Is Leasing Worth It

Krisharris77

I have always purchased my cars with cash but am struggling to get a large sum of money together for a new one. Anybody had experience with leasing?
Leasing seems to give me the best flexibility and I can start with a 1 month deposit but that does increase the monthly payment - but like I say I'm struggling to get a large amount of money together as so many other outgoings.
My next problem is if I was to go down this route who do I use as there are so many leasing companies out there - do you play it safe with the big ones on Google, or use a smaller independent. Would love to hear if anyone has any recommendations of good leasing companies - or ones to avoid (or alternatives to lease)
Thanks in advance

Mercdriver

Krisharris77 wrote: »

I have always purchased my cars with cash but am struggling to get a large sum of money together for a new one. Anybody had experience with leasing?
Leasing seems to give me the best flexibility and I can start with a 1 month deposit but that does increase the monthly payment - but like I say I'm struggling to get a large amount of money together as so many other outgoings.
My next problem is if I was to go down this route who do I use as there are so many leasing companies out there - do you play it safe with the big ones on Google, or use a smaller independent. Would love to hear if anyone has any recommendations of good leasing companies - or ones to avoid (or alternatives to lease)
Thanks in advance

Why do you always need a brand new car? Why not buy a 1 - 2 year old car that has a long warranty - Hyundai, Toyota, Kia all have 5+ years. Or else buy approved used and extend the manufacturer's warranty.

What is there in a brand new car that you can't get in a nearly new?

loskie

sounds like you cannot afford a new car and should keep what you have or buy used.

Nobbie1967

Not sure that leasing offers the best flexibility since you are tied in to a long contract with heavy penalties for early cancellation, but if your circumstances are stable then can be a good option.

Not sure it matters greatly which firm you use since the risk is mainly on their side as you have a capital asset up front and are only paying them a relatively small payment each month. Having said that, big firms may be able to get the best deals due to buying power.

If you can go in with an open mind about what you'll be driving, you can get some very good deals when manufacturers are trying to offload stock onto leasing companies.

Cornucopia

I agree with the above comments, but do not know the OP's circumstances, so there might be some reason for wanting/needing a new car.

Leases are not flexible - pretty much by definition. (As usual on MSE, I assume we are talking about a true lease - a fixed term rental, based on commercial rates having had VAT added to them rather than a PCP which is likely to be more costly but more flexible).

I have a Lease car - it's the first time I've had one (have had several PCPs in the past). I have to say that I struggled to find the right company to deal with. The market is complex and diverse, and some of the companies are very small. I also contacted a few local Main Dealers and found that they split into 3 groups: no leases to private buyers, leases but at higher than market rates, and market rate leases. Fortunately, I was considering a Skoda and they are in the "market rate" group. I therefore went with them and the process was reasonably slick once I had made contact with the leasing specialist in the dealership. The service from the Dealer was excellent (they even came to pick me up, since there was no trade-in).

For me, it is a simple proposition, and it is all about the numbers. Leases make most sense for me at rates of sub-£200pm, and even more so at sub-£150.

Krisharris77

Mercdriver wrote: »

Why do you always need a brand new car? Why not buy a 1 - 2 year old car that has a long warranty - Hyundai, Toyota, Kia all have 5+ years. Or else buy approved used and extend the manufacturer's warranty.

What is there in a brand new car that you can't get in a nearly new?

I would still need a large amount of cash or go to a finance company to fund this option - although I can see what you are saying - thanks

Krisharris77

Cornucopia wrote: »

I agree with the above comments, but do not know the OP's circumstances, so there might be some reason for wanting/needing a new car.

Leases are not flexible - pretty much by definition. (As usual on MSE, I assume we are talking about a true lease - a fixed term rental, based on commercial rates having had VAT added to them rather than a PCP which is likely to be more costly but more flexible).

I have a Lease car - it's the first time I've had one (have had several PCPs in the past). I have to say that I struggled to find the right company to deal with. The market is complex and diverse, and some of the companies are very small. I also contacted a few local Main Dealers and found that they split into 3 groups: no leases to private buyers, leases but at higher than market rates, and market rate leases. Fortunately, I was considering a Skoda and they are in the "market rate" group. I therefore went with them and the process was reasonably slick once I had made contact with the leasing specialist in the dealership. The service from the Dealer was excellent (they even came to pick me up, since there was no trade-in).

For me, it is a simple proposition, and it is all about the numbers. Leases make most sense for me at rates of sub-£200pm, and even more so at sub-£150.

Thank you for your sensible reply - I want to go down the lease route as I have a disposable income put aside and need a reliable car without any surprises (I believe going down the lease route if anything major mechanical goes wrong its covered?) My current car is not worth much and is becoming unreliable and with children I need to make sure the car that myself and wife is driving is both affordable & reliable.
Could I ask who you lease from and what you drive? thanks again

Cornucopia

Krisharris77 wrote: »

... need a reliable car without any surprises (I believe going down the lease route if anything major mechanical goes wrong its covered?)

Yes - although coverage is much the same as with any other new car or a second hand one with the balance of the Manufacturer's warranty.

Could I ask who you lease from and what you drive? thanks again

It's a Skoda Octavia. Leased from Skoda (actually VW Financial Services). Lease rates on the vehicle start from around £160pm inc VAT, and I pay c. £180pm for a car with an Auto gearbox, inclusive maintenance and 10,000 miles pa over 36 months.

If you are considering a VAG car, don't be put off by the 1.0 turbo petrol engine, even in a heavy car. It's an excellent engine.

foxy-stoat

Even the brand new cars have surprises....there was a poor sap on here the other week saying that is 5 month old BMW that he paid £55K for has been at the dealer for months as they cannot find out what a fault is....then another even poor person dropped £140,000 for a new Tesla only for them to knock £40,000 off the new price a few weeks after he bought it.

I would not buy a new car that I could not afford solely on the fact that I wanted no surprises....I would buy a well looked after second hand car that I could afford, which I have done and the only surprise so far after a year with it is that I have had no surprises.

Good lucks

Krisharris77

foxy-stoat wrote: »

Even the brand new cars have surprises....there was a poor sap on here the other week saying that is 5 month old BMW that he paid £55K for has been at the dealer for months as they cannot find out what a fault is....then another even poor person dropped £140,000 for a new Tesla only for them to knock £40,000 off the new price a few weeks after he bought it.

I would not buy a new car that I could not afford solely on the fact that I wanted no surprises....I would buy a well looked after second hand car that I could afford, which I have done and the only surprise so far after a year with it is that I have had no surprises.

Good lucks

Thanks for this am aware that purchasing a new car will lose money, but don't think I'm quite in the Tesla market place - more of a reliable family car.

Krisharris77

Cornucopia wrote: »

Yes - although coverage is much the same as with any other new car or a second hand one with the balance of the Manufacturer's warranty.


It's a Skoda Octavia. Leased from Skoda (actually VW Financial Services). Lease rates on the vehicle start from around £160pm inc VAT, and I pay c. £180pm for a car with an Auto gearbox, inclusive maintenance and 10,000 miles pa over 36 months.

If you are considering a VAG car, don't be put off by the 1.0 turbo petrol engine, even in a heavy car. It's an excellent engine.

Again thank you for a sensible reply - I know a lot of people seem to be against the whole idea of a lease vehicle but it definitely is the fit I'm looking for (reliable, low outlay, manageable monthly payments) Thank you for all your help - I'll let you know how it goes and what I ended up going for. Now for the unenviable task of finding the best deal. Thanks again