Sarnie Posted December 18, 2008 Share Posted December 18, 2008 Does anyone have any info or links for this? I need to get the Mrs a family car. I've been looking at 330d Touring, X5's Q7' etc. The thing is I'm loathed to put my cash into any of them because of the spanking you'd get on a new version of any of the above. That lead me to leasing one but I've never even looked at leasing a car, i've always owned them. What should I expect to pay? What are the pitfalls? Can you get ones with the servicing thrown in? With the economy in the state its in i want to keep my money in the bank...... Any advice would be great! Quote Link to comment Share on other sites More sharing options...
nurrish Posted December 18, 2008 Share Posted December 18, 2008 The biggest pitfall is that you get board of the car and your stuck with it! or pay off the rest of the lease (which i did) because i couldn't wait another year to get my zed!!! Theres no point having the servicing in there because on new cars very little should need doing. Unless of course you are thinking of leasing for long term. Also the car is never yours and i was always worried of something happening to it and then being screwed down the japs eye by my lease company!!! Other than that can be ideal for some people Quote Link to comment Share on other sites More sharing options...
bobby Posted December 18, 2008 Share Posted December 18, 2008 get 12 month leases.....slightly more expensive than 3yr leases etc...but brilliant if you prefer to change cars...and the same leasing company will get you brilliant deals on the next car to keep you on their books. Quote Link to comment Share on other sites More sharing options...
Sarnie Posted December 18, 2008 Author Share Posted December 18, 2008 The biggest pitfall is that you get board of the car and your stuck with it! or pay off the rest of the lease (which i did) because i couldn't wait another year to get my zed!!! Theres no point having the servicing in there because on new cars very little should need doing. Unless of course you are thinking of leasing for long term. Also the car is never yours and i was always worried of something happening to it and then being screwed down the japs eye by my lease company!!! Other than that can be ideal for some people I'm not bothered about getting bored of it because its going to be for carting round the Mrs and Sarnie Jnr when he arrives. I understand the car will never be mine thats fine if I avoid depreciation. from my figures a new 330d Touring is about £35k new. In 2/3 years its likely to have lost half that value which would be about £17,500 or so. So leasing one for about £350 x 36 months = £12,600 means I'm about £5,000 better off. Who did you lease via? Is £350 per month realistic? I have no idea whatsoever to guestimate costs of leasing........ Quote Link to comment Share on other sites More sharing options...
Sarnie Posted December 18, 2008 Author Share Posted December 18, 2008 get 12 month leases.....slightly more expensive than 3yr leases etc...but brilliant if you prefer to change cars...and the same leasing company will get you brilliant deals on the next car to keep you on their books. I don't think we'd be bothered about changing it too much as it'd be the family wagon............does anyone have any links to companies they have used? Quote Link to comment Share on other sites More sharing options...
nurrish Posted December 18, 2008 Share Posted December 18, 2008 check this out buuuuuudy http://www.contracthireandleasing.com/cars/BMW/3-Series_Touring/ You need to put down a hefty deposit though as your initial payment...usual 3 months in 1 Quote Link to comment Share on other sites More sharing options...
nixy Posted December 18, 2008 Share Posted December 18, 2008 don't they base some of the cost on the miles you do? If you say you'll do less miles it's cheaper but if you go over they hammer you? I don't suppose she'll do that many will she? You might get a really good deal. I have a friend that works for BMW selling on the corporate side and I'm round there tonight so I'll ask her what she knows about it. Quote Link to comment Share on other sites More sharing options...
nurrish Posted December 18, 2008 Share Posted December 18, 2008 don't they base some of the cost on the miles you do? If you say you'll do less miles it's cheaper but if you go over they hammer you? I don't suppose she'll do that many will she? You might get a really good deal. I have a friend that works for BMW selling on the corporate side and I'm round there tonight so I'll ask her what she knows about it. Yeah your very right. The more miles you you have on your lease the more your going to pay. If you go over the amount of miles aloud on your lease you get charged .25p a mile. Quote Link to comment Share on other sites More sharing options...
