New car leasing

[mcfc_ms]

Hi all. I am after a new car after driving round my shitty Clio for 4 years.

One thing I have looked into is leasing. Looking around my budget is about £250 pm.

With that I could get an Audi A3, Merc A Class, VW Golf etc. Anyone got any other decent recommendations?

Also where is the best place to lease one from? Do main dealers offer decent deals? Or are you best going with a leasing firm?

Thanks

 

[manchester blue]

I asked a similar question a bit ago and got some good tips from Cake.

<a class="postlink-local" href="http://forums.bluemoon-mcfc.co.uk/viewtopic.php?f=5&t=148909&p=2636085&hilit=leasing#p2636085" onclick="window.open(this.href);return false;">viewtopic.php?f=5&t=148909&p=2636085&hilit=leasing#p2636085</a>

 

[mammutly]

The best leasing deals seem to be for business users. Personal leasing lets you drive around in a new car, but you should look at the 3 year cost of the deal compared to a loan. Bear in mind that with a lease deal you don't own anything at the end of 3 years.

With your £250 a month , you are looking at paying out nearly 10k over 3 years once you take into account fees, initial payments etc.

If you borrowed 9 grand and added a bit, it would cost you roughly the same over 3 years and you could buy a decent 1 year old car that would still be worth say 3 grand and that you would own at the end of the finance term. So, it's actually cost you less than leasing and you haven't had to worry about mileage.

There's not a lot in it really unless you are a high mileage driver. In which case, leasing is much more expensive. Usually, they are charging you 6 to 10 pence per mile for anything over 10,000 miles per year.

 

[St Helens Blue (Exiled)]

I haven't leased however I can see why people do it. No hastle with the car,drive a virtually brand new car every 3 yrs..

To me it is just like long term financing because all people do is change there car after they have paid the finance off anyway.

I'd go for the new A class

 

[Prestwich_Blue]

To be pedantic, leasing is for business users mainly. You basically rent the car and give it back after three years. You can then reclaim VAT on the lease payments.

You're probably thinking of Personal Contract Purchase but the underlying principal is the same. You get the use of a car for three years but in a PCP deal, you have the option to buy at the end of that time.

If you buy a car outright, you take a loan, pay it off over so many years and then the car is yours. So if you buy a car for £18k outright with a loan for the full amount over 3 years, it will cost about £600 a month but you'll have a car worth (say) £6k at the end of that. So you'll have paid out about £21k but have an asset worth £6k. So your net cost is around £15k.

If you do a PCP you're effectively paying a loan of £12k, which is the depreciation, but also paying interest on the £6k. So that will cost around £415 a month, which is about £15k again. At the end you might decide to pay the £6k or not. So you pay less monthly for the same net outlay. If the car is worth £8k at the end of the contract period then it's worth paying the £6k.

The higher the bubble value, the less you'll pay monthly but the chance of getting a bargain at the end of the contract is less. So you need to do the figures carefully.

 

[mammutly]

To be pedantic, leasing is for business users mainly. You basically rent the car and give it back after three years. You can then reclaim VAT on the lease payments.

You're probably thinking of Personal Contract Purchase but the underlying principal is the same. You get the use of a car for three years but in a PCP deal, you have the option to buy at the end of that time.

If you buy a car outright, you take a loan, pay it off over so many years and then the car is yours. So if you buy a car for £18k outright with a loan for the full amount over 3 years, it will cost about £600 a month but you'll have a car worth (say) £6k at the end of that. So you'll have paid out about £21k but have an asset worth £6k. So your net cost is around £15k.

If you do a PCP you're effectively paying a loan of £12k, which is the depreciation, but also paying interest on the £6k. So that will cost around £415 a month, which is about £15k again. At the end you might decide to pay the £6k or not. So you pay less monthly for the same net outlay. If the car is worth £8k at the end of the contract period then it's worth paying the £6k.

The higher the bubble value, the less you'll pay monthly but the chance of getting a bargain at the end of the contract is less. So you need to do the figures carefully.

I already said that. Only in a more understandable way.

tsk.

 

[mcfc_ms]

Cheers for the info guys. Really helpful

Going down to look at some with my mate tomorrow and see what sort of deals I can get