Advertising finance deals without mentioning deposit
Discussion
Why do companies do it, well it's not really a question i know why it's all about the headline figure it's more of a rant. It just seems completely pointless having these adverts which have no mention of a deposit at all, then you find that actually you've got to pay about a 3rd of the price of the car upfront
I got sucked in by an advert for a skoda citigo for £59 a month, not a car i would have ever normally considered, but thinking i can lease one of them for less than a weeks petrol it might be worth it, but the deposit turned out to be more than all the monthly payments put together.
What world do we live in where we let advertisers give a price which is half the real cost and then still say yeah i'll take it, now i have even more reason to hate anyone who buys a citigo, because they are the reason these misleading adverts exist, they should turn around and said no f
k off, put the deposit in letters as big as the monthly payment on your adverts and next time i might consider it.
I got sucked in by an advert for a skoda citigo for £59 a month, not a car i would have ever normally considered, but thinking i can lease one of them for less than a weeks petrol it might be worth it, but the deposit turned out to be more than all the monthly payments put together.
What world do we live in where we let advertisers give a price which is half the real cost and then still say yeah i'll take it, now i have even more reason to hate anyone who buys a citigo, because they are the reason these misleading adverts exist, they should turn around and said no f
k off, put the deposit in letters as big as the monthly payment on your adverts and next time i might consider it.As you say, it's just a headline grabbing figure.
But you could just as easily go in and say "I want the Citigo but I can only put down £x for the deposit" and then, when they give you a new monthly price just tell them your budget is only £x and get them down.
There's a surprising amount of negotiation room, usually.
But you could just as easily go in and say "I want the Citigo but I can only put down £x for the deposit" and then, when they give you a new monthly price just tell them your budget is only £x and get them down.
There's a surprising amount of negotiation room, usually.
aka_kerrly said:
BL Fanboy said:
A rule of thumb is, if it goes down in value lease it. If it goes up in value buy it.
Personally I hate that phrase, often used by those who think they are clever for leasing a car they know they could never afford outright and insist that they "own" a brand new car.It over simplifies the difference between an appreciating asset and a depreciating one as if by magic you can rent something for less than you'd lose in deprecation because the leasing company are stupid and in the business of losing money. A better mantra would be to only rent something for as long as you want to use it - so if you want a car at your disposal 24/7 buy it, lease it whatever - if you want it for a weekend just to visit Aunty Mavis in Scotland, go to Avis. Powertools are usually a better example - I've no idea why my Dad spent £300 on a hammer drill to put up a single mirror in their living room when he could have rented a better one for £30 a day.
As for the original question, it's no different to adverts that have headlines that scream "from £199" when you know the cheapest version that you'd actually want to own will be double that - they're not designed to make you buy something, only to look more closely at it - no one is going to walk into VW and blindly sign up for a lease on a UP assuming it's only £99 a month without actually checking.
Edited by P-Jay on Wednesday 25th June 14:15
aka_kerrly said:
Personally I hate that phrase, often used by those who think they are clever for leasing a car they know they could never afford outright and insist that they "own" a brand new car.
Not really.I lost £200 a month on a 10 year old 330 convertible
I currently lose £200 on a brand new fiesta with warranty.
I couldn't afford one outright. But if I could I wouldn't buy a fiesta.
aka_kerrly said:
BL Fanboy said:
A rule of thumb is, if it goes down in value lease it. If it goes up in value buy it.
Personally I hate that phrase, often used by those who think they are clever for leasing a car they know they could never afford outright and insist that they "own" a brand new car.aka_kerrly said:
BL Fanboy said:
A rule of thumb is, if it goes down in value lease it. If it goes up in value buy it.
Personally I hate that phrase, often used by those who think they are clever for leasing a car they know they could never afford outright and insist that they "own" a brand new car.How do you deduce what the lease car driver can and cant afford?
All you are doing with leasing is paying the depreciation on the car, lease company admin/profit and paying interest on the value locked up in the car. You do that anyway when buying outright - even cash purchases lose the interest from investments that money could have made.
If you are a businessman, perhaps the opportunity cost of tying up the money in the car is bigger than anything else. Its never straight forward.
We all keep cars temporarily wether 1 week or 20 years - perhaps next time you go to Spain on holiday you should insist on buying Hertz's Fiat Punto off them when you arrive and sell it back to them when you catch the flight home.
Cant be seen to renting a car now can we?
Got a few buy-to-lets have we? You've got a dangerously Landlordy view on people who rent whatever it may be car or perhaps house.
Broad brush remarks say a lot more about the poster than any lease car.
anonymous said:
[redacted]
I agree with you on the haircuts but apart from the whole fraudulent bit, that's mainly a problem for the purchaser rather than the leasing company.That said, I pay £269 per month for a Mercedes on a 2-year lease. Could I afford it with cash? Frankly, no.
I get near enough 50 mpg and nothing at all has gone wrong.