Sarnie Posted December 18, 2008 Author Share Posted December 18, 2008 don't they base some of the cost on the miles you do? If you say you'll do less miles it's cheaper but if you go over they hammer you? I don't suppose she'll do that many will she? You might get a really good deal. I have a friend that works for BMW selling on the corporate side and I'm round there tonight so I'll ask her what she knows about it. Yeah your very right. The more miles you you have on your lease the more your going to pay. If you go over the amount of miles aloud on your lease you get charged .25p a mile. That fine as I don't think she'll do more than about 6-7k as for the first 12 months she's gonna be on maternity leave..... 3 months payments as a deposit? what happens with your deposit? Do you get it back at the end or just not pay the last three months? Quote Link to comment Share on other sites More sharing options...
nurrish Posted December 18, 2008 Share Posted December 18, 2008 Nope......its theres....... Quote Link to comment Share on other sites More sharing options...
nurrish Posted December 18, 2008 Share Posted December 18, 2008 When you look at a lease it will say 3+35 or 3+23....this means 3 monthly payments upon the lease commencing and then 35 payments of the monthly rate Quote Link to comment Share on other sites More sharing options...
marzman Posted December 18, 2008 Share Posted December 18, 2008 I've been looking at leasing for the last few weeks... i think its got to be much better than ownership. http://www.broker4cars.co.uk/pcp-car-finance.htm Fill in the details for your choice of car etc... Its slightly more expensive than i was expecting though... i think you're looking at close to £500 a month on a 35k car, over 4 years Quote Link to comment Share on other sites More sharing options...
Digsy Posted December 18, 2008 Share Posted December 18, 2008 I've been looking at leasing for the last few weeks... i think its got to be much better than ownership. http://www.broker4cars.co.uk/pcp-car-finance.htm Fill in the details for your choice of car etc... Its slightly more expensive than i was expecting though... i think you're looking at close to £500 a month on a 35k car, over 4 years A PCP isn't leasing. Quote Link to comment Share on other sites More sharing options...
Sarnie Posted December 18, 2008 Author Share Posted December 18, 2008 I've been looking at leasing for the last few weeks... i think its got to be much better than ownership. http://www.broker4cars.co.uk/pcp-car-finance.htm Fill in the details for your choice of car etc... Its slightly more expensive than i was expecting though... i think you're looking at close to £500 a month on a 35k car, over 4 years Cheers for that. I don't think i could stomache paying £500 a month to lease a car. I'd rather keep my money in the bank, get a low rate loan and buy the car outright. The interest gained on the money in the bank would negate the loan interest. I'd hoped that leasing would come out at about £300 a month or less but it seems not............ Quote Link to comment Share on other sites More sharing options...
Sarnie Posted December 18, 2008 Author Share Posted December 18, 2008 I've been looking at leasing for the last few weeks... i think its got to be much better than ownership. http://www.broker4cars.co.uk/pcp-car-finance.htm Fill in the details for your choice of car etc... Its slightly more expensive than i was expecting though... i think you're looking at close to £500 a month on a 35k car, over 4 years A PCP isn't leasing. Whats the difference? Quote Link to comment Share on other sites More sharing options...
nate247 Posted December 18, 2008 Share Posted December 18, 2008 I have done both a lease and a PCP in the past and the only thing that I would say is that either way, you still end up paying for the depreciation of the car... Its just these financiers are very good at hiding it, making you think that its a great idea and that you are paying less, when in some instances you end up paying more because of them being in the equation (i.e as middle men). Also the current high APR's will have a bearing on how cheaply they can borrow as the cars are never owned by the leasing companies, rather the banks. Personally, my advice (for what its worth) is that if you have the money, go out and find a second hand deal on a nearly new motor as above. You'd still get the warranty and somebody else would have taken that initial hit. You can never tell the difference either once the dealers valeter's have got their hands on it either. In the current climate and considering the cars you have earmarked, you should be able to find a cracking deal on something and I have a mate who works for Audi and might be able to source something. However if you want to lease, because borrowing still isn't that cheap for companies at the moment. I honestly can't see you getting that great a deal buddy. By far and away the cheapest was is nearly new. Leasing is for people like me that lack in both money and sense lol Quote Link to comment Share on other sites More sharing options...
