Private car leasing

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Private car leasing

Postby southbrishammer on Tue Mar 14, 2017 2:53 pm

Hi all

I am currently trying to weigh up the choice between a company car or taking the cash allowance alternative and getting a private lease. Does anyone have any experience of private leasing, good or bad?

In particular I'm wondering about maintenance - from what I can see, most offers come without it included, and where it is included as an option it seems very expensive compared to just going to your local dealer/garage for an annual service. But what happens if I get an advisory on a service e.g. tyres getting close to the limit or some mechanical part not in warranty needing replacement and choose to ignore it - will I get clobbered for wear and tear charges when I hand it back? Similarly, bodywork - if I get any bumps or scratches on the way, what is considered reasonable wear and tear, and are charges for anything more extortionate?

Thanks.
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Re: Private car leasing

Postby White Goodman on Tue Mar 14, 2017 3:03 pm

southbrishammer wrote:Hi all

I am currently trying to weigh up the choice between a company car or taking the cash allowance alternative and getting a private lease. Does anyone have any experience of private leasing, good or bad?

In particular I'm wondering about maintenance - from what I can see, most offers come without it included, and where it is included as an option it seems very expensive compared to just going to your local dealer/garage for an annual service. But what happens if I get an advisory on a service e.g. tyres getting close to the limit or some mechanical part not in warranty needing replacement and choose to ignore it - will I get clobbered for wear and tear charges when I hand it back? Similarly, bodywork - if I get any bumps or scratches on the way, what is considered reasonable wear and tear, and are charges for anything more extortionate?

Thanks.


Re your last point, I've had 3 leases now and have handed all back with the usual wear and tear scuffs, usually on the alloys and they don't care provided it's not past a certain size. Usually the lease firms will be able to send you a doc with what is acceptable and what isn't. Sure I used to have one.

Re the other stuff, you can have tyres and servicing chucked in but I tend not to bother. Swings and roundabouts really, you are obliged to have it serviced at the mandated dealer intervals, I just pay for mine as and when they arise.

Richie might be able to tell you more but I can't imagine it's lots cheaper having it included , just depends whether you want to spread the cost or not.
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Re: Private car leasing

Postby sendô on Tue Mar 14, 2017 4:01 pm

Probably depends how many miles you intend on doing?
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Re: Private car leasing

Postby Chicken Run Supreme on Tue Mar 14, 2017 4:27 pm

Been leasing now for a few years and I have no problems with it and including the maintenance and servicing is not a massive increase on monthly payment. As long as you get your head round the fact that its not your car, its a no brainer for me - hassle free motoring and no need to worry about buying a car for £20k that loses you money before you've even driven away from the dealer.
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Re: Private car leasing

Postby RichieRiv on Tue Mar 14, 2017 10:07 pm

Good memory WG.

I am on my 6th lease car and would not buy a car outright. It used to be a fairly niche market, but now all the main dealers offer Private Hire Agreements (effectively leasing) as a finance option. In the US it's the default option for new car ownership.

As sendo says, it will depend on your annual mileage to whether it's cost effective so I would estimate how much mileage you do a year and get a quote on that basis.

I include the maintenance for peace of mind. For my previous car - a C-Class Merc I paid 26 quid a month. Mercs are not on long service intervals so it was a case of 12 monthly services. A Merc main dealer for an A1 / A2 service was in the region of 400-500 quid. As lease companies get preferential rates for servicing I look at it as being more cost effective, plus you are covered for tyres and exhausts etc.

As WG says your agreement allows supermarket dents on each panel and scuffed alloys. I once handed one car back with a massive scuffed wheel thanks to East Ham kerbs. For the last couple of cars I have had them sorted, although the delivery driver always tells me that my car will end up in some aircraft hanger in Bedfordshire and will sit there for months.
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Re: Private car leasing

Postby southbrishammer on Tue Mar 14, 2017 10:47 pm

Thanks everyone, helpful advice. Now I just have to trawl through the many offers out there...
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Re: Private car leasing

Postby sendô on Wed Mar 15, 2017 12:15 pm

I'm selling my current money sapper and considering going with a lease for ease and peace of mind. We probably only do 5-6k a year, mainly her pottering back and forth around town during the week. Need to weigh that up against the cost of either a bank loan with interest to buy a mid range car that will need servicing etc or else buying and old crapper that will need some regular beating with an iron bar to keep it going.
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Re: Private car leasing

Postby FortuneZ on Wed Mar 15, 2017 12:59 pm

I lease my car. I get bored of cars pretty quick, so gives me the chance to change it every couple of years without it costing an arm and a leg.

