Car lease - questions

[JoyDivision]

I have bought a new car last week, paid very little for it but I am having a few problems with it, it seems a little bit smokey since I had an oil change done on it, not sure if this normal but I certainly should not be seeing smoke in my rear view mirror after 2 miles.

I was thinking long term of leasing a car instead of all these annoying garage visits, my dad has spend £500 on repairs in the past year and I don't want to go down the same route.

I was thinking of leasing a Fiat Panda from some where like Lingscars but I have several questions.

Do I have to give a big deposit?
What happens if I crash it? - I assume my insurance will pay for the damage if I am fully comp?
What happens at the end and the lease company says the car is not in good condition?
I assume I have to pay all the servicing etc as if it was my own car?

Thanks for help with this.

I paid £350 for my new car with 6 months tax and 7 months MOT, if I can get the smoke to due down I plan to keep it till the MOT and then sell it for £200 spares/repairs.

 

Is it using oil.?

Have you tried chucking one of the wonder tins in it from Halfords.?

Might just be a blocked oil breather.

Earl

 

[venderbase]

I'm no mechanic, but it may just be burning off excess oil if it has been topped up too much.

When looking at prices for leasing, make sure you check if its for a Business or Personal lease, as if your not VAT registered you need a personal lease that includes the VAT.

I think the initial payment is normally around 2 or 3 months payments before collecting the car. This is not a deposit as it is not returned.

You will need to get insurance specifically for a leased vehicle. The lease company may be able to put you onto some companies.

As for servicing, you have to return the car will all servicing done when it was required. You can get the cost of servicing incorporated into your monthly payments.

As for what happens when you return the car, I dont give mine back until next year so can't help with that one sorry.

I currently lease from yourfleet and found them very good and very cheap.

Darren

 

[JoyDivision]

Thanks I will have a look around for lease deals, I am a new driver so its probably not the best thing to do, but I don't trust anybody in the used motor trade and just don't have the heart to spend any money on a car. My budget was £1500 and ending up spending £350 inc 6 months tax!!

I will check the breather pipes tomorrow, the engine does sound very healthy, it was smoking quite a bit when my mechanic had the engine running after the oil change, he never said anything, but before the oil change he was telling my how healthy the engine sounded. I checked the oil level tonight it seemed fine but it was dark.

I suspect what might have happened is the car has hardly been used for the past two years, the oil has not been changed for years according to my mechanic and it may have had mineral oil in it, he has put 10/40 semi synth so that might have caused problems .

I will drive it for 15 miles tomorrow to see if it clears, although the car is MOT'ed I don't fancy being stopped by the police - I've had only a licence for three weeks! The smoke isn't that bad, but it is noticable and I did see a tiny bit in my rear mirror.

With these leasing deals is there anyway I could buy a car back at the end of the deal so avoid them saying I need to get xx scratch removed etc?

Edit only done 25 miles in it since the oil change so its too early to tell if its burning any oil, there dosn't seem to be any blue smoke. It passed the MOT 5 months and 70 miles ago (long story) and emissions were fine then. I suspect the airfilter may also be filphy. The smoke does seem to get worse the warmer the engine is, which is why I am worried about the piston rings.

 

[David Griffiths]

One thing to bear in mind with leasing deals is that they normally expect you to carry fully comprehensive insurance. As a new driver, that might be fairly expensive.

 

[JoyDivision]

I am fully comp now on my Fiesta, but then again its worth nothing so it is only costing me £1 a month more and I get all the vandalism protection thrown in and the ability to drive any car with the owners permision

You are right though, I will get a quote. Currently paying £66 a month fully comp and thats with business use.

 

[Matt1959]

man, you worry so toooooo much If you have a tame mechanic you can't go far wrong. Don't bother with the garages - go for private buys. Always ask the question - how long have you owned it (the answer tells you whether its a genuine sale or an auction sell on by a home trader) apart from that use your intuition, use your mechanic for the mechanicals and follow all the normal rules about buying, like ensuring seller is at the address on the docs and always HPI whatever the value unless its so low you don;'t mind losing it. I cannot see that leasing is cheaper than banger ownership unless you do alot of miles or image is paramount -- and if you think its not burning oil, it won't be the piston rings playing up

 

[JoyDivision]

I suppose its finding that good banger. I haven't seen any blue smoke yet but it dosn't mean its not oil coming out the back if you see what I mean. The car hasn't been used for months so I intend to take it on a <40mph blast tomorrow to get more experience in driving and see if the smoke goes down.

Image is not a problem but I suppose with a leased car I would always be worried about people scratching it. With my car now I just don't give a toss if anybody 'hurts' it. As longs as I don't get stopped by plods for driving an unroadworthy. My mechanic checked it over but it was only a quick check over.

