Leasing Options

_-J-_

_-J-_

_-J-_

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Location
Newcastle
Does anyone on here lease a car? Been looking at it, because looking to get rid of my Pug 306 once its fixed. Seems a better option than finance, although you never own the car.
 
Leasing is essentially the same as PCP (how most new cars are financed). You pay off the depreciation + interest over 2-3 years then give the car back or buy it outright.

It's great if you want a brand new car and can get a good deal. You don't need to worry about residuals, repairs (as it'll be under warranty all the time you're leasing it) or (often) even the road tax. But as you say, it's never really 'your' car.
 
Unless you are leasing through a business it's almost always cheaper to simply buy the car and sell it once you are finished. Then you dont drive around in what is really just a hire car.
 
[TW]Fox;10894849 said:
Nope - you can PCP a used car but a lease from a lease company of a used car is very rare, usually the closest you can get is taking over someone elses lease.
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Doesn't PCP work in the same way as a lease but with more options though.
 
It's similar but it isn't the same. A typical lease really is a long term hire car - you are not even the registered keeper.
 
[TW]Fox;10894896 said:
It's similar but it isn't the same. A typical lease really is a long term hire car - you are not even the registered keeper.
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Correct.

If you get a speeding ticket, they will post it to whomever the Leasing Company is, they will then forward it to you!
 
Phil W said:
Correct.

If you get a speeding ticket, they will post it to whomever the Leasing Company is, they will then forward it to you!
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Indeed, with a £100 admin charge :p.

Watch out for the mileage limits too - often they limit the mileage to 10k per year or so with hefty charges for excess mileage!
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Actually the lease I have and the others I looked at are very reasonable for excess mileage.

My A6 works out cheaper to lease for 2 years than it would have cost me in depreciation, even if I bought it for cash (therefore not taking into account interest on a loan/finance).
 
I was thinking of a deal like 10p per mile excess charge - you do 20k per year and have 30k of excess mileage after the three years. At 10p per mile that's £3000!
 
I believe my excess mileage charge is ~4p/mile. You essentially pay the depreciation based on the excess mileage plus their profit margin.

I'm not suggesting leasing to anyone but it is good if it suits your circumstances. In January 2009 I'm very much looking forward to giving the Audi back and getting another brand new (faster :p) car in the same way.
 
Adz said:
My A6 works out cheaper to lease for 2 years than it would have cost me in depreciation, even if I bought it for cash (therefore not taking into account interest on a loan/finance).
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But your car is leased through your business. It is not a personal lease.
 
[TW]Fox;10895377 said:
But your car is leased through your business. It is not a personal lease.
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Indeed - specific circumstances as I said. A personal lease might still be cheaper than PCP however.

The only advice I can offer is to shop around and see what deals you can find then work out whether they fit your budget. Think long term - 5 years down the line.

If you're just looking for affordable motoring then the most sensible thing to do would be to buy a 4-5 year old Mondeo or similarly reliable steed and run it on a shoestring. Don't kid yourself that financing a brand new car will save you money.
 
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