Benefits of Leasing for Private Individual?
Discussion
I'm just about to change my car and will be financing the vehicle either as a PCP or Private Lease. The main benefit of leasing seems to be claiming the V.A.T back on the monthly payments, which as a Private Individual I cannot do but I like the idea of a fixed maintenance contract and changing the car quite often. The deposits on leasing are quite high and I understand that your credit report needs to be exceedingly good. What is the best way for a regular, employed person to drive a new car?
Leasing can make excellent financial sense for private individuals.
For instance, my OH has signed up for a new Golf R, with some cracking options, for £333 pm for 23 months, £1800 down.
This includes road tax, maintenance....even the tyres!!!
You just have to do the sums and reflect on your views on ownership.
Some lease deals, at both ends of the desirability spectrum, are just too good to ignore.
For instance, my OH has signed up for a new Golf R, with some cracking options, for £333 pm for 23 months, £1800 down.
This includes road tax, maintenance....even the tyres!!!
You just have to do the sums and reflect on your views on ownership.
Some lease deals, at both ends of the desirability spectrum, are just too good to ignore.
Leasing can make excellent financial sense for private individuals.
For instance, my OH has signed up for a new Golf R, with some cracking options, for £333 pm for 23 months, £1800 down.
This includes road tax, maintenance....even the tyres!!!
You just have to do the sums and reflect on your views on ownership.
Some lease deals, at both ends of the desirability spectrum, are just too good to ignore.
For instance, my OH has signed up for a new Golf R, with some cracking options, for £333 pm for 23 months, £1800 down.
This includes road tax, maintenance....even the tyres!!!
You just have to do the sums and reflect on your views on ownership.
Some lease deals, at both ends of the desirability spectrum, are just too good to ignore.
Thanks Jazzer, funnily enough it was the Golf R that I had in mind, a local lease company have now started to produce all kinds of wonderful deals now I've enquired. So even without the vat being claimed back is a lease better deal than a PCP? I have no desire to own a depreciating thing but but would like to travel comfortably and occasionally quickly
Jazzer said:
Leasing can make excellent financial sense for private individuals.
For instance, my OH has signed up for a new Golf R, with some cracking options, for £333 pm for 23 months, £1800 down.
This includes road tax, maintenance....even the tyres!!!
You just have to do the sums and reflect on your views on ownership.
Some lease deals, at both ends of the desirability spectrum, are just too good to ignore.
That's costing her £9459. What's the depreciation on a new one over two years? I'd be interested in seeing the sums on this.For instance, my OH has signed up for a new Golf R, with some cracking options, for £333 pm for 23 months, £1800 down.
This includes road tax, maintenance....even the tyres!!!
You just have to do the sums and reflect on your views on ownership.
Some lease deals, at both ends of the desirability spectrum, are just too good to ignore.
I've been leasing an E220 for the past couple of years.
It's £400 pcm based on 3 + 35. ( 12k miles per year)
The depreciation would be greater than the lease cost and when I add in the opportunity cost of having the cash in my offset accounts, financially it makes it a no brainer.
having said all that, I won't lease again as I'm paranoid about every mark and stone chip on the car.
It's £400 pcm based on 3 + 35. ( 12k miles per year)
The depreciation would be greater than the lease cost and when I add in the opportunity cost of having the cash in my offset accounts, financially it makes it a no brainer.
having said all that, I won't lease again as I'm paranoid about every mark and stone chip on the car.
it really depends on circumstance and financial strategy, if you want a new car with (supposedly) less hassles/under warranty, and fixed outgoings then leasing can appeal
at the same time if you have 40% of the new car cost, then just buy a 3 yr old lightly used one for cash, from the guy taking the lease car back hes looked after so well
at the same time if you have 40% of the new car cost, then just buy a 3 yr old lightly used one for cash, from the guy taking the lease car back hes looked after so well
2222 said:
having said all that, I won't lease again as I'm paranoid about every mark and stone chip on the car.
