Personal Car Leasing

[volospian]

OK, with the new job I need a new car. I get a car allowance, albeit not a huge amount, but I don't mind adding some myself to get something nice. The company policy states that the car must be no more than 6 years old when the allowance scheme is renewed, and the scheme lasts for a 3 year period (if that makes sense...) so my options are:


My first thought was that I would get a loan and buy a used car, but the car must be less than 3 years old or I may have to change it after three years as it would be on the cusp of 6 years when the next three year period starts. Now, obviously I could get a decent spec vehicle, but I would be restricted to a personal loan for this option and they're not that cheap...

I could buy a brand new car. To keep the costs down a bit, I could buy it on one of those "you'll still owe us this much after 3 years" deals and then either get a new one at the end of the finance, of if I like it, buy it outright and pocket the allowance for a few years. For the repayments I could afford, this may restrict the levels of trim and options though..

Lease a car on personal lease contract. This, after a few quick searches, seems to be a cheaper up front cost, with similar payments to the new car finance options (depending on make and model, of course) but you don't end up with anything at the end of the scheme. Again, I may have to take a hit on trim and options....

I don't necessarily mind not ending up with anything as I'd buy it on a GFV type finance deal from a deal, so I'd still potentially end up with nothing there anyway... My leanings are towards second hand, but I do like the idea of owning a brand new motor.

What have you guys done? Any advice? Thoughts?

And before anybody starts suggesting suitable vehicles, it can't be a convertible :D

[Kitten]

I'd do the personal lease. When I was in motoring, I wrote a LOT about the pros and cons of personal leases and to be honest, people always trot out the 'but you don't get anything for it at the end'.

However, what you usually end up doing otherwise is forking out a ton of cash in a lump sum for a car that is already 3 years old & will be worth absolutely nothing in a few years and will cost you a fortune in upkeep. If I had the option again, I'd do what I did last time, take the allowance, take a 3 year lease (Renault are currently upgrading after 2 years to a brand new plate for £5 extra a month and LOTS of car companies will do the same to keep you with them), and keep getting a new, high spec motor that you probably couldn't afford to buy otherwise, every couple of years.

Alternatively, something like a brand new Megane coupe 2.0 Turbo sport 16v works out at around £300 inc VAT

At the end of the day, if you hired a car, you'd pay more. It's the same thing, really, just cheaper. If however, you think you're going to need a car to keep - maybe to pass on to the other half or something while you get another, then a balloon option can work really well for you too.

[volospian]

, people always trot out the 'but you don't get anything for it at the end'.



Yeah, and I'm pretty much of the same opinion to you regarding that idea. It kind of doesn't matter that you don't actually end up owning anything as with the PCP type alternatives you still end up having to pay a balloon payment or end up with nothing anyway.

It's good to get some advice, cheers :)

[Kitten]

Some info on the pros & cons here : (forgot to mention the mileage one - that can be a killer, so be careful!)

http://www.askaprice.com/car-leasing.asp

http://www.askaprice.com/personal_contract_hire.asp

This is the company I used to provide copy for, only reason I'm pointing you to them, not to actually go through them :)

[Desmo]

people always trot out the 'but you don't get anything for it at the end'
It's still a valid point though, depending on your circumstances and needs/wants.

I sometimes look at leasing but then always go back to "what if my circumstances change?". A change of jobs could mean losing your car totally. If you can't afford the repayments for some reason at least there's an end in sight and you're left with a car you own.

For me, it's not about chucking money away on "renting" but more about the long term change in circumstances and making sure I still have a car available to me.

[Kitten]

Tis indeed a valid point and does depend entirely on your circumstances & priorities :)

[Zirax]

Merc are doing some bonkers deals atm. The one to look out for which gets wheeled out quite often is 24mnths/10k/fully maintained E-class 220D Executive for £400/m. Alas I do over 10k else there would already be one infront of my house. Leather, toys and it even massages your ass while stuck on the M25.

I've given up looking for the moment and I'll run the Mondeo heap for another 6 months to a year. Because nobody is buying premium cars, the prices are way over book :(

I have said to my dad about it if he ever gets rid of my Focus. The maintained Fiat 500 prices are ridiculously cheap.

[Del Lardo]

I'm leasing my Megane at the moment, works out at ~£210/month inc VAT for 15k/year. I probably could have saved money by buying an older diesel hatch on a loan and selling it after 3 years but frankly the saving wouldn't have been that huge once you take into account maintenance and consumables and the lack of hassle if it breaks.

There were some astounding deals of C-Class diesels a few weeks ago and at the moment the new Civic seems very good value. It's an awful website (part of the charm) but keep an eye on http://www.lingscars.com/

[Zirax]

Just to save you some agro as I did the leg work before. This lot were doing the deals:-
http://www.gbvehiclecontracts.co.uk/Vehicle-Leasing/Cars/Derivative/Mercedes/E-Class-Coupe/E220CDi-Sport-Coupe-Auto/4400/Mercedes-E-Class-Coupe-E220CDi-Sport-Coupe-Auto-Leasing-and-Contract-Hire-at-GB-Vehicle-Contracts.html

I used to look on these websites for offers. There will be a new batch tomorrow:-
http://www.nationwidevehiclecontracts.co.uk/
http://www.contracthireandleasing.com/personal/car-contract-hire-and-leasing/mercedes-benz/e-class/

[Zirax]

Wait a minute...... aren't you the chap with the supercharged Jag?

[volospian]

Wait a minute...... aren't you the chap with the supercharged Jag?

Yep, but it's now ~7 years old (2005) and so is considered not suitable for company use... :huh:

[kaiowas]

Would anyone catch on if you just stuck a dateless plate on it? ;)

[volospian]

Would anyone catch on if you just stuck a dateless plate on it? ;)

I had thought about that, but they need to see the documentation :(

[volospian]

Well, I decided to go for a PCP option in the end. I liked the idea of leasing, but personal leasing wasn't that cheap.

I ended up ordering a Jaguar XF 2.2D 190 Sport in Kyanite Blue with the winter pack and parking pack options.

[Del Lardo]

Well, I decided to go for a PCP option in the end. I liked the idea of leasing, but personal leasing wasn't that cheap.

I ended up ordering a Jaguar XF 2.2D 190 Sport in Kyanite Blue with the winter pack and parking pack options.


Very nice car, how much if you don't mind saying?

[volospian]

~£33,700.

[Del Lardo]

~£33,700.


How did that work out with the PCP?

[volospian]

Just under £500 a month, but I'm using it for business so the mileage is quite high.

[volospian]

Quick pic of new motor, taken by garage when the car arrived...

http://sdrv.ms/KN6yJi

You don't seem to be able to use [img tags for Skydrive and I can't embed iframe in here either (or at least I don't know how to...) so there's just a link