H5 Posted December 18, 2008 Share Posted December 18, 2008 Unless you go for a car that doesn't depreciate as much, or you get a good guaranteed minimum value at the end of the term, you will still pay for what you've used. The other complication with leases on new cars, is you really need gap insurance to cover the finance. As soon as you drive off the forecourt it loses a fortune and unless you have the cash somewhere, if someone hits you, you are still liable to pay the finance. And since second hand cars are worth pence, you'd be up a creak. If you want a good deal, I would suggest getting a secured loan on the car and buy a second hand one. I can put you in touch with someone to help you out if it helps. Especially if you fancy a used XC90..... Quote Link to comment Share on other sites More sharing options...
Pagnobito Posted December 18, 2008 Share Posted December 18, 2008 For a 330D touring you would be looking at around £450 a month plus 3 months deposit upfront, and that is without any extras, which on BMW is a list as long as your arm. As has been said you would be better off nearly new in this climate you should have plenty of room to get a good deal on a premium motor. Quote Link to comment Share on other sites More sharing options...
Sarnie Posted December 18, 2008 Author Share Posted December 18, 2008 XC90?? Just had a quote for £459 per month for a 320d M-Sport Auto with 10k pa over 3 yrs and 3 payments up front. Thats without ANY options. I only asked about sat nav and that put it up £40 a month. Not feeling the love that really I would never buy new, thats a given, especially in this climate. I might look at a straight finance purchase instead and buy one 12-24 months old......at least then the payments are going towards paying off the car and its an asset that can be sold/px'd at anytime then.........hmmm......... Quote Link to comment Share on other sites More sharing options...
nate247 Posted December 18, 2008 Share Posted December 18, 2008 Definitely the right decision buddy. As I said earlier, these leasing companies don't own the car and merely use a financier to bear the costs. They just sit in the middle and cream what they can. With lending rates high between banks, I just thought it would be harder to get a bargain at the minute. When we were in this credit bubble and lending costs were low, I might have said there wasn't much in it. Still then though, the best way by far is to finance yourself and buy nearly new. Your repayments will be lower as you will get a better APR and likewise you are not building quite so much depreciation in to the equation either. Just seen that Nationwide have dropped their unsecured personal loan rate to 7.9% which isn't bad. Thats only up to £15k though and I presume you would probably need more than that? Just been on Pistonheads as well and there look to be lots of bargains about at the minute so I am sure you will find what you are looking for Quote Link to comment Share on other sites More sharing options...
Digsy Posted December 18, 2008 Share Posted December 18, 2008 How good the contract hire rates are really varies model to model. Two cars in the same price rang can be £100s different in their monthly rates. For example, look at this £43k car... http://www.ama-southeast.co.uk/process. ... l&id=25626 The problem you've hit on Liam is that any car that doesn't come loaded needs speccing and when I enquired about that with the company that leases to my business partner they simply took the price of the option (sat nav, metallic paint etc) and divided it by however many months there were in the lease - effectively you're buying the options but have to give them up at the end of the term. This wasn't a problem for me on the Zed as there aren't many options and they threw in the paint. So the moral is, there are leasing bargains to be had but you need to hunt around and not be too picky on model and choose something which is well specced as standard. As you might imagine, run out models can be great value - just look at the R32s available at £260 a month! Its worth mentioning too that for sole traders/partnerships contract hire is the most tax beneficial option and you can claim back half the VAT on the payments. Oh and a PCP has the option of purchasing the car outright at the end of the deal, contract hire doesn't. Quote Link to comment Share on other sites More sharing options...
marzman Posted December 18, 2008 Share Posted December 18, 2008 Hmmm, i didnt realise that PCP and Leasing were different. In my mind, i have no intention of buying the car at the end of the term - so in that case, im only looking at the monthly payments for the car. So how does leasing weigh up against PCP there? If i wanted, for example a Porsche Cayman and i know i could afford say, £500 a month for 3 years - then surely PCP/Lease is best for me. I dont have money in the bank, and would be very reluctant to get a loan for a used Cayman... as i've been spanked on my zed - i still owe over £11k, and its probably worth £8k at most - i can only see that happening on a larger scale with a Cayman Quote Link to comment Share on other sites More sharing options...
