Leasing a small diesel

newby1000

Hi all

So I'm 24 years old, looking to buy a house in the next year or so. I am looking for ways to maximise my savings and ensure that I know exactly how much I have coming out of my account each month- and in this case- how much I spend on motoring.

So I currently drive a 2002 Range Rover, which does 25mpg! I am looking at the different options available to me for getting a smaller, more economical car.

Looked at HP, but not sure if this is for me.

Alternatively I have looked at personal contract hire. I have been quoted £146.00 per month (inc. VAT) to lease a brand new Seat Ibiza 1.6 tdi. This figure includes ALL maintenance, tyres, servicing etc. All I have to do is insure it and put fuel in.

Two year deal, £960.00 (inc. VAT) initial payment, £180.00 Doc fee. 10k miles per annum.

What are your thoughts? Does this seem like a good deal, it would really help me budget knowing exactly how much my motoring is going to cost each month.

Thanks for your help.

neilmcl

Seems like a reasonable deal. Is it definitely contract hire, not PCP? Where did you get the deal from?

Strider590

I wouldn't go for a Diesel, not unless you do enough mileage.
It'd be cheaper to go for Petrol, pay less monthly and pay slightly more at the pump.

albionrovers

Sounds cheap, check that you really do have maintenance included. Which leasing company?

newby1000

Vehicle Description:

Seat Ibiza 1.6TDI FR Man (either 3dr Sport Coupe, or 5dr Hatch)
Maintenance:
Fully Maintained inc Tyres
Contract Term:
2 Years
Contract Type:
PCH
Mileage per annum:
10,000
Monthly Rental:
£123.99 + Vat (£148.79 Inc Vat)
Initial Payment:
£800.00 + Vat (£960.00 Inc Vat)
Doc Fee:
£150.00 + Vat (£180.00 Inc Vat)
Delivery timescale:
White 8-10 weeks


Central (UK) Vehicle Leasing


Take your point about not getting diesel, but apparently due to better residuals with diesels, they can give me a more competitive price on the lease. It is definitely hire.

newby1000

plus 67 mpg
They also pay the £30.00 a year road tax

Wh05apk

Sounds reasonable but you will still be paying £4800 over 2 years (equivalent of about £200 pm) if you are looking to buy a house, could you not just buy am old Focus or something for about £2,000?

Don't forget the impact the £150pm will have on your borrowing ability, lenders will annualise the payments so about £1800, then potentially x5, so it could reduce your borrowing ability by about £9,000.

newby1000

I suppose, but it won't be as good on fuel and it will only take one thing such as the clutch going to stack up a £500.00 bill
Plus I will have another £2,000 in my kitty and the ability to make larger savings every month. What do you think?

w211

Looks a good deal, leasing (especially with maintenance) is an easy way to monitor fixed outgoings. It will still be under warranty so any problems should be sorted out. Just ensure you're in a steady job to be able to make the repayments (or you have enough savings). Though remember the leasing company would want the car back in as near as perfect condition as possible, so any dents, dings or damage will have to be dealt with otherwise penalties may occur at the end of the lease. Also make you make use of the 10k annual miles, if you do anything much less it may be worthwhile looking at other options.

newby1000

Yer that's just it. Fixed monthly expenditure for motoring sounds excellent. There is fair wear and tear included, which is all quite plainly outlined in the agreement.
I have a steady job. £25k p/a. And do bang on 10k miles a year

OddballJamie

Had a look on their site, looks a bargain. Just be careful on excess miles, if you change the quote to 20k a year it doubles the price. So I imagine excess miles on 10k wont be cheap.