Pros and Cons of Leasing

FL630

FL630

FL630

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Hertfordshire
Hi,

I'm looking at replacing my aging 320ci with a Fiesta ST.

My Carwow sourced ford Dealer has offered me somewhere around £1500 down and £260 a month. However I found these deals online
http://www.rivervaleleasing.co.uk/car-leasing/ford/fiesta/1_6-ecoboost-st-2-3dr-57319
https://www.gateway2lease.com/cars/...6t-182-st-3-ecoboost-6speed.php#refresh_quote

This works out (on 3+24) at around £220 a month, bargain!

But what are the cons to such a good deal? I'm not worried about having no cash at the end of the 2 years as I'll just work something else out to get a new deposit. Am I blind but I can't see anything bad about leasing?

Any tips from those whom have done it would be appreciated.
 
It'd be 3+23 (the first monthly payment is the deposit). The only extra costs to add is gap insurance (I suggest ala.co.uk).

If you want a specific car, be careful - the trick is to not really care too much what you want but have a type of car and budget set. That Fiesta is 5.2k over 2 years, not terrible but not fantastic either. There was a Polo GTI floating around for a grand and a bit less not too long ago and today there was a Jeep Cherokee Overland for the same TCO, but it has a list price of 50k (to put it in perspective to a Fiesta).

The good deals come and go daily so if you want to do it as cheaply as possible you have to constantly monitor the market and be prepared to wait (and compromise) but if you're happy with 2.6k a year for trouble free motoring then go for it.

I went the leasing route albeit on a Cactus and the the peace of mind it brings is worth every penny, hassle = ****.
 
Thanks Muffin. Thing is I'm really after the Fiesta ST, ideally the 3 but happy to have a 2 if the price is right.

Any good companies renowned for deals or a general comparison website?
 
For companies - not really, all as bad as each other - dealers matching prices can help you avoid the "Admin Charge" (and get a better service). Be mindful of "Gateway 2 Lease" they do have the best offers but they never really exist.

http://www.contracthireandleasing.com/ - that's a good comparison site but it's hard to filter due to the way some deals are loaded on the deposit and others on the monthly.
 
I presume the car dealer is quoting a PCP? In which case, the difference is equity and opportunity to own it. At the end of the 2 years on a lease, you give it back. You can't extend it, buy the car or end it early without paying up most of the agreement.

On a PCP you can buy the car for the final payment (they should have quoted this also) which is normally lower than its worth. So the extra 40 quid a month gives you some equity in it and you can own it if you wish. You'd probably hope to have enough equity to get the 1500 deposit back out. Swings and roundabouts, whichever works for you
 
Pro's of leasing

- Less hassle during the time you own the car
- You can an get some good deals on expensive cars you'd no way otherwise afford

Con's of leasing

- Limited mileage
- Have to be very careful with any damage, make sure you read their fair use/wear and tear points well before you sign up as they can really sting you at the end. (our works van is leased and our company had to pay over £500 for both front doors to be repainted as there were a couple of small car park dings on them..)
- lack of flexibility if your circumstances change as you're locked in regardless of you losing your job or realising you don't actually like that car.
- Can be an expensive way to get into a specific model of car.
- Nothing to show for it after the 2 years
 
sovietspybob said:
Pro's of leasing

- Less hassle during the time you own the car
- You can an get some good deals on expensive cars you'd no way otherwise afford

Con's of leasing

- Limited mileage
- Have to be very careful with any damage, make sure you read their fair use/wear and tear points well before you sign up as they can really sting you at the end. (our works van is leased and our company had to pay over £500 for both front doors to be repainted as there were a couple of small car park dings on them..)
- lack of flexibility if your circumstances change as you're locked in regardless of you losing your job or realising you don't actually like that car.
- Can be an expensive way to get into a specific model of car.
- Nothing to show for it after the 2 years
Click to expand...

Its also worth noting that with a lease vehicle you're not the registered keeper, the lease company is.

You will need to ask their permission if you want to take it out of the country and you have to make clear to your insurer that you are neither the owner or the keeper of the vehicle and that the lease company is. Some insurnace companies can be funny about this, but shop around and finding one that isn't won't be too much trouble.
 
The Golf that I got with VWFS states they are the owner but I am the keeper? That not the case?
 
Yeah that's what I though :D

Thanks for clarifying - out of interest, are there any recommended insurers out there? Currently with admiral on a multicar policy, costing £800 for the golf and 4 drivers with main driver 9 years ncb!
 
skaif said:
The Golf that I got with VWFS states they are the owner but I am the keeper? That not the case?
Click to expand...

If your lease company have said you can be the registered keeper that's fine. Some will insist on being the registered keeper also, so just a warning for any prospective buyers as something to consider and check on when you see that great deal posted online :)
 
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