£2000 or finance?

oh well you can still have a cravat

 

That's a great car for £200, but leasing sounds like a never ending loan with nothing at the end. I already rent my home! We bought an ex- Motability Scheme Citroen which is perhaps the best thing to look out for. Low mileage, serviced regularly; the loan is paid off now and has never needed a repair apart from tires and brake pads, it's ten years old.

 

I think the point in leasing is that you can effectively have a nice car for less than the depreciation.

You can buy most rented cars at the end of you want but for £20K I can think of better things to spend it on, or carry on renting.

Mate of mine has a VW Golf R goes like a rocket and again £200 pm. It's a cheap way of getting a new car.

 

That doesn't make sense... how would the leasing company make their money?

 

Take a £16k car lease it to someone for £3k for 3 years, get it back and sell it for £14k make an easy grand, if you had a decent accountant you could probably offset the depreciation from your tax bill.

 

OK, but there are deals to be had to anyone, surely... if they're making money, someone's got to be paying for it.

Hmmm... So if the depreciation is low, but the cost to you is less than the depreciation... doesn't make sense.

OK, so in that example (which doesn't seem all that plausible to be honest) the depreciation is 2k, cost to whoever's leasing the car is 3k. How's that less than the depreciation?



In any case £200 a month for three years is £7200. After which you end up with f all. Doesn't sound like a great deal to me.

 

I think its more a case of they would not sell any new cars if people had to buy them .

 

Well, you pays your money, you takes your choice. I get your point - I can see that leasing is a good option if you feel you need to be driving a new car, what I can't see is that it's a good deal (i.e. financially a smart move). Also company cars are a bit different - company image and all that, and also offsetting depreciation against tax. My father in law has been having a long running argument with his firm because he refuses to replace his 15 year old Mondeo. He gets some kind of mileage allowance which works out the same as a company car, but he's supposed to have a new car every few years. He bought it new but hasn't washed it since he got it! Love it!

FWIW I am happy driving a "crap" car. It does the same thing as an expensive one...but it's not the only option other than leasing. You can buy a really nice car for £7K - the amount you'd spend on leasing over three years, and if you bought shrewdly enough, you could sell it after 3 years and make a profit! OTOH, if you bought a newish "normal" car, you might lose a couple of grand when you sell - you still end up 5 grand better off than leasing.

It just comes down to what you want. If you want a new car it's going to cost you money.

 

That is very cheap, so you and/or your company pay £200 for the lease of the car and BIK?

 

@Razzyh - heck of a deal. What % deposit are you putting down?

I lease cars, as I cannot be bothered to buy and sell second hand ones. the carI lease at the moment is one that I think I will keep after the lease is done. Just because I like it so much, it also costs me a fortune. But hey its only money

 

Sorry that wasn't meant to be a financially accurate example, but just give the idea of how it works for the company, not the leaser, it cost the leaser more than deprecation, the lease company then make that as profit, so in my case I'm paying £200 a month for a £16k vehicle over 2 years, so in 2 years I would have paid £4800, the car will be worth more than £11,200 (£16,000 - £4800 = £11,200).

The lease company get the vehicle originally for less than the normal price from mass purchase so that adds a bit, the cars that have the best deals tend to be high MPG with low depreciation, but if a manufacturer has a huge bulk to shift they will let them go to lease companies for even less than normal, which is why you get a lot of the same vehicle over a certain period. The manufacturers also use lease companies to get rid of leftover models when they have a significant model change.

Its not for everyone, some people see it as me paying £4800 (in my case again) for something I never own, but the reality is to HPI the same car, without a deposit, I pay a higher monthly payment, and at the end of the term, would have paid more money, and unless I find a huge Final Value payment I have to trade the car in a start again, so I never get to own the car regardless. Sorry if I did't make sense earlier, or even now!

 

Anyone know any deals on a small city car? looking at a c1 or i10 etc

 

Have a look here

http://www.contracthireandleasing.com

That's what my mate used for his golf R

C1 from £70 per month