I suppose the other thing is all the work my dad has had done on his has been brakes, suspension, clutch, exhaust and mostly the stuff that is not covered under warranty anyway.

 

[Rhyl Lightworks]

Are you registered for VAT? I believe leasing is only cost effective if you are.
Barrie

 

[JoyDivision]

Sadly not, I am just a sole trader. I think it is also a bit too risky. If I was going to go down this route I think my best bit is to get a second hand motor at a dealer with a full warranty.

I will see how the smoke goes on tomorrow anyway when I drive it further and clean out the breather pipes/replace the air filter.

 

[LINGsCARS]

Are you registered for VAT? I believe leasing is only cost effective if you are.
Barrie

Where on earth do you get these opinions from?

I believe the moon is made out of cheese and Jeremy Clarkson should be prime minister.

70% of my business is to personal users (ie not business) and of that remaining 30%, many are not vat-registered.

I'd better put a warning on my website that Barrie thinks it's not cost-effective.

I'll tell you cost-effective: That is buying the banger for a few quid and getting one that is in good condition and is reliable as anything and just sails through the MOT. You just need to be happy with a banger, with all the baggage. But, that is a truly cost-effective car (until it costs money). However, your trade off is usually safety, image, fuel consumption, that new car smell and reliability and the latest stuff like aircon or ESP ABS etc, and full warranty and having to pay your own tax, and much higher servicing/tyre costs, etc. But, you all know that, it's common sense, just a decision.

Joy Division (bless him/her) is not my target market. I am looking for customers in this bracket (below see pics). With the best will in the world, I cannot be dealing with people who are worried about a scratch (or worriers in general), and people who have just passed their test don't tend to fit my demographic.

But, please try not to listen to "experts"... and please don't come back trying to prove theories, my head hurts thinking about what will be suggested.

And yes, there is one transsexual in my "gender mix". Hahahahaha! I sold them a VW Beetle.

 

[Rhyl Lightworks]

I was only going from what my accountant told me.
Barrie

 

[LINGsCARS]

I was only going from what my accountant told me.
Barrie

hahaha, Ok It is the cost of the car that matters. If something is cheaper, it is cheaper.

Fine to talk about global overall scenarios, but when last week I had new brand-new Vectras (1.8 140bhp Exclusive, blah, blah, yawn, air, alloys, cruise, 10k per annum) at £149.99+VAT/mth - that is cheaper than fish and chips every day (nearly). Certainly much cheaper than a Domino Pizza. Probably the same as a pack of cigs and a pint of beer.

So, your accountant could also say, you are better off running a car, than eating. Which would be true, or rubbish, depending how you look at it.

Good job your accountant doesn't choose what you eat, too. "If you are not VAT registered, you are better to eat soup with dry bread". Hahaha.

Your accountant needs to get out more.

Tell your accountant he would be better off driving a £99/mth Chevrolet Matiz. , ESPECIALLY if he is vat registered. In fact, we all would!

 

[venderbase]

I agree that the VAT doesn't really come into it. If your not VAT registered, just add the VAT onto the monthly payment and if its still cheap as chips, then its a bargain and cost effective

There are some good deals out there, you've just got to shop around.

I would be interested to hear any comments/stories about returning the car after the lease has ended? Do they go over it with a magnifying glass?

Darren

 

[Deleted member 9840]

I would be interested to hear any comments/stories about returning the car after the lease has ended? Do they go over it with a magnifying glass?

Darren

When my car went back about 6 months ago, I got charged about £500+vat.
It was a Merc B180SE cdi
There was:

a chunk missing out of the front bumper (wife parking)
a big dint in one alloy (me driving over a pothole)
a fag burn in the door trim (wife, the filfy moo)
BIGGGGG! DEEEEEEP! scratch on a door panel (vandals)
chocolate and pop stains on most seats (kids)
...... and about 2500 excess miles.

Over all very fair i'd say. It certainly would have cost me more to have it all repaired before it went back.

Steve

 

[venderbase]

When my car went back about 6 months ago, I got charged about £500+vat.
It was a Merc B180SE cdi
There was:

a chunk missing out of the front bumper (wife parking)
a big dint in one alloy (me driving over a pothole)
a fag burn in the door trim (wife, the filfy moo)
BIGGGGG! DEEEEEEP! scratch on a door panel (vandals)
chocolate and pop stains on most seats (kids)
...... and about 2500 excess miles.

Over all very fair i'd say. It certainly would have cost me more to have it all repaired before it went back.

Steve

I guess thats not too bad.
I'm dreading sending mine back, there's nothing major apart from a rip in the drivers seat and dodgy paint where the wife let my son squirt his water pistol covered in suncream at the car!!

