Car leasing - anyone thought about it?

after chatting with my daughter i wondered how many other people have considerd leasing a car privately instead of buying one.

depreciation on a new car is what £3k in year one ?

so you pay 10k in one year the car value is 7k. you make payments of £150 per month, plus tax £100(?).

so after one year basic loss is £4900.

yet she can lease a corsa for £100 a month - with no added costs over and above those of a normal car (insurance and petrol)

loss in first year £1200.

she's currently driving an L200 which is the same as my example. so in year one she's only £1800 out of pocket.

I worked it out once, at the time it would have cost me far more than buying something, so I bought instead.

It is different if you plan to buy new, but I think you need your head examining if you do that.

If you consider a 1 year old car that has already lost 30% of it's value, it will continue to loose, but at a lower rate, about 12.5% a year say.

So a 10k car in one year will cost £1250 + running costs, tax, insurance, service. For the sake of argument that's 2k.

The cost reduces each year (as depreciation is less each year).

Lease on a similar car (Mondeo maybe?, definitely at least a focus) would cost >£200/month, probably closer to £300. So you're better off buying.

Edit - in your example you can't add the amount paid towards the car to the loss, as it would be recouped when the car was sold.

Only difference I found out leasing was no downpayment needed.

i checked out a few car rental websites, i dont like little cars, so for me to get a family size saloon it would have cost me so much more than having my own car, but maybe if you can get a hire car cheap enough then its worth thinking about:)

i checked out a few car rental websites, i dont like little cars, so for me to get a family size saloon it would have cost me so much more than having my own car, but maybe if you can get a hire car cheap enough then its worth thinking about:)

leasing cars is different to hiring them, its much cheaper.

I know someone who does lease cars and changes his car every year, he will never own his own car but then he is not gettin hit with huge repair bills (like me) and shows off yearly!

leasing cars is different to hiring them, its much cheaper.

 

I know someone who does lease cars and changes his car every year, he will never own his own car but then he is not gettin hit with huge repair bills (like me) and shows off yearly!

what is the difference?

Doing it at the moment. Main reason being is that I got a nice new Merc C class estate, full maintanance package inc tax and service etc for £298.50 a month for 24 months.

Wee perk from work as Joe Bloggs would pay £600 a month for the same deal.

If prices are still similar for the Mercs, may look at taking out a new lease next Feb, however the Dodge Cailbre has quite caught my eye!!

If you buy new and change your car at end of 1, 2, 3 or 4 years you can get a good deal.

In effect, you're only paying the interest on the capital value of the car plus the depreciation between you getting the car and returning it. This means that some more expensive cars can be leased cheaper than bog standard cars.

It's called Personal Contract Hire (PCH). If you do a Google using PCH, you should get a few web-sites pop up. You can also get Personal Contract Purchase (PCP) where you can buy the car at the end of the term.

When you get figures off the web for PCH, take into account that car tax is paid for as well as breakdown insurance (sometimes).

G

what is the difference?

lease is long term, hire is short term.

What are the plus points and negative points of car leasing?

I'm thinking of changing mine in the next 12 months and might give it a go if it sounds OK. Where do you lease them from? Is it like Peugeot Passport or Vauxhall's Options 123 thing or is it totally different?

What are the plus points and negative points of car leasing?

 

I'm thinking of changing mine in the next 12 months and might give it a go if it sounds OK. Where do you lease them from? Is it like Peugeot Passport or Vauxhall's Options 123 thing or is it totally different?

Citroen Elect 3, I assume the Vauxhall and Peugeot scheme are the same, is where you may pay a deposit (I paid about £1k on my Picasso). You then pay a monthly amount for a set number of months. For some reason, Citroen class 3 years as 37 months:huh: . You then have a gauranteed future value at the end of the term that you can buy the car for, sometimes called a balloon payment. This type of scheme is called Personal Contract Purchase (PCP).

Leasing is usually either Personal Contract Hire or Business Contract Hire (PCH or BCH). The payments are usually a set monthly amount with a premium on the first month's payment. For example, if you leased a car for 36 months and the charge was £200 a month - it would be usually advertised as a 3 + 35 deal. You pay £600 in month 1 and £200 for the following 35 months. There is usually no option to buy at the end.

In both schemes there is often a mileage limit.

I don't want to place links to other people's web sites but if you Google on PCH as well as, say, Mondeo - you'll get lots of hits.

Has that made it clearer (or not).

If you are definately going to hand the car back at the end of three years - I think PCH is best. If there's a chance you may keep the car, PCP is better. If you are very likely to buy the car - a car loan is often cheaper still.

G:)

what is the difference?

as cyclone said leasing is long term and hiring is short term, also as i put in my post leasing is much cheaper:rolleyes: