TechMonkey Posted February 25, 2013 Posted February 25, 2013 Anyone have any experience of car financing or leasing? Had a head on collision 3 weeks ago, all ok but my poor beast is no more. Obviously I now need to get a replacement car and I'm not the best at finance and the like. I've noticed leasing as an option and wondered if anyone had any experience of it on here? I know it would end up never actually owning a car and perpetually having to replace it but at least then I have a known cost each month and a reliable car. Then there is PCP (I think) that seems almost the same as leasing but just done through the car company, with more flexibility on how much upfront and the subsequent costs and with the option to buy at the end with a lump sum. Any tips and advice otherwise?
glennda Posted February 25, 2013 Posted February 25, 2013 I have literally just signed up for a Personal Lease. There are pros and con's to it for me its a positive as i would change a car every few years anyway as I'm a bit of a ponce so actually not having to put a huge lump sum down first is a good thing and the monthly payments when I looked where only around £5/10 more than I would have been paying on a car loan to own the car to then sell in a few years time. the only negatives to it are if you plan on buying a car and keeping it for the real long term. I used Nationwide Car Leasing as an Agent and they were pretty good. 1
TechMonkey Posted February 25, 2013 Author Posted February 25, 2013 That's brill glennda, that is who I have kinda been sniffing round so it's good to know they are all right. I usually end up keeping my car until it conks out but only because I'm useless about sorting out selling, and then end up with a junker and have to stump up a large chunk. Much the same thoughts as you. Can I ask do they sort the Tax for you or do you do it? & being cheeky what did you go for & roughly how much? Did they haggle at all or was it one price and that's what you pay?
difinity Posted February 25, 2013 Posted February 25, 2013 PCP is usually when a company provides a company car but doesn't want the hassle of dealing with any of the car companies. They give the employee a set amount of money each month so the employee can pick any car in his budget. My friend had a car through PCP so i can ask him anything in particular if you require. 1
TechMonkey Posted February 25, 2013 Author Posted February 25, 2013 I'm not talking about PCP then, no way I'm getting a company car Hire Purchase maybe then.
andrew_91090 Posted February 25, 2013 Posted February 25, 2013 (edited) I've had 2 financed cars now, Pro's of getting a finance are if you pay early, you don't owe as much interest (interest if based on time supposed to amount loaned) and if you fancy a change half way through the finance agreement, you can ring the company up and give the car back (the company will then auction off the car to pay off the rest of your finance), cons are you can not sell this privately until the finance is completely paid off. If you know your not going to pay off the car for a long time, it maybe worth looking at loans from banks, as this means the car is 100% yours to do what you want with and may end up cheaper. Edited February 25, 2013 by andrew_91090 1
glennda Posted February 25, 2013 Posted February 25, 2013 That's brill glennda, that is who I have kinda been sniffing round so it's good to know they are all right. I usually end up keeping my car until it conks out but only because I'm useless about sorting out selling, and then end up with a junker and have to stump up a large chunk. Much the same thoughts as you. Can I ask do they sort the Tax for you or do you do it? & being cheeky what did you go for & roughly how much? Did they haggle at all or was it one price and that's what you pay? The tax etc is all sorted by the Finance company (in my case FG somebody or other) I got an Alpha Giulietta at £250pm It doesn't necessarily have to be a company car. If you want to keep a car until it dies then leasing isn't really for you. After 3 years I will give the car back to the leasing company and get a new one. What @andrew_91090 is not leasing - with leasing you never own the car. Leasing is more like a rental scheme. 1
Netwacky87 Posted February 25, 2013 Posted February 25, 2013 I typically buy a car every 3 years...I dont see how leasing would be beneficial tbh, a £330 a month car * 36 is 11880.00, you can buy it for a little bit more and its still worth something you own to part ex when you've finished? I just dont get why its beneficial...?
glennda Posted February 25, 2013 Posted February 25, 2013 I typically buy a car every 3 years...I dont see how leasing would be beneficial tbh, a £330 a month car * 36 is 11880.00, you can buy it for a little bit more and its still worth something you own to part ex when you've finished? I just dont get why its beneficial...? For me i am doing the following: 253*36 = £9108 + £700 = £9808 + £180 fee to agents total cost and no requirement to pay road tax at all the car I am buying ORT price is £21,000 and I don't need to worry about any parts failure (warranty) or MOT's as its a brand spanking new car (no MOT for 3 years) 1
TechMonkey Posted February 25, 2013 Author Posted February 25, 2013 I'd rather not keep a car until it dies as I've found it just causes more cost, stress and issues. @mmoseley: They way I was shown to compare is you find the car price and the expected resale value after 3 years. For leasing Times the payments by 36 and add any deposits and fees. This is the total leasing costs. Do the same for what you would pay on finance/loans/however you are going to pay for the car and then minus the resale value. This is the price to compare. You can also imagine you are paying with cash and subtract the resale cost from the current price and see what that would be. So far I've seen costs of about half the price of the car when leasing so can't see a downside as long as you are happy changing every 3 years and not owning it. & glennda highlights what I'm thinking about extra costs, no Tax, no servicing (if you get it included) and no MOT.
MordyT Posted February 25, 2013 Posted February 25, 2013 I keep the car until it dies, which will be never. 334,xxx miles and counting. Not helpful, I know.
glennda Posted February 25, 2013 Posted February 25, 2013 I keep the car until it dies, which will be never. 334,xxx miles and counting. Not helpful, I know. I used to drive round in a 4.4lt Nissan Patrol - had done nearly 750,000 miles 9 clutches (we towed lots of heavy trailers in mud), 2 head gaskets and 3 radiators but the engine block was solid as a rock. My old boss still sold it for £1500
john Posted February 25, 2013 Posted February 25, 2013 oooh you should have made a crazy offer to @michael2k6 for his Alfa its never yet made a month without a visit to the garage as much as he loves Julie he's glad to be rid of her after less than a year
glennda Posted February 25, 2013 Posted February 25, 2013 oooh you should have made a crazy offer to @michael2k6 for his Alfa its never yet made a month without a visit to the garage as much as he loves Julie he's glad to be rid of her after less than a year Good job the garage is less than 100 yards away from the office
broc Posted February 26, 2013 Posted February 26, 2013 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.....
Edu-IT Posted February 26, 2013 Posted February 26, 2013 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.
broc Posted February 26, 2013 Posted February 26, 2013 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. 1
captaincharisma Posted February 26, 2013 Posted February 26, 2013 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!
pbainbridge Posted February 26, 2013 Posted February 26, 2013 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.. 1
Edu-IT Posted February 26, 2013 Posted February 26, 2013 (edited) 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 Edited February 26, 2013 by Edu-IT
pbainbridge Posted February 26, 2013 Posted February 26, 2013 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.
Neil-Millgate Posted February 26, 2013 Posted February 26, 2013 They will also provide a DeLorean for £150 over three years......
Edu-IT Posted February 26, 2013 Posted February 26, 2013 They will also provide a DeLorean for £150 over three years...... They're ugly?!
Neil-Millgate Posted February 26, 2013 Posted February 26, 2013 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.
tmcd35 Posted February 26, 2013 Posted February 26, 2013 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
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now