Car leasing

Jimbobthecat

It’s about time there was some sort of restriction on how car leasing is advertised.
Typically cars are regularly advertised for say £160 per month
But when you look at the details there is a deposit of £1500 and then an arrangement fee of around £300
that adds up to an extra £50 a month over 36 months
How are they getting away with it?

Car_54

Possibly because most people still have the wit not to be taken in?

Arunmor

Because all you have to do in any circumstance is add the deposit to the total monthly payments and divide by the term.  Some people like bigger deposits than others and you will probably save a bit on slightly less interest on the remaining balance.

You can normally choose how much deposit to pay 3 months, 6 months and 9 months are typical on the odd occasion you might have no deposit.  Just as with mileage per annum you pay more for a higher mileage allowance.

Stateofart

Leasing has always been 36 + 3 (or some variation of), meaning it's 36 payments and three months up front.  It's been like that for years and quite normal.

DullGreyGuy

Jimbobthecat said:

It’s about time there was some sort of restriction on how car leasing is advertised.
Typically cars are regularly advertised for say £160 per month
But when you look at the details there is a deposit of £1500 and then an arrangement fee of around £300
that adds up to an extra £50 a month over 36 months
How are they getting away with it?

Because they are advertising what you will be paying each month to them not a reapportionment of the up front costs. PCP/HP are no different, they will also advertise a monthly price with an assumption in the small print of a reasonable size deposit having been paid. 

Brewer21

Stateofart said:

Leasing has always been 36 + 3 (or some variation of), meaning it's 36 payments and three months up front.  It's been like that for years and quite normal.

Slight correction, most deals I've seen are say over a 3 year lease the first payment as a deposit x how months you opt to pay up front then x 35 monthly payments.