranteed, they will usually offer you the chance to buy the car at the end of the lease if you want it

thegirlintheattic

Thanks. Can you find out if it is offered before starting the lease?

adamc260

The only bad thing with leasing is yeh it's great having a new car every few years but you have nothing to show for all your money at the end of it unless you make a big balloon payment to have the car as yours.

thegirlintheattic

That's what I'm planning to do as it doesn't sit right to pay all that money and have nothing.

I've worked out that I could get fiance on a used 2010/11 car and the money that would be needed for a deposit to get the monthly payments down to a decent level would probably be roughly equal to the balloon payment. The only differences being that with leasing I wouldn't have MOT, tax to pay, would be driving a new (more reliable?) car and would have the safety net of still having my deposit till the end, whereas with fiance I'd lose my safety net (would be pushed to afford heavy repairs if needed) and have to pay tax.

[Deleted User]

If you bought a car on pcp you would be covered for any mechanical problems under warranty and have an agreed future price to buy the car outright. Might be doable on your budget.