Contract Hire....cheap or catch?
 

Been looking on lingscars (ala Dragons Den) - contract hire on a family car worth 17K+ is about £220pm for 2 years.........wheres the profit for anyone?

I am struggling to see a catch - if you chop cars regular seems a bargain, no?

Well the catch is you never own it. But really all you need to work out is the depreciation & maintenance costs of the car versus the monthly payments - If it works out cheaper to hire, then you haven't really lost anything.

Yep just head over to Contract Hire & Car Leasing UK - Car Lease - Car Leasing Offers TSR where you can find offers against all the lease hire companies, lings is cheap but you can get better deals else where, very cut throat. I did it a few years back with an 02 WRX bugeye. I had it on 3+23 12K p.a. non maintained and the monthly payments were 264+VAT a month, a steal at the time as they couldnt get shot of em. And within months of getting mine the list price was slashed by 3K so a 21K car was now 18K. At the end of the two years it owed me £7K I just handed it back and when I did they were selling privately for around 11K so I was well chuffed.

I would definately do it again, beware some cheap deals where they want 6 monthly payments as deposit instead of the normal 3.

Gary

I'll never buy a car again, it will always be on contract hire. When you consider the depreciation, dealer profits (on buying and selling) and general hassle it's hardloy worth it.

Just about to go contract hire on a new MX-5 2.0l Sport - £266 per month for 3 years direct from the Mazda dealer.

They make a profit because that £17k doesn't actually cost them £17k to buy.