Personal Car Leasing

low-def

Hi all,

This is my first post so please be gentle. I am urgently in need of a new car as my old one has completely died. I would like a new car because of warranty etc.

But i don't really know what is the best way to buy one, without putting too much down in term of deposit or buying out right.

Has anyone had any experience of a leasing company? Are there any big advantages to leasing?

thanks in advance.

forgotmyname

Big advantage is you never own it. But on the other hand you never own it.
Fixed outgoing. You know how much its going to cost until you hand it back.

All that money to rent it. If thats what you want then go ahead.

Watch for mileage restrictions and extra charges for going over.

Is servicing included?

Having a warranty is all good but that may mean more costly servicing.

Another downside is what happens if you lose your job and have the best part of 3 years lease to pay. You cannot sell it like you could if you had bought your own car.

low-def

Many thanks for the reply forgotmyname. Is there a better alternative to leasing? I did have a look at Ford's Options scheme but they request a bigger deposit than some of the online leasing companies - in this case - Nationwide Vehicle Contracts.

forgotmyname

What can you realistically afford to buy?

I have learnt having a nice new shiny vehicle parked outside is OK. But my bank balance is healthier having something a bit older.

My current car bought for just over £2000 in 2009 is still going strong.

Do you want to rent a car or actually own it?

InsideInsurance

Ford Options is a PCP deal and so you cannot directly compare it to a leasing deal.

With PCP you can retain the vehicle at the end or sell it before that time where as a Lease vehicle is never yours and so the only option ever is to return it at the end.

low-def

So do you think that the Options scheme is a more secure way? Im not overly bothered about keeping the car after the term (say 3 yrs). I was just a little confused with the Options end of term details.

I don't mind putting down a small deposit at the moment - say £2000 -although I think Ford are asking for £3000+ on the Fiesta's.

The idea just seemed appealing after having a few older cars the last 10 years, all of which have had various expensive problems. The latest being my 55 plate Vauxhall Meriva engine dying completely after just 41000 miles.

InsideInsurance

low-def wrote: »

So do you think that the Options scheme is a more secure way?

Its not more secure, it gives you more options.

If you know you certainly want rid of the car after 3 years then simply go for the cheapest out of PCP and Leasing and if the price is the same then go for a PCP as there is a small chance they've underestimated its residual value.

If you are less certain of what you will want to do then PCP or other finance options than Leasing may be better for you and worth some element of a premium.

I recently when for a PCP deal rather than leasing because the up front was higher but the monthly payments lower and so the total cost of ownership was almost the same. The PCP vendor would do a trade in where as the Leasing company didnt so I would have to have sold my old car privately and whilst that may have resulted in larger monies it was hassle that I didnt want and the Buy Any Car type websites were offering less than the tradein.

low-def

Im not dead set against keeping the car after say 3 years. The deals i have seen for leasing a new Fiesta Ztec 5 dr 1.25 are £119.94 a month with £1000 upfront (6 months fee+admin etc). Does that seem an ok deal? The RRP is £13400

InsideInsurance

I generally use Lings Cars as a baseline for leasing prices. You can at times get cheaper for some models elsewhere but they have good prices across most lines hence a good starting place.

Leasing attracts VAT so you need to check if VAT is included in the price or not you are seeing quoted. Likewise if they include road tax or servicing may or may not be included.

You need to be careful that you are comparing apples and apples.

low-def

Ok thanks. LingsCars website is crazy lol

Yes, I have now noticed the inc VAT bits. The servicing doesn't seem standard but an extra cost. The cost of the car for 3 years looks like £5317.84 all in.

InsideInsurance

low-def wrote: »

Ok thanks. LingsCars website is crazy lol

It matches the persona she presents. She went on the Dragons Den TV programme and said she'd use the money to buy the v2/scud missile launcher (https://www.lingscars.com/feature/truck.php) to use as a marketing prop

I used to know a chap who claimed he did her online marketing (and I believe he did) and he was equally eccentric

That all said and done, there are many that have used the site and are happy with their deal/ service etc