Leasing car Advice

Cpu2007

Hi everyone

After some thoughts, I am starting to consider that leasing a car might be a good idea so came to here to ask some advice from people that chose this path.

The reason why I am thinking about this is because of the hassle that you don't have to go through, in a sense that these cars are usually new, under warranty, and many times mot,road tax and service is included as well so basically all you have to think about is insuring the car; in addition at the end of the contract you don't have the car but also don't have to deal with the deprecated value of the car and all the fuss trying to sell it as well.

However it would be nice if someone could give me a more balanced comparison of leasing vs buying.

The type of car i'm looking for is a fairly sized car (5 seater but not too small as it's for family, used locally, like a city car with options such as parking sensors, hill assist etc to make the drive more comfortable)

I'll really appreciate if you can suggest what cars fall under this category, what company should I consult for leasing (or whether there's a better option)
thank you

andrewf75

Less hassle yes, but you're paying a fortune for it.

you say you don't have to worry about depreciation, but that is mostly what you're paying for with your monthly payment! and depreciation is highest in the first few years - exactly the period you lease for and then just as a car owner starts not losing money in depreciation a leaser gets another one and starts losing money at the highest rate again!

How is selling a car hassle? just take it to a dealer and accept whatever is offered. You can even use webuyanycar.com!

Sorry if thats not the advice you're looking for, but this is a moneysaving site. My advice would be to strongly reconsider.

Cpu2007

I really appreciate your advice, leasing a car is something I always wanted to avoid anything where I would had to pay interests and charges that end up making the total expenditure on the car higher than it would have been if bought in cash. However even when you buy the car, there are extra expenditure to be considered. I would ideally need to workout how much extra I would be paying on car if I lease it vs if I buy it.

BJV

Lease vs buying?


In another life I used to run dealerships, big ones. Huge sales team, service, body shop etc. Lease can be a very good way of buying but you have to be careful.
There are also lots of different types of lease and a lot will depend if you are getting it through a company or as a private person. Also check if you have the option to own the vehicle at the end or do you have to hand it back.


After over 25 years in the motor industry I can honestly say that in most cases lease is just as good if not better.


The manufacture loves it because they get a new reg, the dealership loves it because statistically you are more likely to get another from them. Because of this there are often lots and lots of good deals. Deposit contributions, extra servicing, mega low rate etc.


For example last year we bought a Golf match 1.6 tdi DSG. It was just under 1000 deposit then £168 per month for two years.


Total spend was £5032 ish.


If I had bought the same car it would of cost in the region of £24000. Without a mega deposit which would of meant tying up capital the re-payments would of been much higher. Also the moment that I drove it out of the showroom it would of lost its 20%. So over the two years I would of lost more in depreciation than I spend in rentals.


A colleague bought a SLK for under £250 per month on a two year deal. If fact sometimes because the amount that you pay will depend on residual values you may find that much more expensive brands are cheaper than more main stream.


The beauty is enjoy the car, use it in the best years of its life and then hand it back part ex or whatever.


So for us because lifestyles change and it is so low commitment it is perfect.


BUT if you are the type of person who keeps there cars for ever and a day buying will be better.


Just make sure you shop around with March just around the car there will be lots and lots of deals. If possible wait until the end of the month if you can as all the garages and car manufactures will be panicking and desperate for registrations.


My mum and dad bless them used to buy my mum a new or nearly new car every five years in cash. The moment that they had collected the car he would start saving again and then the moment it was paid for he would change it. MY dad is a bit stuck in his ways but if you can get over the mind set that you may never own the vehicle ( which they did not until the last payment was made ) it is a lot more cost efficient.

Cpu2007

Thank you, even when buying cars, I don't want to keep them for more than 2-3 years.
A few reasons are that the reason I'm buying the car is because it will be used mostly locally, it will be used by different family members which means that a car used locally will have more wear and tear; leasing a new car means that chances of it giving issue because of this type of driving are lower than buying a new car.

If you can provide some links of companies that you would recommend for car leasing, that would be great. I live in the manchester area.

Thanks

BJV

I would just google car lease their are hundreds.
Nationwide vehicle contracts have been going for ages but I have never used them myself.


A good starting point is to see what offers the manufacture has. Sometimes with free servicing and deposit contributions it can be worth while staying with them. Once you know what car you want shop around.


Saying that not sure what type of car you want but the first search I did brought this up. http://www.nationwidevehiclecontracts.co.uk/Volkswagen_UP-10_Move_Up_5_Door-44518.htm. New VW for £100???? bargain! But there are honestly hundreds so just think about what you want and shop.


Nissan juke around £150 and I bet less if you shop around.


Good luck

SmellyPetrol

This debate goes on and on without any real resolution.
End of the day, it's your personal circumstances.

As the above person said - Nationwide Vehicle Contracts have been about for a while, and there are literally hundreds of brokers out there. (Look at this map from just ONE finance company who franchised out their deals and stuff - http://www.networkvehicles.com/network-franchisees/) Just one of them!

I've always been a bloke to by other peoples reviews - so I went here to find a load of lease companies

https://www.trustpilot.co.uk/categories/privat_leasing

but yes you can probably get the same deal from a dealership, but really - who knows!