nate247 Posted December 18, 2008 Share Posted December 18, 2008 In principle the two schemes are different but when you break it down to the basics, you have a car worth say £30'000 and a middle man (i.e the dealer / leasing company). You buy the car from them and they finance it with a bank or in house finance company. Drive car for 3 years, both depreciate as much as one another... worth the same amount at the end of the term. Where each in my experience has differed is that leasing companies tend to underwrite the 3 year valuation of the car (after depreciation) much closer to the bone. i.e Parkers might state its worth £17'500 after 3 years and they pretty much push it to that. A bit like mortgage brokers used to elaborate on peoples salary so you could get a higher mortgage. Leasing companies push the final valuation to make their offers look more attractive. Dealers with PCP's however tend to be more conservative (some would say responsible) and generally pitch it low, which means that your monthly cost is normally higher in comparison to a leasing company (as you are paying more capital off) but at the end of your 3 year term you normally have a couple of grand equity (if you like) ready to put towards your next car. i can't remember what the term is they use for the final valuation I am sorry but hope the above makes sense. Anyway, I am yet to find a dealer that is cheaper than a leasing company for those very reasons and like I say, the marketing of each scheme is different but the principles are generally the same... Car, You, middle Man & Bank + Car worth the same after 3 years... Quote Link to comment Share on other sites More sharing options...
Digsy Posted December 19, 2008 Share Posted December 19, 2008 In principle the two schemes are different but when you break it down to the basics, you have a car worth say £30'000 and a middle man (i.e the dealer / leasing company). You buy the car from them and they finance it with a bank or in house finance company. Drive car for 3 years, both depreciate as much as one another... worth the same amount at the end of the term. Where each in my experience has differed is that leasing companies tend to underwrite the 3 year valuation of the car (after depreciation) much closer to the bone. i.e Parkers might state its worth £17'500 after 3 years and they pretty much push it to that. A bit like mortgage brokers used to elaborate on peoples salary so you could get a higher mortgage. Leasing companies push the final valuation to make their offers look more attractive. Dealers with PCP's however tend to be more conservative (some would say responsible) and generally pitch it low, which means that your monthly cost is normally higher in comparison to a leasing company (as you are paying more capital off) but at the end of your 3 year term you normally have a couple of grand equity (if you like) ready to put towards your next car. i can't remember what the term is they use for the final valuation I am sorry but hope the above makes sense. Anyway, I am yet to find a dealer that is cheaper than a leasing company for those very reasons and like I say, the marketing of each scheme is different but the principles are generally the same... Car, You, middle Man & Bank + Car worth the same after 3 years... On a PCP the general idea is that the final lump sum (guaranteed minimum future value) should be less than true value so that if you sell on immediately you have another deposit to take out a new PCP. Of course, in a market like this most cars have depreciated far more than they were expected to and the reality for those coming to the end of 2 or 3 year deals is that their cars are worth less than the GMFV. The beauty of a PCP is that rather than make the payment you can just hand the vehicle back and walk away. However, as Nathan rightly says, the PCP payments will be likely to have been more than those for regular contract hire (a lease) and at the end of the deal you are in the same situation - no car, no deposit. Lease purchase is similar to a PCP except the final payment is not a guaranteed value and you could be left with a car worth less than you owe. Quote Link to comment Share on other sites More sharing options...
H5 Posted December 19, 2008 Share Posted December 19, 2008 XC90?? Just had a quote for £459 per month for a 320d M-Sport Auto with 10k pa over 3 yrs and 3 payments up front. Thats without ANY options. I only asked about sat nav and that put it up £40 a month. Not feeling the love that really I would never buy new, thats a given, especially in this climate. I might look at a straight finance purchase instead and buy one 12-24 months old......at least then the payments are going towards paying off the car and its an asset that can be sold/px'd at anytime then.........hmmm......... Yeah, if you have an imagination! A 320d??? Personal loan can be the most effective way of doing it. As Digsy says, options can kill it and there are some good deals out there for run out models. Takes some time though.... Quote Link to comment Share on other sites More sharing options...
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