I didn't pay the extra for servicing included. I went for a 2 year deal, so I've only had to do the main one year service in-between, which cost about £200. The lease runs out in September, but I have asked if I can have it for another year, as I actually really like this one, and the total payout for having it for 3 years is pretty low considering its a Merc. They have already said it is possible, and gave me a quote for 3 year extension, but I'm only after the extra 1 year, so just waiting for them to get back to me. If it is too much, then its no biggie to take another out.
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Re: Private car leasing

Postby Smonnie on Wed Mar 15, 2017 5:20 pm

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Re: Private car leasing

Postby djclipz on Wed Mar 15, 2017 5:25 pm

A fella who works in my building appears to switch his car every 6 months, i'm assuming that is some kind of lease deal, but have no idea really.

Gone from an Audi R8 > Nissan GTR > Audi TT RS (convertible)

The prick :lol:
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Re: Private car leasing

Postby mushy on Thu Mar 16, 2017 8:14 am

Maybe he is auditioning for Top Gear.
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Re: Private car leasing

Postby RichieRiv on Thu Mar 16, 2017 8:39 am

sendô wrote:I'm selling my current money sapper and considering going with a lease for ease and peace of mind. We probably only do 5-6k a year, mainly her pottering back and forth around town during the week. Need to weigh that up against the cost of either a bank loan with interest to buy a mid range car that will need servicing etc or else buying and old crapper that will need some regular beating with an iron bar to keep it going.


With leasing you are still borrowing the money and paying interest, the difference is you are borrowing for a shorter period of time and only against the residual value.

The main difference however is you don't have a depreciating asset sitting on your drive.

You tend to find that 6k pa is the lowest mileage option so if you're considering it really look at what you do now over an annual basis as overages are punished.
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Re: Private car leasing

Postby Crouchend_Hammer on Thu Mar 16, 2017 11:09 am

Always owned hand me down cars up until now, usually from my Dad

But with new baby needed something bigger and fancied a new car so went down the lease route.

Father in law is into cars and loves searching out deals so he found a cracking deal

Brand New Volvo XC60, worth 34k. Only going to be paying £210 a month for two years with a £1200 down payment. Seems too good to be true
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Re: Private car leasing

Postby OFT on Thu Mar 16, 2017 11:37 am

We're about to go down this route for the first time.
Her ladyship fancies a change(of car at least :) ) and looking at what we're about to lose selling the one she's got now, leasing seems a reasonable alternative. She's decided what she wants then chosen the exact model based on what is perceived to be the best deal . 600 quid up front then rent for about sixty quid a week, She does very low mileage .
Not chopping her existing car in, will try and sell or If not i'll move mine on and have it.
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Re: Private car leasing

Postby ageing hammer on Thu Mar 16, 2017 1:01 pm

Crouchend_Hammer wrote:Always owned hand me down cars up until now, usually from my Dad

But with new baby needed something bigger and fancied a new car so went down the lease route.

Father in law is into cars and loves searching out deals so he found a cracking deal

Brand New Volvo XC60, worth 34k. Only going to be paying £210 a month for two years with a £1200 down payment. Seems too good to be true



That's only £6240 ? what about the rest of it :eh:
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Re: Private car leasing

Postby FortuneZ on Thu Mar 16, 2017 1:13 pm

ageing hammer wrote:
That's only £6240 ? what about the rest of it :eh:


You're basically paying how much the lease company believe the car will depreciate in value by in 24 months time + Some interest. They then get the car back and flog it.
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Re: Private car leasing

Postby Crouchend_Hammer on Thu Mar 16, 2017 1:33 pm

Which is why it is such a good deal. The depreciation will be greater than that in 24 months time but Volvo don't seem to mind making a loss on it

The only thing i can think of is that there is a new model coming out later this year so Volvo have a few of the existing ones lying around they want to shift sharpish
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Re: Private car leasing

Postby Col Hammer on Thu Mar 16, 2017 1:48 pm

I keep thinking about doing this but it confuses the life out of me :eh: trouble is I do around 15k a year so it doesn't seem like such a good deal as the lower mileage offers
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Re: Private car leasing

Postby RichieRiv on Thu Mar 16, 2017 9:40 pm

Crouchend_Hammer wrote:Brand New Volvo XC60, worth 34k. Only going to be paying £210 a month for two years with a £1200 down payment. Seems too good to be true


Is it on Personal Contract Hire or Business Contract Hire?

These ads you see for Mercedes always appear to be cheap, but they are business users only meaning it has to be run via a company and are ex-VAT.

That said if it is PCH, then that's pretty good deal. Sometimes as you say it can be they want to shift an old shape or model, but occasionally it can be a case of manufacturers wanting to get more a particular model out in the marketplace. Leasing is a good way of marketing and manufacturers are willing to take a hit.

I had 3 mercs purely because they offered great value in comparison with Audi's and BM's. Now BM's are far better value, so that's my motor for the next 2 years.
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Re: Private car leasing

Postby whuben on Thu Mar 16, 2017 10:05 pm

Rich you seem to know what your talking about on this. Ive leased my last 3 cars but I'm thinking about driving to France in the summer. Do you know if I have to inform the lease company about taking it out the country please?
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