Leasing
 

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Good morning, Uncle Creepy. Dunno who recently got perma-banned here, but Ooperbum is actually the alter ego of Will/Mr. Impreza. Both his prior alter egos were banned a while ago, I think. I may be inaccurate with the banning information, but Ooperbum is definitely Will. He just has a screw or two on the loose, in his upper storey- that's all. :D

About Subaru related posting, to be fair, many of us don't own Subarus any more, but we defiantly stick about; like a bad habit with a bad habit. :D So, you will not hear much Subaru talk from quite a few of us here on NSR tbh.

About leasing a car, it's for the posers. Just buy a car and own it, like normal people do.

LOL hope your main query gets answered by some habitual posers here. ;) :D

On a lease car who pays for maintenance, servicing, brakes, other wear and tear items?

This is why I never have and never will lease/finance a car. It doesn't make sense to me because I don't like to lose a lot of money all the sake of owning a brand new car. If you can afford to lose that sort of money then why not just buy outright? I'm happy in my old bangers :thumb:.

If you do really want that brand new performance car, it would be way better to hold back a year and buy it outright second hand once it's dropped £8k in the first year. Also as discussed in that other thread, all these lease car deals are for mainly poverty spec cars and if you want the good extras it really bumps up the payments. Plus you still have to pay for all your own consumables such as tyres, pads and oils I think(?).

Don't really know as I've never leased a car myself but don't dealers tend to offer a lower initial list price to those who are leasing as opposed to someone turning up with cash.

Seems fairly ridiculous to me as I'd have thought a cash buyer would always have been the best customer but I guess that somehow they make more money from leasing. And if it's BMW all the other crap they try to sell you - "tyre insurance" :rolleyes:

Wouldn't a lease be ideal for your business Mr Sherratt

Why would there? No need for us to have brand new performance vehicles :lol1:. I only do about 5000 miles a year due to not having to travel to work and I'm very happy with my old Subaru and Saab estate. My Father has a Hilux Invincible for farm duties and isn't interested in cars. He's into his Harly Davidsons :lol1:.

From what I've seen, leasing contracts can include maintenance, but obviously the monthly payments are higher.

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You do realise most new BMW/Audi/Mercs/VW's on the road aren't actually owned by the drivers? :thumb: :lol1:. I'm not sure where all the older cars have gone because I never see that many on an '05 plate or older. I would be interested to see some statistics if there are any available I.e how many brand new cars have been bought outright vs finance/lease agreement across all the brands for the year 2014.

Depends on the lease cost of the car vs its value. If £18-20k over 3 years gets you a repmobile and you aren't doing mega miles, then I'm spending less than that owning things like GTR, A8, S8 etc.

OTOH, M135i and Golf R could be cheaper to lease as they aren't cheap, but the lease costs are.

Wife leases her M3.
It's expensive, but her car allowance almost covers it, and with maintenance at around £300 per year included.

Just hit 9k miles in 10 months and it's due new rear tyres. (Approx £500 ish)
At least the maintenance costs will be more than she pays for it, as it'll need at least another full set of tyres, a service and brake pads before the 3 years is up.

It may have been possible to buy one just slightly cheaper, but I feel the depreciation on these is going to be pretty big... and it's not her problem trying to get rid of it..

Don't see how leasing is for posers - it works for some, not for others.

I lease Ford Fiesta for the wife, 4 door and it's black, she ferries the grandkids around' shopping etc. 3 months up front, then 35 payments £149 +vat I can claim half the vat back and the rental goes as expenses against my income, with income tax at 40% it seems like a good deal to me. I called it a lease but it's actually called contract hire, exactly the same just a different name

Leasing by PCP, which is the most popular way now, works best for people who want to change their vehicle for a new one every two or three years. The reason being that the agreed value at contract end is pessimistic, which means that the extra value can be used as part of the down-payment on the next vehicle, as trade-in is based on market price rather than the agreed value if it is higher.

I was teasing with the 'poser' word, Zip. I know that 'on lease' provision works better for some, and it's down to one's personal choice and convenience.

With my tease I was actually connecting expensive cars 'on lease' to their driver posers of the kind who keep their shades on :cool: even when they're driving in rain or in dark, and the ones who make a show by having a mobile valater come and valate their aeroplane in the office car park. We have a man like that in our offices with a minter Audi. He well knows that he drives the best car among us hence the pose. :D To be fair, he seems to be a normal chap, not a narcissistic sort at all.

PCP v Outright Purchase example deal:

New STi £29k
Paying a £5k deposit

PCP
48 monthly payments of £365(ish)
Total spend on 4 year PCP deal is £17520
At the end you can either hand car back or sell it.

OUTRIGHT PURCHASE
Take remaining £24k out on loan you would pay £540.09 (roughly) a month x48
Total £26k
At the end you will have a car worth £12k (ish)

PCP you would have spent £17250 with nothing to show for it but a purchase you would have spent £26k but got a car worth £12k so you would have spent £14k. So it is a few thousand more to PCP the car but you will have a car at the end you will need to sell where the PCP you can hand it back. Basically depends on circumstances to what is best method.

Think that's how it would work.

With PCP you can't sell the car to recoup some of your costs as you haven't bought it in order to sell. You either hand it back and take out another PCP deal, or pay a remaining inflated large sum to actually buy the car off them (on top of what you've already been paying per month to have the pleasure of driving the car). I think that's what you meant anyway...

You can sell a car on a PCP whenever you like as it's similar to straight HP, except you're paying interest on a deferred sum. (So monthly payments are less than the equivalent HP)
Like HP, you can get a settlement figure anytime during the loan period, sell the car and pay it off.

Another angle to look at with leasing is if the car is on a maintained contract...i.e The lease company pays for servicing and repairs etc.

On principal it sounds fine; But problems arise with how the company manages it.

You may have to take the car to a particular garage which maybe out of your way, or they pick it up but be unable to delivery it back in the same day due to the distance. You may not have a courtesy car; This could be a problem if you don't get the car back when you expect it, and delays do happen, most companies use the "One-link" system to try and automate it all, in reality it can result in work being massively delayed due the lease company not answering garage requests via one-link in a timely manner, or worse still work being rejected becuase the person responsible doesn't understand the requests or the wrong box has been ticked on the system. In short its a pain in the arse meaning you may not see your car for several days for a simple service becuase the lease company took a day to authorise the work when its too late to start the job! There is nobody to phone to try and expidite any issues - its all computer based.

However, sometimes it works perfectly; Its all down to who handles the "inbox".