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General Chat Thread, Car financing/leasing? in General; Originally Posted by broc with any sort of lease finance plan where you have to return the vehicle, watch out ...
  1. #16

    Edu-IT's Avatar
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    Quote Originally Posted by broc View Post
    with any sort of lease finance plan where you have to return the vehicle, watch out for excess mileage charges as they can add a sting to the end of the term. Also the car upon return has to be in a 'reasonable condition' for its age/mileage.... be sure you know what this means in real terms otherwise they might stick you for costs to bring it up to their standards.....
    They make it clear when you take out the contract what the excess mileage charge is.

  2. #17

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    Quote Originally Posted by Edu-IT View Post
    They make it clear when you take out the contract what the excess mileage charge is.
    Very True; However you have to be mindful of staying within the contracted limits, so changing your driving habits during the lease (e.g. moving home or taking a new job with greater travelling distance) can end up with you having to pick up the excess mileage charges. It is part of the cost of ownership calculation you need to take into account.

  3. Thanks to broc from:

    Edu-IT (26th February 2013)

  4. #18
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    I am currently on a hired purchase deal with Renault. On my second car now, had the first one for 3 years took it back at the end and gave me a new one. £180 a month, due a new one in April might get something a bit more special than a Clio!

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    I'm on PCP car number 4 now. Leasing is usually reserved for business customers and PCP for private customers as the VAt is included in the PCP price. If you consider the payment as just another utility like gas, electric or phone then it's an easy decision to make. In 12 years I've never replaced a tyre, paid for servicing, bought road fund license or worried about repairs. It is stress free motoring. A good trick is too look for cars which retain their values. This reduces the monthly payment as means you can get a better car.

    example:
    Skoda Octavia - £20000 new after 3 years worth £8000 so you are financing £12k.
    Marcedes Benz 300E - £35000 new after 3 years worth £25000 so you are financing £10k.

    Those are not exact but you get the idea

    I've used PCP from garages and from agents, one of the best is lingscars.com. She was rejected from dragons Den and now sells £30m of cars a year. The website is a bit mad but prices and customer service are brilliant..

  6. Thanks to pbainbridge from:

    TechMonkey (26th February 2013)

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    Edu-IT's Avatar
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    I've used PCP from garages and from agents, one of the best is lingscars.com. She was rejected from dragons Den and now sells £30m of cars a year. The website is a bit mad but prices and customer service are brilliant..
    I was shown that, and thought it was a joke...

    Edit: Oh my http://www.lingscars.com/webcams.php#models
    Last edited by Edu-IT; 26th February 2013 at 10:34 AM.

  8. #21
    pbainbridge's Avatar
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    I know, a truly bizarre website but the company was a joy to work with, really easy, online chat for queries as well as a provate mailbox to send electronic documentation. I really would recommend them.

  9. #22
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    They will also provide a DeLorean for £150 over three years......

  10. #23

    Edu-IT's Avatar
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    Quote Originally Posted by Neil-Millgate View Post
    They will also provide a DeLorean for £150 over three years......
    They're ugly?!

  11. #24
    Neil-Millgate's Avatar
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    Yes they are ugly. Thats not the point. Its a DeLorean!!! AND its got a 2.7 V6..... AND it travels in time if you get it up to 88mph


    On a slightly more serious note, I was looking into getting a car on lease but cannot get over the fact that I would be renting the car and paying money for something that I have no ownership of. I realised that I would be perfectly happy trading my current banger in for a car selling for 10k and taking out a loan for the difference. Cant remember the exact figures but over 3 years the lease worked out to £9540 and the loan worked out to £6840. Even allowing for the spread of insurance, MOT, Service, and repairs....to me it works out better doing that with an asset at the end of it.

    I know that one is a new C Class merc and one is a used Discovery TDV6 BUT I would be happy with the Discovery.....

    It really comes down to personal preferance at the end of the day.

  12. #25

    tmcd35's Avatar
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    Quote Originally Posted by Neil-Millgate View Post
    They will also provide a DeLorean for £150 over three years......
    £150 over 3 years? That'll cost you... er, um - a surprise lotto win 3 years ago should cover it

  13. #26

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    Quote Originally Posted by Neil-Millgate View Post

    On a slightly more serious note, I was looking into getting a car on lease but cannot get over the fact that I would be renting the car and paying money for something that I have no ownership of. I realised that I would be perfectly happy trading my current banger in for a car selling for 10k and taking out a loan for the difference. Cant remember the exact figures but over 3 years the lease worked out to £9540 and the loan worked out to £6840. Even allowing for the spread of insurance, MOT, Service, and repairs....to me it works out better doing that with an asset at the end of it.

    I know that one is a new C Class merc and one is a used Discovery TDV6 BUT I would be happy with the Discovery.....

    It really comes down to personal preferance at the end of the day.
    Yeah, you do need to check the figures. If you get a vehicle that is going to depreciate very quickly then leasing just doesn't work out. An example i saw was for a high spec Jag. Ended up being £31k over 3 years for leasing, whereas only £17k for a loan. But you are kinda of comparing apples and oranges. Of course you are going to be paying less for a second hand vehicle and if you look at it from an asset point of view you could take the old adage "If it appreciates, buy it, if it depreciates, lease it."

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    Everybody's been spot on apart from difinity, who is wrong, PCP isn't for business use as such, bainbridge is correct.
    I've had a few over the years and of different types, and i'm picking up a new one on thursday, sending back my current one on the 15th. As anything you like but i think it's just about been covered!

    Difinity - what you're thinking of for businesses is... if a company own or are leasing a car in their name it's company car. Then the employee pays company car tax. The whole point of having a PCP is so that it ISNT a company car - therefore the employee pays no tax, and the company pays no tax. There used to be two ways to do this; you could have a car allowance; which was taxable as a benefit (but usually cheaper than being taxed on a car, as the car you're taxed on list price too), or you could go through something called an ECO scheme (employee car ownership). That scheme was agreed by HMRC as being tax free so how it worked is the company gave you a set amount per month, and you owned thecar, but cosigned by the company. So you had to use a specific leasing company and conform to specific rules, the company would insure the car too, etc. But as it wasn't a company car you didn't have to pay tax. HMRC have now given notice to all companies signed up to this, that this must cease, as they realised they're being done out of tax left right and center. To resolve that my company changed to giving me a cash allowance - but that meant I was taxed on it. And as that left me out of pocket, I made them gross up my salary to cover the tax I was then paying (and the tax i'd be paying on the gross up). Everything worked out fine.

    So yes... PCP isn't just for business. You were kind of right, but thinking of something else.

    The only thing I'll repeat is excess mileage figured, and check out whether it's a maintained lease, or not (IE any out of warranty faults are covered, tyres might be covered as long as you're sticking to the mileage, etc).

    Mic

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