Car Leasing

[LSainsbury]

Hi,

Anybody here leasing a car?

Can you tell me what the pros and cons are?

We are thinking of leasing a car next and wondered how it actually works?

Say for instance - what if I was 5 months into a two year lease and I was unable to keep up payments due to job loss? Do you hand the car back making no more payments - do you have to pay a fee for early return?

Cheers

Lee

[fireman328]

I think you are commited to keep it for the full term of the lease ,usually 2 years.

[Aragorn]

There are cheaper forms of loans out there.
Useful if you want an 'all in' package with maintenance, but otherwise I would look at raising the capital another way - eg increasing your mortgage, if possible.
As our local firefighter says, you are usually in for keeps - you either keep up regular payments or lose the car.
When I had a brief look recently, this lot seemed to have some reasonable deals, but it's still a car loan with a high rate of interest.

[Kymmy]

Also be aware that car leasing normally has a limited milage attached to it, if you go over that milage you can end up with a hefty bill

[Rob]

I'd disagree with the idea of increasing your mortgage. That can work out very expensive when you work out the added interest over the 25 year term rather than the shorter term of a specific loan.

[Paul M]

Originally Posted by fireman328

I think you are commited to keep it for the full term of the lease ,usually 2 years.

Normally you would lease it for 3 years, not 2, but either way, you are basically committed to that - if you want to return it early then you have to pay an early termination fee, which is often 50% of the remaining months.

Originally Posted by Kymmy

Also be aware that car leasing normally has a limited milage attached to it, if you go over that milage you can end up with a hefty bill

Not necessarily hefty, its usually about £40/£50 per 1000 miles. If you know you are going to go over, you can normally vary the contract, and that will prove cheaper.

Originally Posted by Rob

I'd disagree with the idea of increasing your mortgage. That can work out very expensive when you work out the added interest over the 25 year term rather than the shorter term of a specific loan.

That depends on what type of mortgage you have. Mine is simply like an overdrawn account, I can borrow from it, or pay into it, pretty much as I please, I just get charged interest each month on the balance. So if I want 5,000 pounds, I can transfer it from the mortgage account to my current account, and pay it off again over 3 years if I wish (by increasing my payments). With the current interest rate on the mortgage account being about 1%, its a very cheap loan.

Originally Posted by LSainsbury

Hi,

Anybody here leasing a car?

Can you tell me what the pros and cons are?

We are thinking of leasing a car next and wondered how it actually works?

Say for instance - what if I was 5 months into a two year lease and I was unable to keep up payments due to job loss? Do you hand the car back making no more payments - do you have to pay a fee for early return?

Cheers

Lee

I wouldn't buy another car mate, I use THESE. I've got a Vauxhall Signum through Lombard all for £200 a month. All I did was give them the first month up front bank details and away I went. The lower down you go the cheaper the cars are. I used to have an Astra which cost me £165 a month.

On the mileage issue you can increase your mileage for a small fee, I'm well covered with 10,000 miles I never do that amount in a year.

[STONEISLAND]

Originally Posted by Kymmy

Also be aware that car leasing normally has a limited milage attached to it, if you go over that milage you can end up with a hefty bill

6p a mile? Not a lot IMO

I now lease if you can afford it, the best peace of mind motoring you can get.
Plus you get to drive a bran new car!!!

[haydnwalker]

I'm also thinking of leasing my next car - The only thing that puts me off is the fact you pay approx 3months lease as a deposit. I fancy something nice and spangly new

[STONEISLAND]

Originally Posted by haydnwalker

I'm also thinking of leasing my next car - The only thing that puts me off is the fact you pay approx 3months lease as a deposit. I fancy something nice and spangly new

That much is true.

Think about it being the depreciation value of a bran new car.

Originally Posted by haydnwalker

I'm also thinking of leasing my next car - The only thing that puts me off is the fact you pay approx 3months lease as a deposit. I fancy something nice and spangly new

I only paid a month up front for mine, I've been talking to a guy today who's got an Audi 3.0TDI on lease from Lease plan, he's paying £329 a month for 3 years on business lease, I've got another year to go on mine then I'm getting one of THESE. I reckon they are the bees knees.

[Caspar]

Which companies are you guys using for leasing?

[haydnwalker]

Originally Posted by Nidge

I only paid a month up front for mine, I've been talking to a guy today who's got an Audi 3.0TDI on lease from Lease plan, he's paying £329 a month for 3 years on business lease, I've got another year to go on mine then I'm getting one of THESE. I reckon they are the bees knees.

Just another Vectra... though they look nice. They would be good with vauxhalls 3.0 TDI V6 engine though.

I'm looking at an A6 2.7/3.0 TDI Estate on lease. Leaseplan are quite reasonable.

Originally Posted by haydnwalker

Just another Vectra... though they look nice. They would be good with vauxhalls 3.0 TDI V6 engine though.

I'm looking at an A6 2.7/3.0 TDI Estate on lease. Leaseplan are quite reasonable.

Another year will see them with the 3.0 TDI fitted I reckon.

[haydnwalker]

I might then consider an Insignia Tourer/Estate/SportWagon (or whatever they are calling them this time)