leasing a car for personal use anyone knowabout it?

dannyrst

DUTR wrote: »

I don't see how you arrive at that conclusion if you do not know the deals offered.

Because, like I said, from the sounds of it the OPs friend would like a small car to run around in and do minimal mileage. The chances are that the maintenance will be more than just saving for a service.

If I had particular deals in front of me, of course I could work it out and say for sure. But unlike everyone else who just demands more info, I've answered the question as best as possible with the detail given.

Hintza

It is all about the arithmetic.

Do not choose a particular car, choose the deal ie you will get better deals on cars that are unpopular, wring colour are about to be replaced by new models etc.

Check if VED is included (not a big deal on a small car).

Ensure mileage allowance is adequate and check excess mileage charges some thing like 7p-10p+VAT/mile is about right.

Look closely at maintenance package and decide whether she needs all it covers or would annual servicing be cheaper. A small premium on the maintenance might be OK for peace of mind.

Check when car registered and if if on a three year deal what you can do to avoid MOT eg hand it back slightly early.

Most importantly KNOW WHAT A GOOD DEAL LOOKS LIKE ie do your homework and compare versus buying via cash, loan, pcp etc. Check pre reg deals and dealer registered cars.

Edit:- Be careful of high upfront payments they mask the true cost and makes monthly payments look cheap. To me three months should be standard anything else and it is smoke and mirrors.

Hintza

For under £100 and 10,000 miles (and without searching too deeply)

Seat Mii
Nissan Micra
Skoda Fabia
Chevrolet Spark (surprises me they are still around)
You might also get a VW up (but the one i see say three months up front but in fact it is 6 months)

musafir05

I lease cars every 2 year as I'm a sucker for new models. A lease consist of a upfront deposit either 3x or 6x the value of the monthly repayments. I always lease for 2 years without maintenance as the leasing company I use don't care where the car is serviced. I'm currently leasing a Mercedes CLS 220 AMG and only paying £310 pm which is an absolute bargain. Plus I get a good night sleep knowing all major electrical/mechanical issues are covered via the warranty.

Major points:
-Stay within stated millage.
-Avoid over 2 year deal. Don't want to be paying for MOT and faults.
-Avoid high upfront deposits.
-Ensure the condition of the car is consistent with the mileage upon return.

surfsister

thanks all very helpful!!

surfsister

neilmcl wrote: »

There's plenty of information regarding personal lease plans (or personal contract hire). Get you mate to google it.

not computer literate!!!

neilmcl

surfsister wrote: »

not computer literate!!!

He'll struggle to get the best deal then if he can't trawl through the many advertised deals on tinternet.

macman

Problem with personal leasing is that you cannot reclaim the VAT, unlike a business lease if you are reg'd for VAT. That makes it unattractive compared to a PCP.
Beware that the rates quoted in ads are invariably ex-VAT.

mark5

macman wrote: »

Problem with personal leasing is that you cannot reclaim the VAT, unlike a business lease if you are reg'd for VAT. That makes it unattractive compared to a PCP.
Beware that the rates quoted in ads are invariably ex-VAT.

Why does it make it expensive compared to PCP?

I lease and the pcp deals are poor value compared to lease on the cars I have priced.

bearcat16

The PCP monthly figures are totally irrelevant when comparing with contract hire.

The only thing to compare is PCP: depreciation cost + interest
Vs
Contact hire: total payments over the term.

PCP figures factor in deposits, part ex, and a deliberately (and artificially) low "guaranteed future value"

I've seen some really cracking deals on contract hire lately, imo this is starting to become the most economical way to run a car. I think this is how they do it in the USA.