If I had bought a car for the cash deposit, admin fee and gap I would have had just under £2k. To get something space (which I needed at the time) I would be looking at
£1,800 depreciation (either part exchanging or scrapping a 12-year-old car at the end)
£400 tax (as this is included in my lease)
£1k in extra fuel (40 mpg vs 50 mpg)
£500 in bills
Similar insurance and tyre costs (surprisingly an older car is actually more to insure even allowing for the fact that the cheapest insurers won't touch me because my car is leased).
As for why people would choose to pay £8k to rent a "souped-up shopping car?" Probably because it would cost you more than £8k to own it for the same period.
So if I'd got myself a "good" shed with no major issues, buying a car for <10% of its new price, I'd have actually only halved my lease costs even with this best-case scenario. Had I got a car with major problems then I'd have spent more and had a much less pleasant experience. Had I bought a three-year-old car for cash with a similar monthly payment I could have had the worst of both worlds - depreciation and repairs.
Would I do it again? Probably but probably not next time, because I want flexibility and no monthly payment commitments due to mortgage affordability.
surprise surprise - another thread turning into dick consest regarding leasing a car (renting one) or buying outright.
Simple fact is there is postives and negatives to both - sometimes one DOES work out for the better and sometimes not - it really depends on the car and the financials.
Simple fact is there is postives and negatives to both - sometimes one DOES work out for the better and sometimes not - it really depends on the car and the financials.
anonymous said:
[redacted]
Both points are valid but there are those of us who are comfortably in the middle - it's not a stretch to pay the monthlies (but double that for a loan would be) nor do we have piles of cash down the bottom of the sofa.anonymous said:
[redacted]
I think the figure is higher than that but there is a risk premium as well. Even then something that is more than £150 may be right for best value rather than lowest cost.ging84 said:
Why do companies do it, well it's not really a question i know why it's all about the headline figure it's more of a rant. It just seems completely pointless having these adverts which have no mention of a deposit at all, then you find that actually you've got to pay about a 3rd of the price of the car upfront
I got sucked in by an advert for a skoda citigo for £59 a month, not a car i would have ever normally considered, but thinking i can lease one of them for less than a weeks petrol it might be worth it, but the deposit turned out to be more than all the monthly payments put together.
What world do we live in where we let advertisers give a price which is half the real cost and then still say yeah i'll take it, now i have even more reason to hate anyone who buys a citigo, because they are the reason these misleading adverts exist, they should turn around and said no fk off, put the deposit in letters as big as the monthly payment on your adverts and next time i might consider it.
The deposit is in there somewhere. Its normally in tiny writing you can't see it without a magnifying glassI got sucked in by an advert for a skoda citigo for £59 a month, not a car i would have ever normally considered, but thinking i can lease one of them for less than a weeks petrol it might be worth it, but the deposit turned out to be more than all the monthly payments put together.
What world do we live in where we let advertisers give a price which is half the real cost and then still say yeah i'll take it, now i have even more reason to hate anyone who buys a citigo, because they are the reason these misleading adverts exist, they should turn around and said no f
k off, put the deposit in letters as big as the monthly payment on your adverts and next time i might consider it.ging84 said:
Why do companies do it, well it's not really a question i know why it's all about the headline figure it's more of a rant. It just seems completely pointless having these adverts which have no mention of a deposit at all, then you find that actually you've got to pay about a 3rd of the price of the car upfront
I got sucked in by an advert for a skoda citigo for £59 a month, not a car i would have ever normally considered, but thinking i can lease one of them for less than a weeks petrol it might be worth it, but the deposit turned out to be more than all the monthly payments put together.
What world do we live in where we let advertisers give a price which is half the real cost and then still say yeah i'll take it, now i have even more reason to hate anyone who buys a citigo, because they are the reason these misleading adverts exist, they should turn around and said no fk off, put the deposit in letters as big as the monthly payment on your adverts and next time i might consider it.
Where was the advert? If it was on a billboard or in a magazine i think they have to detail the deposit and interest rate. If it was on their website, then not so much.I got sucked in by an advert for a skoda citigo for £59 a month, not a car i would have ever normally considered, but thinking i can lease one of them for less than a weeks petrol it might be worth it, but the deposit turned out to be more than all the monthly payments put together.
What world do we live in where we let advertisers give a price which is half the real cost and then still say yeah i'll take it, now i have even more reason to hate anyone who buys a citigo, because they are the reason these misleading adverts exist, they should turn around and said no f
k off, put the deposit in letters as big as the monthly payment on your adverts and next time i might consider it.Okay put it this way.
Just got a new job and now earning 60K a year. I don't have 40k saved up to buy a brand new car but can EASILY throw away £300 a month on driving around in a brand new car that appeals to me. (i'd only spend it on crap anyway - YOLO and all that...)
Yes I could start saving but would take me a few years and even by the time I could afford to buy one outright it would make no sense because I would lose the same amount in depreciation as the monthly payments.
Just got a new job and now earning 60K a year. I don't have 40k saved up to buy a brand new car but can EASILY throw away £300 a month on driving around in a brand new car that appeals to me. (i'd only spend it on crap anyway - YOLO and all that...)
Yes I could start saving but would take me a few years and even by the time I could afford to buy one outright it would make no sense because I would lose the same amount in depreciation as the monthly payments.
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