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Do you lease your car ? Was it a good decision? Any tips in searching for one?

(19 Posts)
ITCouldBeWorse Fri 12-Aug-16 17:27:30

I need a car, but the one I own is now a little bigger than I need, and is too powerful for dd to ever be insured to drive so leasing seems like it might be a good idea.

My annual mileage is pretty low ( about 5,000) but likely to drop, and I am drawn to something a little frivolous after years of sensible family cars.

It seems tricky to compare cars and finance deals ( apples and mangoes, let alone pears!) so wondered if anyone had advice.

And which do you recommend, little bit mid life crisis car, or sensible economic hatchback???

BarbaraofSeville Fri 12-Aug-16 23:23:12

If your DD is young, insurance on a mid life crisis car is likely to be eye wateringly expensive.

I have a Skoda Citigo on PCP and it's great. I pay £130 pm for the car, including free servicing and breakdown cover. I didn't have to pay a deposit and the finance is 0% interest. Tax and insurance are very cheap (£20 pa tax, group 2 insurance). That's for 8k miles a year so 5000 miles a year would pay a bit less. Downside is that I am tied in for 3 years and if will need to be in excellent condition when it goes back - I plan to get the scratches repaired before I send it back.

cozietoesie Sat 13-Aug-16 12:30:47

Yes - insuring your DD is certainly a complication if you're minded to go for 'frivolous'. I'd be thinking small and sensible for the foreseeable.

Wotsit1000 Sat 13-Aug-16 16:19:13

Hi,

My wife and I lease both our cars. A lease is different to a PCP in many ways. With a PCP the expectation is you will end up owning the car or trading it in for a new one when you cant pay the balloon final payment, with the lease car there is no contractual right to purchase the vehicle at the end. It really is a rental car but over a longer term.

I have had both PCP (young and stupid) and lease cars (older and wiser).

Benefits of lease - very low cost, much lower than a PCP. Show a dealer a lease offer and they will just say 'sorry' can't get anywhere near. We have the new Audi A4 on lease at £580 deposit and 23 x £224 including maintenance and tyres and a few options. This is on 10,000 miles a year. Lease offers are the best, when dealers what to shift cars the price falls, if you want a specific engine, gearbox and spec then a lease may not seem a lot cheaper.
You get a brand new car every 2-3 years. You never have to have an MOT! You have a warranty, breakdown cover and peace of mind. Credit file - with PCP the entire cost of the money lent and the interest sits on your credit file. with lease it is just the contractual payments so doesn't scare your bank when you go for a new mortgage deal etc...

Down sides - People who do not take care of there cars will end up with damage charges at the end of the contract. The BRVLA sets the allowed damage limits and in my opinion they are generous. I have never had a recharge except for excess milage (same as a PCP would be). Changing cars so frequently means you are almost always shopping for a new car and as you don't 'trade in' the old car (it just gets collected at the end of the contract) you have to work out when to order the new one to arrive in time.

Best websites and companies I have used so know they are genuine:

Central UK vehicle leasing
Gateway2lease
Select car leasing

Hope this helps.

ITCouldBeWorse Sat 13-Aug-16 21:59:35

Thanks very much. I fear you are right about dd and the midlife crisis car. She may have to catch the bus ;-)

cozietoesie Sun 14-Aug-16 14:36:16

Armour yourself against a tidal wave of 'justs' and 'onlys' then. grin( I'll only be going to X Mum', 'I'll just be doing Y, Mum', 'It's only going to be a coffee or two - no drink, Mum' etc etc etc.)

And put the keys on a chain round your neck when you go to bed.wink

Marmitelover55 Mon 15-Aug-16 11:10:49

I w just got a mid-life crisis car and its v cheap to insure for me c.£320 per annum so hopefully won't be too expensive for the DC in a few years time. It's a mini convertible and I LOVE it grin. I have an offset mortgage and added it to that as the cheapest form of finance I could find. It looks like this:

cozietoesie Mon 15-Aug-16 11:32:27

Make no promises to them. wink Insurance companies factor in DCs without initial NCD but with hormones etc. The cost can really cause your heart to skip a beat.

I see no reason why it should improve significantly, either. sad

ITCouldBeWorse Tue 16-Aug-16 21:27:44

Omg marmite! I adore that. It is my pang car! How tall are you? I'm worried it will drive me nuts being little!

Marmitelover55 Wed 17-Aug-16 11:07:37

I'm 5ft4. It's the perfect size for me - I'm really enjoying my midlife crisis grin

ITCouldBeWorse Wed 17-Aug-16 12:04:36

Being quite tall (as is my dd) I fear I am too big. When I have had smaller cars, I have knocked my own head on the sunroof! My high hair dos of previous years have made my car a no go zone!

But I yearn for one!

Marmitelover55 Wed 17-Aug-16 14:32:02

You just need to have the roof open all of the time grin

Katymac Wed 17-Aug-16 14:42:57

Wotsit - what is a PCP?

Do ordinary garages offer leasing? Or just the specialist companies you suggest?

Itcouldbeworse thank you for starting this thread - it has given me lots of things to think about

ITCouldBeWorse Wed 17-Aug-16 19:00:06

Love the idea of driving around roof down in January.

Marmitelover55 Thu 18-Aug-16 23:01:07

I haven't tried that yet but am hoping to with the heated seats in full blast...

pillowsand Mon 22-Aug-16 22:17:55

I would urge anyone to think very carefully about any lease/pcp type deal. Cars only go gown in value. All the examples on this thread add up to over 4K each.

Have a google of Dave Ramsey and his opinion on lease cars (fleece cars)

We now own 14yo cars that have next to no resale value but we hold no debt on them. We can take that monthly payment and invest it instead.

We did have to save up to buy our cars though. It was slow going but basically about 3k each then we were done.

cozietoesie Tue 23-Aug-16 12:58:26

I'll confess that we've nearly always bought (good quality) used cars for cash which we had saved up. Then maintained them rigorously and driven them into oblivion. (By which time we'd always saved enough for a new one.) There was one occasion that we leased a car - and that was an expensive proposition in the end.

Fluffycloudland77 Thu 25-Aug-16 16:12:53

Dh fits in minis & hes 6'3".

It went back because the gear box was faulty and the paint had runs in it. He ended up working for the man who was dealer principle when BMW bought it back.

Awkward.

Poppiesway Tue 30-Aug-16 21:12:44

I have a salary sacrifice car via my works scheme (although this ends in April 2017)
This was a good deal for Me. Apart from the monthly payment I've only had to pay fuel and the insurance excess when 2 idiots drove in to me within days of each other resulting in two new doors and a back panel.
although it's cost me a good amount over the past three years it's been a life saver.
I was left with no car after splitting with ex, I had debt collectors knocking on door when ex left for debts I didn't know existed, which meant I couldn't get a loan as my credit score was zilch. the car doesn't show on my credit file and I've managed to rebuild my score.
I don't want to continue once this contract has ended as I don't want to keep paying out but for now the lease / salary sacrifice car has been worth it. And I can downsize cars again as ds1 will be at uni and only ds2 and I left to fit in a car.

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