Advice on my first lease
Discussion
tomwarne said:
Hey guys, I've got my first lease car coming to an end. I've been paying £200 a month and have been told the car will be worth around £8000 at the end of the lease.
If I trade it in for a new model, will my monthly payments decrease?
Thanks in advance!
What have your lease company offered you in the way of a new deal?If I trade it in for a new model, will my monthly payments decrease?
Thanks in advance!
tomwarne said:
Hey guys, I've got my first lease car coming to an end. I've been paying £200 a month and have been told the car will be worth around £8000 at the end of the lease.
If I trade it in for a new model, will my monthly payments decrease?
Thanks in advance!
Are you sure you are leasing? Sounds like a PCP finance deal to meIf I trade it in for a new model, will my monthly payments decrease?
Thanks in advance!
tomwarne said:
I haven't been back yet, lease finishes in 3 months but wanted to just find out a bit first!
I was hoping that the £8000 would be considered a deposit and would reduce my monthly payments for the next 3 years.
This will only be the case if infact it is not a Lease you have been paying but a Hire Purchase agreement. We need some more detail on the car, payments etc.I was hoping that the £8000 would be considered a deposit and would reduce my monthly payments for the next 3 years.
tomwarne said:
Yeah, not sure why this is considered me trolling. Thought I'd find somewhere to get some friendly advice, clearly this is not the place.
I have zero interest in cars/ motoring and just wanted some advice. Sorry it's so inconvenient.
Not everyone has an interest in cars, so it's not a problem to ask questions.I have zero interest in cars/ motoring and just wanted some advice. Sorry it's so inconvenient.
What is worrying however, is the fact that you don't know whether you have a lease or you are buying the car via the PCP route.
Not knowing a simple matter as to whether you are renting or buying the car is why people are suggesting that you might be a troll.
Bit mean guys...
If it’s what it sounds like (a PCP) you will need to compare the guaranteed future value (GFV) which should be on your paperwork to the price offered by another dealer for your car in part exchange, or what you can sell it for if higher/want the hassle.
The difference between the GFV and what you are offered in pet exchange/we buy any car/sale value is the deposit you have, it can’t be negative - if it is you give the car back and walk away (where the guaranteed future value comes from).
You will not have an £8k deposit to roll over, most PCP plans are now pretty much spot on, you’ll likely get a few hundred pounds back at most.
Also remember that if you want to change make/model you can always go to another dealer/manufacturer if part exchanging. You aren’t tied to the one you got it from (unless you want to) and other sites/brokers (eg. Broadspeed) aren’t cheaper to source a replacement.
If a lease you just give the car back - you’ve been paying to rent it (including initial deposit)
If it’s what it sounds like (a PCP) you will need to compare the guaranteed future value (GFV) which should be on your paperwork to the price offered by another dealer for your car in part exchange, or what you can sell it for if higher/want the hassle.
The difference between the GFV and what you are offered in pet exchange/we buy any car/sale value is the deposit you have, it can’t be negative - if it is you give the car back and walk away (where the guaranteed future value comes from).
You will not have an £8k deposit to roll over, most PCP plans are now pretty much spot on, you’ll likely get a few hundred pounds back at most.
Also remember that if you want to change make/model you can always go to another dealer/manufacturer if part exchanging. You aren’t tied to the one you got it from (unless you want to) and other sites/brokers (eg. Broadspeed) aren’t cheaper to source a replacement.
If a lease you just give the car back - you’ve been paying to rent it (including initial deposit)
kiethton said:
Bit mean guys...
Well yes, but it's difficult to have any sympathy with someone who takes out a £200 per month deal and then somehow thinks they're £8000 better off at the end of it than they really are.It must be utterly obvious that those sums don't add up.
This isn't anything to do with 'knowing about cars', or being an expert in finance. It's simple mathematics.
Yeah, having read through what you've said... does seem a tad optimistic!!
I need to get a valuation for the car and ensure that the payments I have left are less than the valuation of the car? So I'm not in negative equity...
I've never had a credit card before or any finance scheme so I'm not ain fait with the way it all works. I just wanted a simple no hassle way of getting a car that isn't an old banger, and know exactly what I have to pay each month.
Anyway! I better hope I'm not in negative equity then eh? Then use my positive equity towards a new car... or get rid of it and go back to old bangers!
I need to get a valuation for the car and ensure that the payments I have left are less than the valuation of the car? So I'm not in negative equity...
I've never had a credit card before or any finance scheme so I'm not ain fait with the way it all works. I just wanted a simple no hassle way of getting a car that isn't an old banger, and know exactly what I have to pay each month.
Anyway! I better hope I'm not in negative equity then eh? Then use my positive equity towards a new car... or get rid of it and go back to old bangers!
kiethton said:
Bit mean guys...
If it’s what it sounds like (a PCP) you will need to compare the guaranteed future value (GFV) which should be on your paperwork to the price offered by another dealer for your car in part exchange, or what you can sell it for if higher/want the hassle.
The difference between the GFV and what you are offered in pet exchange/we buy any car/sale value is the deposit you have, it can’t be negative - if it is you give the car back and walk away (where the guaranteed future value comes from).
You will not have an £8k deposit to roll over, most PCP plans are now pretty much spot on, you’ll likely get a few hundred pounds back at most.
Also remember that if you want to change make/model you can always go to another dealer/manufacturer if part exchanging. You aren’t tied to the one you got it from (unless you want to) and other sites/brokers (eg. Broadspeed) aren’t cheaper to source a replacement.
If a lease you just give the car back - you’ve been paying to rent it (including initial deposit)
You could say it's a bit mean, but it appears you've put more thought into what kind of finance the OP is using than the OP - which should be extremely alarming. Hopefully the cynical responses are the wake up call the OP needs and they don't ignore them.If it’s what it sounds like (a PCP) you will need to compare the guaranteed future value (GFV) which should be on your paperwork to the price offered by another dealer for your car in part exchange, or what you can sell it for if higher/want the hassle.
The difference between the GFV and what you are offered in pet exchange/we buy any car/sale value is the deposit you have, it can’t be negative - if it is you give the car back and walk away (where the guaranteed future value comes from).
You will not have an £8k deposit to roll over, most PCP plans are now pretty much spot on, you’ll likely get a few hundred pounds back at most.
Also remember that if you want to change make/model you can always go to another dealer/manufacturer if part exchanging. You aren’t tied to the one you got it from (unless you want to) and other sites/brokers (eg. Broadspeed) aren’t cheaper to source a replacement.
If a lease you just give the car back - you’ve been paying to rent it (including initial deposit)
OP - unless you provide exact details of the finance model you're using and the figures involved, no-one can offer any advice and you will continue to get bashed. It would also be prudent to get substantially more familiar with your finance documents.
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