Take over car lease
Discussion
I have a new job starting a 3 weeks of which I have a personal car allowance of ~£360 PCM after tax. The requirement is that the car needs to be newer than 6 years old so I need to move on my 11 year old 530i.
Ideally, I would prefer to buy something but now is not the time to do that. So I have been looking at taking over an existing car lease. Does anyone have any experience doing this? Anything I should be aware of? Any considerations I should make?
Ideally, I would prefer to buy something but now is not the time to do that. So I have been looking at taking over an existing car lease. Does anyone have any experience doing this? Anything I should be aware of? Any considerations I should make?
I don't understand why you would chose to do this. You will be paying the price for a new car but getting a secondhand one. You will also be taking on responsibility for any issues with the car caused by the previous owner.
Why not just get a lease on a brand new car for the same amount?
Why not just get a lease on a brand new car for the same amount?
JQ said:
I don't understand why you would chose to do this. You will be paying the price for a new car but getting a secondhand one. You will also be taking on responsibility for any issues with the car caused by the previous owner.
Why not just get a lease on a brand new car for the same amount?
seconded, you will be surprised how many cars are around for that sort of money on lease. mercs Bmws, all had easily under that budgetWhy not just get a lease on a brand new car for the same amount?
http://www.contracthireandleasing.com/
Is an aggregation site (I have no links with it) - just choose your mileage, personal lease and price and see the myriad of options
Is an aggregation site (I have no links with it) - just choose your mileage, personal lease and price and see the myriad of options
The reason I'm considering this approach is that I just want something sort term that meets the requirements of being newer that 6 years and within the budget.
I would prefer to buy a car via a personal loan and pay for it using the allowance, but given the new job and other mortgage related activities, I would prefer something short term that doesn't involve borrowing 14/15k up front.
I get what you're saying about taking on someone eles problems but given my position, it seems fairly low risk and short term. Do you agree? I'm open to suggestions.
I would prefer to buy a car via a personal loan and pay for it using the allowance, but given the new job and other mortgage related activities, I would prefer something short term that doesn't involve borrowing 14/15k up front.
I get what you're saying about taking on someone eles problems but given my position, it seems fairly low risk and short term. Do you agree? I'm open to suggestions.
Origin Unknown said:
I have a new job starting a 3 weeks of which I have a personal car allowance of ~£360 PCM after tax. The requirement is that the car needs to be newer than 6 years old so I need to move on my 11 year old 530i.
Ideally, I would prefer to buy something but now is not the time to do that. So I have been looking at taking over an existing car lease. Does anyone have any experience doing this? Anything I should be aware of? Any considerations I should make?
My opinion is that it's a silly idea, you obviously may think different. Not sure since when a used 3yr old car = 15k either Ideally, I would prefer to buy something but now is not the time to do that. So I have been looking at taking over an existing car lease. Does anyone have any experience doing this? Anything I should be aware of? Any considerations I should make?
The problem is finding someone who wants out of their lease and who's leasing company agrees to the transfer.
Yes if you take on the remaining portion of someone else's lease you don't have to pay the initial deposit but there will be credit checks and documentation fees, although I guess the person who wants out of their lease may be willing to cover those. You need to be very careful that the car has been properly maintained i.e. serviced on schedule at an approved garage (usually has to be main dealer with personal leases) otherwise the lease company will want money off you at the end of the lease to cover the extra depreciation the car will have taken.
Also when the car goes back at the end of the lease any physical damage to the car (scratches, etc) which isn't covered by the BVRLA fair wear and tear guidelines will need to be paid for by you so there could be an end of lease cost too.
To be honest in your situation I'd probably be looking at a four or five year old car and run that. In the current job climate do you really want to be saddling yourself with a long lease? You've still got to pay it if things go pear-shaped.
Alternately, if you want a Juke Tekna dCi with 12 months and 25k miles left on the contract @ £320 a month drop me a message and maybe I'll start shedding a year earlier than I thought
Yes if you take on the remaining portion of someone else's lease you don't have to pay the initial deposit but there will be credit checks and documentation fees, although I guess the person who wants out of their lease may be willing to cover those. You need to be very careful that the car has been properly maintained i.e. serviced on schedule at an approved garage (usually has to be main dealer with personal leases) otherwise the lease company will want money off you at the end of the lease to cover the extra depreciation the car will have taken.
Also when the car goes back at the end of the lease any physical damage to the car (scratches, etc) which isn't covered by the BVRLA fair wear and tear guidelines will need to be paid for by you so there could be an end of lease cost too.
To be honest in your situation I'd probably be looking at a four or five year old car and run that. In the current job climate do you really want to be saddling yourself with a long lease? You've still got to pay it if things go pear-shaped.
Alternately, if you want a Juke Tekna dCi with 12 months and 25k miles left on the contract @ £320 a month drop me a message and maybe I'll start shedding a year earlier than I thought
Some great advice in here so let me address some of the points
This is exactly the reason why I am considering something short term as I *don't* want to jump the gun and financially commit. In reference to the exemption policy, it is stated that if I cannot prove that I satisfy the requirements, then I am not entitled to the personal allowance.
As we are currently involved in mortgage activities, this car allowance bumps up my salary but a sensible amount and therefore makes our application a more attractive proposition. Yes, I know that it is essentially cancelled out by another financial commitment, but the steer I have been given when talking directly to mortgage advisors is that they like to see the higher salary.
I currently run a E39 5 series and it suits us perfectly to move 3 kids + associated paraphernalia (2 are in car seats). I love my BMW's so I would like to buy a E60 when I have reached a point of confidence in the job. Hence the 13/15K statement.
So, given the extra information, does this sound like a good idea to people now? I'm still open to opinions.
