Car Leasing

Andypandyboy

Is anyone knowledgeable on this subject?

Currently, we have a company car rather than take the £675 allowance.

The company are looking to phase out cars and encourage everyone to take the money.

It will not be compulsory though.

What kind of lease deals are out there?
What is generally included?
Are there different kinds of lease?
Are there any pitfalls we should be aware of?
Is it financially beneficial for a higher rate taxpayer?
Is there an upfront payment?

Looking at Mercedes C class or Audi A4/6 What kind of payment is likely at that level?

Any help would be appreciated.

WellKnownSid

Nobody will be able to advise you of a price - it depends on your mileage and whether Audi have just imported 24,000 lime green A6s that they can't shift.

Tip one: go for the best deal, never a particular car. Online brokers are generally the best - lower overheads, the ability to shift volume. You may need to shop around for at least a month to spot the truly stonking deals where the manufacturer has to suddenly pull a rabbit out of the hat at the end of the quarter / year.

Tip two: remember you are responsible for the whole car. Yes, you can have a Mercedes for Renault money - but you'll be responsible for driving around and returning in good condition a £35,000 car, with all the inherent costs.

Tip three: maintenance packages are rarely worth it. Instead, opt for a shorter two year deal so you hand the car back before the first major service / tyres / brakes / etc.

Tip four: add deposit plus any "charges" to total monthly costs (remember the VAT) and divide by the term to compare the true monthly cost. Watch the mileage too... Many "Mercedes E class for under £150/m" type offers will be for just 5,000 miles (!) and a big deposit...

TadleyBaggie

I recently looked into leasing and saw this deal:

Mercedes E220 BTEC Saloon SE Auto :10,000miles/year: £3000 deposit: 23 months: £169.99+VAT per month

Sounded brilliant but when I enquired, the quoted monthly amount was for business users only, as a personal lease the price increased significantly to around £250/month +VAT.

WellKnownSid

TadleyBaggie wrote: »

Sounded brilliant but when I enquired, the quoted monthly amount was for business users only, as a personal lease the price increased significantly to around £250/month +VAT.

It can happen that the business prices are not available to the public - some prices are so low it would just p*ss off the dealer network as it might impact retail sales - but in general they are available to both.

It's all a bit of a mad market... In reality, every manufacturer has bet the farm on fleet which is why the likes of BMW* are rapidly heading towards two thirds of their vehicles being sold as fleet - with the zero brand loyalty that fleet buyers show. Meanwhile private buyers (yes, those people that use their own money / finance and who would otherwise come back time after time and replace their BMW with another BMW) are rewarded with rubbish residuals (because the market is awash with ex lease BMWs). Utter madness...

*applies to almost every manufacturer...

dannyrst

Andypandyboy wrote: »

Is anyone knowledgeable on this subject?

Currently, we have a company car rather than take the £675 allowance.

The company are looking to phase out cars and encourage everyone to take the money.

It will not be compulsory though.

What kind of lease deals are out there? - Loads
What is generally included? - The car. You can add extras, but will need to check with each lease supplier.
Are there different kinds of lease? - Not really, other than personal and business. The terms are different (2 years, 3 years or 4 years generally)
Are there any pitfalls we should be aware of? - Not really, just be aware that you will be charged excess mileage if you go over your agreed limit.
Is it financially beneficial for a higher rate taxpayer? - No, same for everyone because it is something you pay after tax (unless you have another scheme at work that allows you to pay before income tax)
Is there an upfront payment? - Yes, there is a "deposit" which you do not get back. This is usually 3, 6 or 9 months lease payments for the first month. You will see this written like 3+23 (3 months rental paid in the first month, then 23 payments), or 6+35 (6 months initial and 35 months at the normal rate).

Looking at Mercedes C class or Audi A4/6 What kind of payment is likely at that level?

Any help would be appreciated.

You need to spend some time looking at the various lease deals and find one that is right for you. At £675 per month, you'd be looking at some top of the range C class' or similar.

For Example:

Mercedes-Benz C Class Saloon
C300h AMG Line Auto
£504.23 Incl VAT Per Month
Initial Rental - £1,512.69 Incl VAT
Processing Fee - £180.00 Incl VAT

3+23 with 10,000 miles

neilmcl

I think we can disregard the last 2 posts.

Reported as :spam:

bigadaj

neilmcl wrote: »

I think we can disregard the last 2 posts.

Reported as :spam:

Notwithstanding the obvious, I'm not sure how useful an American lease would be to a uk audience.

rhysadams

The other option to look at when on cash for car allowances are PCP's, they run similar to a lease but you have the option to chop it in earlier. Just think if the company you work for goes into liquidation, if you are half way through a lease, you still have to pay for it.
Just be truthful on PCP's and they can work in your favour, most companies promote them based on a ridculous 8k per annum. If you are doing 20k, tell them. Sometimes you can actually benefit from a PCP as their is equity in the vehicle.
Lease cars are great depending what sort of model you go for. They are usually better for the german brands as the monthly rental is based on how much the car can be supplied for and how much the finance company can sell it at the end. So if a car holds its value better than another, then rental should be cheaper.