Information on Leasing Cars
Posted by: jim learoyd on 12 July 2005
I am thinking of leasing my next vehicle. I like the new top end Vauxhall Astra Turbo! Has anybody got any information regarding Leasing? From my way of looking at it I would like to lease for a 3 year period, is this OK? Are there different contracts for leasing, if so can you give me ideas what is out there and web sites if you can.
Also any ideas on monthly payments over 3 years for Seat Cupra or Vauxhall Turbo? Any info most welcome.
cheers jim.............................
Also any ideas on monthly payments over 3 years for Seat Cupra or Vauxhall Turbo? Any info most welcome.
cheers jim.............................
Posted on: 12 July 2005 by Hawk
first question, are you VAT registered and able to claim the VAT back on the monthly payments?
Posted on: 12 July 2005 by Berlin Fritz
Luton Station & Thereabouts are presently doing good deals 
Fritz Von These things affect business terribly too you know
Fritz Von These things affect business terribly too you know
Posted on: 12 July 2005 by niceguy235uk
i would avoid leasing if you can.
it can be expensive with baloon payments at the end of the lease etc.
Having said that, i am sure if you talk to a dealer they will give you the exact info you need and they may be doing reasonable deals at the mo.
Regards
Jason
it can be expensive with baloon payments at the end of the lease etc.
Having said that, i am sure if you talk to a dealer they will give you the exact info you need and they may be doing reasonable deals at the mo.
Regards
Jason
Posted on: 13 July 2005 by Bosh
It explains most of the optoins in "What Car" magazine. If you have to go the non-HP route they suggest PCP with a balloon over Leasing as the latter usually stings you with 50% interest penalties if you need (or want) to end the deal early
With PCPs you have to watch the deposit loss (ie how will the cars actual residual value compare to the ballon plus deposit) as this is how they make the monthly payment look attractive
With PCPs also watch out for the interest rates which can be horrendous, although most outlets will haggle on these
Happy hunting
With PCPs you have to watch the deposit loss (ie how will the cars actual residual value compare to the ballon plus deposit) as this is how they make the monthly payment look attractive
With PCPs also watch out for the interest rates which can be horrendous, although most outlets will haggle on these
Happy hunting
Posted on: 13 July 2005 by jim learoyd
quote:Originally posted by jim learoyd:
Thanks for the information, most welcome.
Hawk: No I am not VAT registered, this is a private lease only.
Bosh: Thanks for the What Car info on leasing, I will buy the latest copy today.
I had a quick look on the web doing a google search on car leasing. There seem to be hundreds out there. I really don't exactly know the options there are yet. Am I corect in saying you can just hire the vechicle for 2, 3 or 4 years and give the car back and thats the end of the lease? Also what is the lease called when you can buy the car at the end of the lease which is an agreed price before you sign for the lease. Does this mean a lower monthly payment, is this a feasible way?
At the moment I have seen approx monthly payments and they seem quite high. Do you think it's best to go to a dealer of whichever car I want to get the best deal, and can I haggle with the dealer in any way to get a better deal?
cheers jim............................
Posted on: 13 July 2005 by MichaelC
Beware of leases where you are handing the vehicle back at the end of the term - there could be mileage and/or damage adjustments.
If you envisage wishing to buy the vehicle at the end of the term then why not take a bank loan and buy a vehicle outright - you will be better able to haggle with a dealer for a good price and the whole used car market opens up.
If you envisage wishing to buy the vehicle at the end of the term then why not take a bank loan and buy a vehicle outright - you will be better able to haggle with a dealer for a good price and the whole used car market opens up.
Posted on: 13 July 2005 by Hawk
OK if your not VAT registered then in most cases leasing does not stack up for a private individual. This is because you cant make the most of the tax benefits of such a scheme. You would end up shelling out alot of money and owning nothing at the end.
For a private individual you choice is basically borrow the money to buy the car or pay cash. If you borrow money then the only difference in all these schemes is how you pay that money back and how much interest you pay.
