new car lease

madlyn

not sure if this is on the right forum, but here goes.

othet half is looking to get a new car (citroen ds3) and is considering getting it on lease.

pay a deposit, then so many monthly payments and after 2,3 or 4 yrs either buy it outright, give it back or do it all again with a new car.
i've not looked into this properly yet, but has anyone done or doing this, either with citroen or another dealer? if so what are your thoughts and just peoples thoughts in general about this way of getting as new car.

jumperjohn

I am doing this as it's a good way of getting into a new car and all that brings with it.

Is he doing a PCP or personal lease? PCP is pay a deposit, followed by monthly payments then a balloon payment at the end.
I have a personal lease. I paid a small deposit, usually 3 monthly payments, then 35 regular payments then hand the car back then start again on a new car. You may get comments that this is a waste of money as you don't keep the car but those comments are easy to ignore.

It's not a waste of money as you are paying to use the car and only paying the depreciation. The biggest draw for me leasing though is that you do not take out a large loan for the car. For example.

Traditionally you find a car, say £20,000. You take a loan and after 3 years it's worth £12,000. You have 'lost' or used £8000 in depreciation. After 3 years, you want to change cars, so you trade it or sell it and hope for a buyer, haggle with a dealer and start again with a new loan, all hassle.

With a lease you get the £20k car and pay (the depreciation) £8000 in lease hire over 35 months. After 3 years you start again but you don't have the hassle of getting a new loan or trying to sell the car. All you need to find is the deposit and your in a new car.

Leasing can also get you into a car you probably didn't think you could afford. Just Google private lease hire for examples.

Both ways, HP or leasing, it has cost you £8k but leasing is simpler.

Some may say buy a second hand car for £8k and keep it, but if you can afford a new car then why not have the luxury of the new car smell, warranty, latest economical engines, latest technology etc.

I just did a very quick search for your car a Ciroen DS3 1.4 Vti DSign

Initial payment: £699
35 months £179.99
10k miles a year
No large loan and nothing to pay at the end, after 3 years hand it back and buy another, simple.

forgotmyname

As above its simple and maybe good for you if you want to rent a new car. See it as renting it.

but expensive. I buy cars for around 2000 keep them 4 or 5 years and sell for approx half what i paid. Your 3 years worth of leasing will get me 12 years of motoring.

But thats me. My yearly mileage is fairly low. So a high miles car after 4 or 5 years will blend into the rest of the cars for sale. It will be 8 - 10 years old though.

Depends on your wants and needs. Dont forget if your finacial situation changes. You still have to pay for that lease.

madlyn

thanks jumperjohn, your reply was very helpful.

just had a quick look at nationwide vehicle contracts rather than direct to citroen. if you dont mindf me asking, who are you using?

jumperjohn

Hi. I used my dealer. I went for a KIA Sportage, lovely car. Anyway, I had a look at the company that you mentioned but KIA was slightly cheaper on the deal so I went with them. Citroen may offer you a competitive price too. Have a good look at a few sites and speak to a dealer.

madlyn

going to go direct to citroen first to see what they can offer.

DaniP

Hi Madlyn,

Just to let you know, the dealers are usually more expensive than online leasing companies.

I have a new Nissan Juke, went to a dealer who offered me a lease over 4 years for £250 on a 1 year old Juke!

I had a brand new Juke through a leasing company, no deposit, 5 years only £170 per month!!

The company I used was Purple Contracts, they were very good.

Hope this helps.