This would be my concern ... they start arguing over minor cosmetic issues which are inevitable with any vehicle that hasn't spent its whole life in a museum, or telling me the tyres have worn quicker than their guidelines suggest they should so they won't replace them under whatever service agreement is in place.bogie said:
it really depends on circumstance and financial strategy, if you want a new car with (supposedly) less hassles/under warranty, and fixed outgoings then leasing can appeal
at the same time if you have 40% of the new car cost, then just buy a 3 yr old lightly used one for cash, from the guy taking the lease car back hes looked after so well
The attraction of leasing, for me, would be that it's a new car, so under warranty. Nearly new cars used to look like the really clever way to do things, but these days modern cars are so sophisticated and fragile that I wouldn't dare drive one out of warranty.at the same time if you have 40% of the new car cost, then just buy a 3 yr old lightly used one for cash, from the guy taking the lease car back hes looked after so well
I was a bit worried about the costs on handback but I had a good read of the BVRLA? documentation and found their information to be quite clear and fair.
I was actually surprised about what was 'acceptable'. The stuff they said was ok was far worse condition than any of my 10yr+ old cars have!
I was actually surprised about what was 'acceptable'. The stuff they said was ok was far worse condition than any of my 10yr+ old cars have!
Contract hire can be a cheap way of running a new car. However, you do need to seek out the right deals. Preferably, one that is subsidised by the manufacturer in order to get sales moving. Also, as mentioned by others, it means you are not tieing up a large amount of cash.
Do the sums yourself. Quite often you can get a deal that costs less overall than the depreciation on a new or one year old car, even with a discount on the new price. Check carefully on the cost of options with your lease company. Metallic paint can actually reduce the monthly lease costs as it helps the resale.
The industry got a bad reputation for gouging customers when the vehicles were returned. Mercedes were particularly bad. However, they now use industry standard guidelines. My last experience was actually a pleasant surprise.
Finally, remember nothing is going to be cheaper than buying a three or four year old car and doing some of the spannering yourself. Contract hire is for those who appreciate having a new car every two to three years.
Pp
Do the sums yourself. Quite often you can get a deal that costs less overall than the depreciation on a new or one year old car, even with a discount on the new price. Check carefully on the cost of options with your lease company. Metallic paint can actually reduce the monthly lease costs as it helps the resale.
The industry got a bad reputation for gouging customers when the vehicles were returned. Mercedes were particularly bad. However, they now use industry standard guidelines. My last experience was actually a pleasant surprise.
Finally, remember nothing is going to be cheaper than buying a three or four year old car and doing some of the spannering yourself. Contract hire is for those who appreciate having a new car every two to three years.
Pp
Rick101 said:
I was a bit worried about the costs on handback but I had a good read of the BVRLA? documentation and found their information to be quite clear and fair.
I was actually surprised about what was 'acceptable'. The stuff they said was ok was far worse condition than any of my 10yr+ old cars have!
I didn't have a problem when I handed my car back. If you treat the car like it's your own property you won't go far wrong. If it does suffer some minor damage usually a smart repair is sufficient. When the guy 'inspected' my car it was no more than a cursory glance and the same sort of thing one experiences after returning a hire car after a holiday.I was actually surprised about what was 'acceptable'. The stuff they said was ok was far worse condition than any of my 10yr+ old cars have!
It certainly wouldn't put me off leasing a car again.
I constructed my own PCP using my offset mortgage when I bought by used TT
I added the purchase price to my mortgage. Then estimated what it would be worth 3 years down the line and subtracted that from the purchase price to give the amount I need to pay off over 3 years. Worked out my monthly payment at my mortgage rate of interest (<2%) and away you go.
I carry the ownership risk, in that I can't be sure what I will get for the car, but I get a lot of flexibility. I can vary the term as and when I want, throw in an upfront payment of any size, and I can use it to buy any used car.
Not for everyone - do your own research etc
I added the purchase price to my mortgage. Then estimated what it would be worth 3 years down the line and subtracted that from the purchase price to give the amount I need to pay off over 3 years. Worked out my monthly payment at my mortgage rate of interest (<2%) and away you go.
I carry the ownership risk, in that I can't be sure what I will get for the car, but I get a lot of flexibility. I can vary the term as and when I want, throw in an upfront payment of any size, and I can use it to buy any used car.
Not for everyone - do your own research etc
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