Leasing Car -v- Buying Car

[elite123]

Does anyone lease a car and what are peoples thoughts on this ?

Thanks

Anthony

[Gillie]

Yes we lease our cars, but then we would as we obtain leases for just about any tangible assett going!

Tax benefits, cashflow benefits etc, all spring to mind, not laying out a large amount but knowing exactly each month and for how long you have the car for.

There are lots of benefits to leasing as regards offsetting against tax and reclaiming vat on payments made ....

[Mwebb]

There are lots of benefits to leasing as regards offsetting against tax and reclaiming vat on payments made ....

Be careful here. Speak to your accountant, as I believe you can only claim half the VAT back on a car, and full amount on a commercial vehicle. [[ I spent some time selling car finance, but check with your accountant]]

Leasing does protect you from the depreciation of a new car, but remember if you change your mind, and decide you want to own the car....you have no option to purchase at the end of the lease....so maybe look at a balloon payment plan, with an option to purchase?

Shop around, and what ever way you decide to go, speak to that nice chap Michael at JustcarsOnline.co.uk who can help you get a good deal!!
[/ Plug of the shameless variety ]

Just some thoughts.

Michael

[Gillie]

Sorry yes I should have made it slightly clearer, the amounts you can claim back are dependent on the size of car and how much it costs, but you can claim back etc ...

[Astaroth]

I lease my personal car (slightly different I know) but certainly the combined benefits of not having to pay out the lump sum at the outset and not having to deal with the sale of the vehicle afterwards are both big boons for me personally.

[garyk]

Yes it can be very cost effective, a few years ago I got a 21K car on 3+23. Shortly after the manufacturer slashed 3K off the list price, I paid £7K in payments over the two years and there is no way on earth I would have got £14K for it second hand, more like £11-12K so I was well chuffed with that!

Gary

[Astaroth]

I lease from my employers (though it is not a company car) as their prices was by far the cheapest/ didnt require deposit etc. I am now looking around again for a new car and whilst my employers price is still competitive it may not be the best any more but what does the 3+23 mean?

[bwglaw]

I am just about to lease a Merc which is valued at £35,000 and I will be paying £500/month. Deposit can be between £1000-2000 and this will reflect the monthly payment. I have even asked a Sales Executive at Mercedes Benz garage how the 3+35 works, whilst I understand 3 is three months payment as deposit and pay 35 months. I need to find out if the deposit is refundable or set-off any monthly payments, depreciation value etc. The Sales Executive honestly said he does not know how the 3+35 profile works!

Can anyone advise?

Jonathan

[garyk]

The 3+ part of a contract hire is simply 3 months rental which is a non-refundable deposit. So in fact you will be making 38 payments of £500 a month. If it is a straight lease deal then you just give it back at the end of the 36 month period.

Gary

[Shay]

Having worked in fleet/corporate for 8 years its a bit naughty that it was explained to you that the three payments in advance were a deposit, indeed this is just added security. You can sometimes get a 1x35 but have to be super tight on credit and not everyone offers this.

As for not being able to own the car at the end of the lease, officially this is correct, but 3 months before you hand the car back get your supplying dealer to ask for a purchase price and 95% of the time you can make an offer for the car as otherwise it goes to an auction house whereby they pay for that privilege so infact you will be doing them a favour.

If there are any dents/scratches on the car its prob best to get them done by dent devil or companies like that as it will be much cheaper than getting a bill from the finance company. If halfway through your contract you see you are going to exceed your mileage by quite a lot, then ring them up and ask to change the mileage and 95% of them will do so as they will be keen to get you to come back when the car goes back.