Leasing - few questions

jamief

jamief

jamief

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Am looking at leasing a new Golf GTI early next year, have a few questions (bear in mind I've never owned a new car before, so they may be a bit easy)

- A lot of the lease companies offer maintenance leases. However, I was under the impression that new cars often don't need serviced for the first 10-15k anyway, making the maintenance part somewhat redundant?

- Warranties - does this generally come as-standard with a new car, or is it different when you lease?

Cheers!
 
[TW]Fox said:
A warranty is standard with the car.

If you are a private customer, leasing rarely ever makes sense.
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Why is that?

24 month lease @ £300 month = £7200.

£7200 = pretty much the depreciation if I buy it outright, plus don't have the hassle of taking out loans, negative equity, selling it on etc.

What is the other option? PCP?
 
People say its a waste of money private because you never have anything to show for it once/if the car is returned.

Surely PCP is the same as buying it outright!
 
I generally change cars every 2-3 years, so couldn't care less if I don't have anything to show. I guess it comes down to whether or not you view a car as a service or as a possession.

PCP is slightly different, as you have the option of making a final payment to buy the car, otherwise you hand it back, so in that regard it seems very much like a lease, except you pay interest.
 
jamief said:
I generally change cars every 2-3 years, so couldn't care less if I don't have anything to show. I guess it comes down to whether or not you view a car as a service or as a possession.

PCP is slightly different, as you have the option of making a final payment to buy the car, otherwise you hand it back, so in that regard it seems very much like a lease, except you pay interest.
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Yeah, i know what it means, what i'm saying is that if your planning on keeping the car, whats the point in PCP'ing when you can buy it outright, and probably get discounts on it.

If you were not planning on keeping it and, as you say, changing it in 2-3 years then maybe PCH is for you.
 
I am leasing my Golf at the moment. I did the calculations and i worked out I should be about £600 better off after the two years. But then as you say - add in the time and cost of selling it on or taking a hit when trading it in then it started to make more sense to me.

Fox means that it is significantly better for companies to do it rather than private individuals as they can recoup the VAT making a 17.5% saving. Most private contract hire deals don't make much of a saving if any. You need to find the right deal.... and stick to the mileage!

EDIT: And I too change my car quite often. For little more than I was paying for my Focus I now have the use of a new Golf. I would have had an 8 year old Focus at the end of that but also I would have paid out for either a Warranty Direct warranty or lots of repair bills the way that thing was going!
 
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I've always regarded a new private purchase as money down the pan,from what jamief says, it seems a no brainer. (As long as you keep wanting a new car every few years)
 
jamief said:
Why is that?

24 month lease @ £300 month = £7200.

£7200 = pretty much the depreciation if I buy it outright, plus don't have the hassle of taking out loans, negative equity, selling it on etc.
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£300 a month? That seems very well priced, you sure thats including VAT?

And are you sure £7200 is the depreciating on a new GTi - that would mean a 2 year old 55 plate car is worth £13k. I can't see any of any age for that!
 
[TW]Fox said:
£300 a month? That seems very well priced, you sure thats including VAT?

And are you sure £7200 is the depreciating on a new GTi - that would mean a 2 year old 55 plate car is worth £13k. I can't see any of any age for that!
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It sounds pretty good, i know my mums company car (Golf SDi) is £209 a month (obviously +vat)
 
[TW]Fox said:
£300 a month? That seems very well priced, you sure thats including VAT?
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Bit too cheap that if it is inc VAT. Best i can see is £330 inc VAT (includes first three months upfront). And that is a 3 year deal.

Got a link OP?
 
It was circa £300 exc. VAT. Fiancee is director of a company, so quite likely we could do it through that and claim VAT back? Don't have link handy, will dig it out later, link is saved on laptop :)
 
It will cover the vehicle mechanically if anything goes wrong and isn't covered under warranty, because it breaks the wrong way.

Turbo, gearbox, clutch, engine etc can be big bills.

Plus you have to take into account the day to day running costs of tyres, bulbs, wiper blades, brake pads/discs etc which isn't part of your annual service.
 
jamief said:
It was circa £300 exc. VAT. Fiancee is director of a company, so quite likely we could do it through that and claim VAT back? Don't have link handy, will dig it out later, link is saved on laptop :)
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Erm that would be a no, contract hire and lease purchase you can reclaim 50% of the VAT element of the hire/lease charge and 100% of the maintenance element. If you went through a company then it would be a company car and someone (employee) would be liable for company car tax, and that will be fairly hefty on a golf gti.
 
Ring Peace said:
Erm that would be a no, contract hire and lease purchase you can reclaim 50% of the VAT element of the hire/lease charge and 100% of the maintenance element. If you went through a company then it would be a company car and someone (employee) would be liable for company car tax, and that will be fairly hefty on a golf gti.
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Ahh okay. Don't really know about the ins and outs of doing it through a company, so looks like it would be better to do it personally.
 
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