Cars: Finance Lease vs Purchase via loan

[Damien]

Hello!

So every so often I research purchasing a newer car. I often decide it's not worth it but never hurts to learn more.

I was looking at the Peugeot 'Just add Fuel' deal. It's a Personal Finance Lease, I pay a certain amount each month for the car and it includes the 'lease' of the car, Insurance, Servicing, road tax and roadside assistance. Downside is at the end of the term I don't own a car. However this seems like it's not too bad a deal considering what gets chucked in.

What are the advantages/disadvantages of such a plan other than those which I have listed? Does anyone here do it? I want to make sure I don't miss something massive...

[Gary L]

The terms are crap. if you were to spread out your own insurance and recovery over the year it'll be about £50 per month? I'd personally if you can afford it just pay cash for a car.

[rogerdraig]

I think it depends on what "amount we anticipate" is at end of contract

taken from their faq

What happens at the end of a Just Add Fuel contract?

With the Just Add Fuel Passport plan you can:

• Pay the amount we anticipate your car will be worth (the anticipated future value) and own your car outright
• Hand your car back with nothing further to pay (subject to mileage and condition)
• Part exchange your car for a brand new one

leasing can work out quite a good option especially if you can set some of it against tax if you require the vehicle for business use

other wise you need to just see what the totals are from either method of buying as these can vary depending on interest levels and how they value the car at the end of the term

[Hom3r]

I've heard these plans have penalties if you go over the agreed mileage

[haydnwalker]

Depends alot on your mileage as I looked at the "Just Add Fuel" lease from Peugeot and it seemed really good, until I found out that the annual mileage was just 8000... 12000 is the UK average, and I personally do closer to 15000 and the charges went up a fair bit (even on a 206) for more miles.

---------- Post added at 22:10 ---------- Previous post was at 22:09 ----------

Originally Posted by Hom3r

I've heard these plans have penalties if you go over the agreed mileage

usually about 10-20p per mile excess charge