Car Leasing?

virtuocity

virtuocity

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Does anyone lease a car instead of buying it via a loan? Need a new second car which will only do around 8k miles a year.

Any good long-term lease companies out there?
 
I looked into it when i changed cars, and for me a PCP proved a better option.

Have you any idea on what car and budget? most of the manufacturers have a number of flexible finance deals from PCP, to lease etc...
 
virtuocity said:
Do they come with any kind of guarantee that they will value the car equally to the balloon payment at the end?
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theres a GFV as bandidto has said, however it isnt equal to the balloon payment, the balloon payment is if you want to keep the car, if you hand it back you pay nothing. All the figures, deposit/monthly payments/balloon payment etc all vary depending upon what you pay, mileage predicted and length of lease.

IMO leasing is the best way to go these days, when you buy a car and try and sell iy 3 years later it has at least halved in value and you would have been better leasing/pcp as at least you will have a GFV

Virtuocity, didnt you say you were or are retiring? can I ask from what line of work?
 
Rooter said:
i would deffo look at a PCP then, just hand it back after 3 years rather than pay the balloon payment.
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Why is that Rooter, A lease is just the same thing really. You still have the option of buying it from the leasing company same as you do with the GFV.
 
Lincoln Quaker said:
Why is that Rooter, A lease is just the same thing really. You still have the option of buying it from the leasing company same as you do with the GFV.
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the difference is the monthly payments will be less with a pcp/balloon still to pay, and not all leasing companies guarantee to sell to you, some have deals where their 2+ year leased cars get shifted to Arnold Clark or the likes in a national agreement. Just specify before taking the lease you want the option to buy written in.....if you do.
 
I lease my car. Most car leases will enable you to hand the car back after the 50% payment mark. I have found that the trick is to take on a lease that is twice as long as you intend to keep the car (which lowers the monthly payments), then hand it back at the 50% point and get a newer car. Do it through the same garage on a 'regular' basis and they'll treat you well/give you some decent offers, etc...

Has worked well for me.
 
CMAC said:
the difference is the monthly payments will be less with a pcp/balloon still to pay, and not all leasing companies guarantee to sell to you, some have deals where their 2+ year leased cars get shifted to Arnold Clark or the likes in a national agreement. Just specify before taking the lease you want the option to buy written in.....if you do.
Click to expand...
All the finance companies have a predicted GFV whether its lease or PCP and its based on market conditions now. Its just luck if they make the GFV, some win and some lose, Ford options was horrific a few years ago as they would all be in neg eq at the end of the pcp so all either got handed back or rolled into the next deal. Lease has become more popular as you can run a car with a guaranteed monthly payment then hand it back and see what you fancy next time. I have sold pcp straight finance and lease and if I was changing my car right now then lease would be the option for me.
 
was just giving my experience, i am not in the trade or an expert by any stretch.

Why dont you PM Smiffy? he IS in the trade and may be able to do you a deal!
 
Lincoln Quaker said:
All the finance companies have a predicted GFV whether its lease or PCP and its based on market conditions now. Its just luck if they make the GFV, some win and some lose, Ford options was horrific a few years ago as they would all be in neg eq at the end of the pcp so all either got handed back or rolled into the next deal. Lease has become more popular as you can run a car with a guaranteed monthly payment then hand it back and see what you fancy next time. I have sold pcp straight finance and lease and if I was changing my car right now then lease would be the option for me.
Click to expand...

thats good to know from someone in the trade, could you post the reasons a lease is more beneficial and in what ways, as I'm sure there are many interested
 
I don't get the leasing thing, I'm looking for a new motor and was thinking about leasing agreements but then I had quick look on t'inters did some maths and worked out that for the deposit + 47 monthly payments I would basically be about £500 better off than if I'd just bought the car from the showroom - More than happy to be corrected if I've failed to see the elephant!
 
cookelad said:
I don't get the leasing thing, I'm looking for a new motor and was thinking about leasing agreements but then I had quick look on t'inters did some maths and worked out that for the deposit + 47 monthly payments I would basically be about £500 better off than if I'd just bought the car from the showroom - More than happy to be corrected if I've failed to see the elephant!
Click to expand...

It totally depends on the vehicle and what you're getting in the deal. Sometimes it is better to lease, sometimes buy. More information here: http://www.which.co.uk/cars/choosing-a-car/buying-a-car/buying-vs-leasing/buy-or-lease/
 
Leasing really does depend on what car you are after, Have a look at some of the leasing companies and you will see the same car for so many different prices. Its all down to what the brokers discount is from the manufacturer. The invoice price to the leasing company is then taken with the projected residual value giving a total life cost price and the finance provider then adds there slice of profit to is and hey presto we have a monthly figure. So its down to discount and residual value.
 
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