Assuming the deposit is the same you always borrow the same amount of cash, but you have two basic routes open to you. Pay the sum back in equal monthly instalments = HP or elect to pay a lump sum at the end of the agreement (balloon payment) and pay a smaller amount per month = PCP.
There are hundreds of variations on the PCP theme but all of them work on the above principle. You must understand what the balloon payment means in real terms. If you dont pay it you dont own the car. Many people assume that the value of the car when the baloon payment is due will cover the outstanding amount and leave a deposit to take out a new agreement on a new car. Unless there is a GFV (Guaranteed Future Value) this may not be the case. Ask yourself, if you only get the GFV for your car at the end of the agreement how much extra cash will you need to find to be able to fund another car, ie will you have enough deposit to go again even at the same level?
Im not saying that these schemes are all bad, but do go into them with your eyes wide open!
Regards
Hawk
For a private individual you choice is basically borrow the money to buy the car or pay cash. If you borrow money then the only difference in all these schemes is how you pay that money back and how much interest you pay.
Assuming the deposit is the same you always borrow the same amount of cash, but you have two basic routes open to you. Pay the sum back in equal monthly instalments = HP or elect to pay a lump sum at the end of the agreement (balloon payment) and pay a smaller amount per month = PCP.
There are hundreds of variations on the PCP theme but all of them work on the above principle. You must understand what the balloon payment means in real terms. If you dont pay it you dont own the car. Many people assume that the value of the car when the baloon payment is due will cover the outstanding amount and leave a deposit to take out a new agreement on a new car. Unless there is a GFV (Guaranteed Future Value) this may not be the case. Ask yourself, if you only get the GFV for your car at the end of the agreement how much extra cash will you need to find to be able to fund another car, ie will you have enough deposit to go again even at the same level?
Im not saying that these schemes are all bad, but do go into them with your eyes wide open!
Regards
Hawk
Posted on: 13 July 2005 by jim learoyd
Hawk
Thanks for that. A little knowledge is very dangerous indeed! I am still waiting for some quotes I gave on 2-3 web sites, should be interesting.
I think now it may be probably better to get some sort of finance with the retailer. They do cheaper APR but only on new cars.
There is the option of course going for an ex demo model, which now appears to be best option.
cheers jim......................................................................................
Thanks for that. A little knowledge is very dangerous indeed! I am still waiting for some quotes I gave on 2-3 web sites, should be interesting.
I think now it may be probably better to get some sort of finance with the retailer. They do cheaper APR but only on new cars.
There is the option of course going for an ex demo model, which now appears to be best option.
cheers jim......................................................................................
Posted on: 13 July 2005 by Hawk
No problem, best of luck with the hunting!
One other point that maybe is worth mentioning, dont solely rely on the APR to judge how much interest you will pay when comparing standard loan/hp verses a PCP! look at the total amount payable figures... It is possible because of the way APR is calculated to pay more interest on a PCP scheme than a std loan/hp even if the PCP has a lower APR!!!
Rgds
Hawk
One other point that maybe is worth mentioning, dont solely rely on the APR to judge how much interest you will pay when comparing standard loan/hp verses a PCP! look at the total amount payable figures... It is possible because of the way APR is calculated to pay more interest on a PCP scheme than a std loan/hp even if the PCP has a lower APR!!!
Rgds
Hawk
Posted on: 13 July 2005 by Hawk
quote:Originally posted by MichaelC:
If you envisage wishing to buy the vehicle at the end of the term then why not take a bank loan and buy a vehicle outright - you will be better able to haggle with a dealer for a good price and the whole used car market opens up.
Ironically this isnt always true although the banks will try very hard to convince you otherwise! In some cases the dealer can match or better the bank rate and still earn commision on the finance agreement. This means the dealer could have more scope to negotiate with finance customers than cash customers..
This applies to both new and used cars..
rgds
hawk