Car leasing - does anyone do it?

Paul. W

Paul. W

Paul. W

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29 Dec 2009
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522
Someone I know of regurlarly turns up with the latest sport hatches, usually changing every few months. (Focus ST's etc)

Turns out its a lease deal. One of those where you just pay a monthly fee (£250 p/m?) And you get the option to return the car whenever you want for another one, or buy it out at the end of the agreement.

Doing a bit of reading, and the majority of them are limited to 10,000 miles per year!

I cant see how they make finiancial sense. Your left with no asset at the end, and it seems an awfuly expensive way to own a nice car with which you cant drive that many miles.

Apart from not having MOT's and servicing, I cant really see the benefits.....anyone enlighten me?
 
the thing is that you can write the lease costs off against a business, so if you are self employed it's a decent way to lessen your tax bill and have a good car, also means that your money doesn't go when something needs sorted with the car
 
the_r_sole said:
the thing is that you can write the lease costs off against a business, so if you are self employed it's a decent way to lessen your tax bill and have a good car, also means that your money doesn't go when something needs sorted with the car
Click to expand...

This, and on certain lease details you can beat the depreciation curve.

It works for some people, doesn't work for others.
 
I've never heard of a lease where you can "return" it for something after a few months. Generally leases are for 24 or 36 months, although you do get some very short term deals, which come with an appropriate bump in price.
 
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