Does this car lease seem legit?

Johnsmith2016

Hi

Having never leased before I was wondering if I could ask for people's thoughts on the pros and cons?

I have found a lease I am interested in but it seems to cheap to be true on uk central leasing

Hyundai iconqui hybrid £58 pm and 2k deposit 3yeae lease .

So I was considering just adding this all up = circa 4K and sticking it in a separate current account and let it drip feed out - I am after a new car and this seems like I can get a brand new car for my 4K for then 3years free motoring (not free but no payments) as 4K is what I was going to spend anyway on a 2009 Megane.
What is the catch ? Car will be through my fathers business and in his name so hopefully save on vat
Also being a hybrid tax is free and running costs low . Ci can't see a downside for 4K and 3 years motoring = 1300 a year for new car . So what am I missing ??

gingerdad

Seems very low. What mileage per year is it.

AdrianC

Johnsmith2016 wrote: »

Also being a hybrid tax is free...

So long as it's registered before the end of March.

79g/km will be £100 for the first year under the new rates, £140 for subsequent years.

And don't forget that if you spend the £4k on a used car, then you still own a car in three years time. If you lease, then in three years time, you have absolutely zero to show for it. To continue in a similar deal, you need to find the deposit again, then the monthly again.

The lease will also not include maintenance, and you will be liable for any damage above and beyond the industry standard fair wear and tear when it goes back.

Johnsmith2016

It's 8k miles a year which is more than fine for my. Needs.

Point taken regarding tax and future ownership, but for me it just seems like a very cheap way to own a new car, I mean if I was to buy it outright I would lose more than 4K on it in 3years, likewise a personal contract would require a large 8k baloon payment at the end of 4years.
I mean if I paid 4K for a 2009 Megan's yes I own it but after the same period of the lease, the Megan's would be a 11 year old car and not worth much - this way I give the car back and start again and have a new car every 3 years and I'm not bothered about it depreciating . Seems a no brainer just waiting hear the catch .

AdrianC

Johnsmith2016 wrote: »

It's 8k miles a year which is more than fine for my. Needs.

Point taken regarding tax and future ownership, but for me it just seems like a very cheap way to own a new car,

If you're only doing 8k/year, why do you need a brand spankin' new car every three years/less than 24k...?

BTW - you don't "own" it. You're renting it.

this way I give the car back and start again and have a new car every 3 years and I'm not bothered about it depreciating

Apart from the £4k that it's cost you. 17p/mile. Plus insurance, fuel, maintenance, VED. Obviously, more per mile if you're doing lower mileage than that.

Johnsmith2016

Don't need new car ... I want a new car

Point taken re 4K - tax, insurance etc not exclusive to this lease, I would require these regardless of how I do it, unless I choose to walk.

All things considered still seems cheap and a no brainer. Even if I don't lease I usually change my car every 3-4 years anyway as do quite a lot of people I know so for me rather than 4K every 3 years and part ex in my old banger - for the same 4K every few years I can have a new car - less chance of repair costs things breaking than a 7 or 11 year old megane .

photome

AdrianC wrote: »

If you're only doing 8k/year, why do you need a brand spankin' new car every three years/less than 24k...?

BTW - you don't "own" it. You're renting it.

Apart from the £4k that it's cost you. 17p/mile. Plus insurance, fuel, maintenance, VED. Obviously, more per mile if you're doing lower mileage than that.

You often post the same/similar remarks regarding people buying/leasing new cars.

I still faile to understand the need for the question and as the Op has responded its not always about need (no one needs a new car every 3 years or so ) but about freedom of choice

AdrianC

photome wrote: »

You often post the same/similar remarks regarding people buying/leasing new cars.

I still faile to understand the need for the question and as the Op has responded its not always about need (no one needs a new car every 3 years or so ) but about freedom of choice

<looks at name of site>
17p/mile in lease cost alone. Minimum. Higher cost per mile if the mileage is below the cap on the lease.

That's the same as the fuel would cost for that mileage at 30mpg.

rs65

Johnsmith2016 wrote: »

I have found a lease I am interested in but it seems to cheap to be true on uk central leasing

Hyundai iconqui hybrid £58 pm and 2k deposit 3yeae lease .

So I was considering just adding this all up = circa 4K and sticking it in a separate current account and let it drip feed out - I am after a new car and this seems like I can get a brand new car for my 4K for then 3years free motoring (not free but no payments) as 4K is what I was going to spend anyway on a 2009 Megane.
What is the catch ? Car will be through my fathers business and in his name so hopefully save on vat
Also being a hybrid tax is free and running costs low . Ci can't see a downside for 4K and 3 years motoring = 1300 a year for new car . So what am I missing ??

Seems genuine. The one is can see is 18 months though so your calculations would change.

Will there be company car tax implications? Is it worth putting it through a business to save VAT?

photome

AdrianC wrote: »

<looks at name of site>
17p/mile in lease cost alone. Minimum. Higher cost per mile if the mileage is below the cap on the lease.

That's the same as the fuel would cost for that mileage at 30mpg.

Absolutely, the name of the site is why the Op came on here asking if it was a good deal

Aced2016

I've leased for a few years now and love it !

I get a brand new car which I e luckily never had any issues with !

I stick to the mileage and agreement terms, so no issues.

I would say go for it as long as you've read everything in detail !