Meet the Other Phone. Protection built in.

Meet the Other Phone.
Protection built in.

Buy now

Please or to access all these features

Chat

Join the discussion and chat with other Mumsnetters about everyday life, relationships and parenting.

Leasing cars

16 replies

Anordinarymum · 03/08/2021 17:26

I am looking into leasing a car as opposed to buying. I have no car atm and am keen to get something quickly.

Please, any of you out there with any experience in leasing a car? Can you share your pros and cons with me so I don't make stupid mistakes.
I don't want to have too long a contract and would like something decent that is not overly expensive
I'm not bothered about mileage either. My last car, I only did about 4000 miles per year in it

Thank you

OP posts:
JamieFrasersBigSwingingKilt · 03/08/2021 17:37

Compare prices on the Parkers website and negotiate, negotiate, negotiate with the 2 or 3 cheapest providers. Create a spreadsheet so you can work out total ownership costs over the complete term. This should include deposit, brokers fee and total monthly payments. Good luck!

LadyLolaRuben · 03/08/2021 17:43

I love leasing cars. You can give it back and look forward to your next car without the hassle of selling. Just make sure you get the right estimated mileage per year. The lower the cheaper the lease fee. But just note the pence per excess mile. Its not punitive, mine is about 9p so £180 per thousand miles. I dont let it stop me doing excess mileage (life is for living) but just budget for it on handover. I also budget for re-furbing the alloys before handing back as I'm a bugger for scuffing them. I give it a good valet before handover. I've never received an invoice when I've returned a vehicle. Enjoy your new car!

Mrswalliams1 · 03/08/2021 17:49

We've done it for 10 yrs. No hassle, give the car back and get another. We use Nationwide vehicle contracts as we've always found them the cheapest.

Interested in this thread?

Then you might like threads about this subject:

Anordinarymum · 03/08/2021 17:51

How long do you lease for?

OP posts:
LadyLolaRuben · 03/08/2021 18:07

3 years is generally the average lease time

Mrswalliams1 · 03/08/2021 20:50

We usually do 3 yrs

Summerbubbles · 04/08/2021 09:29

Does anyone know what happens with the deposit for a lease deal? So if for example I paid £2.5 upfront payment and in three years want to get a new lease with the same company, does the deposit carry over or would I need to find another upfront payment?

Anordinarymum · 04/08/2021 13:59

@Summerbubbles

Does anyone know what happens with the deposit for a lease deal? So if for example I paid £2.5 upfront payment and in three years want to get a new lease with the same company, does the deposit carry over or would I need to find another upfront payment?
Good question. I would like to know the answer to this also
OP posts:
Kazzyhoward · 04/08/2021 14:02

No it's usually not a refundable deposit, so you don't get it back. It's more of an advance payment of the lease payments.

Kazzyhoward · 04/08/2021 14:07

@JamieFrasersBigSwingingKilt

Compare prices on the Parkers website and negotiate, negotiate, negotiate with the 2 or 3 cheapest providers. Create a spreadsheet so you can work out total ownership costs over the complete term. This should include deposit, brokers fee and total monthly payments. Good luck!
Excellent advice to do a spreadsheet of all the costs, including any "balloon" payment at the end should you wish to keep the car.

Another thing to watch is that lease firms like to quote prices before VAT, especially for business customers, so if you're not a VAT registered business, you need to add 20% to all payments, as that's what they'll be taking from you. I.e. if it's advertised/quoted at £200 per month plus VAT, then what you have to pay is £240 per month, same with balloon payments, if it's says £2000, the you pay £2400.

There are quite a few "traps" that can catch you out as the lease agreements are usually complex and some have several different types of payment. I.e. you may get quoted a 48 month deal at £200 per month (so you think total cost is £9600), but then they want a deposit, usually at least 3 or 6 months, so say 6 months, that's £1,200, so the total is £10,800, which isn't the 48 months they said, it's actually 54 months.

Finally check whether you own the car or not at the end. Some leases give you option to buy, sometimes that's a nominal amount, say £50, sometimes it's a balloon payment that could be thousands. So at the outset you need to think whether you want to pay for it for 3/4 years and then keep it or whether you want to hand it back. The monthly payments can be very different depending on what you want to do at the end.

Anordinarymum · 05/08/2021 12:45

I am slowly going off the idea tbh. The last post above has made me think it's a bit of a minefield with the 'hidden' costs.

Currently back on 'autotrader' looking at second hand motors again and feeling a bit deflated

OP posts:
MiaowMiaow99 · 05/08/2021 13:40

Weve just finished our first lease and will definitely do it again. So much easier than negotiating with dealers when buying or selling.
Look out for deals on particular cars as they can be bargains.

Agree, get a spreadsheet. Make sure you know what you are signing up to, as you would any purchase.

Summerbubbles · 05/08/2021 15:12

@Anordinarymum

I am slowly going off the idea tbh. The last post above has made me think it's a bit of a minefield with the 'hidden' costs.

Currently back on 'autotrader' looking at second hand motors again and feeling a bit deflated

What sort of car are you looking for? The more I look, the more sense it makes to lease, over three years the total cost is cheaper than the cost of a PCP or HP deal on a 3/4 year old car (which by the time it's a 7/8 year old car won't be worth very much) and there won't be the additional cost of extended warranties, repairs, road tax etc. I've even found deals where the first year of insurance is included for free too.
Cocomade · 05/08/2021 15:18

We lease and find it so much better!
Brand new car every few year, owning a car out right doesn't bother us we enjoy the freedom of being able to pick new.
We've not have any hidden costs, we've always stayed within the mileage, only thing we've had to pay for is scuffs on tyres etc but it's only ever been £200 at the most!

Procrastatron · 05/08/2021 18:15

If you work do you have a salary sacrifice work lease scheme? It’s very cost effective for electric cars if you pay tax (more so at the higher rate)

Anordinarymum · 05/08/2021 22:08

Summerbubbles

Ideally I would be looking at buying a second hand motor for cash. No HP. This is what I have been busy doing until he mentioned some of the guys at work lease their cars and recommend doing it

I want something reliable but decent to look at with boot room (not a saloon)

I only do about 4K miles per year.

It's my partner who would be paying for the car what ever we decide to do, not me, so I want to be careful about how much it all costs.
I'm not bothered about new either. Just nice to look at and nice to drive... and cheap:)

I want my cake and eat it don't I?

I would have probably spent about 6K only on a second hand motor and am quickly realising leasing will be far more costly.

OP posts:
New posts on this thread. Refresh page
Swipe left for the next trending thread