Car leasing or buying?

itgirlinuk

Hi,

Can anyone tell me the difference between buying a car vs. leasing one?

I know that the car lease is for a fixed period of time and you can pay the remaining amount at the end of the lease. But with a direct buy of a second-hand car, you pay all the amount up front and you get a used car, rather than a new car.

But what about insurance and there are any pitfalls in leasing a car?

Has anyone done this? Please advice.

burbs_2

http://www.contracthireandleasing.com/home.asp is your best place to start.

I leased a BMW 330CI Convertiable and it was ok. The pitfalls are it costs a small fortune, depending on the car and you are limited to a certain mileage per annum. You also have to decide whether to take out mechanical cover, if you do then it costs more per month but they cover certain mechanical faults. I did not choose this and was therefore liable for any problems with the vehicle.

You have to sign a contract for the amount of time you are expected to sign up for it. At the end of the agreement there is the option of paying a balloon payment and then the car is yours to keep. The balloon payment is normally a massive amount of money.

I never saw the contract through as i bought a new car outright so i swapped the lease to a manager of a local firm and he took it over for me with no real worries.

Its a good option if you have a car in mind but cannot quite afford to buy it straight out, but i did it and i wouldnt do it again. Cheaper to finance the vehicle other ways.

itgirlinuk

No. I cannot afford to buy a new one and I don't know enough to buy a good used car. I am worried it wont be reliable enough. Hence leasing a new car.

Are there any more suggestions / ideas please?

martindcope

Hi
I find myself in the position of having to get a car on personal lease. Can anyone offer advice on the best company to deal with?

Thanks

Martin

Pink.

This thread would be better placed in the Motoring and Public Transport board, so I'll move it over there.

Pink

vansboy

This is how all the car makers will have us buying NEW cars, within a few years.On PCP's - Personal Contract Plans.

It gives you a new vehicle, guaranteed future value, so you swap it in in for another (they hope) in a fixed period & predictable monthly payments. Also gives them a good flow in new sales, plus a fair chance of having nice stock for the used forecort, too.Keeps the workshop busy too!!

What you're REALLY doing & possibly not a bad deal, either, is funding the maintainence & depreciation costs, while having benefit of a brand new vehicle!

The mention of insurance, well, quite often, certainly on the small car market, for younger drivers, is what swings in favour of the customer. Fords current FREE insurance on Ka, is worth over £1000 to plenty of 19yr olds!!

VB

itgirlinuk

Hello Vansboy,

Thanks for your comments. Does this mean Car leasing is not such a bad option?

And are there any companies out there which cover the maitenance cost as well?

vansboy

You might find it easier to budget, if you go the leasing route, 'cos your payments are pretty well fixed - but remember, you never actually OWN anything!!

Some dealers will offer maintainence plans, the best one is if you buy a new MINI, £100 TLC pac as they call it = 5 years maintainence.

Hyundai offer lonnnnnnnnnnng warranties & maintainence deals too, Even on their lower cost, new cars.

The thing you do need to consider, though - things & cicumstances change, so if you bought say, a new Fiesta for yourself, but suddenly married a guy with 6 kids & 2 dogs, you'd need to get a bigger car - the contract needs to be flexible enough, for you to make alterations WITHOUT costing a fortune!!

VB