SWoll said:
McHaggis said:
Yes.
Ask HR for an exemption for the policy until your probation period (6 months?) has been completed, then decide.
Very good advice IMO. Make sure you are happy and committed to the job before financially committing to anything else. Ask HR for an exemption for the policy until your probation period (6 months?) has been completed, then decide.
As we are currently involved in mortgage activities, this car allowance bumps up my salary but a sensible amount and therefore makes our application a more attractive proposition. Yes, I know that it is essentially cancelled out by another financial commitment, but the steer I have been given when talking directly to mortgage advisors is that they like to see the higher salary.
SWoll said:
frosted said:
Not sure since when a used 3yr old car = 15k either
What a silly statement. Plenty of 3 year old cars are £15K.charltjr said:
The problem is finding someone who wants out of their lease and who's leasing company agrees to the transfer.
Yes if you take on the remaining portion of someone else's lease you don't have to pay the initial deposit but there will be credit checks and documentation fees, although I guess the person who wants out of their lease may be willing to cover those. You need to be very careful that the car has been properly maintained i.e. serviced on schedule at an approved garage (usually has to be main dealer with personal leases) otherwise the lease company will want money off you at the end of the lease to cover the extra depreciation the car will have taken.
Also when the car goes back at the end of the lease any physical damage to the car (scratches, etc) which isn't covered by the BVRLA fair wear and tear guidelines will need to be paid for by you so there could be an end of lease cost too.
To be honest in your situation I'd probably be looking at a four or five year old car and run that. In the current job climate do you really want to be saddling yourself with a long lease? You've still got to pay it if things go pear-shaped.
Alternately, if you want a Juke Tekna dCi with 12 months and 25k miles left on the contract @ £320 a month drop me a message and maybe I'll start shedding a year earlier than I thought
Great post and thanks for outlining what I'm getting in to. And this is exactly what inspired the idea of taking on someone else's lease - Its short term and won't be subject to money upfront and satisfies the requirements to gain the personal allowance.Yes if you take on the remaining portion of someone else's lease you don't have to pay the initial deposit but there will be credit checks and documentation fees, although I guess the person who wants out of their lease may be willing to cover those. You need to be very careful that the car has been properly maintained i.e. serviced on schedule at an approved garage (usually has to be main dealer with personal leases) otherwise the lease company will want money off you at the end of the lease to cover the extra depreciation the car will have taken.
Also when the car goes back at the end of the lease any physical damage to the car (scratches, etc) which isn't covered by the BVRLA fair wear and tear guidelines will need to be paid for by you so there could be an end of lease cost too.
To be honest in your situation I'd probably be looking at a four or five year old car and run that. In the current job climate do you really want to be saddling yourself with a long lease? You've still got to pay it if things go pear-shaped.
Alternately, if you want a Juke Tekna dCi with 12 months and 25k miles left on the contract @ £320 a month drop me a message and maybe I'll start shedding a year earlier than I thought
So, given the extra information, does this sound like a good idea to people now? I'm still open to opinions.
I think you're mad - have you ever handed a lease car back before? They go over it with a fine tooth combe and every ding dent scratch or curbed alloy will be your responsibility to repair, often at significant cost. Lease cars get swapped around at my workplace and it causes no end of issues, as we're personally responsible for the end repair costs. Lots and lots of people have fallen out with colleagues and HR over it. It's one of the reasons I've opted out 3 years ago and take the cash to run my 15yr old 2 seater convertible as my company car.
Secondly, what you're proposing is equivalent to buying a 2yr old car that cost £20,000 new and paying £20,000 for it.
Thirdly, are you absolutely sure the cash for car will count towards your mortgage calculation? In the past mine hasn't, the cash I receive for the car is very separate on my payslip and is not classed as Salary - it's a benefit in the same way as my firm's pension contribution is.
If I were in your shoes I'd go to the auctions, pick up a 3yr old ex lease BMW (if that's what you want) and run it for the probationary period, then once you're certain you're staying get the new lease car of your choice. Our current family bus was bought at auction and for the first 12 months of ownership we could have sold at a profit at any time. Having had lease cars for 15 years I wouldn't dream of taking over someone elses lease, unless they paid me a significant sum of money to do so.
Secondly, what you're proposing is equivalent to buying a 2yr old car that cost £20,000 new and paying £20,000 for it.
Thirdly, are you absolutely sure the cash for car will count towards your mortgage calculation? In the past mine hasn't, the cash I receive for the car is very separate on my payslip and is not classed as Salary - it's a benefit in the same way as my firm's pension contribution is.
If I were in your shoes I'd go to the auctions, pick up a 3yr old ex lease BMW (if that's what you want) and run it for the probationary period, then once you're certain you're staying get the new lease car of your choice. Our current family bus was bought at auction and for the first 12 months of ownership we could have sold at a profit at any time. Having had lease cars for 15 years I wouldn't dream of taking over someone elses lease, unless they paid me a significant sum of money to do so.
Try these:
ExDemo lease:
http://www.hippoleasing.co.uk/ex-demo-lease-cars
ExDemo No Deposit:
http://www.hippoleasing.co.uk/ex-demo-no-deposit-l...
There were a few mid term lease deals that I saw, where you lease it from the leaser (not the old owner) - I'll see if I can find it.
ExDemo lease:
http://www.hippoleasing.co.uk/ex-demo-lease-cars
ExDemo No Deposit:
http://www.hippoleasing.co.uk/ex-demo-no-deposit-l...
There were a few mid term lease deals that I saw, where you lease it from the leaser (not the old owner) - I'll see if I can find it.
Gassing Station | General Gassing | Top of Page | What's New | My Stuff