Car leasing - experiences?

Hermarian

Thanks everyone for the helpful feedback 🙂 I am currently still in the research phase of my search so I have not made any firm decisions.

As Cornucopia says, the main point with the lease is to protect myself against huge depreciation losses. Having a lease makes payments certain and I do enjoy having a new car with the latest technology etc every few years. Also gives peace of mind with warranty.

I'll need to do a bit more research about insurance/GAP insurance and how that works exactly.

Thanks all

Car_54

https://forums.moneysavingexpert.com/discussion/comment/82155706#Comment_82155706

Leasing doesn’t protect you from depreciation losses , they are factored into the leasing payments. So it just spreads the cost.

Goudy

Depreciation is just a cost of use and you will pay it one way or another.

As mentioned, with a lease it's in with the deposit and monthly payments (plus the lease companies profits are also in those payments), that's why if you take a lease that covers more miles, the lease gets dearer as the value of that vehicle with more miles on the clock at the end of the lease is worth less than one with less miles on it.

With a PCP it's in the deposits and monthlies again, just with interest rather than straight profit. Same thing applies to miles. The more you do, the less it's worth at the end, so the more you pay each month.

If you want to cut into this cost of use, you need to look at cars that depreciate less.

Cornucopia

Depreciation is built in to the leasing numbers from the outset. You cannot be asked to pay more to cover any further fall in the value of the vehicle. In the case of one of my two leases, the difference between what I paid and the actual value of the car at the end of the term was substantial, and I did not have to pay it.

Contrast this with a cash purchase or HP finance - the car is worth whatever it turns out to be when the time comes (either the end of the HP term or at some abritary point with cash). That depreciation exposure is not known or controlled at the time of purchase, and the exposure all falls to the buyer.

Bigphil1474

Don't forget the 'luxury car tax' (VED) for years 2 to 6. Check whether that is part of the payment.

born_again

Lease is chase the deal, not chase the car you want, as EVM says. Check u-tube he does best value deals each month.

Bandy2023

https://forums.moneysavingexpert.com/discussion/comment/82156174#Comment_82156174

No need

If it's a lease they pay the VED, it's their car after all - the clue is in the name = 'hire'

PCP is different as it's your car ( albeit financed )

Arunmor

https://forums.moneysavingexpert.com/discussion/comment/82156582#Comment_82156582

Not necessarily I discovered that to my cost when I assumed VED was covered. Should have known when I received the V5c!!

paul_c123

https://forums.moneysavingexpert.com/discussion/comment/82156611#Comment_82156611

You received the V5C for a lease car?

Arunmor

https://forums.moneysavingexpert.com/discussion/comment/82156617#Comment_82156617

Yes, about 18 years ago Mercedes Benz in house lease. So whether relevant now I don't know but certainly worth double checking.