 

[LINGsCARS]

Some generic return advice here.

I would say, it's all very fair. Again sometimes they get it wrong, not often.

You are crystallising the cost. If you had bought and owned the car cash, the cost of the damage would be the same, but would only show when you sold it and had to repair or reduce the selling price.

 

[venderbase]

Thanks Ling, some very good and funny advice.

 

[JoyDivision]

Just checked the oil level and its over filled, it is about 50mm above maximum I am not sure if this in tolerence levels or not.

 

[venderbase]

As the expected level on a dipstick is only a few centimeters from the bottom, i'd say 50mm over is WAYYYY too much!!

 

[kayak]

I was going to quote Ling but thought it may put a massive picture above my text, which would annoy everyone!

I do note your italics on the the word 'tend' but I don't seem to fit into your target audience, second lowest bracket, renter etc but I would certainly be worth targetting as I do have a leased car!

To be honest though, I can see your point - I am probably a minority and it would be a waste of money targetting everyone fitting my demographics!

Here is my advice to the OP for leasing from my experiences.

I had to get a personal lease, as my business was a new one, which made it unlikely that they would pass it through on the credit rating.

I do pay VAT and still consider it to be a good deal

I'm not aware that I have to have comprehensive insurance, although I do.

The main dealer was useless at customer service

I had to pay a sum of three months hire for the first month.

You can't transfer personal leases to another person

It is good for your tax bill

You can't worry for 2/3 years about damaging it - you will go crazy!

Most insurers would insure me - I use direct line I think, and am down as the keeper, but not the owner. Went to the underwriters but didn't make a difference to the price.

Cheers!

John

 

[JoyDivision]

I have fixed my car now, took it to my mechanic and he said the oil was fine. He told me there was a lot of water some where and tested the HG and compression and it was all fine, he reckoned it was left in the exhaust so told me to blast it down the motorway and it should clear up. I did this and now I am happy to report no smoke at all .

i am still consider this lease thing though but maybe more for my dads car as its 11 years old and slowly approaching the 80,000 (all city miles!) mark.

 

[barney1]

If you use a broker - tell them how much deposit you can afford and they find a suitable deal.

Go for maintenance if you don't want to pay for repairs which is paid on top of the monthly rental.

Insurance will cover you in the normal way - go for an insurance package recommended by the broker

Before the car goes back to the finance co - get it checked over by a garage or your broker - normal wear and tear is acceptable but you will be charged for big dents and damage so its best to get it sorted prior to going back or the finance house will invoice you. Their cost to get it repair will no double be higher than yours if you see what I mean.

Leasing is the way to go if you want hassle free low cost motoring sometimes including road tax and maintenance - pure peace of mind.

 

[LINGsCARS]

Barney, if you read, Joy Division a) does not want to lease, b) is not really suitable financially and is a new driver, and c) has fixed his car.

 

[MyAccountantOnline]

I am a big fan of leasing - I struggle to see how it works out cheaper now to buy a car bearing in mind leasing a brand new car you pay no road tax or repairs just the cheap new car service. Its great having no repair bills to worry about - any problems just go back to the garage under warranty.

I have leased a car which new would have cost almost £30k for 2 years now which has cost me just £7,800 - I would have lost more than that in depreciation alone if I'd bought it. All I had to pay on the car was a service which cost £110.

 

[LINGsCARS]

Correct. It works really well for some cars. Not so good for others.

As an example, I have Dodge Avenger 2.0 (154bhp) SXT Saloon 4dr 1998cc Met 3+23 (2-year rent) for just £159.99/mth +VAT and no other fees. This is an £18k car! No one in their right mind would buy one. Anyone with an eye for an Obama-celebration bargain would rent.

 

[barney1]

i am still consider this lease thing though but maybe more for my dads car as its 11 years old and slowly approaching the 80,000 (all city miles!) mark.[/quote]

So I still answered the question.

 

[LINGsCARS]

Right, so a young son just passed his test gets a new car for his dad who has an old banger (in who's name?)

You are on drugs if you think this is real.

----

Another example is the Toyota Avensis Hatchback 2.0 D4D (114bhp) T2 Hatchback 5dr 1995cc Met 3+35 for just £179.99+VAT/mth. This is a quality car compared to that American Avenger, but less kit. There is no way anyone could buy one, run it for 3-years and sell it without paying substantially more than the lease costs.

 

[barney1]

a question was asked so I answered it - not sure what the problem is?

 

[LINGsCARS]

Question was asked on the 29th October, you answered it on the 5th November.

Sharp as a pin, you are

hahaha, no offence.